Electric
Air Mobility Venture, Vertical Aerospace, Announces 1,000 Aircraft Pre-Order
- Our Bureau
- 09:29 AM, June 11, 2021
- 488
Vertical
Aerospace Group said it has pre-orders for up to 1,000 eVTOL aircraft with
launch customers Avolon and American Airlines, along with a pre-order option
from Virgin Atlantic, all valued at up to $4 billion.
The company
said it entered into a definitive agreement for a business combination with
Broadstone Acquisition Corp., a special purpose acquisition company. The
transaction will result in Vertical becoming a publicly-traded company, with a
pro forma equity value of approximately $2.2 billion. Vertical will be listed
on the New York Stock Exchange following the combination, which is expected to
close in the second half of 2021, under the ticker EVTL.
Vertical
is also announcing today investments from American Airlines, Avolon, Honeywell
and Rolls-Royce, who have invested in the PIPE and are part of Vertical’s
strategic partner ecosystem; Microsoft’s M12, 40 North and Rocket Internet SE
have also invested in the business.
Commercial
partnerships and individual conditional pre-orders have also been agreed with
American Airlines, Virgin Atlantic and Avolon for up to 1,000 aircraft in
total, providing a direct route to market and opportunity to work together on
key go-to-market workstreams.
Vertical’s
mission is to make air travel personal, on-demand and carbon-free through
designing, manufacturing, selling and servicing one of the world’s best eVTOL
aircraft, the VA-X4. It will travel at speeds over 200mph, be near silent when
in flight, produce zero emissions and at low cost per passenger mile.
The
VA-X4 is expected to be certified to the same standards as large commercial
airliners and therefore is expected to be 100x safer than a helicopter.
Vertical intends to certify the VA-X4 to European Union Aviation Safety Agency
(EASA) standards – the most stringent global standards – in order to unlock a
large UAM TAM of $1 trillion by 2040, with an upside TAM of $4.4 trillion by
2040.
American
has agreed to pre-order, subject to certain conditions precedent and future
agreed upon milestones, up to 250 aircraft, and an option to order an
additional 100 aircraft. Avolon has agreed to pre-order up to 310 aircraft with
an option for a further 190, and Virgin Atlantic has an option to purchase
between 50 and 150 aircraft.
In
addition, all parties will work together towards the prompt certification and
deployment of aircraft in commercial operations. In the United States of
America, American Airlines expects to work with Vertical on passenger
operations and infrastructure development.
In the United Kingdom,
Virgin Atlantic and Vertical expect to work together to explore the joint
venture launch of a Virgin Atlantic branded short haul eVTOL network, including
operations and infrastructure development.
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