The 218-page document, assembled by the National Academies of Sciences, Engineering, and Medicine (NASEM) at the behest of Congress, warns that NASA is prioritizing short-term missions and commercial contracts over the people and technology that make its out-of-this-world activities possible.

Per the report, the space agency’s emphasis on near-term victories and overreliance on private contractors comes at the price of a strained budget, degraded infrastructure, and exodus of talented personnel.

“NASA should rebalance its priorities and increase investments in its facilities, expert workforce, and development of cutting-edge technology, even if it means forestalling initiation of new missions,” the NASEM said.

NASEM operates under a congressional charter and comprises private and nonprofit institutions that provide independent analysis on public policy decisions. The academies release decadal reports on topics such as astronomy and planetary science, effectively giving NASA and Congress a roadmap for funding over the next ten years. The studies take years to put together and are considered influential within the spaceflight community.

Tuesday’s publication, titled NASA at a Crossroads, is a bit of an aberration. The report was requested by Congress in 2022 amid growing pressure from China, which in June became the first nation to return samples from the moon’s far side.

NASEM members met with experts, visited NASA centers, sent requests for information, and reviewed agency documents to inform their conclusions. The outlook, the organization says, may be bleak.

The State of NASA

The NASEM report paints the picture of an agency in turmoil from top to bottom.

Internal and external pressure from NASA and its benefactors has placed it in a bit of a tight spot. Agency senior center managers told researchers they would prefer to spend additional funding on new missions rather than facility maintenance or personnel training. But per the U.S. Committee on Human Spaceflight, NASA annually spends about $3 billion on missions it cannot afford.

“Each dollar of mission support that previously had to sustain a dollar of mission activity now has to support $1.50 of mission activity, effectively a 50 percent increase,” the report says.

In short, the agency’s workload is expanding more rapidly than its mission budget—and that’s absorbing money that could be better spent elsewhere.

NASA infrastructure is essential to the agency’s mission and is used by other agencies and private partners. But “chronic insufficient funding” has resulted in about 83 percent of the agency’s facilities, many of which were built in the 1960s, exceeding their design life. These aging assets are difficult to maintain, soak up valuable personnel time, and make NASA less attractive to prospective talent.

“During its inspection tours, the committee saw some of the worst facilities many of its members have ever seen,” NASEM said.

For example, according to the report, NASA’s Deep Space Network (DSN)—a network of radio dishes around the globe that receive and transmit data from missions—is too degraded to support current and planned projects without disrupting others. DSN locations over the next decade will cost tens of millions to maintain, it predicts, while contending with a thin workforce and failing infrastructure. The DSN budget in 2022 was $200 million, down from $250 million in 2010.

NASA’s employee turnover rate is largely consistent with the commercial space industry, per the report. But agency employees cited lower salaries and greater private sector involvement as deterrents to working there. In addition, NASEM found that women and minorities are underrepresented, leaving plenty of talent untapped.

Researchers worry the prevalence of certain commercial contracts, such as fixed-price or milestone-based, could make matters even worse by turning NASA engineers into contract monitors. These agreements stifle agency personnel by reducing hands-on work while opening the door for private companies to develop technology that, in the NASEM’s view, should be built in-house.

“Innovative, creative engineers don’t want to have a job that consists of overseeing other people’s work,” said ex-Lockheed Martin executive Norm Augustine, the lead author of the report, during a virtual briefing Tuesday afternoon.

A Tight Budget

NASA’s tendency to prioritize short-term missions over long-term success stems in part from a constrained budget environment.

Between 2014 and 2023, the agency’s funding actually increased by an average of more than 3 percent over the previous year. But over the past two decades, its purchasing power has essentially held flat while mission complexity has grown. During the peak of the Apollo program, NASEM estimates, purchasing power was about three times higher.

The 2023 debt ceiling agreement capped increases to federal non-defense discretionary funding for fiscal years 2024 and 2025, and NASA has felt the impact. Its 2024 budget left it with about half a billion less than it had in 2023. The 8.5 percent discrepancy between what the agency requested and what it received was the largest since 1992.

The funding cut gives NASA little wiggle room for certain missions such as Mars Sample Return, for which the agency has requested help from private industry to lower costs. Another high-profile program, the Chandra X-ray observatory, was placed on the chopping block, and several others have been delayed.

It could be a similar story in 2025. The White House’s 2025 NASA budget request, which seeks the same amount awarded in 2023, has been marked up by the House and Senate Appropriations Committees, with the latter’s proposal reading much more favorable.

Under the House budget, NASA would receive $200 million less than requested, a slight increase over 2024 in real dollars but below the current rate of inflation.

