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LiquidPiston Inc., a company that develops advanced rotary internal combustion engines, has been awarded a Phase I STTR (Small Business Technology Transfer) contract from the USAF’s Agility Prime initiative. The contract will award $150,000 USD to LiquidPiston, who will be adapting their next-gen rotary diesel engine, X-Engine, for use with a hybrid-electric propulsion system in the Air Force’s UAS and ORBs, a sub-classification of aerial mobility vehicles defined by the USAF as a vertical take-off and landing aircraft that features an electric power source and distributed electric propulsion, or an eVTOL.

“Our work with the Air Force demonstrates the versatility and utility of our X-Engine across the Department of Defense including our ongoing work with the US Army,” said Alec Shkolnik, CEO and co-founder of LiquidPiston. “Today’s solutions for power and energy are held back by a lack of technological innovation; gasoline engines are inefficient, diesel engines are big and heavy, and while the world wants to go electric, batteries lack significantly compared to the energy density of fuel. The X-Engine solves these challenges, and with this contract, we look forward to showcasing the value a hybrid-electric configuration can bring to unmanned flight.”

Photograph: LiquidPiston

LiquidPiston, Inc. focuses on development of compact, quiet, fuel efficient, low vibration, multi fuel capable combustion engines that are scalable from one horsepower to over 1,000. The company’s patented High Efficiency Hybrid Cycle (HEHC), an improved thermodynamic cycle, and unique engine architecture are the driving forces behind LiquidPiston’s highly optimized X-Engines.

The X-Engine is a lightweight rotary engine capable of running on JP-8, jet fuel, diesel and other heavy fuels. The X-Engine has only two primary moving parts – a shaft and rotor – resulting in compact size and low-vibration operation. The highly modular design of the engine along with its lightweight high-speed alternators allows for simple scalability and integration into electric vehicles. For comparison, the X-Engine is 30% more fuel efficient and 5-10 times lighter than a diesel engine, and 2-4 times more fuel efficient than a small turbine.

LiquidPiston’s X-Engine, coupled with a generator, will be configured to charge UAS and ORB battery technology and keep it charged during flight, greatly extending the overall range of a vehicle powered by an electric propulsion system.
Photograph: LiquidPiston

LiquidPiston’s X-Engine, coupled with a generator, will be configured to charge UAS and ORB battery technology and keep it charged during flight, markedly extending the overall range of a vehicle powered by an electric propulsion system. Alternatively, the X-Engine can also be configured in parallel with an electric drivetrain, producing thrust or lift directly. These capabilities allow the X-Engine to address one of the most major issues regarding electric vehicles, the limited energy density of current battery technology. With this hybrid approach, the USAF looks to improve the performance capabilities of their drones and ORBs.

Photograph: USAF

Why it’s important: One of the major issues facing aerial mobility aircraft (as well as other electric vehicles) is the limitations of current battery technology, which severely limits the travel range when compared to non-electric vehicles. One of the most prevalent solutions is to implement a hybrid approach, which greatly increases the range while keeping some of the benefits of electric propulsion. LiquidPiston’s contract with the USAF shows the USAF’s resolve to promote early working models of UAS and aerial mobility vehicles to accelerate the commercial industry.

Source // The Argus-Press

Aura’s Powercell is claimed to be 90% recyclable, and made primarily of aluminum foil and graphene, containing zero cobalt. Cobalt is used in almost all lithium batteries today to increase energy density and cycle life, but it is one of the most destructive metals to produce in terms of its human rights impact.

At the end of its lifespan, Cobalt can be melted down and recycled back into its base materials. Aura then uses those base materials to make their Powercells. In short, Aura’s supply chain is achieves sustainability by potentially using 100% post industrial and consumer waste in its battery production.

The Powercell is rated for 250,000 cycles, several orders of magnitude greater than high performance drone lithium-polymer (LiPo) and Lithium-Ion (Li-ion) batteries which are rated at approximately 200 and 1000 cycles, respectively.

