A vertical takeoff and landing (VTOL) air vehicle disclosed. The air vehicle can be manned or unmanned. In one embodiment, the air vehicle includes two shrouded propellers, a fuselage and a gyroscopic stabilization disk installed in the fuselage. The gyroscopic stabilization disk can be configured to provide sufficient angular momentum, by sufficient mass and/or sufficient angular velocity, such that the air vehicle is gyroscopically stabilized during various phases of flight. In one embodiment the fuselage is fixedly attached to the shrouded propellers. In another embodiment, the shrouded propellers are pivotably mounted to the fuselage.