American Airlines Plans To Invest $25 Mln In U.K.-based Electric Aircraft Startup Vertical

(RTTNews) - American Airlines (AAL) said it plans to invest $25 million in UK-based electric aircraft maker Vertical Aerospace through a private investment in public equity transaction.

Vertical is developing the VA-X4, a zero-carbon aircraft that can carry four passengers and a pilot, and fly at speeds up to 200 mph over a range of more than 100 miles. It plans to conduct its first test flight of the VA-X4 later this year, with certification of the aircraft as early as 2024.

As part of its investment in Vertical, American has agreed to pre-order up to 250 aircraft, representing a potential pre-order commitment of $1 billion, and an option to order an additional 100 aircraft.

The aircraft could potentially transport customers quickly around urban city centers and to airports.