Aircraft leasing group LCI and Airbus are joining forces to capitalize on the nascent advanced air mobility (AAM) industry. The partners have agreed to collaborate on several facets of the AAM ecosystem such as partnership scenarios, business strategies, commercialization, and finance.
The collaboration was announced at this week's Heli-Expo trade show in Anaheim, California. During the same event, Bristow Group and The Helicopter and Jet Company (THC) agreed on a similar partnership that would see them focus on opportunities in Saudi Arabia.
As part of the agreement with Airbus, LCI will explore leasing and financing options for the CityAirbus NextGen, a four-seat eVTOL air taxi that Airbus aims to have certified and in service in Europe before the end of this decade. Airbus said it finished assembling the first full-scale prototype of the CityAirbus NextGen late last year and intends to publicly reveal the aircraft on March 7 in Donauwörth, Germany, where it is preparing to start flight testing later this year.
“For two decades, LCI and Airbus have delivered capacity and financing solutions to airlines and operators across the globe, and we are now extending that to advanced air mobility,” said LCI CEO Jaspal Jandu. “Both LCI and Airbus take a holistic and pragmatic view of advanced air mobility, including vehicles and also infrastructure, financing, and network adoption. By combining our respective strengths, we will incubate and accelerate an entirely new generation of aviation.”
LCI is one of a handful of leasing companies that has recently begun investing in new electric and hybrid aircraft. The company has placed deposit-backed orders for up to 125 electric air taxis from Beta Technologies and 40 Chaparral autonomous eVTOL cargo freighters from Elroy Air. These vehicles, both of which are expected to receive their type certification in 2025, will expand LCI’s existing portfolio of assets that already includes multirole helicopters and fixed-wing aircraft.
More than half of LCI’s helicopter fleet serves the air ambulance market, for which the company is looking to implement the CityAirbus NextGen. Airbus also aims to offer the aircraft for scheduled passenger routes and ecotourism flights.
“LCI’s combination of operational expertise, customer networks, and financial insights complements Airbus’s technical innovation in flight technologies and will enable us to collectively drive the development of advanced air mobility,” said Balkiz Sarihan, CEO of the European aerospace group’s urban air mobility business unit. “Together we will take concrete steps toward the co-creation of next-generation AAM ecosystems and our decarbonization roadmap."
In addition to leasing AAM aircraft, LCI may consider offering bundled leases that would give its customers access to infrastructure such as electric chargers, spare batteries, and hydrogen refueling stations. The lessor already has signed memoranda of understanding backed by deposits with two eVTOL aircraft developers for 165 units. These commitments include 125 or Beta Technologies' Alia-250 aircraft and 40 Chaparral autonomous cargo delivery aircraft from Elroy Air. Beta is developing both VTOL and conventional takeoff and landing versions of its aircraft.
Saudi Arabia Seeks AAM Early Adopter Role
Under the memorandum of understanding (MOU) signed by THC and Bristow, the companies are exploring opportunities for deploying eVTOL aircraft in Saudi Arabia, as well as focusing on “other collaborative vertical lift endeavors.” Bristow will pursue the partnership with THC through its Bristow Arabia Aircraft & Maintenance Services subsidiary.
“We are delighted to have signed this MOU with Bristow, which will enable THC to continue to advance innovation and sustainability initiatives within the vertical aviation sector, meeting the evolving needs of our growing customer base,” said THC's CEO Arnaud Martinez. “This agreement will also allow us to help transform Saudi Arabia’s general aviation industry through our forward-thinking work, cementing our role as a regional leader and an increasingly global player.”
In recent years, Bristow has been implementing a plan to diversify its business model and fleet beyond helicopter operations. This has seen the U.S.-based group place provisional orders for multiple eVTOL models, including those being developed by Beta Technologies, Lilium, Volocopter, Overair, Eve, Vertical Aerospace, and Elroy Air. It is considering various options for passenger, logistics, and emergency medical applications, and has also agreed to include Electra’s hybrid-electric STOL aircraft in its future plans.
“We are excited about this new agreement, and our partnership with THC underscores Bristow’s intent to grow our business in the Middle East,” said Bristow president and CEO Chris Bradshaw.
THC, which is backed by the Saudi Public Investment Fund, is Saudi Arabia’s only commercial helicopter operator and has been expanding rapidly since it was founded in 2019. It has 47 rotorcraft in its fleet and on February 27 signed a contract with Airbus for up to 130 helicopters, as well as another agreement with Leonardo covering 20 AW139s and a framework agreement for another 130.
“This country is unique,” said Martinez. There are so many projects that will require helicopters, from tourism to emergency medical services, filming, construction, and more. “All require air mobility support,” he said.
