Airspace Dynamics, Decentralization and Real Estate

Who Has The Rights To Open The Sky

The respect given to the Doers instead of the Do-Nots, during the Industrial Revolution made the modern world possible. Physics didn’t change. People did. - J. Storrs Hall

For those of you who don’t know, the inspiration for the title of this newsletter came from the excellent book, Where Is My Flying Car? by J Storrs Hall. We don’t have flying cars. I want one, I always have, and it would appear many others do too, so what’s holding us back?

On top of figuring out what those blockers are and discussing them, I wanted to build something that unblocked them and democratizes low-altitude air space. I hope you enjoy this week’s article.

Will The French Fly

In September 2023, the Environmental Authority in Paris, as I called out before, expressed reservations about one of the three electrical Vertical Takeoff and Landing (eVTOL) / Flying Taxi lines designated for operation during the Olympics. The independent body had asked Groupe ADP, the manager of Parisian airports, to reassess its plans, citing an "incomplete" impact study for the Parisian vertiport to be constructed on a barge floating on the Seine. The Environmental Authority (EA), had deemed eVTOLs too noisy and inefficient. The EA holds itself in high regard as the pinnacle of efficiency it would appear.

On February 2nd in the final report, the investigating commissioner specifically raised concerns about the project to establish a barge on the Seine for the takeoff and landing of flying taxis. Groupe ADP aims to test the commercial potential of eVTOLs and obtain their certification. Simultaneously, in partnership with the Assistance Publique-Hôpitaux de Paris (AP-HP), the airport manager aims to assess the viability of medical flights to replace helicopter or ambulance journeys.

The investigating commissioner has deemed the proposed vertiport unjustified, stating that the "potential gains brought by the project do not justify the disadvantages that will be borne during the experimentation."

Anyone who has tried to build or create something winces a little when they read this. The arbiter of what the gains are to society is someone who has never built anything of note, developed any systems of note or added to the economy in any positively meaningful way.

The commissioner did acknowledge the "undeniable interest" of the medical flight project, particularly in reducing noise and fuel consumption from helicopters and ambulances. This seems like a very strange angle to take. They are interesting for medical purposes because they have better fuel consumption and are less noisy than helicopters, but for commercial use, they could not possibly have a benefit!

While not wanting to commercialise new technology, he also believes they will not contribute to "decongestion of traffic" and will not provide "alternatives to current modes of transport." The report also raises concerns about "safety risks," despite the intention that these aircraft will not fly over inhabited areas. The proposed route departing from the Issy-les-Moulineaux Heliport (Hauts-de-Seine) would follow the ring road, similar to today's helicopters, before entering inner Paris, albeit only flying over the Seine.

It has to be said the practicality of flying eVTOL in uninhabited areas is minimal. The straight jacket that the regulators pushed the companies into so they could make the initial proposal is the very reason why the proposal failed.

While the value of showcasing the technology and what it can do is welcome, it seems the red tape merchants have won this round and progress has been hamstrung, at least in Paris, for now.

Who Will You Pay And What?

EHang, China's air taxi developer has disclosed its unit price. The EH216-S two-passenger autonomous air taxi will be sold for RMB 2.39 million ($334,000), with sales starting from (no joke) April 1, 2024. This follows EHang's achievement of a Standard Airworthiness Certificate for passenger operation in December. While these milestones are significant, many are sceptical regarding the perceived stringency of China's Civil Aviation Administration's approval criteria, raising questions about the EH216-S gaining similar approval in other markets. The pricing does place EHang in a good position in its domestic market, potentially prioritizing market penetration over per-unit profits, contrasting significantly with estimations for other eVTOL makers' pricing.