British firm vying to build next Red Arrows jets collapses

A British aerospace company that was developing a replacement for the famous Red Arrows fighter jet has gone into administration, resulting in the loss of about 30 jobs.

Aeralis had pitched itself as the only British firm able to supply a new advanced jet trainer that would be designed and built in the UK.

The firm was hoping the UK government would award it a contract to replace the Hawk jets currently flown by the RAF's Red Arrows before they are due to be retired in 2030.

The administrators said the company had faced "a sustained period of pressure" on its cashflow after "continued delays to the UK Defence Investment Plan, combined with geopolitical factors affecting sources of funding".

A Ministry of Defence (MoD) spokesperson said: "The fast jet trainer programme is ongoing and no final procurement decisions have been made.

"More broadly, this government is backing British jobs, British industry, and British innovators - since July 2024, we have signed 1,200 major contracts, with 93% of the spend going to UK-based companies."

The BBC has been told the company's main investor Barzan Holdings, the strategic investment and procurement arm of Qatar's Ministry of Defence, withdrew its funding amid the US-Israeli war with Iran.

A potential agreement Aeralis was exploring to make jets for the French government also failed to materialise.

The company filed for administration on Friday.

In a statement, Joanne Milner from administrators Buchler Phillips, said: "Aeralis has developed a highly differentiated proposition within the aerospace and defence sector.

"We hope that the administration process will provide an opportunity to explore routes to preserve and develop that value for stakeholders."

Aeralis chairman Robin Southwell said the decision to go into administration had been taken after "careful consideration of the company's position and the funding challenges it has faced over recent months".

"We will continue to support the joint administrators as they explore viable, sustainable options for the future of the business and engage with interested parties."

In an interview prior to Aeralis going into administration, Southwell told the BBC the delay in the investment plan was making life "very difficult for companies such as ours and others".

He urged the UK government to give "clarity and direction" to the MoD to "allow companies like ours to start generating the jobs, opportunities, ambitions and exports that this country clearly needs".

Last year, the UK government's Strategic Defence Review recommended the Hawks should be replaced by a "cost-effective, advanced trainer jet".

The review suggests that MoD procurement should prioritise British businesses to benefit the UK economy.

The MoD is considering options to replace the Hawk jets.