How Can Air Taxis Take Off

More Of The Same Thinking Won't Do It

The air taxi market is predicted to be worth $38B within the next five years and the chase is on.

Archer

Archer Aviation is a US Electric Verticle Take-off and Landing (eV TOL) company whose total funding is over $1.5 billion. It has secured $220 million of its latest funding round with a remaining $10 million committed by Stellantis. Stellantis owns many automobile brands including Jeep, Alfa Romeo and Dodge, none of which I have seen flying, yet.

Stellantis will contribute up to $400 million towards scaling Archer’s production of its Midnight eVTOL aircraft. They are aiming for an annual output of 650 units by 2030.

The Midnight aircraft is designed to carry four passengers plus one pilot and can reach speeds of 150 mph and they claim it’s 100X quieter than a helicopter when cruising. So the birds will be happy.

Beta

Beta Technologies the Vermont-based manufacturer has secured FAA approval to commence dual-seat pilot training for its Alia 250 eVTOL aircraft. The FAA’s letter of authorization (LOA) permits student pilots to operate the Alia 250, provided they share controls with one of Beta’s powered-lift test pilots.

The FAA’s proposed regulations for powered-lift aircraft currently require dual flight controls for hands-on pilot training. Industry pressure from eVTOL developers lacking dual control designs is pushing the FAA to reconsider this requirement.

Beta’s six-seat electric aircraft, designed for both passenger and cargo use, will primarily feature dual controls. Exceptions can be made for operators opting for a single-seat configuration.

While non-Beta pilots have tested the company’s fixed-wing electric aircraft, the CX300, the Alia 250 eVTOL prototype has been restricted to Beta’s test pilots. Test pilots from the FAA, military, and Beta’s customers, including UPS, United Therapeutics, and Bristow, have flown the fixed-wing model.

Beta has already launched eVTOL pilot training at its Vermont headquarters and testing facilities in New York.

The company achieved its first piloted transition flights in April. The conventional prototype has completed several cross-country flights in the eastern U.S. over the past few years. Beta’s models have logged over 40,000 nautical miles in testing over the last four years.

EHang

EHang Holdings the Chinese company reported a 9X year-over-year increase in Q2 2024 delivery volume and revenue. The company delivered 49 units of its EHang 216-S eVTOL, generating RMB 102 million ($14M).

EHang holds three certifications for pilotless passenger eVTOLs and has secured over 1,100 bulk pre-orders. These certifications are easier to get in China. EHang expects Q3 revenue of RMB 123 million and targets positive cash flow for 2024. Expansion plans include automating its Yunfu factory and building a new assembly plant in Hefei to add 1,000 units to annual output next year.

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The Costs

The hourly operating cost of electric air taxis is determined by; electricity prices, maintenance reserves, and battery replacements. These are expected to be lower than those of traditional helicopters. For example, a R66 helicopter costs over $300 per hour, $89 for routine maintenance, $94 for overhaul parts, and $123 for fuel.