Can Flying Cars and Air Rights Owners Drive a Sustainable Future?
Urban Skyways Infrastructure: Balancing Supply and Demand of Air Rights and Sustainable Flying Cars
Thank you to everyone for reading, you can contact me at jonathan@skytardes.io - I hope you enjoy the newsletter this week from SkyTrades.io the air rights marketplace. Flying cars could be closer than you think!
What Will Our World Look Like with Flying Cars?
In the near future, we can anticipate the initial rollout of Electrical Vertical Take Off and Landing (eVTOL) aircraft, which will likely serve as a curated point A-to-A service by 2025. The estimated cost projections are intriguing, with an expected price of $9-10 per mile or $2-3 per available seat mile by 2028. This places eVTOL transportation in the realm of a premium service, comparable in per-mile price to Uber Black but significantly more affordable than traditional helicopter rides. As a result, the second phase of eVTOL commercial deployment is expected to focus on piloted operated taxi routes, essentially functioning as shuttles between airports and bustling metropolitan areas.
Drawing from the experiences of ride-hailing company Uber, we can observe that 23% of their gross ride-sharing bookings in 2019 stemmed from just five urban areas: Chicago, Los Angeles, New York, the San Francisco Bay Area, and London. A notable 15% of Uber rides involved trips to or from airports, a figure that is projected to rise in the future. Accommodating the influx of incoming and outgoing eVTOL services will necessitate a robustly integrated air traffic management system with air rights holders to ensure smooth and efficient airspace management.
To make eVTOL operations economically feasible for a broad audience, similar to the aviation industry, high utilisation rates and load factors will be crucial. Initially, we can expect eVTOL operations for the general public to adopt a scheduled network model, optimising flights to maximise passenger occupancy and minimise ground time. This approach prioritises efficiency over on-demand service. Once cities have a substantial number of vertiports (helipads designed for vertical takeoff and landing) and witness thousands of passengers flying autonomously daily, can we envision a scalable on-demand taxi system?
Estimates for the eVTOL market in 2040 indicate that it will account for roughly 30% of the total passengers who traveled on scheduled flights in 2018, signifying significant potential for growth. Comparing this to the staggering 6.9 billion trips and $50 billion in gross ride-sharing bookings completed by Uber in 2019 (pre-pandemic), we can see the 2040 global passenger eVTOL market resembling the current market for Uber. This is predicated on the fact that air rights holders will be partaking in the market, if not it will be commercially worthless.
Vertiports, one of the key infrastructural components, will serve as pivotal connectors linking airports, city centers, transportation hubs, and other heavily trafficked areas within metropolitan regions. Establishing strategically positioned vertiports, akin to the heliports seen in cities such as Sao Paulo, Mexico City, and Tokyo, will be imperative in minimising the impact of ground traffic on the door-to-door travel experience, a recurring challenge for helicopter taxi services. This is a further advantage given to air rights and landowners who can use their assets to widen the reach of flying cars and drones.
The development of the infrastructure necessitates careful consideration of safety and throughput concerns related to incoming and outgoing aircraft traffic. Additionally, bringing communities together that are willing to engage in a mutually beneficial relationship with infrastructure builders and operators will be vital to ensure the long-term sustainability of this emerging industry.
Communities that stand to gain the most from a rapid transit hub, especially those with a high concentration of business travelers and airport commuters, will likely be the first to embrace and approve operations. Smaller cities and forward-thinking towns can develop new economic hubs that allow businesses and builders easy access to their facilities and if ambitious enough leapfrog the incumbents.
As the desire for drones and flying cars increases so does the need for hard-fought property rights to be maintained. Bringing landowners into the ecosystem is the oil for the squeaky wheel. SkyTrades.io
Test Flights for Joby
Joby Aviation, Inc. is finally gaining momentum. Last week, the shares of this electric passenger aircraft manufacturer soared by 62%. This surge came after Joby received approval from the Federal Aviation Administration (FAA) to conduct test flights of its all-electric, vertical take-off and landing (eVTOL) 'air taxi.' The FAA granted Joby a Special Airworthiness Certificate, paving the way for the testing of their first production-line aircraft.
Joby has been flying aircraft since 2017 but the recent FAA approval allows them to accumulate crucial test mileage with the ultimate goal of enabling daily commutes through the skies. The first Joby aircraft is scheduled for delivery to Edwards Air Force Base in the coming year as part of a $131 million contract with the U.S. Air Force.
California Governor Gavin Newsom visited Joby's headquarters in Santa Cruz to celebrate the news. Newsom's appearance symbolizes the global effort to reduce carbon emissions across all modes of transportation.
