New Yorkers on Monday may have been heard saying, “It’s a bird, it’s a plane, it’s an eVTOL aircraft from
Joby Aviation.
”
EVTOL is short for electric vertical takeoff and landing. That is the technology that might bring air taxi service to cities, making commutes and short flights easier, quieter, and cheaper.
Aerospace enthusiasts and investors were treated to a show in New York City on Monday. Around 11 a.m., a Joby eVTOL flew around the south end of Manhattan from the Downtown Heliport in Manhattan. The flight was part of an initiative by Mayor Eric Adams to make New York City a leader in clean, quiet flight.
It was the second flight for the aircraft, which arrived on Sunday, marking the first flight for an eVTOL in the city, ever.
It is a sign that electric-aircraft technology is getting closer to commercial application. That’s good news for the makers of eVTOLs, although which manufacturer will end up leading the industry is still anyone’s guess.
Joby conducted an actual flight;
Archer Aviation
(ACHR) had officials at the event but didn’t have an aircraft to fly. A Volocopter also flew on Monday.
Along with start-ups, the aerospace companies
Boeing
(BA) and
Airbus
(AIR.France) have eVTOL programs. The industry is getting funding from airlines as well as car makers.
One beneficiary of all the spending and technology development is
Blade Air Mobility
(BLDE). It already operates a network of aircraft that do things such as shuttle travelers to airports and transport organs to hospitals.
Blade is betting that eVTOL technology will dramatically increase the market it can serve. Lower costs and less noise would allow it to operate in many more locations.
While Blade is a relatively young company, like the aircraft makers, it can boast something Joby and its peers can’t: profits. Blade turned a surprise third-quarter profit and generated positive free cash flow as well.
Coming into Monday trading, Joby and
Archer
shares were up about 20% and 88% over the past 12 months. Progress made in developing the technology has helped overcome rising interest rates and a slowing economy—two factors that have sapped investor enthusiasm for many start-up stocks. Blade shares are off about 33%.
Joby has delivered an aircraft to the Air Force and said it has completed 84% of the tasks required for stage three certification with the FAA. That is the design assessment portion of aircraft certification. After stage three comes stage four, which looks at performance, and stage five which deals with administration.
One goal for Joby is to have to have commercial operations in New York by 2025. Archer plans to begin piloted flight testing of its Midnight eVTOL in mid-2024.
Shares of Joby were up 2.6% on Monday following the flight. The
S&P 500
was flat. The
Nasdaq Composite
was down about 0.2%. Archer and Blade shares were up about 2% and 1.3%, respectively.
Write to Al Root at [email protected]
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