Why it’s important: With 40 years of combined direct experience with electric VTOL systems, Aura’s founders have laid the pathway to extreme high energy, heavy lift electric VTOL applications. Delivering on industry needs at both a component and systems levels, Aura Aerospace is establishing a platform of safety, reliability and dependability in high power electric VTOL systems. Furthermore, the cycle life improvements of the Powercell over other batteries will significantly decrease battery replacement costs over the life of a product or vehicle, making it an appealing investment for eVTOL operators. Ongoing battery replacement can dramatically increase cost of ownership, as well as significantly impact environmental sustainability.

Denver, Colorado based Bye Aerospace has begun assembly of the fuselage of eFlyer serial number #001, marking the first assembly steps for the aircraft which has garnered 717 purchase order agreements to date for eFlyer, four-seat eFlyer 4, and other Bye Aerospace all-electric aircraft. The company announced in a press release on Monday, March 1st that the fuselage is being assembled in Warren, Oregon by Composites Universal Group (CUG). CUG will also assemble the Toray carbon composite wings for the production eFlyer 2 aircraft, which are both technically complex composite assemblies that likely reflect similar geometries and manufacturing processes that will be used for aerial mobility aircraft in the future.

Bye Aerospace eFlyer 2 during takeoff. Image // Bye Aerospace

CEO of Bye Aerospace, George Bye, stated that “We are closing several new agreements and expect to make additional market announcements very soon.” which would raise the number even higher than 717.

Also included in the Release was an update on Specific Certification Plans (SSCPs), most of which are near completion and are in final approval coordination with the FAA. “Even with the challenges presented to us by the ongoing Covid-19 pandemic, our team remains laser focused on collaboration efforts with the FAA on the eFlyer 2’s certification program,” Bye said.

In sorting through the nuance of managing supply chain sources and confirming partnerships with composite manufacturing firms poised to handle an increased rate of manufacturing of electric general aviation aircraft, Bye Aerospace foreshadows what a typical eVTOL supply chain and manufacturing infrastructure may ultimately look like. Paired with SSCP dialogues with the FAA, the design, manufacture, and certification of the eFlyer 2 series of aircraft will undoubtedly afford aerial mobility companies with the opportunity to examine the lessons learned from Bye’s production processes and apply those lessons to generate even more efficient production schema. Further, the sheer quantity of demand for Bye Aerospace’s eFlyer aircraft is indicative of the level of interest in new electric aircraft, whether they be for training, general aviation, or air taxi purposes. The willingness of flight training providers to adapt to these new aircraft will also allow for the realization of reduced emissions during operation, and lower operating costs per hour with simpler propulsion systems.

Why it’s important: Bye Aerospace’s current progress should serve as a building block upon which aerial mobility companies base their production plans. While the specific aircraft being produced will differ, the common features of this production ecosystem will closely mirror those of future eVTOL aircraft, and manufacturers that can already manage the unique requirements of composite production will likely in the future have growing waitlists once aerial mobility aircraft reach their final certification phases.

Falck has announced a collaboration with Silicon Valley’s Kitty Hawk, a company known for its advanced eVTOL aircraft. The emergency response and healthcare company partnered with Kitty Hawk to establish a joint innovation platform involving Project Heaviside, Kitty Hawk’s latest eVTOL aircraft, to be used in EMS operations. 

The partnership builds on Falck’s previous drone initiative, Vertical, which focuses on assessing the feasibility of drone technology in the prehospital and ambulance services of the future. Now with Project Heaviside, Falck aims to test and evaluate new technologies on a larger scale, making emergency healthcare more accessible and affordable. Project Heaviside is notable even among other eVTOL competitors for its noise level; the aircraft is exceptionally quiet while remaining fast and maneuverable. Project Heaviside has undergone 13 prototype designs and over 700 test flights since its launch. With this partnership, Kitty Hawk will also provide their engineering team with decades of experience in commercial aviation, aerospace, automotive engineering, flight testing, and industrial design.

Photograph: Kitty Hawk

“The agreement with Kitty Hawk takes us to the next level in our commitment to integrate eVTOL aircraft into our ambulance operations. Kitty Hawk brings the technology, while we at Falck contribute with our ambulance service area as a use case. This combination gives us the best conditions to investigate how we can jointly unleash the potential of new technology and develop the ambulance-borne health solutions which are likely to set the standard in the near future,” said Jakob Riis, CEO of Falck.

