AirAsia owner Capital A Group intends to establish a new pan-Asian company that will manage its future fleet of Vertical Aerospace VX4 electric vertical take-off and landing (eVTOL) aircraft, believing the platform too ’high-end’ at present for operation by low-cost carrier AirAsia.
Capital A chief executive Tony Fernandes, speaking during Vertical’s capital markets event on 17 September, said eVTOLs have a “massive potential” in Southeast Asia and beyond.
AirAsia in 2022 committed to take at least 100 VX4s via lessor Avolon and Fernandes says the aircraft – due for certification in 2028 – could be used for both passenger transport or logistics operations where it offers a “monstrous opportunity”.
However, as the VX4 is “not a low-cost product at the moment” and “addresses a higher-end market than AirAsia”, Capital A will create a new business to manage the aircraft.
“We would structure within Capital A and set up another division to do this and create a pan-Asian eVTOL company that could be separately listed at some point,” he says.
Initial use cases in the region will include linking major airports or capital cities with tourist destinations, where the time saved through flying rather than driving will “compensate for the amount [passengers] are going to pay.”
But Fernandes believes the VX4 will ultimately “evolve” into a product than can better address the low-cost market: “We want it to be as affordable as possible,” he says, “we would love more seats, for instance.”
At present, the VX4 can seat four passengers in a premium layout, or six in a higher-density configuration. Vertical chief executive Stuart Simpson has even hinted that an eight-seater could be possible in the future.
Besides a higher seat count, Fernandes says he would like to see the VX4 certificated for operation in instrument flight rules conditions to take advantage of the evening travel peak in Asia.
