Vertical Aerospace Ltd. (Vertical) operates as a global aerospace and technology company.
The company engages in pioneering electric aviation, focused on designing, manufacturing and selling a zero operating emission eVTOL aircraft for use in the AAM market, using the most cutting-edge technology from the aerospace, automotive and energy industries.
The company is developing, and progressing towards the certification of, its flagship eVTOL, the VX4. The company’s first full-scale VX4 prototype...
Vertical Aerospace Ltd. (Vertical) operates as a global aerospace and technology company.
The company engages in pioneering electric aviation, focused on designing, manufacturing and selling a zero operating emission eVTOL aircraft for use in the AAM market, using the most cutting-edge technology from the aerospace, automotive and energy industries.
The company is developing, and progressing towards the certification of, its flagship eVTOL, the VX4. The company’s first full-scale VX4 prototype successfully concluded its remote thrustborne flight test campaign in August 2023. The assembly of its second full-scale VX4 prototype is underway. This more advanced prototype includes most of its strategic partners’ technology that the company plans to incorporate into its final certification aircraft. The company is targeting the VX4 to be capable of transporting a pilot and up to four passengers, traveling distances of up to 100 miles, and achieving cruise speeds of 150 miles per hour (mph), while producing minimal noise and zero operating emissions.
The VX4 aircraft is being designed around existing certifiable technology, as well as certain novel technology, such as the batteries and powertrain, using an experienced team that has previously certified and supported the development of over 30 aircraft and propulsion systems around the world. The company is one of the only eVTOL designers and original equipment manufacturers (‘OEM’) actively pursuing certification from the United Kingdom’s Civil Aviation Authority (CAA) and the European Union Aviation Safety Agency (EASA) with a winged vehicle. The company intends to have its aircraft certified to the same safety standards as commercial airlines, rather than the significantly lower standards to which similarly sized helicopters are certified. EASA also confirmed that it will concurrently validate the CAA certification for the VX4, which means the certification and validation process will run simultaneously in both jurisdictions. Both regulators are using Special Conditions (SC)-VTOL basis for certification of new eVTOL aircraft. By achieving certification of its VX4 eVTOL aircraft from the CAA and EASA, the company expects to leverage the work done with its home regulator to have the certification validated by other regulators where it intends to operate, including the FAA. In addition, during 2023, the company also formally commenced certification efforts in Japan, following the Japan Civil Aviation Bureau’s (‘JCAB’) acceptance of the VX4’s validation program.
The company is developing a sophisticated eVTOL ecosystem that allows it to focus on providing a high-quality experience. The company’s in-house expertise covers design, certification, assembly and manufacture, pilot experience, end-user experience, and base platform performance. The company intends to sell globally certified eVTOL aircraft to a variety of customers, including commercial airlines, aircraft leasing companies, business aviation, tourism groups, mobility platforms, and existing helicopter operators, as well as new operators in the AAM market, providing both OEM sales and aftermarket services to its customers.
The company has forged strong relationships with industry-leading players to develop the various components of its aircraft. For instance, the company is co-developing its flight controls systems with Honeywell, to unlock maximum performance with safe and simple to operate controls, reducing pilot workload and thereby reducing pilot training and operating costs. The company collaborated with Microsoft to create its digital systems for its aircraft, which should provide rich data sets, as well as deliver a truly cloud-connected aircraft. This capability will enable it to further streamline and create more efficiencies across its manufacturing processes, aircraft operations and maintenance. The company’s proprietary battery system utilizes small-format cylindrical cells to provide high power density while at the same time, being low-cost and highly reliable, as well as utilizing safety features to ensure safety across all operations. The company has selected Molicel to supply high power cylindrical cells for its VX4, as Molicel specializes in demanding, high-performance application of its batteries, with its technology already in use across space, advanced automotive and power tool applications.
The company is collaborating with Hanwha on the development and supply of electric actuator systems tailored for the VX4, as Hanwha has a long-established expertise in aerospace technology and flight critical actuator systems development across a broad portfolio of civil and defense aerospace and space applications. The company’s advanced propeller system uses four tilting propellers at the front of the aircraft and four stowable propellers at the rear to enable high efficiency in all phases of flight and support a vehicle noise signature that it believes will be less than 70dBA in hover, the same as low-level city traffic, and less than 50dBA in cruise, which is likely to be unnoticeable in an urban environment. The company is working with Syensqo (formerly Solvay), one of the world’s leading chemical and advanced materials companies, to ensure that its materials and composites are high-quality and sustainably sourced. The company’s electrical wiring interconnection systems (‘EWIS’) and wings for its aircraft are being developed by one of the leading aerospace engineering companies, GKN Aerospace. The company also taken advantage of GKN Aerospace’s integration expertise as it used its Global Technology Centre to assemble the majority of the first and second VX4 prototype’s airframe.
