British flying taxi startup Vertical Aerospace has revealed the UK government has expressed interest in buying a military version of its aircraft, alongside a fresh £10m government grant that brings total state funding for the project to £48m. The announcement, made at the Farnborough international airshow, matters because it signals a potential new revenue stream and vote of confidence for a company that faced a near-collapse in 2024, while also opening up debate over dual civilian-military use of emerging electric aircraft technology.

The company demonstrated its Valo eVTOL (electric vertical takeoff and landing) prototype transitioning from conventional wing-borne flight to vertical, helicopter-like descent, the first public showing of this manoeuvre. Vertical is racing rivals including US firm Joby Aviation, as well as Eve and Archer Aviation, to gain Civil Aviation Authority certification for passenger flights. Chief executive Stuart Simpson said a hybrid electric-gas turbine version, offering longer range and quicker refuelling than batteries, has attracted strong Ministry of Defence interest due to its quiet, low-heat "dual use" potential; the firm aims for passenger flights to begin around 2029.