Aeralis, the UK-based developer of a modular light jet aircraft platform pitched as a potential future replacement for the Royal Air Force’s Red Arrows, has entered administration.
Aeralis, which employs 30 people appointed Buchler Phillips as joint administrators on May 15. The company blamed the bankruptcy on sustained pressure on cashflow, caused by continued delays to the UK Defence Investment Plan (DIP) and geopolitical factors affecting funding sources.
Aeralis had been developing a family of modular light jet aircraft built around a common core fuselage, with interchangeable wings, empennage and cockpit arrangements intended to cover roles from basic and advanced training to aerobatic display and light attack. The design remained digital-only, with no aircraft built or flown.
Robin Southwell, chairman of Aeralis 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.”
Much of the company’s marketing had focused on positioning the aircraft as a UK-designed replacement for the BAE Systems Hawk T1 flown by the Red Arrows, which is scheduled to retire in 2030. The company had also identified Glasgow Prestwick Airport in Scotland as the intended site for final assembly of UK production aircraft, according to FlightGlobal.
The Royal Air Force’s Hawk T2 advanced jet trainer is also being replaced under a fast jet trainer program. Competitors to supply a training jet system include a BAE Systems, Boeing and Saab consortium pitching the T-7A Red Hawk, alongside the Leonardo M-346 and KAI T-50.
A UK government decision on the trainer requirement had been expected to follow publication of the DIP, which sets the Ministry of Defence’s funding priorities and was originally due in autumn 2025. According to the BBC, Qatar’s state-owned Barzan Holdings was the main investor in Aeralis, but has withdrawn funding because of the US-Israeli war with Iran.
Joanne Milner of 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.”
The administrators said they will continue working with management and stakeholders to assess strategic options for the business and its assets, including opportunities to secure investment and support the continuation of the Aeralis program in an alternative structure.
