Car maker Porsche and aircraft manufacturer Boeing have announced that they have signed a Memorandum of Understanding to explore what they describe as “the premium urban air mobility market.”

Under the new partnership the two companies will create a team that will work on addressing various aspects of urban air mobility, analyse the market potential for premium vehicles and explore how they may be used. Aurora Flight Sciences, a Boeing subsidiary and Porsche Engineering Services and Studio F.A. Porsche, will also work together to build and test a prototype of a fully electric vertical take-off and landing vehicle. The electric power source is key to dispelling environmental concerns that are now a serious influencing factor in air travel development.

The idea of flying cars has been a pipe dream for decades, but the two companies now believe the time is right to seriously explore options. The market potential is said to be fast growing and there is even some thought that it might actually be a more efficient means of transport, as it avoids on the ground urban congestion. However, while the technology may be possible there will remain serious question marks over safety and in-air regulation.