Joby Aviation lands $55 million contract from US Air Force

NEW YORK: Electric aircraft maker Joby Aviation (JOBY.N) will deliver up to nine air taxis to the U.S. Air Force under a $55 million contract extension that marks the company’s first revenue-generating operations, the company announced on Tuesday.

Joby will deliver the first two aircraft to Edwards Air Force Base in California by March 2024 for field exercises that will help the Air Force determine whether to adopt electric vertical takeoff and landing (eVTOL) aircraft.

The contract affords an opportunity for the California-based startup to test its proposed pilot training regime, maintenance processes and charging infrastructure ahead of the expected start of commercial operations in 2025, Joby Executive Chairman Paul Sciarra said.

“It lets us trial run lots of the things that we're going to have to do for broader commercial service, but do that at a small scale and do that earlier than we might otherwise,” he told Reuters.

The Air Force is exploring eVTOL aircraft as a potential option to conduct certain air logistics tasks typically performed by helicopters, but at lower costs and without the need to stockpile fuel.

During evaluations at Edwards, the service will test whether the Joby aircraft are suitable for missions such as transporting personnel and cargo, extracting wounded troops and conducting security operations at nuclear missile fields, said Lt. Col. John Tekell, who leads the Air Force's eVTOL development effort known as Agility Prime.

Unlike other eVTOL manufacturers, which plan to sell aircraft to customers such as airlines and logistics companies, Joby’s business model is similar to a rideshare app, with customers paying to be transported in an air taxi owned and operated by the company.

Under the contract with the Air Force, Joby will maintain ownership of the air taxis but will teach military pilots to fly them for the first time.

That training has begun at Joby's manufacturing facility in Marina, California, where earlier this month four Air Force pilots operated Joby's eVTOL aircraft via remote control from the ground after receiving classroom and simulator instruction, the company said.

The Federal Aviation Administration in November issued airworthiness criteria for Joby to certify its Model JAS4-1 aircraft to operate in U.S. airspace.

Joby previously obtained the first airworthiness approval from the Air Force for an uncrewed electric aircraft in 2020. The latest award brings the total value of Joby's contracts with the Air Force up to $131 million.