Charles Alcock is managing editor of the AIN Media Group, having rejoined the company in 2019. He has been an aviation journalist since 1986, and previously worked for AIN from 1990 to 2017, most recently as editor-in-chief. His main focus is on covering new aviation technology and business models, as well as international news.
Having been raised in the London area, Alcock studied at the University of Manchester in the UK and earned an honors degree in Politics and Modern History. He speaks English and French, and some German.

Managing Editor

Charles Alcock

Read the latest news about German eVTOL developer Lilium.

Shareholders in eVTOL aircraft developer Vertical Aerospace have approved a reverse stock split required to be compliant with New York Stock Exchange rules. The one-for-ten split was approved by the UK company’s board following an annual general meeting on September 16 and will take effect when Wall Street trading closes on September 20.
The move, which has been anticipated for several months with Vertical’s stock trading below the $1 mark, was confirmed the day before it published financial results for the first half of 2024. The company reported an operating loss of £20 million ($26 million) for the six months to June 30, at which point it had cash reserves of £67 million. It anticipates spending between £40 million and £45 million over the rest of 2024 as it steps up flight testing of a new full-scale prototype of the <a href="https://www.ainonline.com/aviation-news/futureflight/2024-09-12/vertical-completes-first-phase-vx4-evtol-flight-testing">four-passenger VX4 aircraft</a> it aims to bring to market in 2026.
Payments received during the second quarter included a $34 million settlement from Rolls-Royce to compensate the aircraft manufacturer for the engines group’s decision to end its contract to provide an electric propulsion unit. This happened in the wake of Rolls-Royce’s decision to sell its electrical division, leaving Vertical to find another supplier. Rolls-Royce has still not announced a buyer for the business unit.
<h2>New Investment Sought</h2>
Vertical has indicated that it is now in discussions with a new third-party investor to replenish its capital reserves. Earlier this year, it received a $25 million cash injection from Imagination Aero Investments, which is owned by Vertical's founder, Stephen Fitzpatrick. The eVTOL developer could receive another payment of the same amount if another backer can be lined up. Other income during the first half of this year came from an £8 million grant from the UK government’s Aerospace Technology Institute.
According to Vertical, it holds pre-orders for the VX4 worth $6 billion, with prospective customers including major airlines such as Virgin Atlantic, Japan Airlines, American Airlines, and Gol, as well as helicopter operator Bristow. To strengthen its management team as it progresses through the UK type certification process, the company recently appointed Martyn Ashford, a former executive with its partner Leonardo, as head of aircraft programs development.
<h2>Lilium Could Face Stock Split Too</h2>
Vertical is not the only eVTOL start-up that raised capital through a <a href="https://www.ainonline.com/aviation-news/business-aviation/2021-12-16/vertical-aerospace-makes-300m-wall-street-takeoff">Wall Street flotation</a> based on a merger with a <a href="https://www.ainonline.com/aviation-news/business-aviation/2021-03-30/830m-ipo-fund-liliums-seven-seat-evtol">special purpose acquisition company</a>&nbsp;to have seen its stock price remain sub-par. On July 11, <a href="https://www.sec.gov/Archives/edgar/data/1855756/000110465924079558/tm2419386d1_6k.htm">the Nasdaq market notified Germany-based Lilium</a> that it will need to attain a minimum bid price of $1 for at least 10 consecutive dates by Jan. 7, 2025, to maintain its listing, with a stock split being a possible resolution.
At the close of New York Stock Exchange trading on September 17, Vertical's stock price stood at $0.8055, with Lilium at $0.8479, and U.S. eVTOL manufacturers Joby and Archer at $5.26 and $3.13, respectively. In Nasdaq trading the same day, China's EHang closed at $12.34.
This story was updated early on September 18 to take account of closing share prices.
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