If this course had been proposed 12 years ago when I started my OU degree, I would have been interested.
For what it's worth I think that the key to such an enterprise will be the quality of the course materials and tuition.
The OU courses are very good. Distance learning is their core buisness and they are experts at it.
I also have experience of distance learning courses from a conventional university which were very poorly presented and supported in comparison with the OU (though the residential element was good).
OU quality standards should be the benchmark for distance learning. You could perhaps take the core engineering and mathematics courses from the OU (including mathematical models and methods and fluid mechanics courses), then just add the specialsist aeronautics courses from the awarding university.
I imagine the requirement would be for a M Eng degree recognised for MRAES / C Eng status.