According to Sebastian Thrun, Co Founder and CEO of Kitty Hawk, “We are excited to be working with Falck to collaborate on bringing our Heaviside aircraft for emergency services, first in Denmark and then to other areas. Falck is an innovative leader in the area and this agreement marks a first and important step in making eVTOL available to more people.”

Falck expects to introduce Heaviside in a close collaboration with customers in Denmark and Europe, followed later on by those in the United States.

Photograph: Kitty Hawk

Why it’s important: This new partnership will integrate Kitty Hawk’s Heaviside into Falck’s Emergency Medical Services, which will give Heaviside an opportunity for real-world use, and help decrease Falck’s overall emergency response time. A successful application of the Heaviside within Falck’s program will help enable a successful commercial future for Heaviside, as well as eVTOL as a whole.  

Source // PR Newswire

Related: 

• Falck Initiates Manned Drone Paramedics Program
• Kitty Hawk Heaviside

Jaunt Air Mobility designs and manufactures hybrid and electric vertical takeoff and landing (VTOL) aircraft, and specializes in Reduced rotor Operating Speed aircraft (ROSA™), which combine a fixed-winged aircraft’s efficiency and advanced helicopter performance. The company has recently announced that it has been awarded a Small Business Technology Transfer (STTR) contract by the US Air Force program AFWERX, via the Air Force Research Laboratory (AFRL).

Photograph: Jaunt Air Mobility

Under the contract Jaunt will team with Penn State University and Continuum Dynamics, Inc. (CDI) to employ advanced acoustical analysis techniques to characterize noise from Jaunt’s unique Jaunt Journey Compound Gyrodyne VTOL aircraft concept. This is one of three contracts awarded by AFRL to Jaunt under the leadership of Martin Peryea, CEO of Jaunt Air Mobility.

“The purpose is to gain a comprehensive understanding of the noise sources in our aircraft configurations and the unique noise reduction opportunities,” says Martin Peryea. “We will apply the knowledge to the design of the Jaunt Journey all-electric (eVTOL) aircraft, allowing us to develop the most efficient, ultra-low noise aircraft for our customers in the urban air mobility market as well as cargo, medevac, and close air support military aircraft.”

Leading the Penn State University team is Professor Kenneth Brentner, an internationally renowned expert in aeroacoustics and rotorcraft noise. Dr. Brentner will be assisted by Mr. Dan Wachspress of CDI, the chief developer of CDI’s CHARM comprehensive rotorcraft analysis used throughout the eVTOL industry. Dr. Brentner stated that, “For this research, we will use CDI’s CHARM software coupled with our PSU-WOPWOP and PSU flight simulation software to model the Jaunt test vehicle. This noise prediction system was validated through comparison with NASA acoustic flight tests of six medium to lightweight helicopters in steady and maneuvering flight conditions.”

Small Business Technology Transfer (STTR) programs are highly competitive programs that encourage domestic small businesses to engage in Federal Research/Research and Development (R/R&D) with the potential for commercialization. Through a competitive awards-based program, STTR enables small businesses to explore their technological potential and provide the incentive to profit from its commercialization. Central to the STTR program is the partnership between small businesses and nonprofit research institutions. STTR is to bridge the gap between basic science and the commercialization of resulting innovations.

Why it’s important: Jaunt’s government-funded noise research is equivalently applicable to the commercial applications for which the company’s vehicle is also designed. The technologies fostered by STTR programs such as this grant from the AFRL are essential to the forward progress of aerial mobility. Noise minimization is a key driver of public acceptance, and with this contract, Jaunt can work with aeroacoustic experts to expedite the integration of eVTOL aircraft in our airspaces.

Related: Jaunt Air Mobility and Varon Vehicles Partner for Aerial Mobility in Latin America

Source // Jaunt Air Mobility press release

Personal air transportation has traditionally been limited to private helicopters and private jets, but as electric aerial mobility becomes a reality, the private aviation industry begins the transition toward accommodation and management of electric aircraft.

