Two publicly-owned eVTOL developers bolstered their financial foundations in separate agreements valued potentially at more than $110 million. Transactions involving China’s EHang and Eve Air Mobility—in which Brazilian aerospace group Embraer is the majority shareholder—were both announced on December 23.
EHang is being boosted by a $10 million equity investment from Qingdao West Coast New Area. The organization, which is one of China’s government-backed “national new areas,” further agreed to a potential additional $10 million investment in the future. EHang says it will use the funds as working capital. The investment in EHang is expected to close during the first quarter of 2023.
Meanwhile, Brazil’s National Development Bank has agreed to issue Eve Air Mobility lines of credit totaling $92.5 million. The credit, which has a 12-year maturity period, will fund the development of Eve’s four-passenger eVTOL aircraft.
The agreement reinforces cash reserves at Eve, which on December 23 reported a net loss of $36.7 million for the third quarter of 2022. This was almost 10 times the $3.8 million loss the company reported for the same period in 2021. The company said the increased loss was due to a significant uptick in research and development costs as the program progressed.
Want more? You can find a longer version of this article at FutureFlight.aero, a news and information resource developed by AIN to provide objective coverage and analysis of cutting-edge aviation technology.
A new FAA measure to safeguard the privacy of aircraft owners could further mire the aircraft registration process in more delays. At the height of the aircraft transaction season, the FAA has blocked public access to ancillary records for aircraft ownership that are often required to complete transactions. These include documents pertaining to trusts, estates, mergers, consolidations, distributions, powers of attorney, and limited liability company statements belonging to those registered in the Civil Aircraft Registry Electronic System.
However, the FAA will allow public access to a summary page of those records. Aircraft brokers and attorneys maintain that this is a half-measure that will further delay the U.S. registration of aircraft, which was already taking as long as six months, and likely force them to make time-consuming, individual requests for the records from the FAA general counsel’s office. In the interim, new owners may be forced to place aircraft on foreign registries such as Bermuda or Isle of Man in order to complete transactions, warns AIN contributor and aviation attorney David Mayer, a partner in the Dallas-based firm of Shackleford, Bowen, McKinley & Norton.
“There will be delays in transactions if they [the FAA] stick by the policy, and it comes at an extremely demanding time transactionally because we're trying to get things done at year-end,” Mayer told AIN, calling foreign aircraft registration an interim solution.
Startup regional airline Aerus has ordered two Cessna 408 SkyCourier twin turboprops in what is Textron Aviation’s first publicly announced order for the OEM’s newest clean-sheet aircraft in a 19-passenger configuration. Along with the SkyCouriers, Aerus of Mexico has also ordered four Cessna Grand Caravan EX turboprop singles, three of which have already been delivered.
Aerus, a Monterrey-based unit of Grupo Herrera, plans to begin operations in the first quarter of 2023 covering unserved national and international routes. “When we looked at options within the market to operate the routes we had in mind, it was a no-brainer decision to choose the Grand Caravan EX and the SkyCourier from Textron Aviation, which will be the cornerstone of the Aerus project,” said the airline's CEO Javier Herrera. “We are very proud to be one of the first operators of the new SkyCourier, which we are sure will be a great success for Textron Aviation and Aerus. We appreciate Textron Aviation's support as we set launch operations.”
In March, the SkyCourier received type certification from the FAA, and the first delivery was made in May to launch customer FedEx Express, which has an order for 50 of the type with an option for 50 more. The high-wing SkyCourier is available in cargo, passenger, and combi configurations.
The Learjet 45 that collided with the airport perimeter fence after running off 6,602-foot Runway 8 after landing at Batesville (Arkansas) Regional Airport (KBVX) on November 29 initially touched down at 190 knots and about 2,000 feet past the threshold, according to an NTSB preliminary report. The twinjet, on a Part 91 business flight, was substantially damaged in the nighttime accident, and the two pilots sustained minor injuries while the six passengers were not injured.