The biggest loser would be the Science Mission Directorate, which would get $7.3 billion—the same as 2024’s allocation, which represented the first cut to NASA’s science budget in a decade. A coalition of scientific organizations and more than 40 members of Congress believe the agency needs closer to $9 billion to support its dozens of space science missions.

Mars Sample Return could also suffer despite the House requiring it to spend $450 million more than NASA requested.

That’s because it would provide less than half of that money, leaving NASA to scrounge up the rest by axing other planetary science projects. The House would require full funding for certain programs, so only a few—namely Discovery, New Frontiers, and fundamental research—would be candidates for cuts. Within those programs are the critical Veritas Venus mission and Dragonfly Saturn moon mission, both of which could be jeopardized.

Also at risk is the Artemis lunar program, the successor to Apollo. NASA asked to shift funding from flight-proven components to novel technology that will be used on future missions, including the return of Americans to the moon during Artemis III. But the House mandates that the former programs maintain their historical levels of funding.

According to Casey Dreier, head of policy at the Planetary Society, that creates a roughly “half-billion-dollar hole” for the Lunar Gateway moon space station. To fill it, NASA will need to either redirect funds from other programs or significantly cut Gateway funding.

Artemis II and Artemis III have already been pushed to September 2025 and 2026, respectively, and NASA has hinted at delays to future missions. Earlier this year, it suddenly canceled development of the Viper lunar rover due to budget uncertainty.

“Future funding is clouded by the ever-declining federal discretionary budget from which NASA support is provided,” the report says.

Things may improve in 2026 when spending caps are lifted. However, NASA within the last year and change has lowered its budget projection for 2030 from about $30 billion to $28 billion.

Instant Gratification

NASA’s inefficiencies arise not just from its meager budget but also from how the agency uses it, the NASEM says.

The agency is often stretched thin by the sheer number of projects it pursues, causing setbacks to individual missions as in the case of Mars Sample Return or the James Webb Space Telescope.

Further, according to the report, many NASA leaders dismiss the need for long-term internal strategy, citing immense influence from Congress on its annual projects and budget. In short, the perception within NASA is that doing so would waste resources.

“Even planning for the advancing Artemis program lacks certain action-specific details associated with an architecture that is more complex and interdependent than Apollo,” the NASEM said.

But the lack of foresight by leadership results in unrealistic initial cost estimates, creating a domino effect that forces underfunded missions to pull money from other programs. The NASEM characterizes NASA’s internal research and development program, for example, as underfunded.

“The inevitable consequence of such a strategy is to erode those essential capabilities that led to the organization’s greatness in the first place and that underpin its future potential,” the report reads. “The profound negative consequences of this are felt far beyond the specific projects producing the delays and unanticipated funding demands.”

The NASEM recommended a total overhaul of NASA’s long-term mission planning process, including required “need dates” for capability and component needs. It also suggested that as responsibility shifts from NASA centers to specialized mission directorates, the agency should make sure its checks and balances are providing enough oversight.

An Eroding Base

Because NASA puts so much energy into its missions, the agency has neglected the engine that drives them: personnel and infrastructure.

Since 2017, only two NASA congressional authorization acts—which allocate funds from the Treasury Department and establish new programs and policy focuses—have been made law.  According to the report, “this inhibits the forecasting of workforce, infrastructure, and technology needs.”

On the infrastructure side, the NASEM recommended NASA work with Congress to create a revolving working capital fund (WCF) financed by the government and users of NASA facilities, similar to those for other federal departments. The agency could use the money to eliminate its maintenance backlog over the next decade and make continuous infrastructure enhancements.

Equally concerning is the agency’s workforce, which faces more competition for employment than ever before. Creating a commercial space ecosystem was a U.S. national policy goal for decades, and NASA has benefitted from working with private companies. These partnerships are necessary, the report argues, but verging on excessive.

Researchers contend that specialized, early phase mission work should be handled in-house, or NASA risks losing the talent that has propelled it thus far. Fixed-price or milestone-based contacts, such as the Artemis human landing system (HLS) agreements with SpaceX and Blue Origin, take agency personnel out of the picture. Many employees told researchers they would like more training or opportunities to hone their skills.

“In this case, NASA is more of a contract monitor than a technical organization capable of taking humanity into the solar system,” the NASEM said. “The concern is not only an erosion of ‘smart-buyer’ capability, but also of the capacity to invent and innovate.”

There is also the risk that a commercial provider exits the market or fails to deliver. A NASA inspector general report, for instance, blames contractor Boeing for certain delays associated with the Artemis program.

The NASEM directs NASA to invest in “early-stage, mission-critical technologies” that commercial firms have yet to crack, emphasize more hands-on work, and unearth new talent by targeting underrepresented demographics.

