The company has pre-orders from its backers for up to 1,000 planes.
By Lou Whiteman
Air taxi start-up Vertical Aerospace Group said late Thursday it intends to go public with nearly $400 million in new funding from a number of big-name partners who have also agreed to order up to 1,000 aircraft.
Vertical has a deal to merge with special purpose acquisition company (SPAC) Broadstone Acquisition (NYSE:BSN). The deal values the combination at about $2.2 billion and includes investments from American Airlines Group (NASDAQ:AAL), air-leasing company Avolon, and Virgin Atlantic airline, as well as an investment arm of Microsoft.
Vertical Aerospace’s main product is the VA-X4, a piloted, zero-emissions electric-vertical take off and landing (eVTOL) vehicle. The airplane/helicopter hybrid is expected to have a range of 100 miles and capacity to carry four passengers along with a pilot at speeds up to 200 miles per hour.
These so-called air taxi developers are becoming a hot commodity on Wall Street. China’s Ehang Holdings is already public. Another start-up, Joby Aviation, has a deal pending to merge with SPAC Reinvent Technology Partners. And Embraer is reportedly in talks to merge its eVTOL unit with Zanite Acquisition, also a SPAC.
Vertical has a competitive advantage in the form of its investors. American, Virgin Atlantic, and Avolon together have committed to buy up to 1,000 aircraft. American, which said it has a “pre-order” of 250 aircraft with an option to order an additional 100, in a statement said eVTOLs could be a key part of its push to go green.
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