The Sky of The Future - Transforming Urban Air Mobility
Redefining Sustainable Transportation - Cleaner Air and Reduced Congestion
Thank you, everyone, for reading my newsletter. Thanks to this newsletter I have been introduced to some of the most interesting people in the industry. Incredible entrepreneurs and investors who are so open, helpful and encouraging - I am very grateful for your support. jonathan@skytrades.io
Transportation is constantly evolving, and each step forward yields new opportunities that fundamentally change how people and goods are being transported. A new era of aviation once only portrayed in movies or science fiction is taking off.
- The Federal Aviation Administration (2023)
An Exciting Time in Advanced Air Mobility (AAM)
AAM has the potential to transform transportation by offering a faster, greener way to connect communities, ease congestion and improve the quality of life.
The market is buoyant with global investment in 2021 reaching $7Bn according to PWC. In the U.K. the estimated socioeconomic benefit (time, carbon, reduced accidents) is estimated at £2.1Bn ($2.75Bn).
In a recent study, there were five key areas (The 5 As) identified for AAM which are needed for the industry to grow to its full potential
Aircraft
Entities which design and manufacture electrical Vertical Take off and Landing vehicles (eVTOL) and are responsible for design, production and certification from the safety regulators.
There are many companies in this category, some of the most prominent players are Volocopter, Joby Aviation, Eve Air Mobility, Ehang, Lilium, Archer and Airbus.
I firmly believe that drones will play a crucial role in shaping the future of aviation technology. As an example, the widespread use of commercial drones can make advanced air mobility (AAM) more socially accepted. Additionally, the progress of pivotal aviation technologies like SkyTrades, the marketplace for Air Rights, helping last-mile delivery drones is essential, any delays could negatively affect AAM timelines. Drones have the potential to be the trailblazers in transforming the aviation landscape, and it's crucial that we prioritise their development, individual property rights and their integration for a successful future.
Ancillary
These are entities which carry out maintenance, repair, and overhaul (MRO) and are vital components of aviation, particularly in private aviation. An MRO refers to an authorised aircraft maintenance facility responsible for essential inspections and maintenance. The FAA requires all aircraft to undergo maintenance, repair, and overhaul through certified entities, such as MROs. Most MROs operate as FAA Certified Repair Stations, while some rely on individual mechanics with A&P licenses for general maintenance. Maintenance involves routine inspections and repairs, repair aims to restore serviceability to accessories and components, and overhaul entails bringing aircraft items back to OEM standards. Notably, MROs are often synonymous with Certificate Repair Stations (CRS), subject to stricter FAA regulations under FAR Part 145, governing training, inspections, quality assurance, equipment, and records.
Airline
The Airlines traditionally own / lease and operate fleets of aircraft to serve the passengers from ticket sales through to disembarkation, and they vitally deliver freight. They are also responsible for compensation claims of passengers, delayed baggage or cancelled flights in many cases. It is seen that many of the existing airline businesses will own, or part own eVTOL businesses and have invested in several of them already.
Airport
The Vertiports in AAM are the locations that process the passengers, land the aircraft and manage security. They also manage the charging facilities. There will be numerous Vertiports, some on downtown buildings serving business travellers and others at traditional airports. However interesting smaller towns and communities will spring into action offering a way of life that people previously have found inaccessible, and with new vertiports will be able to access.
Airports need to proactively prepare for advanced air mobility (AAM) rather than waiting for its arrival, according to National Business Aviation Association (NBAA) director of airports and ground infrastructure, Alex Gertsen. NBAA aims to integrate AAM successfully into the National Airspace System, ensuring interoperability with existing aircraft types. The key message is for airports to be ready for electrification and new aircraft, remaining engaged and involved during the transition. AAM's electric nature reduces emissions and addresses community concerns in sensitive areas. Thought leaders are working on infrastructure preparation, scaling, and optimization. NBAA advocates for integrated dual-use infrastructure, utilizing existing facilities during the transition, and accommodating legacy aircraft alongside new AAM operations. By taking these proactive steps, airports can embrace the opportunities presented by advanced air mobility. - Hat tip to J.E. Murdock III
Airspace
Without airspace to transit through, whatever the Aircraft, Ancillaries, Airlines and Airports do, appears pointless. This is the most basic element of flight, you need airspace to fly in, a fundamental truth.
