IAI Joins Merlin’s Push To Automate Cargo Aircraft

Merlin has signed a memorandum of understanding with Israel Aerospace Industries (IAI) to jointly develop, integrate, and certify AI-powered autonomous flight technology for Part 25 cargo aircraft, giving the Boston-based start-up’s Condor program a potential route into the freighter conversion market.

Announced on July 23, the non-binding agreement covers joint market exploration, engineering collaboration, regulatory preparation, and initial platform selection, according to Merlin. The companies intend for that work to culminate in a definitive commercial agreement and a structured certification path, though they have not yet chosen an aircraft type, disclosed financial terms, or committed to a timeline.

IAI developed the first and only certified passenger-to-freighter conversion of the Boeing 777-300ER, the best-selling widebody passenger jet ever built. That conversion, marketed as the “Big Twin” and developed with lessor AerCap, entered service last year, and IAI is now expanding its network of facilities to produce it.

The state-owned manufacturer has converted freighters for more than four decades across the Boeing 737, 747, and 767 families. Its 767-300 line alone has yielded more than 100 airframes, with Amazon and DHL among the operators flying them. IAI’s first Airbus program—an A330-300 conversion launched with leasing company Avolon—is expected to win certification by the end of this year.

“IAI sits at the center of the global cargo aviation ecosystem, and its deep expertise in aircraft certification, advanced avionics, and freighter conversions makes it a critical partner as we advance the Condor program,” said Merlin founder and CEO Matt George.

Merlin unveiled Condor in May as the first named product family built on its Merlin Pilot system, targeting large, multi-crew airplanes. The company has framed Condor as a crew augmentation tool—software that flies alongside pilots to extend their capabilities—rather than a replacement for humans in the flight deck. IAI is the second partner Merlin has announced for the program, following London-based cargo aircraft lessor World Star Aviation.

“Autonomous technologies have the potential to become a significant part of the future aviation ecosystem, but their adoption will require far more than software innovation alone,” said IAI Aviation Group executive v-p and general manager Yaacov Berkovitz. “Success will depend on the ability to integrate new capabilities into certified aircraft platforms while meeting the industry’s rigorous safety and regulatory standards.”

The accord with IAI caps an eventful stretch for Merlin, which listed on the Nasdaq stock exchange earlier this year. On July 17, the company’s Cessna 208B Grand Caravan performed what Merlin claims was the first autonomous landing of a conventional airplane in the history of the Experimental Aircraft Association’s AirVenture show in Oshkosh, Wisconsin, with an engineering test pilot aboard as a safety monitor. In June, the autonomy system Merlin is developing for U.S. Special Operations Command C-130J transports passed its critical design review, moving that program into aircraft integration.

Demand for the technology may hinge on how quickly the freighter fleet grows. Boeing’s latest World Air Cargo Forecast, published in 2024, projects that the global fleet of large freighters will grow from roughly 2,340 aircraft today to nearly 3,900 by 2043, requiring more than 2,800 production and conversion deliveries at a time when cargo carriers continue to grapple with a persistent pilot shortage.