ATC cleared the airplane for the RNAV (GPS) Runway 8 approach and the crew canceled IFR after visually acquiring the landing zone. The airplane crossed the final approach fix at 265 knots ADS-B groundspeed and the Runway 8 threshold at 190 knots ADS-B groundspeed. Tire marks indicated intermittent braking started about 3,021 feet from the end of the runway. Continuous anti-skid braking application began about 2,069 feet from the end of the landing strip and continued until the end of the pavement.
The airplane exited the runway at an airspeed of about 100 knots ADS-B groundspeed, then continued forward and struck a ditch and the airport perimeter fence. The forward fuselage sustained substantial damage. Initial examination revealed normal flight control continuity. The spoilers were found in the deployed position, matching the cockpit spoiler handle position. The flap handle was at the 20-degree position, consistent with the position of the left and right flaps.
The Ultimate Private Aviation Platform
FlightAware Global is the industry's most robust fleet tracking tool, loaded with features to simplify and enrich the flight experience for aircraft owners, operators, and passengers. Global customers can get the right mix of features for their fleet, including aircraft privacy and worldwide satellite coverage, and can easily change them as needed.
After successfully powering the historic first flights of Eviation’s Alice electric commuter airplane and an electric-conversion Robinson R44 helicopter this year, U.S. electric motor manufacturer MagniX has doubled down on its efforts to make aviation more sustainable by entering the hydrogen fuel cell market.
Everett, Washington-based MagniX has been developing electric propulsion units (EPUs) since 2009. The company says its propulsion systems for aircraft are power source-agnostic, able to work with any type of power input. That includes hydrogen fuel cells, which the company plans to offer along with its electric and hybrid-electric propulsion systems.
“We ultimately want to provide our customers with a full solution, not just the EPU that we are building today…but also the energy storage system that feeds that, so that we can offer battery, hybrid, and hydrogen fuel cell solutions,” Simon Roads, MagniX’s head of marketing, told AIN.
MagniX is working to certify its two EPUs—the 350-kilowatt Magni350 and 650-kilowatt Magni650. The latter powered Eviation’s electric Alice during its first flight in September. Also, MagniX EPUs powered electric flights of a Robinson R44 helicopter, a converted de Havilland Beaver seaplane, and a modified Cessna 208B Grand Caravan.
The next big milestone for MagniX is the first test flight of a hydrogen-powered regional airliner, a de Havilland Dash 8-300 turboprop that was converted by Universal Hydrogen using MagniX’s electric motors in combination with Plug Power hydrogen fuel cells.
The Treasury Department and Internal Revenue Service have issued guidance regarding the sustainable aviation fuel (SAF) blender’s tax credit, which was established under the Inflation Reduction Act of 2022.
Notice 2023-06 explains the requirements for the fuel to be eligible for the blender's credit of $1.25 for each gallon of SAF in a qualified mix. To qualify for the credit, the SAF must have a minimum reduction of 50 percent in lifecycle greenhouse gas emissions. Additionally, for each percent of reduction that passes 50 percent, there will be a supplemental credit of one cent. It will apply to a qualified fuel mixture containing SAF for certain sales or uses in calendar years 2023 and 2024.
The document describes the various methods by which a claimant may claim the credit, either through the excise tax system, or a general business credit that is nonrefundable and must be included in income. It also outlines which parties must be registered for the different activities in the process.
The notice also requests public comments on various aspects of the statute by February 17. These comments will help the agencies in developing additional guidance.
Consolidation, Covid, unprecedented demand, stock exchange listings—the charter industry has been on a wild ride of late, bringing both opportunities and challenges.
The U.S. has dominated the global air charter market, and activity stateside has been up about 55 percent over pandemic-stunted 2020, according to Colorado-based Argus International. It’s driven, operators say, by an influx of new-to-business aviation customers, many of them younger and willing to spend more than traditional charterers—something customers across the board must do today. These new customers and the general pandemic push away from commercial carriers spurred dramatic change in the market.
For a decade following the Great Recession, an oversupply of lift ceded command of the market to charter brokers, who shopped by price, putting constant downward pressure on charter rates. But demand recovered during Covid, and by the start of 2021, rates were at pre-pandemic levels and have only gone up from there. Operators moved toward dynamic pricing, which can spike peak demand prices by 50 percent, according to Private Jet Card Comparisons (PJCC) data. Jet card prices also increased 4 percent in the last quarter, the access consultancy said.
