Hybrid Air Vehicles Faces Funding Crunch as Airlander Ambitions Hang in the Balance

Hybrid Air Vehicles, the British developer behind the world’s largest aircraft, is in urgent talks to secure a £130 million investment after auditors warned that its reserves could run dry within weeks. The company’s Airlander 10 – a unique hybrid of aircraft and airship technology – has been hailed as a breakthrough in sustainable aviation, but faces a critical cashflow test as it seeks to transition into full-scale production.

According to its recently filed accounts, Hybrid Air Vehicles has only “four to six weeks” of resources remaining. Success in attracting further investment is vital for the company to continue operations and keep its ambitious project afloat. Its auditors at RSM UK cautioned about “material uncertainty” over the company’s viability amidst ongoing negotiations for loans and delays in closing the investment round – concerns that echo similar warnings in previous filings.

The £130 million funding round, led by Canaccord Genuity, would enable the company to commence production of the Airlander 10 in a bid to create over 1,000 jobs and generate multibillion-pound revenues. Discussions with investors are reportedly at an advanced stage, with Hybrid Air Vehicles hoping to secure at least half the targeted funds by year-end. Beyond this, a further private funding round of £180 million or a potential flotation is being considered for 2027.

The Airlander 10, measuring 92 metres, is designed as a low-emissions aircraft capable of carrying more than 100 passengers or over 10 tonnes of cargo. Its appeal lies in its versatility, able to land on fields, tarmac, or water, minimising the need for conventional airport infrastructure. Developers say it will enable low-carbon regional flights, eco-tourism, humanitarian missions and security services, offering endurance flights of up to five days and a top speed comparable to rail transport.

A new factory in Doncaster has been earmarked to produce at least 24 Airlanders annually by 2030, supporting up to 1,200 jobs and annual sales of approximately £1.2 billion. The company claims to have $2 billion in reservations, including contracts for routes in Scotland’s Highlands and Islands, and with a French tourism operator, part of a wider sales pipeline valued at $7 billion.

Hybrid Air Vehicles faces additional challenges including the repayment of a £1.9 million regional growth grant and restructuring of loans due to mature by year-end. The firm has stated that uncertainty will remain until it achieves a cashflow-positive position, despite recent injections including £5 million secured this year. The coming weeks will be pivotal in determining whether the Airlander project ascends to new heights or is grounded by financial realities.