U.S.-based conglomerate Honeywell International (HON) is making big moves in air taxi technology. The company has expanded its partnership with electric aircraft maker, Vertical Aerospace (EVTL), to help certify key systems for its electric vertical take-off and landing (eVTOL) aircraft, the VX4.
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These air taxis are designed for fast, urban transportation to reduce traffic congestion and emissions.
Under this expanded partnership, Honeywell will play a key role in securing certification for two vital components of the VX4: the aircraft management system, which includes the flight deck, and the flight control system, featuring Honeywell’s compact fly-by-wire technology.
This partnership could be worth $1 billion over the next decade, helping Vertical Aerospace accelerate VX4 global certification by 2028 and deliver at least 150 air taxis by 2030.
Air Taxi Market on the Rise
The air taxi market is rapidly growing as companies compete to dominate urban air mobility. With growing concerns over traffic congestion and emissions, eVTOL aircraft are emerging as a sustainable solution for short-distance travel. Several key players are investing heavily in eVTOL aircraft, infrastructure, and regulatory approvals.
Among major players, Joby Aviation (JOBY), backed by Toyota (TM), is targeting FAA certification by 2025 and aims to launch commercial air taxi services soon. The company has already delivered two eVTOL aircraft to the U.S. Air Force for testing.
Also, Archer Aviation (ACHR) has partnered with United Airlines (UAL) to develop the Midnight eVTOL designed for short urban flights. The company plans to launch air taxi operations in New York City, using existing helipads to connect passengers to major airports.
Is HON a Good Stock to Buy?
Turning to Wall Street, HON stock has a Moderate Buy consensus rating based on eight Buys and four Holds assigned in the last three months. At $230.55, the average Honeywell stock price target implies a 7.43% upside potential.
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