Rolls-Royce pulls the plug on electric flying taxi project
Aerospace and engineering group
Rolls-Royce has shut down plans for an electric flying taxi business almost
three years after the Spirit of Innovation broke the electric air speed record
by recording a 345.4mph flight.
The news was announced in a trading update on Thursday,
with a comment saying: "In September, we made the decision to close
Rolls-Royce Electrical's Advanced Air Mobility activities."
That was in contrast to Rolls-Royce's enthusiastic
launch of the project when it declared: "The Electrical power and
propulsion systems will lead the way for Advanced Air Mobility (AAM), enabling
silent short and vertical take-off and landing capabilities while lowering
emissions and reducing fuel consumption."
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High hopes at one stage
At the time, it said urban air mobility (UAM) such as
air taxis and electric take-off and landing vehicles (eVTOL) were due to take
to the skies by the mid-2020s, creating a billion-pound market.
The aircraft were designed to carry up to
four people or transport light cargo and the urban air mobility industry would
"revolutionise intracity travel and supply chains".
The idea was that, as battery technology improved and new
hybrid-electric concepts were introduced, eVTOL would become "even more
sustainable and able to fly for longer ranges at higher speeds".
However, plans changed when former Rolls-Royce boss
Warren East left the company. He had been the power behind the project but new
chief executive Tufan Erginbilgic was doubtful about the eventual cost and how
long development would take.
No takers
when division put up for sale
Despite the UK government putting in money to support
the project, Erginbilgic signalled last year that the Advanced Air
Mobility division was going to be up for sale. When it failed to find a
buyer, the decision was taken to close the division down.
In the same trading statement the announcement was made, Erginbilgic said
of the company as a whole: "Our transformation of Rolls-Royce into a
high-performing, competitive, resilient and growing business continues with
pace and intensity.
Business
looks good in other areas
"Continued good performance year to date gives us
further confidence in the delivery of our 2024 guidance despite a supply chain
environment which remains challenging.
"We are also making good progress towards our
mid-term targets, with a front-end loaded delivery of profit and cash flow
improvements. There is more we still need and want to do, as we expand the
earnings and cash potential of Rolls-Royce."
The company revealed its trading was in line with
expectations. The full year guidance for 2024 of an underlying operating profit
between £2.1bn and £2.3bn and free cash flow between £2.1bn and £2.2bn remained
unchanged, it said.
"We continue to strengthen our balance sheet. This has been recognised
by the ratings agencies, all of which now hold us at an investment grade
rating, and all with a positive outlook," it added.
By Euronews
Published on 08/11/2024
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