Page 31 - AAA March / April 2024 Digital Magazine | GBP

Federal Aviation Administration two companies that were once
(FAA) type certification process.
It is the first eVTOL developer to
reach the milestone. The com-
pany, which completed the first
ever delivery of an electric air
taxi to the U.S. Department of
Defence in September last year,
is targeting commercial urban
air mobility (UAM) operations in
2025 and will use its one-pilot,
four-passenger air taxi to launch
aerial ridesharing service in Los
Angeles and New York City. The
company announced in March
this year that it had acquired
an existing facility at Dayton
International Airport and begun
hiring to support its manufac-
turing operations in Dayton,
Ohio. Joby’s long-term plan is
to develop facilities capable of
building up to 500 aircraft per
year in Dayton. The company
has also received its Part 145
Repair Station Certificate from
the FAA, allowing it to perform
select maintenance activities on
the aircraft.
In February this year, Joby
signed a definitive agree-
ment with Dubai’s Road and
Transport Authority (RTA) to
launch air taxi services in the
Emirate by early 2026. Joby,
which displayed its aircraft at
the World Governments Summit
in Dubai, is also partnering with
Skyports, which will design, build
and operate four initial verti-
port sites across Dubai. Dubai
International Airport (DXB),
Palm Jumeirah, Dubai Marina
and Dubai Downtown will be the
launch locations for the air taxi
service.
Strategic Alliances
The industry is yet to take off but enough to cause an implosion.
has already spawned strategic
alliances, including one involving startups, which touched US$7.7
ASIAN AIRLINES & AEROSPACE
billion across 121 deals in 2021,
involved in a legal tangle. Two
years after Boeing subsidiary
Wisk sued Archer for patent
infringement, the two eVTOL
companies announced last year
that they are collaborating, with
Wisk being the exclusive pro-
vider of autonomy technology for
future variants of Archer’s air-
craft. As part of the agreement,
Boeing is making an investment
in Archer.
Supernal, which has a partner-
ship with Korean Air, plans to
start commercial operations in
2028. California-based Overair,
which is backed by Hanwha
Systems, plans to bring its
five-passenger Butterfly aircraft
to market in 2028. Airbus and
LCI are collaborating to jointly
develop ecosystems for AAM.
In November last year, Eve Air
Mobility formed a joint venture
in India with Hunch Mobility, a
joint venture between Blade Air
Mobility and Hunch Ventures, to
bring air taxi services to cities
across the country, starting in
Bangalore. Eve, which wants to
certify its four-passenger aircraft
in 2026, has an AAM partnership
in place in South Korea and is
also working with Singapore-
based rideshare booking
platform Ascent to offer flights in
Singapore, Tokyo, Manila, and
Melbourne.
Crunch Time
According to TNMT, the
Strategic Intelligence team of the and societal acceptance for air
Lufthansa Innovation Hub (LIH),
the industry currently faces a
funding crunch that is severe
Venture Capital funding for AAM
declined to US$ 3.2 billion in
2022. In 2023, investments
plunged further to US$1.3 billion
for 46 deals, an 83% drop in
funding and a 62% decrease in
deal count from the 2021 peak.
The lack of adequate
funding, triggered by
the global economic
slowdown as well
as the technological
and regulatory hur-
dles that confront the
industry, is likely to impact
the timelines of several compa-
nies in the sector. With funding
being scarce, industry experts
expect consolidation within the
industry, with companies that are
successful in securing fund-
ing taking over firms that are
unable to compete in the tough
environment.
“With a long path ahead toward
certification and operational-
ization, financing remains a
key area of concern for OEMs;
liquidity issues could jeopardize
their ability to reach their certifi-
cation timelines,” says Lim.
“While there have been many
press releases describing the
launch of air taxi operations
in cities around the globe, we
have not seen the supporting
infrastructure ready for such
a service. Companies need to
understand the journey doesn’t
end with certification. It is imper-
ative to establish both regulatory
taxi operations, a process that
necessitates substantial collabo-
ration of stakeholders and public
demonstrations to showcase the
safety and capabilities of UAM
vehicles.”•
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