11 June 2021
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3 min read
The firm envisages its electric air taxis beginning commercial operations in 2024 | Credit: Vertical Aerospace
Electric air taxis primed for take-off in 2024 as Bristol-based start-up secures investment and pre-orders from host of major airlines
Bristol-based start-up Vertical Aerospace has announced pre-orders for 1,000 of its electric aircraft taxis alongside investment from a host of global airlines, as it gears up to float on the stock market later this year as part of a newly-announced $2.2bn merger deal.
The electric vertical take-off and landing (eVTOL) aircraft developer, which was founded by OVO Energy CEO Stephen Fitzpatrick in 2016, today said it aimed to begin operating zero emission commercial flights in 2024, subject to securing safety certification.
The firm's ambition is to deliver on-demand, zero carbon, short-distance air travel through its VA-X4 model aircraft, which it claims are near-silent and can fly more than 100 miles at a time at speeds of over 200mph. Each aircraft comes with a price tag of around $4m, it said.
Vertical Aerospace plans to go public on the New York Stock Exchange later this year after today announcing a merger with Broadstone, a special purpose acquisition company. It is aiming to raise $394m from the float to support further growth, valuing the firm at $2.2bn or $10 per share, it said.
Moreover, American Airlines, aircraft leasing giant Avolon, US conglomerate Honeywell, engineering powerhouse Rolls-Royce, and Microsoft's M12 venture capital fund have also all invested in the newly-merged company, alongside investment firms Rocket Internet and 40 North.
A host of companies have also placed conditional orders for 1,000 of the electric air taxis in total - altogether worth around $4bn - Vertical Aerospace revealed today. The company believes it will be able to break even and secure profitability from annual sales of less than 100 aircraft.
American Airlines has, subject to certain conditions, pre-ordered up to 250 aircraft with an option to order an additional 100, while Avalon has conditionally pre-ordered up to 310 aircraft with an option for a further 190, and Virgin Atlantic also has an option to purchase between 50 and 100, the firm said.
All companies placing orders have further agreed to work together "towards prompt certification and deployment of aircraft in commercial operations", Vertical Aerospace said.
Fitzpatrick, Vertical Aerospace CEO, described the current juncture as "the most exciting time in aviation for almost a century" as he predicted electrification would transform flight in the 21st century "the same way the jet engine did 70 years ago".
"Today's announcement brings together some of the largest and most respected technology and aeronautical businesses in the world and together we can achieve our aim of making the VA-X4 the first zero carbon aircraft that most people will fly on," he said. "The United Kingdom is already a global leader in aerospace innovation and we believe Vertical Aerospace will be the British engineering champion to drive the aviation industry forward."
Having completed its first eVTOL unmanned demonstration flight in 2018 over the Cotswolds, the firm believes the market for electric air taxis is set to surge in the coming years.
Battery technology is more advanced for powering small, lightweight aircraft capable of travelling short distances than for typical passenger planes, where significant technical challenges remain if they are to shift away from fossil fuels.
As such, should it achieve certification from air travel safety standards regulators in the US and Europe, Vertical Aerospace believes it could unlock a potential total market for electric air taxis of between $1tr-4.4tr by 2040.
Shai Weiss, CEO of Virgin Atlantic, said that in addition to its air taxi pre-order, the airline was also exploring a joint venture alongside Vertical Aerospace "to bring short haul, electric vehicle connectivity to cities and our UK airport hubs, starting with London Heathrow as well as Manchester and London Gatwick".
"With innovation and sustainability leadership firmly in our DNA, we are excited to be partnering with Vertical Aerospace to pioneer sustainable and zero emissions air travel in the UK," he said.
