Flying taxi factories could soon be built in the UK, with a Bristol-based manufacturer announcing it's in advanced talks with the government.
Vertical Aerospace said the possible deal would involve up to £10m of extra funding, alongside other benefits such as "confirmed interest" from the Ministry of Defence.
Sky News science and technology reporter Mickey Carroll visited the company's headquarters earlier this year to witness its proposed electric aerial cabs in action.
It's one of only two firms in the world that have been able to make a plane like the one featured in the video above fly.
Capable of travelling at up to 150mph with four passengers aboard, it takes off vertically like a helicopter, and then its propellers tilt forward until it's flying much more like a plane.
Its motors are powered by eight battery packs with a range of about 100 miles.
The government is already providing tens of millions of pounds of direct grant support to the business.
Stuart Simpson, chief executive of Vertical Aerospace, said the extra funding is "a major vote of confidence".
He added: "It means we will continue to create high-value jobs, strengthen Britain's advanced manufacturing base, and build aircraft that will be exported to customers around the world."
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Vertical Aerospace previously said planned destinations for its flying taxis from Canary Wharf include Heathrow and Gatwick airports, as well as Cambridge, Oxford and Bicester.
It is whittling down potential UK locations for factories where the aircraft – dubbed the Valo – would be built. The company said it would mark the first time in three decades a new plane has been designed and built in the UK.
A final decision is expected by the end of the year, and it's hoped the planes could enter service in 2028 if they meet regulatory requirements.
(c) Sky News 2026: Flying taxi factories could be built soon in UK
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