• 2024-05-22
• News

FAA confirms key rules

The Federal Aviation Administration (FAA) of the United States has recently issued a long-awaited Special Federal Aviation Regulation, paving the way for the official operation of the new generation of electric vertical takeoff and landing aircraft (eVTOL) in the United States. Under the regulatory support of the U.S. aviation regulatory authority for the development of the "low-altitude economy," Joby Aviation Inc (JOBY.US), a leader in the U.S. low-altitude economy with air taxi services, saw its stock price surge by more than 12% by the close of the U.S. stock market on Wednesday, with a peak increase of over 14% during the trading session; another participant in the low-altitude economy, Archer Aviation (ACHR.US), saw its stock price rise by more than 7%.

It is understood that at the National Business Aviation Association's Business Aviation Convention & Exhibition held in Las Vegas, FAA Administrator Mike Whitaker signed the rule, which includes initial operational rules for powered lift aircraft and training requirements for air eVTOL pilots, and will be valid for 10 years.

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Whitaker stated at the convention that the newly finalized regulations treat the "air taxi," a new potential mode of transportation, as a completely new type of aircraft that will soon soar in the blue sky alongside airplanes and helicopters. This electric eVTOL, which has recently gained a lot of attention, takes off and lands vertically like a helicopter but flies like a fixed-wing aircraft, perfectly meeting the U.S. government's requirements for efficient electricity use and emission reduction.

It is worth noting that Whitaker emphasized safety guidelines while the FAA is working to incorporate this new type of small electric aircraft into the national airspace. He emphasized: "The powered lift air electric taxi is the first new category of aircraft in nearly 80 years since the emergence of helicopters, and this rule will allow for its widespread promotion and use in the future."

What is the background of Joby Aviation?

Joby Aviation's CEO, JoeBen Bevirt, stated that these regulations will ensure that U.S. air taxis continue to play a global leadership role in the development and adoption of clean flight. The support expressed by the U.S. Federal Aviation Regulatory Agency for development has a broad impact on the U.S. low-altitude economy, as airlines consider air taxis to be a convenient new way to transport passengers to airports.

Delta Air Lines (DAL.US), a giant in the U.S. aviation industry, stated that it had previously invested about $60 million in Joby in 2022, and this month Toyota Motor Corporation (TM.US) announced an investment of up to $500 million. United Airlines (UAL.US) has invested heavily in supporting Archer Aviation (ACHR.US), headquartered in California, by ordering more than 200 air taxis from the latter. Archer Aviation stated that these orders could be worth $1 billion, with options up to $500 million.

Joby Aviation, which has been focusing on the domestic low-altitude economy in the United States for many years, is one of the world's top manufacturers of electric vertical takeoff and landing aircraft. These aircraft are designed to provide passengers with efficient air travel services based on short commutes, saving significantly on both travel time and energy consumption compared to land commuting methods. The company previously stated that it may be ready to start commercial operations as early as 2025, although certification work by the FAA and other national aerospace regulatory agencies is still ongoing.

"Our next phase goal is to launch commercially in Dubai," CEO JoeBen Bevirt told analysts during the company's second-quarter earnings call. "We expect to announce the launch of our first infrastructure project there later this year, the first test flight mission in the first half of next year, and commercialization in the second half of the year."

The development of the U.S. "low-altitude economy" is entering the fast lane.Joby Aviation plans to officially launch its electric air taxi service in the United States and more countries by 2025, targeting core global cities such as New York and Los Angeles. In the meantime, the company is rapidly advancing the testing and regulatory certification process for electric vertical take-off and landing (eVTOL) aircraft and has received approval from the Federal Aviation Administration (FAA) for its ElevateOS system to support its future air taxi operations. Although Joby Aviation has not yet officially operated its air taxi service in the United States, the company has made significant regulatory progress, including obtaining the FAA's Part 135 air carrier certificate, which is one of the key permits allowing Joby to conduct on-demand air taxi services.

Joby Aviation is committed to changing the traditional way of urban transportation through air taxi services, significantly improving transportation efficiency. The air taxi is a core part of the "low-altitude economy" being vigorously promoted worldwide. The low-altitude economy includes commercial activities such as efficient passenger transport and efficient logistics transportation using low-altitude airspace, often involving new types of aircraft like drones and eVTOLs. Joby's development plan is closely related to this low-altitude concept, as it is developing air taxi networks for cities and regions, which will greatly promote economic development activities in low-altitude airspace.

A forecast report from the well-known research institution Mordor Intelligence shows that the air taxi market size is expected to be about $1.41 billion in 2024 and is projected to reach approximately $4.04 billion by 2029, with a compound annual growth rate of 23% during the forecast period (2024-2029).

In the United States, although electric vertical take-off and landing (eVTOL) aircraft have not yet received full commercial operation approval, key regulatory progress has been made. Several companies focused on the low-altitude economy, such as Archer Aviation and Joby Aviation, have obtained the FAA's Part 135 air carrier certificate, allowing them to conduct non-scheduled commercial flight operations, which is a crucial step before eVTOL aircraft can be fully commercialized.

However, to achieve widespread air taxi services, other key certification steps need to be completed. These low-altitude economy companies expect all official certifications to be completed around 2025, when air taxis may officially begin commercial operations. As mentioned earlier, the FAA has issued initial operational rules and pilot training and certification rules for eVTOLs, indicating that the regulatory environment is gradually paving the way for the formal introduction of air taxi regulations.

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