Vertical Aerospace plans cheaper eVTOL launch despite market challenges
- Stuart Simpson succeeded Stephen Fitzpatrick as CEO of Vertical Aerospace amid a challenging eVTOL market.
- Vertical Aerospace secured $50 million and $90 million in funding to ensure operations through 2025.
- Simpson believes his company will bring its eVTOL to market for less than the expected $1.5 to $2 billion.
In the ever-evolving landscape of eVTOL (electric Vertical Takeoff and Landing) aircraft development, Stuart Simpson, the current CEO of Vertical Aerospace, took over the leadership role from company founder Stephen Fitzpatrick last year. This transition occurred during a turbulent period marked by the collapse of several competitors, including Lilium, which declared insolvency after initially securing a funding consortium shortly before Christmas. This situation highlights the significant pressures facing the eVTOL market, largely influenced by limited funding opportunities and the physics governing aircraft design and operation. Simpson remains unfazed by industry consolidation and the decision of Virgin Atlantic to partner with American rival Joby for its UK rollout. He noted that, despite the competitive landscape and recent setbacks, Vertical Aerospace has successfully secured $50 million in funding followed by an additional $90 million, sufficient to sustain operations until at least 2025. This financial backing stands in stark contrast to the struggles faced by others in the industry, emphasizing Vertical's relatively stable position amidst challenges. Regulatory clarity plays a critical role in the firm's approach. Simpson expressed confidence in the UK’s Civil Aviation Authority (CAA) and its partnership with the European Union Aviation Safety Agency (EASA), which facilitates a streamlined certification process. This relationship positions Vertical Aerospace favorably, enabling them to pursue the certification process they expect to complete by 2028. Having predictability in regulatory standards is pivotal for the firm to align its engineering and operational strategies efficiently, unlike some American rivals navigating opaque and more complex regulatory frameworks. Amidst a backdrop of substantial investment, totaling $1.8 billion in the global eVTOL sector over the last six months, Simpson asserts that Vertical Aerospace will complete aircraft development at a significantly reduced cost, projecting expenditures below the widely anticipated range of $1.5 to $2 billion. This projected financial conservatism could prove consequential as it allows Vertical Aerospace to navigate the market more adeptly, potentially leading the company to a strong competitive position and a spearhead in the development of safer eVTOL technologies.