The company is partnering with Leonardo, which has long-established experience in composite aerostructure development, to design, test, manufacture and supply the carbon composite fuselage for its VX4 aircraft. Combined, these features provide a flexible design to address different markets and a scalable design to facilitate manufacturing. The company is also working together with CAE, a market leader in flight simulation and training, to develop a best-in-class training program. CAE will be the exclusive training device provider, tailoring the high-fidelity, next-generation flight simulation training device for the VX4 aircraft.
The company intends to be one of the leading eVTOL aircraft OEMs for commercial airlines, aircraft leasing companies, business aviation, mobility platforms and existing helicopter operators, as well as new operators in the AAM market, providing both OEM sales and aftermarket services to its customers. There is a potential market to provide OEM sales to a variety of industries beyond traditional airline and helicopter customers, such as tourism, where there is an opportunity to replace existing transportation options like minibuses, and the cargo and logistics industry, where there is potential to partner with global logistics firms and large retail customers. There is a further opportunity to generate revenue from other sectors, such as emergency services, as eVTOL aircraft can be used for emergency patient and supplies transport, particularly in densely populated areas or military logistics transport, among other potential uses. The company plans to explore the potential development of versions of the VX4 for such scenarios. The company’s strategy is to forge partnerships in key markets with partners that have existing demand and are local trusted brands with market-specific knowledge. The company’s focus on system integration and establishment of an industrial supply chain is expected to enable rapid scaling of production of its aircraft.
By collaborating and synergizing the company’s marketing with its network of renowned international partners, it intends to continue developing its reputation through combined marketing activities.
Business and Strategy
Focus on Certification
Safety is the company’s highest priority. The company is working to meet the most stringent aircraft certifications around the world, and its aircraft is being designed with certification in mind from the beginning. The company is one of the only eVTOL designers and OEMs actively pursuing certification from the CAA and EASA with a winged vehicle using predominantly already-available technology. The company expects to achieve concurrent type certification from the CAA and EASA for its VX4 aircraft, with validation from the FAA and other international regulators expected to follow thereafter. The company is targeting type certification by the end of 2026.
The company has successfully conducted flight testing of three full scale prototype eVTOL aircraft in the United Kingdom. The VX1, the company’s first prototype, was flown in 2018 as its proof-of-concept aircraft. This was a single seater eVTOL with four electric engines, each inside a ducted fan. The VX2 flew in 2019 and successfully demonstrated safe flight with a deliberate ‘motorout,’ which is a critical step in obtaining certification from the CAA. The VX2 was a two-seater, eight propeller aircraft that could carry up to 250 kg at speeds of up to 50 mph. In September 2022, the company successfully began the first stages of a flight test campaign with its VX4 prototype under approvals from the CAA. This culminated in a remote thrustborne flight test campaign which concluded in August 2023. During this flight test campaign, this first full-scale VX4 prototype reached its target speed of 40kts (70 kmph), demonstrating overall stability and control. The company is planning to conduct piloted test flights of this aircraft during the first half of 2024. The company intends for this flight test campaign to include the VX4’s full flight envelope – conventional and vertical take-off and landing and transition flight.
The company has been working with the CAA, EASA, and European Organization for Civil Aviation Equipment (‘EUROCAE’) to establish the specific design criteria and means of compliance that apply to eVTOL aircraft. The company and its partners participate on several working groups with the EUROCAE, including chairing the EUROCAE eVTOL Working Group Electrical Panel, participating on the electrical, lift/thrust, safety, flight and avionics working groups and having one-on-one discussions with the CAA and EASA to assist with tailoring and creating the requirements for eVTOL aircraft.
By the end of 2023, the company had undertaken initial Technical Familiarizations with the five aviation regulators with which it is seeking Type Certification: the CAA, EASA, FAA, JCAB and National Civil Aviation Agency of Brazil (‘ANAC’).