Because traditional methods of personal air travel such as helicopter and private jet charters are prohibitively expensive, personal travel by air has mainly remained a luxury only for the wealthy. However, eVTOLs (electric vertical take-off and landing aircraft) will be both more affordable to both operate and maintain, making them far more accessible to the public than former options. As a result, these new flight operations will have much higher daily flight volumes than traditional charter, which will create the need for new types of fleet management systems.

Companies that currently manage these aircraft and their charter operations, such as JetEdge, Wing Aviation, FlexJet, and more recently BLADE Urban Air Mobility have a depth of experience in handling the massive task of optimizing fleet management. However, unlike ground transportation companies like Uber, due to their lower volumes and more fluctuating prices, a large proportion of these companies manually manage each chartered flight. This means that although members of their teams are experts in fleet management and optimization, there is no background software that manages charter request reception, quote issuance, and backend operation execution without substantial human intervention. eVTOL aerial mobility companies such as Lilium, Joby Aviation, and others seek to use software to make the air travel experience more similar to the ride-hailing ground transportation experience of today –  a development that is crucial in wide spread commercial applications of aerial mobility.

An Uber demand heat map versus Flight Aware, a route and aircraft tracking system for both public and privately chartered aircraft

It will be interesting to observe moving forward which of these operator companies choose to branch out their expertise into this sector. Will companies like Joby or Lilium create their own fleet management systems from scratch? Or, will they pull simultaneously from ground ride-hailing companies like Uber as well traditional charter operators to create entirely new systems? So far, the latter seems to be the approach by highly successful Joby Aviation, which recently received an airworthiness certification from the USAF for its eVTOL, and acquired Uber Elevate during a similar time period.

Another question will be how traditional charter infrastructure organizations choose to integrate with aerial mobility infrastructure that is being built in major cities. Traditionally, private jet charter patrons have elected to receive ground transportation from an FBO (a private terminal at airports for private charters) to their final destination. However, as eVTOLs begin to get more popular, these charter patrons may soon rather travel by eVTOL to their final destinations rather than wait in traffic. Already, companies like Ross Aviation (an FBO company that has terminals at many major airports around the US), have partnered with BLADE Urban Air Mobility to begin planning eVTOL vertiport infrastructure at their respective FBOs. This indicates that both BLADE’s and Ross’s eventual intent is allow charter patrons to board eVTOLs directly from private jet charters. As the eVTOL industry grows, vertiports throughout major cities will become more prevalent, allowing these charter patrons to fly directly to their hotels, conferences, or business meeting locations without ever needing to step into a car.

A Ross Aviation terminal featured with a potential Vertiport design by Volocopter.

The decisions and responses to the challenges of fleet management will in turn end up transforming eVTOL travel into a common method of transportation used by people from all parts of society. As the world begins to move to a more eVTOL oriented future, companies both past, present, and future will begin to shape the infrastructure world that will enable eVTOL.

Why it’s important: Companies the world over are beginning to make decisions that will enable certain pathways toward the growing world of eVTOL. Experts from aircraft management, companies in ground transportation ride-hailing, and new eVTOL creators will likely combine their efforts to create the eVTOL oriented world of the the future. As the newer companies continue to grow, watching which decisions are made and which partnerships are formed will provide a clearer and clearer picture of the concrete logistics that will make eVTOL work.

EHang Holdings Limited (Nasdaq: EH) provided an update last week on the development of its new AAV production facility in Yunfu city, China. The retrofitting process of the existing building is being completed and production of EHang AAVs is expected to start in the second quarter of 2021.

The new Yunfu manufacturing facility, as seen from above

The Yunfu facility has a total planned gross floor area of 24,000 square meters. It will be the home to EHang’s newest aerial vehicle assembly lines, a Computer Numerical Control (CNC) processing center, a painting workshop and a carbon fiber composite materials processing area. In addition, the Yunfu facility will include a research and training center and an outdoor flight test vertiport.

