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The Assetizer · 15 October 2024

Hybrid Air Vehicles: Revolutionizing Sustainable Aviation with GenTwo's Flexible Funding Solutions

Discover how Hybrid Air Vehicles is rethinking the skies to pioneer zero-emissions aircraft and how GenTwo's flexible funding solutions are helping make this vision a reality. An innovative partnership shaping the future of sustainable aviation.

Hybrid Air Vehicles: Revolutionizing Sustainable Aviation with GenTwo's Flexible Funding Solutions


Pioneering the Future of Aviation
 

Hybrid Air Vehicles (HAV) is setting a new standard for air travel with its innovative aircraft, Airlander. Blending the best of airplanes and airships, Airlander represents a new category in transport—one that focuses on sustainability, operational flexibility, and enhancing connections. HAV is building a future of sustainable and affordable point-to-point aviation, with minimal infrastructure requirements, lower energy demands, and less noise.
 

Operating without fixed infrastructure, Airlander is capable of landing on almost any flat surface, from grass fields to water. This innovative capability opens up new opportunities for connecting remote areas and makes Airlander a game-changer for various sectors, including regional mobility, ecotourism, and defence.

Zero-Emissions Ambitions
 

The first Airlander to enter the market will reduce greenhouse gas emissions by up to 90% compared to conventional aircraft. This is achieved by a unique hybrid design combining aerodynamic lift and buoyant lift through the use of helium, making it a leader in sustainable air travel. HAV is also on a development pathway to zero-emissions by 2030 that will see electric motors and hydrogen fuel cells employed on the aircraft to eliminate all carbon emissions. HAV’s zero-emissions vision is well-positioned to address the growing demands for environmentally conscious travel, contributing significantly to global ESG goals.
 

Airlander 10 also offers a quiet and safe flying experience, capable of carrying 100 passengers or up to 10 tonnes of cargo. For surveillance and defence missions, it can remain airborne for up to five days without refuelling—an impressive feat that highlights its versatility.
 

The Role of GenTwo in Supporting HAV's Vision
 

To bring the Airlander vision to life, HAV required a flexible and cost-effective approach to fundraising. Enter GenTwo, whose securitization platform is providing the ideal framework for HAV's financial needs. Through a partnership facilitated by HBLDN, HAV opted for a Credit Linked Note (CLN) structured as a credit line. This product starts with an initial £10 million and is designed to grow over time, providing HAV with the flexibility to access additional funds as needed.
 

The decision to use a CLN over a traditional bond issuance was driven by the need for flexibility. A classic bond issuance would have proven too costly and inflexible for HAV’s phased project needs. GenTwo's solution allows HAV to maintain control over the deployment of funds, track the progress of the project, and respond efficiently to financial demands as they arise.
 

Hwfa Gwyn, Chief Finance Officer at HAV, shared, "The flexibility that GenTwo provides is unmatched in the current market. We needed a funding solution that grows with us—enabling us to scale effectively while keeping costs in check. GenTwo's platform allows us to tap into institutional debt markets much earlier than we could have through traditional means, positioning us for successful growth and scale-up."

Aligning with Global Sustainability Goals
 

HAV's commitment to creating a zero-emissions aircraft by 2030 and its strategic partnerships, such as the collaboration with South Yorkshire regional government for the production site, align closely with international sustainability efforts. With £1.4 billion worth of aircraft already under paid reservations, including partnerships with Air Nostrum Group and BAE Systems, HAV is making substantial headway toward its goal of manufacturing 24 aircraft annually—a target that would translate to a potential turnover of £1.2 billion.
 

Moreover, HAV’s collaboration with governments and defence bodies further illustrates the wide-ranging potential of Airlander. The ability to operate without conventional infrastructure makes it particularly appealing for use in remote and underserved regions, allowing HAV to transform logistics and regional mobility with minimal environmental impact.
 

A Flexible Funding Model for an Evolving Market
 

As HAV embarks on the journey to full-scale production, the need for innovative funding approaches remains crucial. With GenTwo’s securitization platform, HAV has found a cost-effective way to reach institutional investors and achieve the financial agility necessary for scaling operations. Through this collaboration, HAV can confidently navigate the challenges of scaling a unique and sustainable aviation solution, while offering investors an exciting opportunity to be part of a pioneering project with promising market potential.
 

A Promising Future in Aviation
 

The Airlander aircraft represents more than just a technological marvel; it is an ambitious step forward for sustainable air travel, providing solutions where traditional aircraft cannot.

Hybrid Air Vehicles and GenTwo are proving that the future of aviation is not only innovative but also adaptable, sustainable, and forward-thinking—a true testament to the power of collaboration in pushing the boundaries of what’s possible in air travel.

Learn more about Hybrid Air Vehicles