'Genuinely disgusted': Collapsed 900 Gosport jobs bid for new RAF jet blamed on 'shameful' government inaction
.jpg?width=96&crop=1:1,smart)
Aeralis wanted to build a purely British advanced jet trainer, but the company became financially crippled by cashflow problems
“Shameful” delays and a lack of urgent action caused an extensive jobs bid for Gosport to collapse.
Aeralis planned to support hundreds of high-skilled roles in the Portsmouth area if its plans to build an Advanced Jet Trainer (AJT) were accepted by the Ministry of Defence (MoD). Based on a modular design with different uses for the RAF and Royal Navy, it was one of the options tabled to replace the Blackhawk T1 and T2.
These bold ambitions have gone up in flames after the company plunged into administration, with its employees losing their jobs. Cashflow issues were cited as the main cause of the financial crisis.
Decisions on what will supersede the current BAE Systems craft have been pushed back until the publication of the Defence Investment Plan, the document that aims to announce funding priorities for projects and reforms over the next decade. Originally due to be published last Autumn, it has been delayed for several months, with many businesses having to make cutbacks due to a lack of guaranteed investment.
A source with knowledge of the Aeralis situation said they were “genuinely disgusted” with how the firm was treated by the MoD. “Our existing training platform, the BAE Hawk T2, is proving grossly unreliable; resulting in only a fraction of the training hours required,” they told The News.
“A reliable replacement is something we need as a country. Instead of the MoD encouraging innovation, they’ve done everything they can to get in the way. Gosport needs skilled workers and jobs. Not making a decision has made the decision for them. It’s shameful. They have no finger on the pulse.”
“Victim of stasis”
Other financial complications caused issues for Aeralis. The company's main investor Barzan Holdings, the strategic investment and procurement arm of Qatar's Ministry of Defence, withdrew its funding amid the US-Israeli war with Iran. A potential deal to make jets for the French government was never concluded.
The News understands that this interest was significant and they were keen to sign a procurement contract, but wanted to wait for the UK to follow suit. No decision was made, so the deal fell apart. Interest in the company peaked when CEO Tristan Crawford said “significant jobs” would be brought to the Portsmouth area and across the UK if its designs were approved.
The firm previously said over 900 jobs would be supported in the supply chain across the Gosport and Hamble area once AJT production reached full rate. They planned to draw on expertise from StandardAero in Fleetlands and Hamble Aerostructures to produce the jet. It aimed to be fully modular and adaptable for use by the Red Arrows aerobatic team, as a training platform, and even boasting a maritime variant for use on HMS Prince of Wales and HMS Queen Elizabeth.
Gosport MP Dame Caroline Dinenage, Conservative, was a supporter of the proposed deal and blamed Labour for it failing. “Delays to the Defence Investment Plan are driving defence firms to breaking point,” she said. “Aeralis was a victim of Government stasis, but there are tangible impacts on local employment in Gosport if smaller firms in the production chain are not given investment certainty."
“Feast and famine”
Aeralis appointed Buchler Phillips as joint administrators to oversee the process. The business has effectively been mothballed amid intentions to try and secure further investment from a new buyer. The defence sector is currently in a state of flux.
Some businesses have been awarded significant new contracts and have been expanding as a result. A total of 300 roles were secured at StandardAero themselves after a large three-year £879m helicopter maintenance contract was agreed between the MoD and Boeing - cementing 150 Gosport jobs there. UK Docks at Victoria Quay also signed three agreements worth £84m maintaining Royal Navy ships.
Others haven’t been so lucky. Samira Braund, defence director for ADS Group - a defence and aerospace trade association - previously described the situation as a “feast and famine” environment when speaking to the defence select committee.
Shadow defence secretary James Cartlidge, Conservative, said: “These are the real-world implications of Labour’s dither and delay. The Defence Investment Plan is now 10 months late and their failure to publish it is actively damaging to our sovereign Defence Industry. Labour needs to get a grip. Britain and our Armed Forces deserve better.”
How likely was the bid to be accepted?
Aeralis faced major competition in the bidding process from larger firms. Saab, Boeing and BAE Systems signed a letter of intent to outline the terms to build procure the T-7A Red Hawk, currently used by the US Air Force.
Despite several of the materials coming from abroad, reassurances were made to assemble the aircraft in Britain. Aeralis‘ product has only been digitally designed, with the company stating it needed government backing ahead of production to make sure it met all requirements.
Justin Bronk, a senior research fellow at the RUSI think tank, raised scepticism. He told the BBC that the Aeralis pitch was “purely theoretical”, with “its only attraction is the promise of UK jobs at some point.”
“Its downsides include high programme and development risks, and long realistic timeframes until any serviceable aircraft might be delivered, compared to alternatives that already exist,” he added. “A strong fast jet training pipeline is fundamental to all other UK combat air capabilities, so risk should not be taken with ensuring it is modernised rapidly and with high levels of assurance.”
Mr Bronk added that jet trainers developed by Leonardo, or the Boeing/Saab in partnership with BAE Systems, were "low-risk, high-quality" options that "could be delivered from the late 2020s".
The Strategic Defence Review recommended that the Hawk T1 and T2 be replaced by a cost-effective alternative, with a team being established to deliver the capability. No timeline has been set despite the T1 being having a 2030 out of service date.
Prime minister Sir Keir Starmer is continuing to push Labour’s defence spending credentials, raising it to 2.6 per cent of GDP by 2027, with an ambition for core spending to climb to 3.5 per cent by 2035 alongside Nato guidelines.
An MoD spokesperson said: “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.”