It could also seek to update the NASA Flexibility Act of 2004, which was implemented partially in response to the space shuttle Columbia accident and dictates what the agency can pay employees. By securing greater appointment and hiring authority, it could ease the burden of attracting and retaining talent.

Houston, Do We Have a Problem?

NASA’s budget woes have been well documented. The NASEM report, however, raises new concerns about how the agency uses what little it receives.

It’s not all NASA’s fault—the agency’s effort to scale back Mars Sample Return, for example, faces opposition from the House. If NASA must divert funding from other projects to support that mission, the blame would land squarely on Congress.

But the agency certainly isn’t helping matters. The neglect of long-term mission planning, despite lawmakers’ control over the budget, borders on ineptitude. Infrastructure and technology are dated. And private firms are snapping up talent faster than NASA can produce it.

Given the pressure the agency faces internally, from the government, and from its contractors, these issues are unlikely to resolve themselves without some serious effort. The hope is that the adoption of the Senate’s more favorable budget proposal, and the lifting of spending caps in 2026, could give it some much needed support. But NASA’s fortunes will also hinge on a reassessment of its priorities.

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At the Farnborough International Airshow in the U.K., Eve unveiled its first full-scale eVTOL air taxi prototype, assembled at Embraer’s test facility in Brazil’s São Paulo state.

In the U.S., Archer Aviation was the first to hit that milestone, followed shortly after by Joby Aviation and Overair. German eVTOL manufacturers Lilium and Volocopter each have rolled out full-scale prototypes as well, as has China’s EHang.

Eve’s 100 percent electric design now joins them. The lift-plus-cruise model is built to fly up to four passengers and a pilot on 60 sm (52 nm) air taxi routes in and around major cities. It will be piloted at launch, but the company intends to transition to uncrewed operations in the future.

The air taxi includes eight dedicated propellers for vertical flight and fixed wings for cruise, as well as an electric pusher powered by dual electric motors.

Eve seeks to introduce the aircraft commercially in 2026, in line with many of its competitors. The company received proposed airworthiness criteria, a key step toward that goal, from Brazil’s National Civil Aviation Agency (ANAC) in December.

“Our global team of engineers have shown exceptional dedication and expertise to successfully assemble our first full-scale eVTOL prototype,” said Johann Bordais, CEO of Eve. “This is a significant milestone that underscores our commitment to safety, accessibility and innovation.”

Eve is building its flagship air taxi using components and systems from a massive network of suppliers, and it announced two more at Farnborough: Diehl Aviation will design the eVTOL’s interior, while electric aerospace systems provider ASE will supply a power distribution system. Other Eve suppliers include Honeywell, Thales, Garmin, and BAE Systems.

On Tuesday at the airshow, the manufacturer announced another key collaborator, the smart infrastructure arm of technology conglomerate Siemens. The partners will work to gauge just how much energy an eVTOL network will require, as well as the best way to get that energy into the aircraft.

“The results and insights that Siemens and Eve Air Mobility will gain from this collaborative effort are expected to inform our strategy in preparing the ecosystem and developing services at scale for customers in the U.S. and, potentially, around the world,” said Luiz Mauad, vice president of customer services at Eve.

Eve last year announced the site of its first eVTOL manufacturing plant, where it intends to produce as many as 480 aircraft annually. Per the manufacturer’s fourth-quarter 2023 earnings report in March, it has an order pipeline of 2,850 aircraft, with the total value of nonbinding orders exceeding $8 billion.

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The German firm on Wednesday announced it will work with Groupe ADP, which manages 23 airports around the world, including Paris’ Charles de Gaulle Airport (LFPG) and Le Bourget Airport (LFPB), to prepare eVTOL infrastructure in Europe, Asia, and the Middle East.

Separately, at the Farnborough International Airshow in the U.K., Lilium on Tuesday signed a memorandum of understanding (MOU) with SEA Milan, which operates the Italian city’s airports, and vertiport developer Skyports Infrastructure to build a Lilium Jet network in Italy’s Lombardy region.

These regions are envisioned as early launch markets for the Lilium Jet, a zero-emission, six-passenger design capable of cruising at 162 knots on city-to-city trips spanning 25-125 sm (22-109 nm).

Groupe ADP, working with fellow German eVTOL manufacturer Volocopter, is developing an air taxi network connecting five vertiports across the Paris region, including at Charles de Gaulle and Le Bourget.

The original plan was for air taxi public transport and tourism routes to be ready for the 2024 Olympic Games, which open Friday in Paris, though that appears to be out the window. The French government signed off on heavily restricted, nonpassenger carrying flights, but Paris’ city council said it will fight the authorization in court.

