Red Arrows future hit by UK firm’s administration with 30 jobs lost

Aeralis had positioned itself as the only UK firm capable of designing and manufacturing a new advanced jet trainer domestically, with hopes of securing a government contract ahead of the RAF’s planned retirement of its Hawk aircraft in 2030.

The Red Arrows are a familiar sight across Oxfordshire skies, frequently flying over the county during training sorties, with RAF Brize Norton serving as a major nearby base and RAF Fairford just over the border in Gloucestershire.

The potential replacement of the Hawk jets has therefore been of particular local interest, given the region’s close ties to RAF operations and aviation activity.

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Administrators said the firm had faced “a sustained period of pressure” on its cash flow following “continued delays to the UK Defence Investment Plan, combined with geopolitical factors affecting sources of funding”.

The Ministry of Defence said the programme to replace fast jet trainers is ongoing, with a spokesperson adding: “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 reported that Aeralis’s main investor, Barzan Holdings, withdrew funding amid tensions linked to the US-Israeli war with Iran, while a potential deal with the French government also failed to materialise.

The company filed for administration last month, and Joanne Milner, from administrators Buchler Phillips, said: “Aeralis has developed a highly differentiated proposition within the aerospace and defence sector.

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“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 move followed “careful consideration of the company’s position and the funding challenges it has faced over recent months”.

Mr Southwell added: “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.”

Prior to the collapse, Mr Southwell had warned that delays to the government’s defence investment plan were making life “very difficult for companies such as ours and others”.

He urged ministers to provide “clarity and direction” to allow firms to generate jobs and exports.

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The government’s Strategic Defence Review last year recommended replacing the Hawk with a “cost-effective, advanced trainer jet”, with rival bids from companies including BAE Systems and Leonardo already under consideration.

Justin Bronk, of defence think tank RUSI, said the Aeralis proposal was “purely theoretical, and its only attraction is the promise of UK jobs at some point”.

“Its downsides include high programme and development risks, and long realistic timeframes until any serviceable aircraft might be delivered, compared to alternatives that already exist,” he said.

He added that proven options could be delivered more quickly, stressing the importance of a reliable fast jet training pipeline for the UK’s wider combat air capabilities.