The VX4: One of the Most Advanced eVTOL Aircraft Globally
The VX4 is the company’s eVTOL aircraft at the center of its go-to-market strategy. After designing, building, testing, and flying two earlier prototypes, the VA-X1 and the VA-X2, it unveiled the four passenger VX4 in 2020, which is one of the most advanced eVTOLs globally. The VX4 is being designed to provide for a capacity of up to five people (one pilot, four passengers) and targeting travel distances of up to 100 miles, achieving cruise speeds of 150 mph. In line with the company’s intention to pioneer electric aviation, the VX4 will be fully electric and will produce zero operating emissions in flight. The VX4 has four tilting frontal propellers allowing it to take off vertically. The propellers rotate after takeoff and into flight mode. Based on the company’s internal calculations, its noise levels are expected to be significantly quieter in cruise compared to a helicopter in cruise. The VX4 is also expected to be orders of magnitude safer than a similarly sized helicopter in line with what the company expects from the CAA and EASA regulations for eVTOL aircraft.
The interior of VX4 is being designed to create an outstanding passenger experience. There will be a separate luggage compartment that it expects will be capable of taking approximately 45 pounds (or 20 kilograms) of luggage per passenger plus the option of additional room for small luggage under each passenger seat, with a total payload of approximately >990 pounds (or >450 kilograms). The VX4 has large side windows, providing spectacular views for the passengers.
Develop Strong eVTOL Ecosystem
The company’s business model is asset light. The company has focused on creating an ecosystem that is a combination of key proprietary components that it has developed internally and strong strategic partnerships with industry leaders to design and manufacture an industry leading eVTOL aircraft. This model will allow the company to be more agile, flexible, and reactive to future technologies and opportunities, as well as provide competitive user economics, which it expects will allow it to scale its production more rapidly once it has obtained certification.
Creating and Investing in Proprietary Designs and Superior Technology
The company has invested and continues to invest in certain proprietary features of its aircraft, including its battery system and propeller design. The company’s proprietary battery system utilizes small-format cylindrical cells to provide a high performance, highly reliable, and sustainable supply chain while ingraining safety features to make them resistant to unsafe operation. In 2023, the company has developed its first full prototype battery pack in-house at the Vertical Energy Centre. The company’s advanced propeller system uses four tilting propellers at the front of the aircraft and four stowable propellers at the rear to enable high efficiency in all phases of flight, with an impact tolerant and redundant propeller structure that enables commercial aviation safety levels while supporting a vehicle noise signature that will be less than 70dBA in hover, the same as low-level city traffic, and less than 50dBA in cruise, which is likely to be unnoticeable in an urban environment. The company’s second full-scale VX4 prototype will utilize its next iteration, second generation propellers.
Powertrain—Rolls-Royce
The company has partnered with Rolls-Royce, one of the world’s leading industrial technology companies, to develop its electrical propulsion unit and electrical power distribution system to be one of the world’s lightest and safest eVTOL powertrains in order to unlock the maximum performance from its VX4. Rolls-Royce has extensive experience in the development and certification of high-criticality aerospace products and an established supply chain that is certified to deliver airworthy components globally and at scale.
Flight Controls—Honeywell
The company has partnered with Honeywell, a leading technology and manufacturing company, to develop its next-generation avionics and flight controls that significantly reduce pilot workload. The company’s VX4 uses an advanced control system that is based on the system created for the Lockheed Martin F-35, and the triple-redundant architecture safety features of this system are expected to be certified to the same safety standards as commercial airlines. The company’s partnership with Honeywell provides it with globally recognized services that encompass the design, development and provision of avionics, fly-by-wire navigation, and connectivity solution for eVTOL.
Digital Systems—Microsoft
The company has collaborated with Microsoft in two key areas: the co-development of cloud architecture and high-performance computing. The company has co-developed state-of-the-art cloud architecture that enables enterprise digital services and operational optimization. The combination of the electrification of aviation with advanced flight controls and avionics results in a significant amount of digital information to be collected and transmitted by its aircraft. The company has created the foundations to enable highly differentiated service offerings to end-customers and vehicle operators, as well as its own industrial optimization. This includes state-of-the-art aircraft health monitoring, predictive maintenance and smart battery charging systems with advanced diagnostics, aircraft integration with the air traffic management and customer services ecosystems.