It is black-letter law that “real property” in the US has a three-dimensional aspect that includes surface airspace. Further, determinations about landowners’ property rights and entitlements are…. determined by common law and state law, not federal aviation officials. - Brent Skorup
SkyTrades brings together drones, eVTOLs and landowners to transact in their marketplace, opening the skies.
Government Agencies
Outside of the ‘5 As’, the key stakeholders in the ecosystem who control different parts of the air space and transport infrastructure are The Federal Aviation Administration (FAA), The Department of Transport (DOT) and The Air Rights Owners (ARO). Many of the elements that the FAA and DOT manage, in practice, are controlled at State and County levels.
According to the FAA - Air Rights holders, the landowners, who are “providers of private infrastructure, do not require FAA approval.”
The role of the FAA in integrating AAM into the National Airspace System (NAS) is to ensure this new generation of aircraft maintains the highest level of operational safety that defines commercial aviation today.
Bear with me here as there are a few groups involved!
The FAA is actively involved in several inter-agency AAM groups and quangos, including the DOT AAM Interagency Working Group and the International Civil Aviation Organization (ICAO) AAM Study Group.
The DOT AAM Interagency Working Group, established by the AAM Coordination and Leadership Act, is focused on coordinating efforts related to safety, operations, infrastructure, physical security and cybersecurity, and federal investment for the maturation of the AAM ecosystem in the U.S. They aim to ensure cohesive and consistent Executive Branch-wide policy, supporting the FAA's integration of AAM into the NAS.
The newly-formed ICAO AAM Study Group, recognized during the 41st ICAO Assembly, seeks to develop a globally harmonised operational and regulatory framework and guidance for the rapidly evolving AAM ecosystem. It provides a forum for 26 international stakeholders to collaborate and achieve global harmonization and interoperability of AAM implementation, benefiting all countries.
The FAA and other government agencies actively participate in relevant ICAO technical panels to contribute to the development of international standards and recommended practices for AAM as directed by the AAM Study Group.
As many of us know who have been involved with projects to build anything, the quickest way to slow down a project is to add more people to it and send it to a committee. Luckily, for low-altitude airspace to be used the Air Rights owners can give permission without a multitude of well-meaning inter-agencies being involved. The road to hell is paved with good intentions.
Flying Car Execs
Archer Aviation Inc. recently appointed Nikhil Goel as their Chief Commercial Officer, signalling the company's focus on global commercialisation efforts and preparing for the launch of their eVTOL aircraft, Midnight, in partnership with United Airlines by 2025. Goel, a former co-founder of Uber Elevate has played a key role in shaping the vision for commercial eVTOL aircraft. With a $10 million pre-delivery payment from United Airlines and multiple point-to-point routes in the works, Archer aims to capitalize on strong domestic and international demand. Their goal is to transform urban travel by providing electric air taxi flights that are safe, sustainable, and cost-competitive with ground transportation.
Political Flying Car
In a notable development, President Biden is reportedly preparing to nominate Mike Whitaker to lead the Federal Aviation Administration (FAA). Whitaker, a former FAA official during the Obama administration, currently focuses on "flying taxi" projects, adding an interesting dimension to his potential leadership role. If confirmed by the Senate, he will step into a challenging position.
The FAA has operated without a permanent leader since early 2022, following the withdrawal of Phil Washington, Biden's original nominee, amidst criticism concerning his qualifications. Whitaker's background as a former airline executive and a pilot, combined with his current role as the chief commercial officer of Supernal, a Hyundai subsidiary dedicated to developing flying taxis, could make him a compelling candidate. Like with all these appointments a close eye on regulatory capture is required.
The Sky of The Future
Imagine a world where urban travel no longer increases pollution but becomes a driving force behind its reduction. Urban Air Mobilities’ electric nature means lower emissions, reduced noise pollution, and a decreased carbon footprint, excluding mining for the batteries’ constituent parts! With these advancements, we can pave the way for a transportation revolution that transcends traditional boundaries and makes strides toward a better future with reduced fatalities on the roads.
As eVTOLs and drones navigate the skies with cleaner energy sources, they offer a new path to reimagine transport and address congestion challenges. By integrating AAM seamlessly into our transportation ecosystem, we can create a future where communities thrive, air quality improves, and our towns benefits. The sky's the limit, and with air rights owners leading the charge, we can chart a course toward a sustainable and resilient future. SkyTrades.io