Although it looks like the Paris Olympics won’t quite be the eVTOL launchpad for which Groupe ADP had hoped, it could make history by bringing the Lilium Jet to the region. With a projected commercial launch in 2026, the jet—which takes off like a helicopter but cruises on fixed wings—will likely be the first of its kind to hit the market.

“It is becoming increasingly clear that some of the very first eVTOL flights will happen in France, and this partnership brings that milestone closer into view,” said Sebastian Borel, chief commercial officer of Lilium. “Groupe ADP has an impressive portfolio of airports, both in France and around the world, in markets that will be key to Lilium’s commercial operations.”

Earlier this year, Lilium said it was in “advanced talks” with the French government to install manufacturing facilities in the country. It is also collaborating with Aéroports de la Côte d’Azur and vertiport developer UrbanV to create a network in the French Riviera.

Groupe ADP will now work to accommodate the six-passenger design, which is significantly larger than Volocopter’s air taxi, at vertiports throughout Paris.

“We are thrilled to officialize the work we have been conducting with Lilium to ensure the development of new services by eVTOL in the Paris region and worldwide,” said Edward Arkwright, deputy CEO of Groupe ADP.

The partnership will also extend to Turkey, India, and Saudi Arabia, where Lilium is planning another network with flag carrier Saudia. The airline this month agreed to purchase 100 Lilium Jets. On Monday at Farnborough, the manufacturer said it signed an MOU with Saudi Arabia’s General Authority of Civil Aviation (GACA) to prepare eVTOL regulations in the country.

Italy is set to be another important market for Lilium as the company partners with SEA Milan and Skyports to serve the Lombardy region, home to an estimated one-fifth of the country’s population. The manufacturer, airport operator, and infrastructure specialist hope to bring a network online by 2027.

“We’ve been working with our partners at SEA for some time, and we’re excited to prepare to open the doors of our vertiports and see eVTOL aircraft take flight over Lombardy,” said Duncan Walker, CEO of Skyports.

SEA will manage airport hubs and will operate vertiports jointly with Skyports, which will lead the development and construction of the sites. An initial route will connect Milan Malpensa Airport (LIMC) with the Milan city center.

In 2022, Lilium secured an order for 12 jets from operator Globe Air, which plans to fly them in the French Riviera and Italy—it’s unclear whether these aircraft will be part of the planned network.

The German manufacturer also has plans for the U.S. With newly established operating partner UrbanLink Air Mobility, it intends to fly in Florida, California, and the Caribbean U.S. territory of Puerto Rico.

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The FBO network and aviation services provider on Wednesday signed a memorandum of understanding (MOU) with Germany’s Lilium to electrify its network of more than 100 FBOs. The partners will transform existing U.S. airport infrastructure to accommodate the manufacturer’s flagship Lilium Jet, a seven-seat eVTOL design for regional air mobility (RAM) services.

Lilium intends to launch RAM operations worldwide, including in the U.S., as early as 2026.

“Atlantic’s extensive presence across major U.S. cities and expertise in ground infrastructure development and premier customer service will be invaluable in establishing a robust network that supports the Lilium Jet throughout the U.S.,” said Sebastien Borel, chief commercial officer of Lilium.

According to Lilium, Atlantic operates sites at more than 30 airport locations within its planned U.S. launch markets, which include Florida, Texas, Southern California, and the Northeast corridor. The German firm is the sole eVTOL manufacturer with certification bases from both the European Union Aviation Safety Agency (EASA) and FAA, allowing it to fly on either side of the Atlantic.

The company’s flagship, seven-seat Jet is designed to fly routes between towns and inner cities, cruising at 162 knots on trips spanning 25 to 125 sm (22 to 109 nm). It began production of the first models in late 2023.

Together with Atlantic Aviation, the manufacturer hopes to plan a network of hubs that will support Lilium Jet operators. The partners will ensure current and future vertiports are compatible with the aircraft and give operators access to “strategic points” within Atlantic’s network.

Lilium and Atlantic will focus on infrastructure deployment and operations at existing and upcoming Atlantic sites, honing in on the passenger experience. Strategic planning will be molded around considerations such as aircraft flight paths, charging capabilities, passenger facilities, and operations forecasting.

“This collaboration underscores our firm conviction in the transformative potential of eVTOL technology in reshaping regional travel, and we are dedicated to furnishing the technology-agnostic infrastructure and assistance required to bring this vision to fruition,” said John Redcay, chief commercial and sustainability officer at Atlantic.

Atlantic in January also partnered with eVTOL air taxi manufacturers Archer Aviation, Joby Aviation, and Beta Technologies, with separate deals to electrify Atlantic terminals for Archer’s Midnight, Joby’s S4, Beta’s Alia, and other electric aircraft models.