Upon completion, the Yunfu facility will play a major role in producing EHang’s flagship products, the EH216 series of passenger-grade AAVs, with a planned initial annual capacity of 600 units which can be further increased to support the growing global market needs. EHang expects that it will be the first AAV commercial production facility of this scale.

EHang plans to host an Investor Day event for a facility tour at the new Yunfu Facility in late June 2021. Further details will be announced at a later day.

The existing production facility at the headquarter of EHang in Guangzhou spans a total area of 8,750 square meters and houses production processes for its AAV products. After the Yunfu facility is up and running, the major role of the facility in Guangzhou will be gradually migrated to focus on supporting the Company’s expanding new products R&D efforts.

Watch the video tour of the EHang Yunfu facility below:

Why it’s important: Right now, EHang is one of the furthest companies along in the process of creating, distributing, and beginning operating its autonomous air taxis. The Yunfu manufacturing facility will be EHang’s second, and the company is already conducting paid aerial tourism operations with its aircraft in many cities throughout China. Many companies world wide can begin to look at EHang for an example of how initiating large-scale air taxi operations in their own countries may work.

Related:

• EHang Launches Aerial Tourism Program with Greenland Hong Kong
• EHang 216 Makes its Korean Debut
• Linz, Austria to be added to List of EHang’s Pilot Cities

Surf Air Mobility, a new developmental department of regional air mobility provider Surf Air, has now acquired aviation hybrid-electric power train developer Ampaire shortly after the company set a record for the longest route to date with an electric aircraft. With this acquisition, Surf Air Mobility, formed in 2020, looks to improve “affordability, accessibility, and environmental footprint of regional travel”.

Surf Air Mobility was recently formed after Surf Air, a short-haul flight service provider, acquired Blackbird, an aviation marketplace that provides passengers the option of chartering private flights. Soon after being formed, Surf Air Mobility acquired a $200 million USD investment from Global Emerging Markets Group in order to go public. Now, Surf Air Mobility looks to provide an (eventually electric) alternative to driving or flying on commercial airlines for trips of 50-500 miles.

According to Surf Air Mobility co-founder and CEO Sudhin Shahani, “We see the near-term opportunity to transform existing turboprop aircraft across the entire industry as the first step to ultimately extend to fully electric aviation across all trip lengths.”

The Ampaire Electric EEL prototype, capable of flying up over 300 statute miles

Before the acquisition, Ampaire was working on developing hybrid-electric power trains for 9-19 seat piston and turboprop aircraft, currently possessing two propulsion testbeds from a modified Cessna 337 Skymaster. Additionally, Ampaire is now developing a megawatt-class, hybrid-electric propulsion conversion for the 19-seat twin-turboprop de Havilland Canada DHC-6 Twin Otter.

According to Ampaire co-founder and CEO Kevin Noertker, “The same building blocks of the electrified power train from the Twin Otter can be applied to other turboprops in the Part 23 category, for example the Cessna Caravan. We’ll continue working on both.”
With the reduced direct operating costs of hybrid-electric aircraft, Surf Air Mobility will be “able to create a new kind of point-to-point network that opens up previously untenable markets with more direct connections,” says President Fred Reid. “With half of all U.S. flights 500 mi. or less, hybrid-electric technology will have an immediate and broad-reaching impact.”

Why it’s important: Surf Air Mobility’s acquisition of Ampaire will align Ampaire closer with aircraft operators to streamline development and deployment of their electric aircraft. According to the company, it will also enable Ampaire to address a wider range of aircraft for upgrade.
Source // Aviation Week Network

BLADE Urban Air Mobility announced today that it entered into an alliance with Vertiport Chicago. In December of 2020, Experience Investment Corp. (NASDAQ: EXPC) agreed to merge with Blade, which will create, following the closing of the merger, the only publicly traded urban air mobility platform in the United States.

Vertiport Chicago to be rebranded Vertiport Chicago Powered by Blade.

As part of the alliance, Blade partner Helicopters, Inc. will station rotorcraft at the Vertiport to fly Blade passengers on routes which are expected to include flights between the Vertiport and O’Hare Airport, Lake Geneva and other lake communities, as well as Notre Dame, University of Illinois and other universities for sporting events. Vertiport Chicago is conveniently located near the Downtown Loop and is the city’s only vertiport.

