British jet developer Aeralis has entered administration following funding shortfalls and ongoing uncertainty about the UK’s future trainer aircraft requirement, including who will provide a replacement for the Hawk.
The company’s board confirmed the collapse and attributed its difficulties to “continued delays” in the UK Defence Investment Plan, in addition to geopolitical events that disrupted access to investment.
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In addition, the withdrawal of support from Aeralis’s principal backer, Barzan Holdings, part of Qatar’s Ministry of Defence procurement portfolio, reportedly intensified the company’s difficulties.
Barzan ended its involvement amid regional tension connected to the US-Israeli conflict with Iran, according to information given to the BBC.
Efforts by Aeralis to secure an agreement with the French Government also fell through.
The board appointed David Buchler and Joanne Milner of Buchler Phillips as Joint Administrators to manage the process and explore possible options for the company’s assets.
Aeralis chairman Robin Southwell said: “The Board has taken this decision 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.”
Aeralis had been working on a modular light jet platform that aimed to support military pilot training and serve as a potential successor to the BAE Systems Hawk, used by the Royal Air Force’s Red Arrows.
In addition to Aeralis, other contenders for the UK trainer jet programme include BAE Systems, which has partnered with Boeing and Saab to promote the T-7A Red Hawk, and Leonardo, whose M-346 aircraft is already in service with several international air forces.
Meanwhile, Ministry of Defence spokesperson told the BBC: “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.”
Aeralis administrators will work with company management and stakeholders to review strategic options for safeguarding the company’s assets and seeing if investment can be secured.
Joint Administrator Joanne Milner 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.”
