A Joby Aviation Electric Vertical Take-Off and Landing (eVTOL) aircraft outside the Latest York Stock Exchange (NYSE) in the course of the company’s initial public offering in Latest York, U.S., on Aug. 11, 2021.
Michael Nagle | Bloomberg | Getty Images
Delta Air Lines, which has watched competitors map future plans with electric vertical takeoff and landing aircraft startups, is joining the growing list of airlines seeking to make short trips to and from airports faster and easier.
The carrier is investing $60 million in startup Joby Aviation, which is planning to construct and operate an electrical vertical takeoff and landing aircraft, or eVTOL, effectively an air taxi.
Delta can even have an exclusive five-year partnership with Joby operating eVTOLs as a part of the Delta network.
Delta CEO Ed Bastian envisions moving passengers to and from airports quicker and with less hassle.
“We’ll flash them a possibility to reinforce that have by taking a Joby vehicle from someplace near their home or their business right into the airport experience and cut out 50%, if no more, of their travel time on the bottom.”
Initially, Joby and Delta will goal eVTOL service to and from airports in Latest York City and Los Angeles, though the businesses envision the service growing to other airports across the country and eventually overseas.
“The airport routes are the cornerstone routes for any city constructing really useful infrastructure that’s near the terminal and might save customers time is critical,” Joby founder and CEO JoeBen Bevirt told CNBC.
Delta’s take care of Joby means the three legacy airlines within the U.S. have all taken stakes with eVTOL startups.
American Airlines has invested $25 million in Vertical Aerospace and ordered 50 aircraft from the U.K.-based company.
United Airlines has two eVTOL investments and aircraft orders. One for $15 million with Eve Air Mobility while ordering 200 aircraft. The opposite for $10 million with Archer Aviation and an order for 100 Archer eVTOLs.
Within the last 12 months, eVTOL stocks like Joby have struggled as investors moved away from pre-revenue firms.
When will that day come for Joby and other eVTOL firms? It is determined by when their aircraft are certified and enter industrial service.
Some are targeting 2024, but Joby CEO Bevirt won’t commit to a launch date. “There are pieces inside our control and there are pieces that are usually not in our control, so I can not provide you with a firm date,” he said.
Correction: This text has been updated to correct the spelling of Joby CEO JoeBen Bevirt’s name.