But demand still has exceeded the system’s capacity. Some jet card and fractional ownership providers suspended sales to meet increased lift needs from current customers, though a number have begun reopening membership rolls in recent months.
The General Aviation Manufacturers Association has announced its executive committee leadership team for 2023. Elected by the board of directors during the organization's fall board meeting, the executive committee comprises members from its board who provide strategic leadership for the association and its policy committees.
New appointments to the executive committee include Charlie Gregoire, president and COO of Redbird Flight, who has served on the board since 2015 and will head the safety and accident investigation committee; Ron Draper, president and CEO of Textron Aviation, who joined the board in 2020, will lead the policy and legal issues committee; and president and CEO of Piper Aircraft John Calcagno, who joined the board in 2021 and will head the flight operations policy committee. Eric Hinson, president and CEO of Simcom International, will serve as chairman, and Chuck Wiplinger, president and CEO of Wipaire, will serve as vice chair.
Other members of the executive committee include Michael Amalfitano, president and CEO of Embraer Executive Jets; David Coleal, CEO of Incora; Maria Della Posta, president of Pratt & Whitney Canada; JoeBen Bevirt, founder and CEO of Joby Aviation; Tony Lefebvre, CEO of Signature Aviation; David Van Den Langenbergh, chief industry affairs officer at Luxaviation Group; Henry Brooks, president of power and controls at Collins Aerospace; and Jeff Trang, v-p of engineering and flight operations at Airbus Helicopters.
Dassault Chief Test Pilot Provides Glimpse into 6X Testing
Dassault chief test pilot Philippe Duchateau started flying in the French air force and now his job is to ensure that new Falcon business jets are safe and deliver the performance promised to customers. He told AIN about a mission to complete flight testing needed to certify the new Falcon 6X twinjet and how this has involved flying through icing conditions over Norway and maneuvering the 6X into high-speed dives to test its limits.
People in Aviation
Aircraft brokerage JetHQ appointed Simon Diggelmann v-p of sales for Asia-Pacific. Diggelmann began his career in commercial aviation, working as an aircraft engineer. He previously held roles with Jet Aviation Zurich, Swiss Aviation Group, and as a consultant, building contacts in Indonesia, Malaysia, Singapore, Thailand, Vietnam, and Australia.
Universal Avionics tapped Paul Rose as U.S. Southeast regional sales manager. Rose is a U.S. Air Force veteran with more than 30 years of experience in the aviation industry, including leadership positions at Bombardier, EMS Satcom, Embraer, and Banyan Air Service. His background includes engineering, STC development, and technical sales and marketing, as well as being a former FAA-designated engineering representative.
The French Air and Space Academy honored Eric Trappier, chairman and CEO of Dassault Aviation, with its Grand Prix 2022 award "for his remarkable career as an engineer and manager who has dedicated his career to the development of the French and European aeronautical industry.”
Clark Gordon, director of sales and marketing at Pro Star Aviation, is retiring on December 30. Gordon began his career with Pro Star in 2010 as director of sales, where he contributed to leading sales and marketing strategy efforts for the past 12 years. Over the last decade, he led efforts to design and launch a new website, added social media marketing efforts, and helped increase the company’s customer base.
Colorado-based Mayo Aviation hired Alexandra Cisco as Aspen services manager. Cisco joins the aircraft management and charter services provider with nearly a decade of managerial experience at FBOs and as a concierge and location manager for companies specializing in ultra-luxury markets including most recently at Cuvée, where she worked frequently with Mayo to coordinate the guest experience before and after arrival.
AINalerts News Tips/Feedback: News tips may be sent anonymously, but feedback must include name and contact info (we will withhold name on request). We reserve the right to edit correspondence for length, clarity and grammar. Send feedback or news tips to AINalerts editor Chad Trautvetter.
AINalerts is a publication of AIN Media Group, 214 Franklin Avenue, Midland Park, New Jersey. Copyright 2022. All rights reserved. Reproduction in whole or in part without permission is strictly prohibited.
