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 a $60 million upfront equity investment in eVTOL startup Joby Aviation, with potential for up to $200 million, to form a multi-year commercial partnership.
This partnership aims to offer Joby's eVTOLs as a premium airport shuttle service for Delta customers, initially in New York and Los Angeles, with exclusive U.S. and U.K. rights for five years post-launch.
Despite Joby's progress in flight testing and obtaining FAA Part 135 certification, analysts remain skeptical of its ambitious 2024 commercial launch timeline, citing a lack of revenue and limited prototypes.
Recent developments, such as new FAA vertiport design guidelines and advocacy from aviation leaders to expedite eVTOL certification, could provide crucial support for Joby and the emerging advanced air mobility industry.
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.
