Dublin firm Avolon to buy up to 500 'game-changing' electric aircraft

Dublin aircraft leasing form Avolon is to purchase up to 500 electric, vertical take off aircraft taking deliveries from late 2024.

Avolon, the Irish aircraft leasing company has signed a $2bn (€1.6bn) order for up to 500 electric aircraft from UK firm Vertical Aerospace.

The agreement will introduce the ultra-short-haul aircraft category to commercial aviation and is considered a game-changing development that will revolutionise air travel with zero emissions aircraft.

The agreement will take advantage of Avolon’s scale and industry relationships as one of the world's largest aircraft leasing companies with Vertical’s technological position in the electric vertical take-off and landing (eVTOL) space. The companies will collaborate throughout the development, certification and subsequent commercial roll-out of the VA-X4 aircraft.

The VA-X4 has a range of more than 100 miles and a capacity for four passengers, and a pilot. The aircraft takes off vertically enabling it to operate in and out of cities and other confined locations.

We announced an order for 500 VA-X4 #eVTOL aircraft from @VerticalAero which is valued at US billion. The VA-X4 #eVTOL will revolutionise air travel with zero emissions and underscores our commitment to combat climate change. Read about the order here: https://t.co/SFY0v5cYSd pic.twitter.com/yWCDoRV6qt

— Avolon (@avolon_aero) June 10, 2021

Avolon will join Microsoft, Rolls-Royce, Honeywell and American Airlines as equity investors in Vertical, working also with Virgin Atlantic who will be a VA-X4 launch airline customer in Europe.

Avolon, through its newly incorporated affiliate Avolon-e will order aircraft valued at $1.25bn with delivery commencing in late 2024, with an option to acquire additional aircraft up to a value of $750m.

Electric aircraft operating short routes carrying passengers or cargo are seen as a significant area of rapid growth in the aviation industry. Last month a group of companies announced a partnership with plans to develop Ireland's first air taxi service in Shannon.

The Shannon Group, Skyports, Future Mobility Campus Ireland and Avtrain plan to establish a passenger and cargo vertiport using drone aircraft with plans to begin operations next year.

"As we emerge from the Covid-19 pandemic, air travel will be materially reshaped with airlines needing to embrace emerging technologies that decarbonise air travel. We strongly believe that the VA-X4 will lead this transformation," Avolon CEO Dóhnal Slattery said.

"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."

Stephen Fitzpatrick, CEO of Vertical Aerospace, said Avolon has a strong track record of starting and scaling, a global business which made the agreement an attractive opportunity and represents a critical milestone for the company.