Malaysia’s AirAsia Nears Flying Taxi Deal With Lessor Avolon

Malaysia’s AirAsia is near agreement for Vertical Aerospace Ltd. flying taxis, according to people familiar with the matter, adding to a raft of carriers moving into the potential market to offer short, battery-powered flights.

A deal between the airline’s owner and aircraft-leasing firm Avolon Holdings could be announced as soon as Wednesday at the Singapore Air Show, said the people, who asked not to be named because discussions were confidential. Avolon, an investor in Vertical, has ordered 500 of the U.K. startup’s VX4 aircraft, conditioned on milestones including certification.