Bidding race on for Vertical Aerospace eVTOL plant as shares debut

Vertical Aerospace

17/12/2021 21:15

By Tim Hepher
    Dec 17 (Reuters) - As the flying taxi market takes off, the
race is on to decide where the future vehicles will be built
with one of the backers of newly listed Vertical Aerospace
 EVTL.K  - Irish leasing boss Domhnal Slattery - pushing for a
manufacturing base in Ireland.
    Shares in the electric vertical takeoff and landing aircraft
(eVTOL) maker, backed by investors such as Slattery's Avolon
aircraft leasing company and American Airlines  AAL.O , rose
sharply at their market debut on Friday after a blank-check
merger valued at $2.2 billion.
    Unlike many other entrants in the increasingly busy eVTOL
market, Vertical Aerospace is focusing only on design,
manufacture and services rather than ride-sharing operations,
sparking a bidding race to secure high-tech production work -
and the highly skilled jobs that go with it.
    It has reported pre-orders for up to 1,350 aircraft worth $5
billion from customers including American and Virgin Atlantic.
    "We have been speaking to a number of different governments
about where we might build the production facility. Domhnal is
very keen on us taking it to Ireland," founder and Chief
Executive Stephen Fitzpatrick said after ringing the opening
bell in New York.
    While the Republic of Ireland is a global hub for aviation
finance, it does not host any major aerospace manufacturing. A
plant would help the government achieve two of its objectives:
boosting its green technology sector and diversifying away from
investment dependent on the country's low corporate tax rate.
    "I would love to see it in Ireland. I think it would be a
fantastic location. The UK is equally attractive and indeed
other jurisdictions," Slattery told Reuters in an interview. 
    Bristol in the UK, where Vertical Aerospace is based, has 
thousands of aerospace engineers and discussion of where to
place the plant is for now "hypothetical," Fitzpatrick said.
    Even once a decision is made on where to build the vehicles,
analysts warn a key question is how long it will take for new
electric aircraft to be certified by aviation authorities. 
    Vertical Aerospace is aiming for 2024 and expects to
commission a dedicated certification vehicle in coming weeks.
    "We are on programme for the end of 2024; we are giving
ourselves a window of 2024-2025," Fitzpatrick told Reuters.
    "The key challenge we have is to certify the aircraft, there
is no doubt about it," he said, adding partners including
Rolls-Royce  RR.L  and Honeywell  HON.N  would handle key
components.
    "We are going to have these aircraft flying over cities all
over the world in not less than three years but not more than
five."

 (Reporting by Tim Hepherd; Additional reporting by Conor
Humphries in Dublin; Editing by Jonathan Oatis)
 ((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters
Messaging: tim.hepher.thomsonreuters@reuters.net))