Joby said its agreement will initially focus on FBOs in New York and Los Angeles. Archer too is eyeing those markets in addition to San Francisco and Miami, while Beta is targeting the East and Gulf Coasts. All three manufacturers have hinted that more sites are on the horizon.

Joby, however, diverges from Lilium and the rest of the pack when it comes to charging.

While Lilium, Archer, Beta, and a host of other eVTOL manufacturers back the General Aviation Manufacturers Association’s (GAMA) endorsement of the combined charging system (CCS)—a set of design standards also proposed for the electric ground vehicle industry—Joby has proposed its own standard, the global electric aviation charging system (GEACS). 

Both standards would accommodate any model of electric aircraft. Among the key differences between the two are that CCS is intended for both electric air and ground vehicles. Atlantic, Clay Lacy Aviation, and other FBO networks have said they intend to install both CCS and GEACS chargers, while others such as Signature Aviation have so far only committed to one.

Lilium last month partnered with electric charging infrastructure provider Star Charge, from which it placed a “first order” for 120 CCS-compatible chargers. The manufacturer expects these systems will substantially lower charging time, reducing turnaround time and maximizing hours in the sky.

Before charging the Lilium Jet, the systems will support the launch of Lilium’s Pioneer Edition model: the planned launch version of its flagship aircraft, with a $10 million price tag.

A total of 50 Pioneer Edition models will be sold to business and general aviation operators worldwide, intended for private, premium, and shuttle operations. Lilium says its go-to-market strategy of selling to the premium segment first will diversify its revenue stream.

The approach is predicated on vertiports and charging infrastructure being ready for the Lilium Jet’s intended launch in 2026—which is where partners such as Atlantic come in.

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The company on Monday expanded its partnership with Emirati aviation services provider Falcon Aviation to build a vertiport network for eVTOL air taxi operations in Dubai and Abu Dhabi, the two largest cities in the UAE. San Jose, California-based Archer expects the UAE to be its first international launch market.

Archer and Falcon initially agreed upon a deal that would see Falcon operate “scores” of Midnight aircraft across the UAE and expand the former’s urban air mobility (UAM) ecosystem. The collaboration includes the Abu Dhabi Investment Office (ADIO), the city’s central government hub for investment.

Archer believes it is the first to announce an eVTOL air taxi route between Dubai and Abu Dhabi, which it said is “one of the world’s most prominent and congested commute corridors.” The manufacturer estimated flights will last 30 minutes: a fraction of the two hours it could take to drive between the cities during peak traffic.

“Partnering with established operators such as Falcon Aviation, as well as the capital of the Emirates with the Abu Dhabi Investment Office, has been key to quickly building our presence in the region,” said Archer founder and CEO Adam Goldstein. “We look forward to paving the way for the introduction of our Midnight aircraft to the region, which will set the stage for the UAE to become a global leader in urban air mobility.”

Preparing for (Vertical) Takeoff

Falcon last week upgraded its heliport terminal at Atlantis, The Palm, in Dubai, a hub for sightseeing trips above the city’s skyline. The terminal also provides helicopter charter flights between the hotel and Abu Dhabi, as well as other nearby cities. As early as next year, Falcon will operate Midnight out of that site and its Marina Mall heliport in Abu Dhabi.

The vertiports will connect the two cities with routes almost entirely over water, providing scenic views for passengers. At the same time, Archer claims Midnight will be quieter, safer, and more affordable than comparable helicopters.

“For nearly two decades, Falcon Aviation has been at the forefront of helicopter passenger transport in the UAE,” said Ramandeep Oberoi, CEO of Falcon. “Our partnership with Archer is a leap into the future, as we prepare to offer flying car services together in Dubai and Abu Dhabi, continuing our tradition of world-class transportation solutions.”

Archer’s vision is for Midnight to swap 60-90-minute commutes by car for back-to-back, 10-30-minute electric air taxi flights, with only 10-12 minutes of charge time between. Designed for a pilot plus up to four passengers, the aircraft has a range of 52 sm (45 nm) and cruise speed of 130 knots.

In addition to service in the U.S. in partnership with United Airlines, Archer intends to serve the entire UAE and Middle East and North Africa (MENA) region.

“We have made rapid progress in the UAE over the past three months since announcing Abu Dhabi and Dubai will be home to our first international Midnight flights as soon as 2025,” said Nikhil Goel, chief commercial officer of Archer. “We’re proud to be the first to announce plans to operate between Dubai and Abu Dhabi, along with vertiport infrastructure at both ends of the commuter journey.”

