FutureFlight

Legislation seeking to boost the development of advanced air mobility (AAM) in the U.S. is progressing in the House of Representatives and the Senate, apparently propelled by bipartisan Congressional support from Democrats and Republicans. The bills, both bearing the title “Advanced Air Mobility Coordination and Leadership Act,” call on Secretary of Transportation Pete Buttigieg to establish an inter-agency group to coordinate efforts to develop an AAM ecosystem to support widespread eVTOL aircraft operations.

EHang is taking legal action against Wolfpack Research, which last week published a highly contentious report that dismissed the eVTOL aircraft developer as “a stock promotion destined to crash and burn.” The self-proclaimed activities research group, which largely takes short positions on equities, leveled multiple accusations against EHang, alleging that it has misrepresented several aspects of its business dealings.

EHang Sales Contract

EHang has strongly refuted claims by Wolfpack Research that the eVTOL aircraft developer is “a stock promotion destined to crash and burn.” In a statement issued late on February 16 in response to a report issued earlier in the day by the self-proclaimed “activist research firm” that largely focused on taking short positions on equities, the Chinese company said that the accusations made by Wolfpack were based on “numerous errors, unsubstantiated statements, and misinterpretation of information.”

After a relatively slow start in the first half of January, the advanced air mobility (AAM) sector has resumed its wild ride in recent weeks, with eVTOL aircraft developers jostling for attention and fresh funding. To some observers, talk of billion-dollar mergers points to a trend that could see a small group of leading contenders pulling away from the unwieldy field of wannabes.

An intriguing report issued this week from German airline group Lufthansa poses the question: Are air taxis ready for prime time? Given the company’s semi-detached perspective on a new transportation sector that stands to complement, and to some degree supplant, conventional air transportation, its assessment is refreshingly candid and analytical. It cannot be accused of being a vector for the intoxicating hype engulfing this sector.

A joint study from Deloitte and the Aerospace Industries Association (AIA) predicts that the U.S. advanced air mobility (AAM) market, which includes flying taxis and cargo drones, will generate sales of $115 billion annually by 2035—equivalent to 0.5 percent of U.S. GDP. This emerging industry is also expected to create more than 280,000 “high paying” jobs in the same time frame, accounting for approximately 8 percent of the aerospace and defense workforce, the new report adds.

The prospect of special purpose acquisition companies (SPACs) leading the next wave of investment in the cash-hungry advanced air mobility (AAM) sector gained momentum this week when New Vista Acquisition Corp. filed an S-1 initial public offering (IPO) registration form with the U.S. Securities and Exchange Commission. The company is offering 20 million shares at $10 apiece in a bid to raise $200 million with which to acquire one or more companies in the aviation, aerospace, and defense industries.

The UK’s government-backed Future Flight Challenge program has issued a sweeping endorsement of plans to introduce electric-powered and autonomously operated aircraft, based on new research that suggests these technologies will reduce transportation costs by almost half and reduce journey times significantly. A study published this week on the socio-economic impact of advanced air mobility, which has been conducted by the PwC consulting group, also argues that these new modes of air transport will improve worker safety.

Making predictions and rankings in almost any aspect of human endeavor is not necessarily an assured path to winning friends, but it certainly can be a way to influence people. As the maddeningly unpredictable year of 2020 drew to a close, SMG Consulting demonstrated the fortitude to attempt both with the unveiling of its new Advanced Air Mobility Reality Index (ARI) and its Top Five Predictions list for the industry in 2021.