Composites—Syensqo
The company partnered with Syensqo, a global leader in materials, solutions, and chemicals, to create the full suite of composite materials and adhesives for its aircraft. Syensqo brings extensive expertise across aerospace, motorsport and automotive, and Syensqo is pioneering the development of advanced composite materials and manufacturing technologies that bring the benefits of lightweight solutions that can be manufactured with a high degree of automation, using the minimum amounts of materials to enable high production rates and low costs. Working closely with Syensqo has ensured that the company’s aircraft structure, propellers and battery containment system are composed of high-quality materials, and that it is sourcing its materials in a sustainable and innovative way.
Electrical Wiring Interconnection Systems and Wing—GKN Aerospace
The company is working together with GKN Aerospace, a provider of cutting-edge components for some of the world’s leading aircraft and helicopters, to create the EWIS and wings for its aircraft. GKN Aerospace designs and manufactures aerospace systems and components for a variety of aircraft and engine manufacturers around the world, and its high-volume production capabilities are expected to help drive the global production of the VX4. The company expects that the EWIS and wings provided by GKN Aerospace will contribute to lower costs and weight of the VX4, as well as help improve the overall performance of its aircraft. The company has co-located teams to leverage GKN Aerospace’s integration expertise and industrial capability, and it assembled the first and second VX4 prototype airframe at GKN’s Global Technology Centre in Bristol.
Carbon composite Fuselage – Leonardo
Leonardo Aerostructures is a world leader in advanced composite aerospace structures, producing one-piece barrel sections and horizontal stabilizers for aircraft, such as the Boeing 787. Leonardo will bring its technology and scale manufacturing experience to bear in the manufacture of the fuselage for the VX4. The company has collaborated with Leonardo for the design and manufacture of the Fuselage and Pylons for the second VX4 prototype.
Battery Cells — Molicel
Molicel is a leading manufacturer of lithium-ion cells with more than 40 years of experience in energy research and development. By partnering with Molicel, the company has secured a supply of high-power cylindrical cells for the VX4 through to certification and entry into service. The company intends to work with Molicel to increase supply as the VX4 is brought into mass production. Having reviewed the capabilities of many other cell manufacturers before selecting Molicel as its battery partner, Molicel is well placed to meet the performance and safety requirements of the VX4 and that they will continue to deliver innovation and improved performance over time. The company will work with Molicel to ensure its battery cells contribute to the safety, reliability, and performance of the VX4, and it expects to have this battery system certified concurrently with EASA and the CAA. Since, the company began testing Molicel’s cells, Vertical has conducted more than 2 million hours of electrical testing at cell, module, and pack levels.
Flight Simulation and Pilot Training — CAE
The company is working together with CAE, a market leader in flight simulation and training, to develop a best-in-class training program. CAE will be the exclusive training device provider, tailoring the high-fidelity, next-generation flight simulation training device for the VX4 aircraft. The innovative pilot training program is expected to leverage advanced technologies, including mixed reality to enhance the learning experience, and is expected to help shift the training paradigm toward cost-effectiveness and scalability, while ensuring safety, which is paramount to the company and its operators.
Building Commercial Partnerships for the Future
The company has entered strategic and commercial arrangements with American Airlines, Virgin Atlantic, Marubeni, Iberojet, Avolon, Bristow, Babcock International, FLYINGGROUP, and Kakao Mobility in order to further its global route to market strategy.
American Airlines
The company launched a partnership with the world’s largest airline, American Airlines, as a cornerstone for its go-to-market deployment in the United States. The company is committed to reserve delivery slots for the first 50 aircraft in exchange for a pre-delivery payment to be made upon entering into a master purchase agreement containing the final terms for the purchase of aircraft, which will be released to Vertical upon the satisfaction of certain conditions agreed by the parties, and later be used to set off against the purchase price for the number of aircraft ultimately purchased by American Airlines. Such Pre-Delivery Payment may be refundable in full to American Airlines under certain circumstances. Beyond aircraft sales, the company expects to work together with American Airlines on creating an ecosystem to bring AAM to the United States including the necessary infrastructure, route planning, propositions, pricing, certification, and regulation. As part of this partnership, American Airlines will benefit from certain equity incentives upon the fulfilment of the commitment to purchase aircraft.
Virgin Atlantic
The company is also partnering with Virgin Atlantic in exploring a joint venture for short-haul eVTOL operations in the United Kingdom. The joint venture will look to develop a short-haul eVTOL network, including customer and aircraft operations and infrastructure development. The company’s partnership with Virgin Atlantic will create the blueprint for bringing eVTOL operations to other key global markets around the world.
