Delta, Joby Aviation Partner to Launch Home-to-Airport eVTOL Shuttle
Beginning in New York and Los Angeles, Delta and Joby plan to integrate Joby’s services as a premium shuttle service to and from airports where Delta operates. This will run alongside Joby’s planned airport services, making the partnership mutually exclusive in the U.S. and the U.K. for half a decade after Joby’s commercial launch.
Joby Aviation founder and CEO JoeBen Bevirt and Delta CEO Ed Bastian pose for a photo on Oct. 10, 2022. [Courtesy: Delta Air Lines.]
Key Takeaways:
Delta Air Lines has made an initial $60 million equity investment in eVTOL startup Joby Aviation, with the potential to increase to $200 million, forming a multi-year commercial and operational partnership.
This partnership aims to offer premium eVTOL shuttle services for Delta customers to and from airports, starting in New York and Los Angeles, with mutual exclusivity in the U.S. and U.K. for five years post-launch.
Despite Joby's progress, including over 1,000 test flights and FAA Part 135 certification, financial analysts have expressed skepticism about its ambitious 2024 commercial service timeline.
The partnership with Delta, alongside recent FAA vertiport design guidelines and advocacy from aviation business leaders for efficient certification processes, helps to validate Joby's plans and the broader advanced air mobility sector.
Delta Air Lines (NYSE: DAL) is making a big bet on eVTOL startup Joby (NYSE: JOBY). The Atlanta-based airline announced this morning that it had made a $60 million upfront equity investment in Joby—roughly 2 percent of the company—to help establish an ‘a multi-year, multi-market commercial and operational partnership’ between the two.
Joby says the aircraft has flown more than 1,000 test flights. [Courtesy: Joby Aviation]
If things go well as the service rolls out, Delta said the total investment could expand up to $200 million.
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Michael Wildes holds a master’s degree in Logistics & Supply Chain Management, and a bachelor’s degree in Aeronautical Science, both from Embry-Riddle Aeronautical University. Previously, he worked at the university’s flight department as a Flight Check Airman, Assistant Training Manager, and Quality Assurance Mentor. He holds MEI, CFI & CFII ratings. Follow Michael on Twitter @Captainwildes.
