Avolon and Vertical Aerospace Agree to $2B eVTOL Aircraft Order



Avolon, an international aircraft leasing company, and Vertical Aerospace, an electric vertical take-off and landing (eVTOL) company, entered an agreement for a $2 billion order for up to 500 eVTOL aircraft. This agreement, which is subject to certain closing conditions, will introduce the ultra-short-haul aircraft category to commercial aviation.

The agreement will combine Avolon’s scale and industry relationships with Vertical Aerospace’s technological position in the eVTOL space and will allow both companies to collaborate throughout the development, road map to certification and subsequent commercial roll-out of the VA-X4 aircraft. Avolon will join Microsoft, Rolls-Royce, Honeywell and American Airlines as equity investors in Vertical Aerospace, working also with Virgin Atlantic, who will be a VA-X4 launch airline customer in Europe.

Avolon, through Avolon-e, its newly incorporated affiliate, will become the customer for the VA-X4 and be subject to appropriate operating, delivery and business requirements being met. In addition, Avolon will order aircraft valued at $1.25 billion, with delivery commencing in late 2024, with an option to acquire additional aircraft up to a value of $750 million. Avolon established Avolon-e to focus on investment in the zero-emissions eVTOL sector.

“Avolon is proud to be a launch customer for the VA-X4 aircraft, demonstrating our commitment to a net zero carbon economy and to driving innovation in the global aviation sector,” Dómhnal Slattery, CEO of Avolon, said. “Our order with Vertical will also accelerate the inevitable commercial roll-out of zero emissions aircraft. Before the end of this decade, we expect zero emission urban air mobility enabled by eVTOLs to play an increasingly important role in the global commercial aviation market.

“This order reaffirms Avolon’s position as an industry pioneer. With Vertical, we will revolutionize air travel and continue to reduce the impact of our industry on the environment. In Vertical, we have identified a long-term strategic operator that shares our vision for a cleaner and more efficient mode of air transport. As we emerge from the COVID-19 pandemic, air travel will be materially reshaped, with airlines needing to embrace emerging technologies that decarbonize air travel. We strongly believe that the VA-X4 will lead this transformation.

“Our global scale and deep industry relationships, combined with Vertical’s technological leadership, makes this a winning alliance. We are excited about the synergies and opportunities that both businesses will bring to the agreement. We believe the global reach of the Avolon platform will accelerate the inevitable adoption of eVTOLs as a new, safe and zero-emissions mode of ultra-short-haul air transport.”

“We are delighted to announce this aircraft order with Avolon, one of the leading aircraft lessors in the world,” Stephen Fitzpatrick, CEO of Vertical Aerospace, said. “Avolon’s proven management team and strong track record of starting and scaling a global leading business made this an attractive opportunity and represents a critical milestone for us. This agreement with an established aviation company like Avolon will allow us to plug into their global commercial network of airlines, reaching key decision makers in a fast and efficient manner.”


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