Joby has been collaborating with Japanese automaker Toyota in the development of their eVTOL aircraft, with Toyota playing a crucial role in design, production, and assembly. Toyota, as Joby's largest external shareholder, has invested around $400 million in the company since 2020. In April 2023, they also reached a long-term supply agreement for powertrain and actuation components.
Joby aims to launch a commercial passenger operation by 2025 and has already secured a major airline partner. In October 2022, the company joined forces with Delta Air Lines to provide emissions-free travel experiences for passengers traveling to and from Delta airports.
Joby recently appointed Ted Ogawa, President and CEO of Toyota North America, to its Board of Directors. This move strengthens the relationship with Toyota.
The Chairman of Joby's Board is Paul Sciarra, co-founder of Pinterest. Sciarra now owns approximately 70,000 shares of Joby, valued at around $7 million. With CEO JoeBen Bevirt holding a substantial stake and also serving on the board, insider ownership of Joby stands at 15%.
Earlier this year Michael Huerta, former FAA administrator and Delta board member, joined its board. Huerta undoubtedly played a role in guiding the company through the FAA permit process. Other notable members of Joby's board include Reid Hoffman, co-founder of LinkedIn, Halimah DeLaine Prado, a Google executive, and Laura Wright, former CFO of Southwest Airlines.
They also announced a $100 million investment from South Korean wireless carrier SK Telecom last week. This investment is tied to SK Telecom's "K-UAM Grand Challenge," a government-led initiative focused on infrastructure innovation. Building on their partnership established last year, this deal has the potential to facilitate urban ride-sharing services in Korea.
Champagne corks, coordinated public relations and test flights aside it is clear that there is a desire for Urban Air Mobility to take off and money flowing in certain predictable directions. Like all low-altitude urban air space travel the air rights owners will get the final say in how this market is shaped. SkyTrades are at the forefront of this balancing property owners’ air rights and airspace users needs.
SpaceX-Backed Flying Cars
Alef Aeronautics has received a Special Airworthiness Certification from the U.S. Federal Aviation Administration (FAA) for its flying car.
Unveiled to the public in October 2022, Alef Aeronautics' "Model A" flying car is a fully electric vehicle capable of both driving on the street and taking off vertically when required. The FAA's limited Special Airworthiness Certification permits the use of this flying car for specific purposes, including exhibition, research, and development.
The FAA is actively working on developing policies, regulations to accommodate the emerging field of electrical vertical takeoff and landing (eVTOL) vehicles. In a recent proposal, the FAA outlined a rule that would require eVTOL operators to undergo pilot training and certification. This suggests that future eVTOLs entering the market may require operators to hold some form of a pilot's license.
Highlighting the unique characteristics of eVTOL aircraft, the FAA stressed the necessity of new rules due to their vertical takeoff and landing capabilities coupled with airplane-like en route flying. Once finalised, these proposed rules will offer pilots and the industry a clear understanding of the requirements and expectations for operating these groundbreaking aircraft.
Delivery of the vehicles is expected in 2025. It remains to be seen whether the vehicle will be equipped with Tesla's North American Charging Standard (NACS) port.
Flying Cars in Saudi Arabia
Neom, Saudi city of the future, in collaboration with Volocopter, a German aerospace company, has conducted successful test flights of electric flying taxis in Saudi Arabia. This marks the first time that an eVTOL aircraft has received special flight authorisation and undergone tests in the country. The flight tests, which took place after 18 months of collaboration between Neom, the General Authority of Civil Aviation (GACA), and Volocopter, focused on assessing the aircraft's performance in local climate and environmental conditions.
Neom's innovative transportation system, including air taxis, will be powered by 100% renewable energy from solar and wind sources. The project aims to enhance connectivity, and sustainability while reducing carbon emissions. Neom a $500 billion project, features The Line, a zero-carbon city characterised by vertically layered buildings that integrate work, living, and leisure spaces. The development aspires to be a unique blend of engineering, design, and art.
US & European Air Taxis
Lilium, has achieved a significant milestone by receiving the Federal Aviation Administration (FAA) G-1 Certification Basis, adding to the certification basis it obtained from the European Union Aviation Safety Agency (EASA) in 2020. This makes Lilium the sole company in its field to possess both EASA and FAA certification bases for a powered lift eVTOL aircraft.
The announcement, reinforces the decision to pursue concurrent certification of its Jet through FAA validation under the Bilateral Aviation Safety Agreement between the European Union and the United States. Their CTO, expressed gratitude for the partnerships formed to advance the electrification of the skies and emphasized the collaborative process that will follow with the FAA and EASA. Lilium anticipates commencing worldwide operations in 2025.
Great article! Do you have any idea who’s the supplier of interior and seats for Joby and Volocopter?