Air Taxi Company Starts Phase 2 of Piloted Flight Tests

Vertical Aerospace, an eVTOL (electric vertical takeoff and landing) vehicle maker, has conducted piloted take-off and landing for the first time as Phase 2 of its flight test program has started.

The full-scale VX4 prototype flight tests were conducted at the company’s flight test center at Cotswolds Airport in the U.K.

Tests now move on to low-speed maneuvers with lift generated by the propellers.

All the other air taxi services in development are working through similar regulatory approval processes.

“It’s great to see the VX4 throw off the tethers and move to the next phase of our piloted test flight program,” said Stuart Simpson, CEO of Vertical Aerospace. “We now enter a realm that very few companies in the world have achieved. Our team is thrilled with the significant strides we continue to make with the VX4 prototype as we expand our learnings and take another step towards connecting communities with faster, cleaner and safer travel.”

This was the second of four test phases required by the U.K. Civil Aviation Authority’s (CAA) to receive certification. The third phase involves taking off and landing like a conventional aircraft with lift generated by the wing.

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Related:Flying Vehicle Company Offered $75M Financing Deal

Vertical Aerospace was recently offered a $75 million financing deal from its main creditor.

Mudrick Capital Management, which invested $200 million in the form of convertible senior secured notes in Vertical in 2021, proposed an equity offering to fund the company into 2026, according to a Securities and Exchange Commission (SEC) filing.

It is unclear how Vertical will respond to the offer, since it could mean relinquishing control of the company.

As of September, Vertical had cash and cash equivalents of $57 million, according to the company.

Vertical said the company has the capital needed for the business to deliver its operational goals over the next 12 months.

“Discussions are ongoing regarding potential third party investment,” Vertical said in a statement issued this week. “Vertical is optimistic that these discussions will result in a transaction that will provide funding further into 2025 and facilitate future fundraising opportunities. In parallel Vertical continues to explore all alternative options available with respect to its funding needs.”

This is the latest in the recent financial situation relating to the business of flying vehicles.

German eVTOL jet maker Lilium recently announced it was facing insolvency after the company was denied a $54 million loan guarantee it was seeking from the government of Bavaria.

Related:Flying Taxi Startup Faces Insolvency

On the other side, flying taxi company Joby Aviation recently announced a public offering of common stock expecting to raise $202 million for the electric aerial vehicle (EAV) maker, which followed a $500 million investment from Toyota.

As to the actual vehicles, Vertical Aerospace is proceeding with its flight test program on the road to certification of its VX4 flying vehicle.

Vertical Aerospace earlier had received a funding commitment of $50 million from Stephen Fitzpatrick, the company founder who stepped down as CEO earlier this year.

In its first testing phase, Vertical flew its electric aircraft uncrewed at Cotswold Airport.

Vertical’s partners included Honeywell, which is designing the aircraft control system, and GKN Aerospace, Hanwha, Molicel, Leonardo and Syensqo. 

Rolls Royce, an original investor in Vertical, late last year decided to leave the electric flight business and put its advanced electric propulsion systems business up for sale.

The EAV maker is building its flying vehicle to feature more advanced technology and is aiming for certification by the end of 2026. Vertical already has received design organization approval from the CAA.

Related:Air Taxi Company Seeks $200M From Stock Offering; $5.05 a Share

Vertical already has received design organization approval from the CAA.