Vertical Aerospace, an electric manufacturer of aircraft, announced recently that it plans to go public through a $2.2 billion SPAC agreement with Broadstone Acquisition.
SPAC mergers, which were once the hottest way for private companies to go public, are seeing a slump in their utilization. Both post-merger and pre-merger SPACs have gone down in size within the past few months. Yet Vertical Aerospace sees the process as an opportunity since the frenzy around the blank-check mergers has declined.
“I believe there was a large gap between normal IPOs and a SPAC, but … now it seems like these two are combining., Stephen Fitzpatrick, Vertical Aerospace CEO and founder, told reporters.
The deal likely will not be complete until the last part of 2021, though the company publicly revealed it this month. Aircraft companies Virgin Atlantic, Avolon, and American Airlines among others have already invested in Vertical Aerospace, amounting to $4 billion.
“I believe SPAC investors and the market overall are much more discerning now., Fitzpatrick stated. “We have been telling stories to partners and investors. We have hired some of the top aerospace engineers in the world.”
The future of flight?
Aircraft makers have been coming under growing pressure from governments to lower greenhouse emissions, especially within Europe. And with the Biden Administration continuing to push for green energy policies, electric aircraft firms like Vertical Aerospace have emerged as a cleaner approach, though not commercially yet.
Fitzpatrick stressed the possible efficiency of electric aircrafts for short travel. A trip from downtown LA to LAX or from JFK to Manhattan would just last a little over 10 minutes and would be around $40, he said.
“We see there is huge demand for this all over the world., he continued. “I have no doubt that in five years, you will be seeing these flying all over the world’s top cities.”
Author: Blake Ambrose