EHang this week reported what it says were the first commercial demonstration flights in its EH216-S autonomous eVTOL aircraft. The flights were conducted during demonstration events held in the Chinese cities of Guangzhou and Hefei attended by officials from local government agencies and the Civil Aviation Administration of China (CAAC), as well as business people, media, and some members of the public.
Multiple sightseeing flights were made over Guangzhou’s Jiulong Lake Park and the Luogang Central Park in Hafei. Pictures showed passengers holding tickets, but EHang did not charge for the flights, explaining that these were intended as demonstrations of how commercial flights will operate shortly.
According to EHang, it is now developing more operating bases and routes for sightseeing and logistics flights in the Huangpu district of Guangzhou, where it is headquartered. On December 28, Guangzhou Development District Corporations Investment Group and Guangzhou Industrial Investment Capital jointly announced plans to raise RMB 10 billion ($1.42 billion) to support the expansion of eVTOL air services.
Hefei’s municipal government is among several public partners backing EHang’s efforts to launch commercial operations. In October, the manufacturer announced that Hefei officials will support the purchase of at least 100 of the pilotless EH216 aircraft and/or provide up to $100 million in financial support. Along with Guangzhou, the city is targeted as an early hub of eVTOL flight operations in China.
During this week’s event in Guangzhou, the Huangpu district government published a document called Detailed Rules for Implementation of Measures to Promote the High-Quality Development of the Low-Altitude Economy in Guangzhou Development District. It is making available subsidies of up to RMB 30 million for projects to enable the development of the low-altitude economy.
Shenzhen Prepares For First Commercial Flights
On December 26, Shenzhen’s Bao’an district government announced the launch of an urban air mobility operations demonstration center at the city’s OH Bay landmark. The new facility is the latest phase in the strategic partnership launched between the manufacturer and city officials in July and is aimed at launching sightseeing flights with the EH216.
During an event to announce the new demonstration center, Bao’an Transportation Group signed a letter of intent with EHang to advance plans for passenger-carrying flights. The partners say they will cooperate to develop “a low-altitude ecosystem” for Shenzhen.
At the same time, the Shenzhen Boling Holding group, which EHang says has purchased 5 aircraft with options for another 95, has established a subsidiary called Shenzhen Pengcheng Wings General Aviation Co. Ltd. The new company is intended to be an operator for commercial flights in Shenzhen.
Last week, the CAAC issued an airworthiness certificate (AC) for the EH216 allowing it to deliver an aircraft to Chinese technology group Eton. Under the CAAC process, the AC supplements the type certificate issued to EHang in October, allowing some aircraft to be assembled and delivered until the company has secured its full production certificate for series manufacturing.
Threat of Shareholder Lawsuit
Earlier this week, U.S. law firm Hagens Berman announced plans for a class action case against EHang, alleging it misled investors about flight restrictions that are conditions of the type certificate issued by CAAC for the EH216 in October. According to lead attorney, Reed Kathrein, the company is also investigating whether EHang misled investors about the status of orders for the aircraft and aspects of its technology.
Based on its December 25 press release, Seattle-based Hagens Berman appears to be basing its outline case entirely on a report published by short-seller Hindenburg Research. It has called for EHang investors to submit claims for losses due to a fall in its Nasdaq share price. EHang has not publicly responded to the threatened lawsuit.
