Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

UK helium-filled aircraft attracts interest of BAE Systems

Published 13/09/2023, 00:05
Updated 13/09/2023, 17:41
© Reuters. Tom Grundy, CEO of Hybrid Air Vehicles poses inside a mockup interior of an Airlander aircraft, in Bedford, Britain September 11, 2023. REUTERS/Stuart McDill

By Sarah Young

LONDON (Reuters) - UK-based Hybrid Air Vehicles (HAV) said on Wednesday it is partnering with Britain's biggest defence company BAE Systems (LON:BAES) to explore the use of its Airlander helium-filled aircraft in transporting equipment and surveillance.

The Airlander 10, which HAV hopes to bring into commercial production in 2026, is attracting attention among aviation, freight and defence companies as they seek to decarbonise air transport.

HAV said it had signed a memorandum of understanding with BAE's FalconWorks unit to explore using the aircraft, which can stay airborne for up to five days, offering potential benefits versus military helicopters.

HAV's CEO Tom Grundy said that while travel is slower than conventional flying, the Airlander emits up to 90% less carbon and that is creating demand despite the problematic past of airships.

The Hindenberg disaster, a hydrogen-filled airship which caught fire in 1937, killed 36 people.

In 2016 Airlander's double-hulls, nicknamed the "flying bum", crash landed during trials, and a year later it was pictured ripped and deflated after it came loose from moorings.

Grundy, however, is confident that the technology has improved and there will be a market for the Airlander, which uses aerodynamics, buoyancy and vectored thrust from four combustion engines to fly at about the same altitude as a helicopter.

"We're getting the economics, we're getting the technology, we're getting the customers and once you have a system like that that's working, consumers get on board," Grundy told Reuters in an interview at a small testing hangar in central England.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Passengers didn't stop getting on board ships after the Titanic disaster."

SWEET SPOT

Spanish regional aircraft Air Nostrum has already reserved 20 Airlanders ahead of production starting. It could use the aircraft to fly the four-hour journey between Spain and the Balearic islands.

This will be the Airlander's sweet spot, said Grundy, adding it is best suited to journeys where "options are long surface transport, perhaps via ferry, or that very short but very carbon intensive flight."

When pumped full of helium, Airlander's hardened fabric shell is almost as long as a football pitch and the height of six double decker buses, with a cabin slung below, and fitted out with either 100 seats or several luxury bedrooms.

HAV's plan is to build a factory to start making Airlanders by 2026 before 18 months of testing. Grundy said he was working to secure more investment as part of the estimated 300 million pound ($374.01 million) total cost of bringing it into production.

He expects the cost of a ticket to be competitive versus other modes of transport and said the Airlander can land anywhere flat, including on water, sand and snow, providing opportunities for defence and luxury travel.

($1 = 0.8021 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.