Aircraft lessor Avolon eyes growth through electric plane taxi orders

Avolon CEO and founder Dómhnal Slattery: Demand for electric vertical take-off and landing craft exceeds supply.

Irish-founded aeroplane-leasing firm Avolon has said it could order more flying taxis after finding prospective users for all 500 craft in a $2bn (€1.8) purchase from UK startup Vertical Aerospace.

Demand for electric vertical take-off and landing craft exceeds supply, making the rapidly emerging sector a good place to be, said Avolon CEO Dómhnal Slattery.

“We will continue to look at topping up our order as we do all the time,” he said. “The primary focus in the short term, in the next couple of quarters, is converting these deals into hard contracts.” 

Avolon’s latest deal is with Turkey’s Gozen Holding for the sale or lease of up to 50 Vertical Aerospace VX4s, plus 50 options.

Avolon estimates its balance-sheet exposure to aircraft being held in Russia at under $200m, and said it will make insurance claims to recover potential losses.

Avolon, the world’s second-largest aircraft lessor, has 10 jetliners left in the country after recovering four of those placed with Russian airlines when sanctions were imposed by the EU, Mr Slattery said.

The Dublin-based firm has canceled all contracts and will draw down deposits and letters of credit from Russian customers, he said.

• Bloomberg