The company intends to partner with other existing operators and infrastructure players in other markets to deliver its eVTOL flight services in addition to its existing OEM sales and services operations.
Marubeni
The company is partnering with Marubeni, a leading Japanese integrated trading and investment business conglomerate, to explore sustainable, emissions-free AAM travel solutions in Japan. In January 2023, the company received a pre-delivery payment from Marubeni for the reservation of aircraft delivery slots for 25 aircraft, which may be refundable in full under certain circumstances. The company and Marubeni continue to advance its joint working group to progress the launch ecosystem for eVTOL operations in Japan, which includes other commercial considerations, such as route and network planning, vertiport and charging infrastructure requirements and capacity, as well as engaging with other parties interested in launching AAM travel solutions in Japan.
Together with Marubeni, the company expects to accelerate its entry into the Japanese market and offer Japanese consumers a safer, faster, cheaper, and greener alternative to short haul options in the country. A number of use case application for eVTOLs has been envisioned in Japan, including airport shuttle, inter-city and intra-city travel, aerial medical emergency services, tourism and cross-island flights that will benefit both customers and communities.
Iberojet
The company launched a partnership with Iberojet, which is part of the Avoris Group, a leading travel group in the Spanish and Caribbean markets, in order to explore business collaboration opportunities in AAM, focusing on inter-island travel in the Balearic Islands and Canary Islands, airport passenger feeder operations and the distribution of long haul customers to touristic destinations to/from resorts and airports. The company agreed to create a joint working group with Iberojet to evaluate the foregoing AAM opportunities, as well as collaborate on identifying key regulatory bodies in key markets of anticipated operation; analyzing demand, fleet size, infrastructure and storing requirements; identifying potential infrastructure partners, investors, and developers; analyzing public acceptance and environmental requirements.
Avolon
The company is partnering with Avolon, the world’s second largest aircraft lessor with an extensive global network of airline and OEM relationships, to further expand its customer base in the AAM market. Avolon has existing, long-standing relationships with over 140 airlines globally and a track record of investing in new, innovative aerospace technology. Avolon will be the company’s global go-to-market partner packaging aircraft, asset financing and services to enable forward thinking, entrepreneurial operators to establish AAM operations in new markets. Pursuant to its partnership agreement with it, Avolon has agreed to pre-order approximately 310 of the company’s aircraft, with an option to purchase up to approximately 190 additional aircraft. On March 29, 2022, Avolon announced that it had placed its entire 500 aircraft pre-ordered from the company, with the order book being oversubscribed by 50 aircraft, including 250 aircraft with GOL and Grupo Comporte in Brazil, up to 100 aircraft with Japan Airlines in Japan, a minimum of 100 aircraft with AirAsia, and up to 100 aircraft with Gözen Holding in Turkey.
Bristow
The company has launched a partnership with Bristow, a leading global provider of vertical flight solutions to government and civil organizations, to develop a joint working group to collaborate on identifying key regulatory bodies in key markets of anticipated operation; analyzing demand, fleet size, infrastructure and storing requirements; identifying potential key customers and markets; analyzing public acceptance and environmental requirements. Bristow has agreed to pre-order, subject to certain conditions, up to 50 of the company’s aircraft. Partnering with Bristow will enable the company to accelerate the commercial operation of eVTOLs and effectively disrupt the helicopter market with its zero operating emissions, low operating cost VX4 as an alternative to traditional helicopters.
Babcock International
The company launched a partnership with Babcock International, an aerospace, defense, and security company, to explore new applications for the VX4. Babcock International has over 35 years of experience in emergency medical services, performing thousands of missions every year globally, and is the largest single operator delivering helicopter emergency services in the U.K. The company will work with Babcock International to explore how to use the VX4 in new applications, such as aerial emergency medical services and cargo transportation. The VX4 has the potential to transform these types of operations and reduce their carbon impact at a lower overall cost. As part of this partnership, the company will also work with Babcock International to develop modular maintenance, repair, and overhaul (‘MRO’) capabilities to enable cost-effective maintenance of the aircraft in both remote and challenging environments and to maximize availability of the VX4 in service. Leveraging Babcock International’s experience in the defense industry, this partnership will also explore how the eVTOL concept may be expanded in the future to support the armed forces with non-effectual capabilities and medium-range logistics delivery.