Blade will have the exclusive right to offer passenger flights sold by-the-seat at the Vertiport, which will be rebranded “Vertiport Chicago Powered by Blade.” The Company will also have the right to build a branded terminal onsite to accommodate the processing of passengers when flight volume necessitates it to maintain the level of customer experience the Company is known for.

Additionally, Blade expects to service Chicago hospitals for its growing MediMobility business which currently flies more human organ transport missions in the Northeast than any other company.

“Chicago is the third largest city in the United States. It is the right time for us to establish a strategic presence in this important market.”, said Melissa Tomkiel, President of Blade.

Ms. Tomkiel added, “There are a number of passenger routes where we see real potential, and we look forward to enabling local hospitals to take advantage of Blade’s cost-effective MediMobility human organ air transport business.”

The company will also work closely with the Vertiport to ensure that it has the necessary infrastructure to support the transition to next-generation Electric Vertical Aircraft (“EVA”).

“The build out of infrastructure for next generation vertical air travel in Chicago is beginning now. Our alliance with Blade will only serve to accelerate our ability to help create the network of landing zones our city needs to be competitive in the future,” said Daniel Mojica of Vertiport Chicago.

Why it matters: Blade partnering with Vertiport Chicago and MediMobility ushers in another geographical market ripe for disruption by UAM services. Building on existing operations in New York, Los Angeles, and south Florida, Blade brings key expertise of flight operations in urban environments. As these key partnerships are forged and infrastructure built, Blade is well positioned to usher in the next era of transportation.

Wingcopter, the German developer, manufacturer and operator of unmanned delivery drones for commercial and humanitarian applications, has joined forces with the Flying Labs Network as a Technology Partner. Their global initiative will improve supply chains through locally led cargo drone projects and equip local talent with the skills to operate Wingcopter’s unmanned systems in long range drone applications, including beyond visual line of sight. The Flying Labs Network is reputable for strengthening local expertise in the use of drones, robotics, data and AI for positive social change in more than 30 countries across Africa, Asia, Latin America and beyond.

Credit // Wingcopter

Andi Fisanich, Wingcopter’s Head of Humanitarian Programs, comments: “I truly believe that to strengthen supply chains with drones it requires an active and supportive ecosystem that knows and involves their local communities. Together, we can establish a drone service for developing countries that allows its citizens to take the lead in building out this new industry and directly benefit from it.”

Wingcopter is currently implementing a drone delivery network in Malawi to strengthen local healthcare supply chains together with UNICEF and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). Within the project called Drone + Data Aid the company cooperates with the African Drone and Data Academy to train youth from across the continent in drone operations.

In other parts of the world, Wingcopter is preparing for safe and efficient on-demand delivery of COVID-19 vaccines to remote areas by drone, building on experience from earlier vaccine and medical delivery projects, which took place amongst others in Vanuatu, Ireland and Tanzania. The company recently raised $22 million in Series A funding, led by Silicon Valley-based Xplorer Capital and German Futury Regio Growth Fund. In 2020, Wingcopter was named a Technology Pioneer by the World Economic Forum, recognizing its significant social impact as part of the fourth industrial revolution.

Why it’s important: With its extremely efficient cargo drone design and proven track record of reducing turnaround time to access vital supplies from days or hours to minutes, Wingcopter offers local Flying Labs a state-of-the-art technology for the delivery of urgently needed medical goods in hard-to-reach areas – an asset that is of even greater importance during a pandemic. Wingcopter has also recently closed successful fundraising rounds which will aid in the company’s continued effort to provide humanitarian, parcel delivery, and logistics services with its reputable technologies.

Related: Thales, Skyports, Wingcopter to Conduct Trial of Drone Based COVID Response Flights

Source // Wingcopter press release

The technology that will allow an air taxi to operate safely with paying passengers on board is becoming increasingly old news. Now that the engineering challenges of designing, building and flying eVTOLs have been conquered, the discussion has shifted toward certification processes, production decisions, infrastructure development, and investment structure to accelerate innovation within the industry.

