What is the story about?
What's Happening?
Joby Aviation has completed the acquisition of Blade Air Mobility's passenger division for $76 million in stock. This strategic move is aimed at accelerating Joby's entry into the commercial electric vertical take-off and landing (eVTOL) aircraft market. The acquisition provides Joby with Blade's established network of terminals and loyal flyers in key markets such as New York and Southern Europe. Blade's passenger division, which acts as an air charter broker, sells seats on aircraft operated by other companies and operates leased terminals at airports and heliports. This acquisition is expected to support Joby's challenging process of developing and certifying its four-passenger eVTOL powered by six electric motors.
Why It's Important?
The acquisition is significant as it positions Joby Aviation to leverage Blade's infrastructure and customer base, potentially speeding up the rollout of its eVTOL air taxi service. This move comes at a time when the eVTOL industry is optimistic about regulatory advancements, following the release of a 'roadmap' by the US government and other nations for certifying air taxis. The integration of Joby's aircraft with Blade's network could create a strong foundation for introducing quiet air travel to the market, offering a new mode of transportation to Blade's loyal flyers. The success of this venture will depend on regulatory approval and passenger acceptance of eVTOLs.
What's Next?
Joby Aviation will continue working towards the certification of its eVTOL aircraft, aiming for completion by 2026. The company may also owe up to $45 million in additional payments based on financial performance and employee retention conditions. As the eVTOL industry progresses, stakeholders will be closely monitoring regulatory developments and public acceptance of this new transportation mode.
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