FLYINGGROUP
The company is partnering with FLYINGGROUP, one of Europe’s leading business jet operators, to explore the use of the VX4 in the business aviation market. FLYINGGROUP has agreed to pre-order, subject to certain conditions, up to 50 of the company’s aircraft. The company and FLYINGGROUP continue to advance its joint working group to explore FLYINGGROUP’s application of using the VX4 in the business aviation market, including individual ownership, low volume operation and fractional ownership. The joint working group is also exploring the terms and conditions of an MRO service center, potentially granting FLYINGGROUP the right to perform MRO services for their fleet and to support their private sales.
Kakao Mobility
In May 2023, South Korean mobility technology company, Kakao Mobility, pre-ordered up to 50 of Vertical’s VX4 aircraft, adding South Korea to its list of customer launch markets. Kakao Mobility, the largest Mobility-as-a-Service (MaaS) platform in South Korea with more than 30 million registered users, is the mobility subsidiary of South Korean internet giant, Kakao Corporation. Kakao Mobility runs the country’s most popular taxi-hailing app, Kakao T, providing taxi-hailing, designated driver booking, parking space search, and Kakao Navi app providing real-time traffic information services. Vertical and Kakao Mobility have established a joint working group to drive the commercialization of AAM services in South Korea, including the exploration of network and fleet planning, infrastructure requirements, regulatory development, and consumer awareness of eVTOL mobility solutions.
Targeted Sales Approach
As an OEM, the company has built and plan to address an extensive and diverse customer base: airlines that want to extend the passenger experience into their main hubs, creating micro feeders and catchment networks, and transit to city centers and urban areas; regional airlines that will develop point-to-point routes; business aviation companies that will complement their offerings with a last-hop service to end destination; aircraft lessors that will financially support the delivery of business opportunities; and existing helicopter operators that will progressively replace their light segment by its new generation of safer, cheaper and more sustainable aircraft, enabling new operations.
Because the company is not selling a traditional aircraft, it is actively working to enable the creation of an ecosystem, seeking out local partnerships with its customers and other key industry players in certain strategic markets, with the goal of expanding beyond those particular markets once it has gained the relevant experience.
The company is working with local transport and aviation authorities, airspace, infrastructure, energy, and mobility providers, together with its partners, to comply with local requirements and ensure that there will be the necessary infrastructure and regulations in place for its aircraft and for its partners’ expected operations. A collective effort will be required of both the company and its ecosystem partners in order to develop policies and ensure public acceptance, prepare infrastructure and airspace integration for future operations. The company is undertaking demand analysis and network simulation to allow it to anticipate societal and economical value. The company’s mission and concepts of operation, together with its strategic partnerships across key markets, will help it to ensure the effective integration of its aircraft and ecosystem with other existing transport means and networks.
The company has already started executing its sales strategy through its partnerships with American Airlines, Avolon, Bristow, Iberojet, Marubeni, Virgin Atlantic, Babcock International, FLYINGGROUP and Kakao Mobility. The company also launched a partnership with Heathrow Airport, one of the world’s top international aviation hubs, to explore how the VX4 could operate at Heathrow Airport. Together with Heathrow Airport, the company will collaborate on identifying key regulatory challenges, identifying demand, fleet size and infrastructure requirements for eVTOL to fit into existing airport operations and identify key potential customers and stakeholders. Together with other partners, including Ferrovial, with whom the company is cooperating to create a network of 25 vertiports in the UK, it expects its partnership with Heathrow will help create an ecosystem for sustainable air travel in the United Kingdom. The company is working together with all its commercial partners to define the roadmap for the upcoming years that will enable safe entry into service.
The company has a significant number of pre-orders from its existing customers. Having achieved these pre-orders, it is being selective in the company’s active pursuit of more pre-orders, in order to apply deeper resource and time to its existing initial customer base.
The company listens to the voices of its customers and analyze potential market opportunities in tourism, cargo, medical and other public services, and eventually plan to develop specific mission variants. The company will explore the scaling of its vehicle into increased range and payload.
Provide Comprehensive After Sales Services
After the company delivers its aircraft, it expects to be able to provide significant additional value through its ‘Aircraft Services’ business. Where required, the company plans to partner with its customers to operate its aircraft; the expertise and knowledge it will gain through the design, development, certification, manufacture, and assembly of its aircraft will be critical to ongoing maintenance of its aircraft. The company plans to develop global clusters, aligned to its OEM markets, to support pilot training, battery management, and aircraft maintenance. The company plans to partner with existing infrastructure players and deliver its eVTOL flight services over the top of existing operations.
