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, forming a multi-year partnership to provide premium airport shuttle services for Delta customers, starting in New York and Los Angeles.
The collaboration aims to integrate Joby's eVTOL flights as a complementary service to Delta's operations, with the potential for Delta's investment to grow to $200 million if the partnership proves successful.
Despite Joby's progress in test flights and FAA certifications (G-1 and Part 135), the company faces skepticism from analysts regarding its aggressive 2024 commercial launch timeline and ambitious financial projections.
The partnership with Delta, alongside recent FAA vertiport design guidelines and advocacy from aviation leaders, helps bolster Joby's position and the broader eVTOL 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.
