Red Arrows in turmoil as British firm behind next generation of jets collapses

Aeralis, a British aerospace firm developing a successor to the Red Arrows' jets, has fallen into administration.

Around 30 workers have lost their jobs following the company's collapse.

The firm had positioned itself as the only option to design and manufacture an advanced jet trainer in Britain.

Aeralis had hoped to secure a Government contract to supply aircraft replacing the RAF's Hawk jets, which are scheduled for retirement in 2030.

The company filed for administration on Friday.

Chairman Robin Southwell said the decision came "after careful consideration of the company's position and the funding challenges it has faced over recent months".

Administrators attributed the collapse to "a sustained period of pressure" on cashflow following "continued delays to the UK Defence Investment Plan, combined with geopolitical factors affecting sources of funding".

The BBC revealed Barzan Holdings, the investment arm of Qatar's Defence Ministry - and Aeralis's primary backer - pulled its funding amid the war in Iran after earlier raising its stake in the firm to just under 25 per cent.

Negotiations also fell through to produce jets for the French Government.

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

She said she hope the administration process would allow exploration of options to preserve value for stakeholders.

An MoD spokesman said: "The fast jet trainer programme is ongoing and no final procurement decisions have been made."

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The department added: "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 per cent of the spend going to UK-based companies."

Last year's Strategic Defence Review recommended replacing the Hawks with a "cost-effective, advanced trainer jet".

The review also suggested MoD procurement should favour British businesses to boost the UK economy.

But the long-awaited investment plan implementing these recommendations has faced significant delays.

Sir Keir Starmer told MPs this week the plan was being "finalised" and last night approved an £18billion increase in defence spending amid his bid to save his job.

Justin Bronk, a senior research fellow at the prestigious Rusi think tank, described the Aeralis option as "purely theoretical".

He said its only attraction was the promise of UK jobs at some point".

Mr Bronk also warned of "high programme and development risks, and long realistic timeframes until any serviceable aircraft might be delivered, compared to alternatives that already exist".

RAF officials were rumoured to have been considering Russian-made M-346s as a replacement for the aging Hawks last year.

Jet trainers from Italian firm Leonardo or the Boeing/Saab partnership with BAE Systems were "low-risk, high-quality" options deliverable before the 2030 deadline, Mr Bronk added.

Tristan Crawford, Aeralis's founder and CEO, told GB News last year: "We really have everything here [in the UK]... it would be an absolute travesty if we didn't exploit that supply chain to generate a new British aircraft."

BAE Systems is collaborating with Boeing and Saab to develop the T-7 jet as a replacement for the Hawks, and has confirmed the craft will be made in the UK.

Leonardo said its M-346 jet was being assessed for emerging requirements.