The ADIO, which is supporting Archer’s UAE launch with economic incentives, last year agreed to host the company’s engineering and manufacturing facilities within the Smart and Autonomous Vehicle Industry (SAVI) cluster, an urban hub designed to speed the development of new land, air, and sea vehicles. Manufacturing partner Stellantis—which will support Midnight mass production and is aiding the construction of Archer’s scaled manufacturing plant in Covington, Georgia—will help build them.

Archer last year also signed a memorandum of understanding (MOU) with Emirati private heliport operator Air Chateau International for the planned purchase of 100 Midnight air taxis, which Air Chateau will operate regionwide. The partners are further exploring infrastructure investments, such as for vertiports and electric aircraft chargers, in Dubai and Abu Dhabi.

Complicating matters somewhat is the presence of eVTOL air taxi competitor Joby Aviation.

Joby last month signed an agreement with Dubai’s Road and Transport Authority (RTA)—the government entity that regulates the city’s public transport—for the exclusive right to operate electric air taxi services in Dubai for six years following the launch of service. That’s expected to happen in 2025 or 2026.

However, while it sounds like the arrangement would prevent Joby’s competitors from flying in Dubai, Archer CEO Adam Goldstein told FLYING that will not be the case.

“I do not believe it will impact our operations in Dubai or our ambitions in Dubai,” said Goldstein. “We believe we will be able to operate there, and we will have a strong hub out of Abu Dhabi. We’re glad to see Joby coming to the region and leaning in, because we think it’s a good early market for eVTOL players to start.”

By stepping up the company’s partnership with Falcon, the Archer CEO is putting his money where his mouth is. Vertiport infrastructure is not cheap, and Archer likely would not pursue it if it believed Dubai to be off the table.

Falcon in 2022 also purchased 35 air taxis from Embraer subsidiary Eve Air Mobility, with the companies announcing plans to launch eVTOL tourism flights in Dubai. China’s EHang and Germany’s Lilium are among other air taxi manufacturers looking to operate in the UAE.

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Airbus on Tuesday announced an agreement with international helicopter and fixed-wing lessor LCI to jointly set the stage for advanced air mobility (AAM) operations of emerging aircraft, including electric vertical takeoff and landing (eVTOL) air taxis and other electric models. The collaboration will hone in on three key areas: AAM strategy, commercialization, and financing.

The partners will study AAM market perspectives and forecasts, conduct industry research, and leverage data analytics to uncover new applications and missions. They will also develop new AAM solutions, exploring the commercialization of aircraft fleets, batteries, and charging networks.

“For two decades, LCI and Airbus have delivered capacity and financing solutions to airlines and operators across the globe, and we are now extending that to advanced air mobility,” said Jaspal Jandu, CEO of LCI. “Transportation and logistical networks have a duty to be efficient, sustainable, and scalable. Both LCI and Airbus take a holistic and pragmatic view of advanced air mobility, including vehicles and also infrastructure, financing, and network adoption.”

Under the agreement, LCI will become a “key financial partner” for certain Airbus AAM projects, such as those focused on emergency medical services. The lessor will use its network to boost global adoption and acceptance of emerging aircraft. It also intends to explore leasing and finance solutions for potential buyers of the CityAirbus NextGen, Airbus’ flagship eVTOL air taxi model.

The all-electric CityAirbus NextGen is designed for a pilot to fly up to four passengers, with a 50 sm (43 nm) operational range and 75 mph (65 knots) cruise speed. The model includes fixed wings, V-shaped tail, and distributed electric propulsion system that powers eight electric propellers.

Airbus finalized assembly of the first CityAirbus NextGen model and powered on the aircraft at the end of 2023. The next phase will be a test campaign using the manufacturer’s new AAM test center in Donauwörth, Germany. Those flights represent a step toward type certification of the aircraft with the European Union Aviation Safety Agency (EASA).

“We are excited to extend our long-standing relationship with LCI, an innovative lessor that is globally unique in its positioning across the commercial fixed-wing, helicopter and AAM sectors,” said Balkiz Sarihan, CEO and head of urban air mobility (UAM) at Airbus. “LCI’s combination of operational expertise, customer networks, and financial insights complements Airbus’ technical innovation in flight technologies and will enable us to collectively drive the development of advanced air mobility.”

Airbus is working with Groupe ADP, the organization that manages Paris’ international airports, and regional French authorities to fly the CityAirbus NextGen at the 2024 Olympic Games in the nation’s capital, where other manufacturers such as Germany’s Volocopter and China’s AutoFlight also intend to demonstrate their respective air taxis.

