(TAN): American Airlines will invest in Vertical Aerospace, a leading UK-headquartered engineering and aeronautical business developing electric vertical takeoff and landing (eVTOL) aircraft, the airline said.
As part of its investment in Vertical, American has agreed to pre-order, subject to certain future agreed upon milestones and other terms, up to 250 aircraft, representing a potential pre-order commitment of USD 1 billion, and an option to order an additional 100 aircraft. The airline also expects to make a USD 25 million investment in Vertical through a private investment in public equity (PIPE) transaction.
Vertical is developing the VA-X4, a zero-carbon aircraft that can carry four passengers and a pilot, and fly at speeds up to 200 mph over a range of over 100 miles.
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“Emerging technologies are critical in the race to reduce carbon emissions and we are excited to partner with Vertical to develop the next generation of electric aircraft,” said Derek Kerr, chief financial officer at American. “For years, American has led the industry in investing in newer, more fuel-efficient aircraft…. We are excited about the prospect of what this could mean for our customers, and our company.”
These aircraft could potentially transport customers quickly around urban city centers and to airports. Vertical plans to conduct its first test flight of the VA-X4 later this year, with certification of the aircraft as early as 2024.
Virgin Atlantic is also collaborating with Vertical.
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