Air Lands $23M Funding to Expand eVTOL Operations to the US

The Convergence of Geopolitics and eVTOL Development

Increasing global geopolitical instability, coupled with growing defense spending, is leading many companies that manufacture electric vertical takeoff and landing (eVTOL) aircraft to pursue a dual strategy. This involves developing both crewed versions for passenger transport and uncrewed versions for logistical support and defense applications.

AIR's Integrated Approach

AIR, an Israeli startup specializing in eVTOL technology, proactively adopted this dual-track development path from its inception. The company engineered both its uncrewed and piloted aircraft utilizing a common airframe and shared core systems, facilitating simultaneous development for diverse applications.

Current Offerings and Preorder Success

Currently, AIR provides the AIR ONE, a piloted eVTOL intended for personal transportation. Alongside this, they offer an uncrewed eVTOL designed for cargo delivery, operations in challenging logistical environments, and defense-related tasks. Following its initial cargo eVTOL delivery in late 2023, the company has amassed over 2,500 preorders for the AIR ONE and anticipates delivering 15 cargo eVTOLs this year.

Series A Funding and Expansion Plans

To further accelerate its progress, AIR recently secured $23 million in Series A funding. This round was spearheaded by Entrée Capital, with continued investment from Dr. Shmuel Harlap, an early backer of Mobileye. The newly acquired capital will be allocated to expanding the company’s production capabilities in Israel, increasing its workforce, and supporting its expansion into the U.S. market, as stated by CEO and co-founder Rani Plaut.

Favorable Regulatory Climate

This funding arrives alongside a recent U.S. executive order aimed at bolstering domestic drone and eVTOL development. Furthermore, updates to the FAA’s MOSAIC rule are broadening the pathways for aircraft certification.

Operational Status and Certification Pathways

AIR’s currently operational cargo aircraft are being flown under Experimental Airworthiness Certificates (EACs) for logistics and dual-use missions, as Plaut explained. These certificates are granted to aircraft undergoing development, testing, or research, allowing operation under specific limitations.

“Our initial customer is operating with an Experimental Airworthiness Certificate, which will transition to a “Type” certificate upon completion of the uncrewed eVTOL’s certification process,” he noted.

Understanding Aircraft Certification

Achieving Type certification signifies that an aircraft meets all relevant safety and regulatory requirements, enabling commercial production and operation. It’s important to understand that EACs do not automatically convert to Type certificates; AIR will utilize its EAC for testing while pursuing full Type certification.

LSA Certification for AIR ONE

AIR anticipates that the two-seat, piloted AIR ONE will qualify for Light Sport Aircraft (LSA) certification under the new MOSAIC regulations. LSA-certified aircraft are restricted to operations outside of densely populated areas and away from controlled airspace.

“From the outset, the AIR ONE was designed to meet MOSAIC LSA criteria, anticipating a more efficient certification process,” Plaut added. “With the rule now finalized, we are positioned to be the first piloted eVTOL certified under LSA to be available to private customers, with deliveries planned to commence as soon as the rule is enforceable in 2026.”

The U.S. Market and Competitive Landscape

The U.S. represents a significant market opportunity for eVTOL companies, particularly regarding enterprise and government contracts, especially given the current defense policies. However, AIR will encounter substantial competition. Joby Aviation and Archer Aviation have established partnerships with airlines to launch air taxi services, and Beta Technologies, alongside them, has secured military contracts for testing their aircraft’s reconnaissance and logistics capabilities.

Additionally, AIR is not currently manufacturing its eVTOLs within the U.S., a factor that is often crucial for securing government contracts.

AIR’s Competitive Advantages

Despite these challenges, AIR believes its design architecture and cost management strategies provide a competitive advantage. The company intends to leverage its current funding round to establish a U.S.-based manufacturing facility for large-scale production.

Unified Design and Scalability

“A key differentiator for AIR is the common design foundation shared by both aircraft variants,” Plaut stated. This unified architecture facilitates cross-platform upgrades, meaning improvements made to one model can be readily applied to the other, streamlining development, manufacturing, and scalability.

Infrastructure and Operational Simplicity

“The aircraft’s size and folding-wing design address a significant infrastructure challenge,” Plaut explained. “They do not necessitate airports or complex handling procedures—only a level surface—and can be parked in most garages or driveways.”

Streamlined Operations and Manufacturing

AIR’s uncrewed model also features simplified standard operating procedures (SOPs), allowing operation by ground crews with minimal training, according to the CEO. “Furthermore, we are reducing the cost gap by implementing automotive-grade manufacturing principles for scalable production,” he concluded.