Aircraft manufacturer in line to make new Red Arrows goes into administration

An aircraft manufacturer that was in line to build the next generation of Scottish Red Arrows has gone into administration, bosses have announced.

Aeralis Ltd said on Friday night it had appointed David Buchler and Joanne Milner of Buchler Phillips as the company’s administrators.

It said the move comes in response to financial problems due to continued delays to the UK Defence Investment Plan, as well as geopolitics impacting its funding.

A previous agreement between Prestwick Airport and the firm would have meant the manufacture of fighter planes.

The new administrators will work with management staff and stakeholders to support the Aeralis programme in another structure.

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.”

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.”