Recently, the company stepped up its partnership for the aircraft’s rollout in Italy, where it is working with ITA Airways, the country’s flag carrier, to build a nationwide AAM ecosystem. It added vertiport operator UrbanV and green energy company Enel, which will assist airports with the transition to electric infrastructure, to the partnership. Prior to the initial partnership announcement in 2022, ITA purchased 28 Airbus aircraft, leasing another 56 following the agreement.

Beyond CityAirbus, the manufacturer is developing four low-carbon ZEROe aircraft concepts, each powered by hydrogen and built to fly 100 to 200 passengers. It hopes to introduce a commercial, low-carbon aircraft by 2035 and recently partnered with four Scandinavian firms to study hydrogen infrastructure at airports in Norway and Sweden.

Airbus U.S. Space & Defense, meanwhile, launched a dedicated drone and uncrewed aircraft systems (UAS) business in November, signaling its interest in self-flying electric aircraft. Airbus already produces several UAS—such as the long-range, high-flying Zephyr—but last month expanded its portfolio with the acquisition of Aerovel by Airbus Helicopters.

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The manufacturer on Wednesday announced a partnership with the city of Sugar Land, Texas, to bring advanced air mobility (AAM) to the Greater Houston area, including plans to build a vertiport at Sugar Land Regional Airport (KSGR).

Wisk and the city will assess locations for a vertiport and potential training and maintenance facilities at the airport, which has been designated as a reliever airport for George Bush Intercontinental Airport (KIAH) and Hobby Airport (KHOU) in Houston. Sugar Land Regional manages 75,000 operations annually, with capacity for up to 268,000.

The initial partnership is intended to establish a larger Wisk network connecting the entire  region, such as routes between downtown Houston and the Houston Airport System.

“The Greater Houston area is experiencing some of the highest population growth in the country, which calls for new and efficient ways to move across the region,” said Brian Yutko, CEO of Wisk. “Sugar Land’s strategic location within the Greater Houston region, and its forward-thinking city leadership, make it an ideal partner for us and one that is uniquely positioned as an early leader in the launch of air taxi services.”

Wisk’s four-seat Gen 6 prototype has a range of 90 sm (78 nm) with reserves. It has an estimated charge time of 15 minutes, and Wisk in 2022 said it was targeting a per-mile price of just $3 per passenger.

Twelve wing-mounted electric propellers—six fore and six aft—power the aircraft, with rear-mounted motors providing vertical lift. In forward flight, the aft propellers turn off and stow while the front propellers tilt forward to support cruising at 110-120 knots on fixed wings.

What makes the design unique, however, is its autonomy. Among major eVTOL air taxi competitors, only China’s EHang—which completed the first passenger-carrying eVTOL air taxi flight in December—is looking to fly without an onboard pilot from the jump.

Wisk said it has spent the past 18 months developing a Greater Houston stakeholder ecosystem to bring self-flying air taxis to the region. The company will work with Sugar Land, local stakeholders, and the FAA to develop ground and air infrastructure. It will also support the technical side of AAM operations, including pilot training, ground operations procedures, and plans for a potential site expansion.

The city, meanwhile, will focus on charting long-term AAM integration, engaging the local community, and creating regulations around considerations such as vertiport permitting and noise levels.

Together, Wisk and the city will explore adding maintenance and training facilities to Sugar Land Regional Airport. They will also collaborate with local and regional stakeholders to draw up routes connecting the city with the Greater Houston area.

“Sugar Land is a great place to start in the Houston region, because we want to be a city where innovation is second nature, where creativity is encouraged and where change is embraced,” said Michael Goodrum, Sugar Land city manager.

So far, Texas is not on the radar of many of Wisk’s competitors. Joby Aviation and Archer Aviation, for example, combined have announced plans to fly in cities such as New York, Chicago, and Los Angeles but not Houston, Dallas, or San Antonio.

However, the state is beginning to embrace technologies such as drone delivery, with Alphabet subsidiary Wing and Ireland’s Manna recently touching down in Dallas. Further, Overair, another Wisk competitor, partnered with Dallas/Fort Worth International Airport (KDFW) and the city of Arlington to explore service in the DFW area.

Adding to the momentum is recently passed legislation, Texas Senate Bill 2144, that established a state AAM advisory committee. The bill took effect in September.

“These public-private partnerships are exactly what we hoped would result from the passage of our legislation during the 88th Legislative Session and solidifies Texas as a leader in this new technology space,” said David Cook, a member of the Texas House of Representatives.

Outside the Lone Star State, Wisk is also eyeing operations in Los Angeles, where in October it completed what it says was the city’s first public eVTOL air taxi demo using its fifth generation aircraft, Cora.

The manufacturer does not have firm launch plans for the City of Angels. However, it has an alliance with the Long Beach Economic Partnership to explore the impact of autonomous air taxis on the local economy and has been flight testing in the city since September.

