Embraer’s (NYSE:ERJ) Eve Urban Air Mobility Solutions on Monday announced an order from Australian tourist airline Sydney Seaplanes to buy 50 electric vertical takeoff and landing (eVTOL) air taxis.
The news helped drive the price of Embraer stock 5 percent higher as markets closed Monday.
The deal calls for deliveries to begin in 2026.
“Eve will support this new partnership with comprehensive solutions for aircraft operations, including air traffic management solutions, maintenance, training, and other services,” said president and CEO of Eve Urban Air Mobility Andre Stein in a statement.
“Eve’s eVTOL technology will integrate seamlessly with our electric amphibious fleet to deliver a range of tourism and commuter journeys,” said Aaron Shaw, CEO of Sydney Seaplanes, in the news release.
Sydney Seaplanes plans to launch an all-electric, zero-emissions regional airline called Alt Air as soon as 2022. All-electric flights are expected as early as 2024. Depending on local approvals, the airline said it plans to operate some flights from Rose Bay aviation terminal in Sydney Harbour.
Several eVTOL Deals Across Asia-Pacific
The news comes on the heels of an agreement announced Saturday with another Australian airline—Nautilus Aviation—to purchase 10 Eve eVTOLs, also to be delivered by 2026. Nautilus—which bills itself as Australia’s largest helicopter operator—has set a goal of reaching net-zero emissions by 2030.
Both announcements offer yet another signal of the importance of the Asian-Pacific market across the eVTOL industry.
In fact, Eve announced a deal in August to provide aviation booking platform Ascent with 100 eVTOL aircraft in five cities across the region: Bangkok, Manila, Singapore, Tokyo, and Melbourne.
Earlier this year, Germany-based eVTOL maker Volocopter made business moves targeting Japan, South Korea, and China.
In 2019, Brazil-based Embraer unveiled its pusher eVTOL concept design, which includes eight rotors to allow the aircraft to hover, and two rear propellers to provide thrust during horizontal flight.
The launch partner for Eve in the U.S. and U.K. will be Halo, which has a deal to order 200 Eve aircraft, with delivery starting in 2026.
Although no eVTOL air taxis have yet been certified by aviation regulators, investors have identified the emerging industry as one to watch. Wall Street investment firm Morgan Stanley has projected the eVTOL market could be worth around $1 trillion by 2040.