By Shivansh Tiwary

May 8 (Reuters) - British electric-aircraft firm

Vertical Aerospace ( EVTWF ) said on Thursday it has expanded its

partnership with Honeywell ( HON ) under a new long-term deal to

help certify key systems for its VX4 air taxi.

Under the expanded collaboration, Honeywell ( HON ) will support the

certification of two critical systems - the aircraft management

system, including the flight deck, and the flight control

system, featuring its compact fly-by-wire technology.

Vertical is working to get these systems certified through

the UK Civil Aviation Authority, which is coordinating with the

European Union Aviation Safety Agency.

The agreement could be worth up to $1 billion over the next

decade and aims to accelerate the VX4's development ahead of

planned certification in 2028 and initial deliveries by 2030.

Air-taxi startups are racing to get approvals and

commercialize electric vertical takeoff and landing (eVTOL)

aircraft, betting on growing demand for faster, more sustainable

urban transportation.

"The deal also makes sure that we have got the capacity to

deliver enough hardware to support Vertical's targeted aircraft

build to meet their customer demand," Dave Shilliday, Vice

President of Advanced Air Mobility at Honeywell Aerospace

Technologies told Reuters in an interview.

Honeywell ( HON ) and Vertical have collaborated since 2019 on

advanced air mobility, with the latter supplying flight systems

for the VX4 prototype and investing in the UK-based aerospace

startup.

Vertical intends to deliver at least 150 aircraft to

customers by 2030.

Air-taxi startups have been rapidly spending cash in their

push to launch commercial services while navigating a stringent

regulatory landscape.

Vertical's current cash balance will take it through the end

of the year, CEO Stuart Simpson reiterated in an interview with

Reuters.

"Over the course of this year, we'd be raising funds to see

us through 2026 and beyond," Simpson added.