Archer is one of the eVTOL companies targeted in recent SPAC deals. Image // Archer Aircraft

Over the past week, the industry has vaulted from an exciting demonstration of the commercial air travel technology of 2030 and onward to an industry on the verge of an acceleration of expansion. Proposed or actual aerial mobility investments and instruments committed to advancing the industry have totaled almost $2 billion USD. While commercial aviation continues to feel the squeeze from reduced air travel, with many opting for private or semi-private alternatives, the concept of democratization of aviation that eVTOLs and aerial mobility aircraft would provide is of such interest that investors are becoming creative in acquiring the necessary capital to move the industry forward. 

While each of four landmark recent deals have varying flavors, they share a key theme: innovative fundraising and a mix of public and private capital to achieve massive valuations with lessened risks than conventional fundraising. We examine these key deals made over the past two weeks that support the massive commitments these institutions are undertaking to drive aerial mobility forward at an even faster pace. 

February brought with it multiple novel applications of the increasingly common SPAC business structure used as an instrument for aerial mobility investment. SPACs are unique in that they exist as an entity to take over another company through merger and acquisition deals – and fundraise using an IPO – hence the colloquial term “blank check company”.

The first example of this type of acquisition was revealed in December of 2020 when BLADE UAM and a blank check company backed by KSL Capital (Experience Investments Corp, EXPC) confirmed a BLADE valuation of $825 million. According to SEC filings, the $400 million USD deal maintains a $125 million cash infusion along with the cash in the SPAC.

Next, Atlas Crest Investment Corporation, among other commitments from firms Stellantis and Putnam, focused their fundraise towards Bay Area eVTOL maker Archer. The IPO was joined in part by an announcement from United Airlines to purchase up to $1 billion USD in aircraft from Archer, which is the largest publicly disclosed eVTOL order to date. While this is the first order announcement from a major airline, other airlines work within the space as well: jetBlue Innovation ventures is no stranger to the aerial mobility investment sector, though they have not publicly joined or invested in any of these companies at time of writing.

Second, Reinvent Technology Partners, headlined by respective LinkedIn and Zynga founders Reid Hoffman and Mark Pincus, took aim at eVTOL magnate Joby Aviation, with a $690 million USD IPO providing the necessary funds to begin the merger process with Joby. The resultant company will maintain approximately $800 million USD in disclosed funding to date.

Third, and finally, ex-Boeing CEO Dennis Muilenberg’s New Vista Acquisition Corporation’s SEC filing indicates a $200 million USD raise from their proposed IPO. It’s not readily clear which company New Vista Acquisition Corporation will target, but trends would indicate that a company such as Volocopter, Lilium, or EmbraerX would be of interest to the Chicago based, recently established blank check firm. 

While none of these investment numbers single handedly reach unicorn status, their magnitude is indicative of the trust that many of these institutions place within emerging eVTOL companies. Further, they represent a nimble implementation of fundraising approaches to accomplish an end goal that may have not been possible with conventional methods in a cash-strapped industry emerging from a pandemic. Both SPACs feature leadership teams that have either previously been involved within the technology industry or that have substantial experience leading aerospace companies.

It’s important to point out that the mechanics of these fundraising techniques substantially offload risk for blank check companies, since their disclosures to potential investors include multiple notices that they have no profits and no current operations. However, the ability for such companies to successfully raise the necessary funds is telling in its own right.

Why it’s important: Aerospace companies require huge capital investments to complete certification and initial production and delivery requirements. The expenses incurred with these types of business activities thereby require sizable investments from outside entities for financing, while the current economic status of commercial aviation is cash sparse. Those with sizeable enough reserves are investing at a low, while others who understand the unique opportunities of this timing are seeking alternative fundraising means to accomplish the same goal. While the ink is not dry for all of the SPAC deals outlined, they foreshadow the trend of future progress toward certification and initial commercial operations. However, without a large enough sample size for comparison, it’ll be at least a year before the manifestation of these mergers can adequately be compared and contrasted with a more conservative approach toward development.