Avolon creates electric aircraft division as it signs $2 billion order for zero-emission planes

Any future order for the VA-X4 from Vertical is subject to certain conditions being met, including operating, delivery, and business requirements, with the first models arriving in late 2024.

Avolon has also created Avolon-e, a business division that focuses on investment in the zero-emissions eVTOL sector as it becomes an equity investor in Vertical, alongside Microsoft, Rolls-Royce, Honeywell, and American Airlines. Virgin Atlantic has been named as the VA-X4 launch airline customer in Europe.

Dómhnal Slattery, Avolon chief executive officer, said: “Our order with Vertical will accelerate the inevitable commercial roll-out of zero emissions aircraft. 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.

“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.”

Stephen Fitzpatrick, chief executive officer of Vertical Aerospace, added: “This agreement, with an established aviation company like Avolon will allow us to plug into their global commercial network of airlines, reaching key decision makers in a fast and efficient manner.”

The deal comes as Avolon announces two new appointments, with Felipe Campos joining as chief technical officer and Steven Graham taking the role of head of Americas.

Campos is an engineer by training and since 2016 has been Avolon’s head of Latin America. He previously held roles with GE Aviation and airline groups LATAM and TAM.

Graham, based in New York, was one of the co-founders of Avolon and has been head of North America since 2017. His role will now expand to include Latin America.

Avolon was listed 18th in the latest annual Asset Finance Europe 50, the unique European annual ranking survey of business equipment and fleet lessors.