A Bristol-based aerospace business that was competing to develop a replacement jet for the RAF's Red Arrows has collapsed into administration, resulting in the loss of 30 jobs.
Company Background
Aeralis, headquartered at Bristol's Aztec West Business Park, was developing a modular aircraft design for the Royal Air Force and aimed to deliver the first fully British-crewed military jet since the 1970s. The company's modular light jet aircraft platform was intended to support military training, operational support, and aerobatic display requirements.
The firm had established significant intellectual property, strategic partnerships, and advanced digital engineering capabilities during its development programme.
Financial Difficulties
Aeralis was pinning its hopes on securing a government contract to replace the Hawk jets, which are due to be retired in 2030 and are currently flown by the famous military aerobatics display team. However, following a period of financial difficulty, the company was placed into administration on Friday.
The company's board appointed David Buchler and Joanne Milner of London-based Buchler Phillips as joint administrators. The collapse follows a sustained period of pressure on the company's cashflow, with the business blaming "continued delays" to the UK Defence Investment Plan, combined with geopolitical factors affecting sources of funding.
Statements from Leadership
Robin Southwell, chair 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."
Joanne Milner of Buchler Phillips added: "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."
External Factors
According to the BBC, Barzan Holdings - the investment and procurement arm of Qatar's Ministry of Defence, which was a large investor in the business - had withdrawn funding amid the Iran war. It is understood a potential agreement with the French government also failed to materialise, compounding the financial issues.
Next Steps
Aeralis said the administrators would continue to work closely with its management and stakeholders to assess strategic options for the business and its assets, including opportunities to secure investment, preserve value, and support the continuation of its programme in an alternative structure.