Aircraft Services will be defined as an integrated package that will include services, such as battery management, pilot training and licensing and general aircraft maintenance. The company’s aircraft will be highly digital and will generate significant amounts of operational data. In collaboration with Microsoft, it has created a Vertical Cloud to host aircraft data and will be leveraging this to provide aircraft equipment health monitoring, vehicle and fleet operational and maintenance optimization and additional aftermarket services. By the time the company launches its Aircraft Services, it expects to also be well advanced in developing pilot simulators as part of its ongoing aircraft certification program, which it will be able to roll out as pilot training services.
One of the most critical components of the VX4 is its battery system, which is being designed in-house, given the unique requirements for eVTOL battery systems. The battery would be certified as part of the aircraft, and therefore, the company’s OEM sales will drive an aftermarket revenue stream for battery replacements and upgrades. The company intends to optimize battery utilization and replacement timing by leveraging the leading smart charging and advanced battery health diagnostics research it is undertaking. Furthermore, the company’s battery is being designed for re-use, taking out deteriorated cell packs for second life use in non-aviation, while reusing the valuable aerospace grade electronics and composite battery packs. Once the company has developed this technology, it may expand these services into other industries that use similar battery systems, such as the wider electrification of transportation and stationary storage for grid applications.
Designed for Scalable Manufacturing
The company is designing its aircraft with a focus on manufacturing and the fastest route to scale from day one. After receiving CAA and EASA certification, it anticipates rapid scaling as a result of the ecosystem the company has built with the combination of its proprietary systems and strategic partnerships. The company’s strategy is to work with major aerospace suppliers to enable production ramp-up.
Focus on Sustainable Manufacturing and Safety
The company plans to design its facilities and manufacturing processes to be efficient, safe, and sustainable in order to minimize its carbon footprint and encourage it to be leaders in creating environmentally friendly manufacturing practices and aircraft. The company has partnered with Syensqo and Leonardo, global leaders in composite materials in aerospace, to incorporate lightweight composite materials that allow its aircraft to be lighter, and therefore, more fuel efficient, while also providing a high-quality experience that exceeds that of metal parts.
Attractive Aircraft Unit Economics Driving Adoption
The VX4 is being designed to allow flexibility in operators running both intra-city and intercity missions for passenger operations and potentially cargo, medivac, and other use cases.
Through the company’s collaborative industrial partnerships with key component providers, it has strong confidence in its bottom-up component by component projected cost structure for the VX4. The company has a number of certification and early production contracts signed and will negotiate future production contracts that include global aftermarket support and other services to support its production process.
Future Market Opportunities
The company intends to leverage its expertise and position as a leading eVTOL aircraft OEM to generate revenue by providing services ancillary to its aircraft. There are opportunities to address sectors that are adjacent to its core business, including delivery and logistics, as well as emergency services, cargo, and military logistics transport applications, as well as selling and servicing battery systems and battery packs in other sectors, such as automotive and stationary grid storage. Through the company’s Aircraft Services business, it intends to leverage developments in its battery technologies and alternative methods of energy storage for use in other applications, as well as other sectors in the future after it begins manufacturing its aircraft at scale.
The company’s Aircraft Services will include battery management, pilot training and licensing and aircraft maintenance. The company’s aircraft will use its proprietary battery systems, and it will be able to service battery systems by providing replacement hardware and smart diagnostics that it expects will enable optimum battery charging, operation, and maintenance, as well as maintain an inventory of spares to support its aircraft around the world.
Government Regulation and Compliance
In the near term, the company’s priorities include working with the CAA, EASA, the FAA, and other regulators, such as the Japan Civil Aviation Bureau and the National Civil Aviation Agency of Brazil in connection with the certification and validation processes of VX4, and working on policy engagements with regulators, decision makers and communities within its key markets.
Intellectual Property
As of December 31, 2023, the company had fourteen pending patent applications (four in the United Kingdom, four in the United States, four in Europe under the European Patent Convention, one in Japan, and one in China) covering seven inventions. Three of the four United Kingdom patent applications may be extended into multiple other territories worldwide.
Research and Development
The company’s research and development expenses were £65,373 thousand during the year ended December 31, 2023.
History
Vertical Aerospace Ltd. was founded in 2016.
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