Global aerospace and technology company Vertical Aerospace Ltd. (EVTL:NYSE) which in engaged in the pioneering of electric flight and working towards a transition to zero-carbon aviation, today announced that "it has confirmed delivery slots and the commitment of associated pre-delivery payments with American Airlines Group Inc. (AAL:NASDAQ)."
Vertical Aerospace indicated that American Airlines has reserved delivery slots for 50 VX4 aircraft. In 2021, American placed a pre-order for as many as 250 aircraft. The terms of that conditional order allowed for an option to buy an additional 100 units.
The company pointed out that "the commitment to pay pre-delivery payments and confirmation of slot reservations for the first 50 aircraft is believed to be the first of its kind for a major airline in the electric vertical-takeoff-and-landing (eVTOL) industry, and it marks a significant milestone in the partnership between American and Vertical."
Vertical Aerospace's Founder & CEO Stephen Fitzpatrick commented, "We are delighted to have reached this major milestone with American Airlines on our eVTOL partnership. Together, we are making zero-emissions flight a reality for passengers travelling all over the world."
"We look forward to continuing our work with American and seeing the first red, white and blue VX4 come off the production line," Fitzpatrick added.
American Airlines Group's CFO Derek Kerr remarked, "Our partnership with Vertical is a great example of progress in our commitment to reducing carbon emissions throughout our airline and the industry…We have made great strides in simplifying our fleet with newer and more fuel-efficient aircraft and are proud to take part in another step toward the development of advanced air mobility."
The firm noted that its VX4 eVTOL aircraft is being designed with the capability to transport a pilot and up to four passengers at distances of greater than 100 miles. The VX4 could prove to be transformational as it is designed to produce minimal noise and zero operating emissions and can deliver top air speeds exceeding 200 miles per hour.
In a separate news release today, the company reported that European business jet operator FLYINGGROUP also placed a conditional pre-order for up to 50 of the firm's VX4 aircraft.
Vertical Aerospace advised that the order from FLYINGGROUP is compatible with that firm's strategy of moving its fleet towards sustainable zero emissions aircraft. The report explained that the addition of the VX4 will offer new and efficient regional air mobility alternative that will transform customers first and last 100-mile journeys.
Vertical noted that with this new order for 50 planes, it has now secured pre-orders for up to 1,400 aircraft which when delivered is expected to generate total revenue of approximately $5.6 billion.
FLYINGGROUP's Founder Bernard Van Milders stated, "We are honored to partner with Vertical's team and their state-of-the-art aircraft. Going electric is the next big step in our sustainability plan. Not only will we be expanding our fleet with the most advanced electric eVTOLs; we will be able to accommodate our clients and guests with the newest zero-carbon 'door-to-door' private and business aviation."
Vertical Aerospace claims to be at the forefront of pioneering electric flight thereby enabling the transition to zero-carbon aviation. The firm endeavors to provide faster, quieter, greener, more economical and smarter ways for people to travel around cities and regions. To date, the company has secured pre-orders for 1,400 aircraft from industry leading global customers including American Airlines, Virgin Atlantic, Japan Airlines, AirAsia and many others.
FLYINGGROUP is a comprehensive aircraft operations and services firm based in Antwerp, Belgium. The company manages a total 45 aircraft and employs over 230 people, which includes 135 crewmembers and a staff of around 90 people at its head office. The firm provides its services mostly to airbases in Europe and the Middle East. The company handles the complete turn-key management needs of its client's business aircraft including maintenance, CAMO, certification, crew management, charter sales and flight operations.
Vertical Aerospace started off the day with a market cap of around $606.4 million with approximately 209.1 million shares outstanding. EVTL shares opened 21% higher today at $3.52 (+$0.62, +21.38%) over yesterday's $2.90 closing price. The stock traded today between $3.25 and $5.39 per share and closed for trading at $5.00 (+$2.10, +72.41%).
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