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At the Singapore Airshow, the German firm announced a partnership with electric charging infrastructure provider Star Charge to develop the charging systems for its ground and flight testing aircraft, the first of which are now in production. The manufacturer also launched what it said is the first eVTOL customer service business, which will provide battery management, maintenance, flight operations, training, and digital solutions to customers.

Lilium placed a “first order”—implying, perhaps, that another is on the horizon—for 120 Star Charge systems, which will support the company’s testing, maintenance, and delivery center activities later this year. It will also deliver chargers to customers investing in vertiports, which will serve as hubs for future operations.

The systems are billed as high-performance, with extra-long, liquid-cooled cables designed to significantly reduce charge time. They are suitable for a variety of different landing sites, Lilium said.

Crucially, Star Charge systems are also fully compatible with the Combined Charging System (CCS), which has been proposed as the universal standard for electric aircraft charging. CCS chargers are designed to accommodate the Lilium Jet and all other CCS-compatible air and ground vehicles.

Lilium and several other manufacturers—including Archer Aviation, Beta Technologies, Volocopter, Overair, Boeing’s Wisk Aero, and Embraer’s Eve Air Mobility—backed the General Aviation Manufacturers Association’s (GAMA) endorsement of CCS in September.

“We are grateful to have received the first order of CCS chargers by a leading eVTOL manufacturer and look forward to commencing deliveries this year,” said Ji Cheng, CEO of Star Charge Europe.

Lilium expects the new systems will substantially lower charging time compared to chargers without liquid-cooled cables, reducing turnaround time and maximizing hours in the sky.

Joby Aviation, which has proposed its own charging standard—the global electric aviation charging system (GEACS)—said its system will include a coolant mechanism that keeps aircraft batteries at the ideal temperature during charging.

The company has positioned GEACS as a substitute for the CCS, but both standards propose universal charging systems for electric aircraft.

“Our partnership with Star Charge will support the Lilium Jet´s development and certification along with our customers’ ground infrastructure development,”  said Sebastien Borel, chief commercial officer of Lilium. “Its high-performance and liquid-cooled charging cable is a unique feature, and Star Charge´s proven expertise in charging infrastructure is crucial for regional air mobility.”

Regional air mobility (RAM) is a subset of the broader advanced air mobility (AAM) industry focused on connecting cities within a region, as Lilium intends to do. RAM contrasts with the urban air mobility (UAM) model being pursued by other eVTOL manufacturers, which are planning operations within a single city or metropolitan area.

Lilium’s electric seven-seat Jet is expected to fly RAM routes between towns and inner cities, cruising at 162 knots on trips spanning 25 to 125 sm (22 to 109 nm). To support those operations, the company is launching Power-On, a new business unit that will offer a full portfolio of aircraft manufacturer services. 

Power-On will support customers with training services, maintenance operations, flight operations support, ground service equipment, digital solutions, and management and distribution of materials and batteries.

Dominique Decard, vice president of flight operations and customer service for Lilium, has been appointed to lead the new unit, which falls under the company’s aftermarket services business. Decard is an engineer and 20-year veteran of the airline industry who joined Lilium in 2018.

The manufacturer estimated that the services market for the Lilium Jet will hit $5 billion by 2035, with Power-On being a key catalyst.

“As we officially launch Lilium Power-On, our priority will be to test the full range of products and services to support our future operators during [the] Lilium flight testing campaign and continue to contract and onboard the best partners for our working ecosystem,” said Decard. “The services revenue and contribution margins will play a crucial role in Lilium’s profitability.”

Already, Lilium has several partnerships in place for its aftermarket services business. These include flight training agreements with Lufthansa Aviation Training and FlightSafety International to prepare the initial cohort of Jet pilots. Most recently, it agreed a global parts management and distribution partnership with U.K.-based AJW Group.

“As RAM accelerates, our partners can rely on Lilium to provide a comprehensive aircraft manufacturer service organization,” said Klaus Roewe, CEO of Lilium. “The team is focused on enabling seamless, efficient services and support through premium aftermarket products and world-class partners.”

In December, Lilium began production of seven Lilium Jets, which the manufacturer will use in flight testing with the European Union Aviation Safety Agency (EASA). The milestone followed EASA Design Organization Approval, which is essentially the regulator’s blessing that Lilium adheres to the required standards for designing novel aircraft.

The company plans for its flagship model to enter commercial service in 2026. As its global fleet expands, the aftermarket services business is expected to generate significant recurring revenue.

Earlier this month, Lilium designated Orlando International Airport (KMCO) as the hub for its U.S. operations in Florida. Its agreement with FlightSafety International will cover pilot training for those services, while helicopter operator Bristow Group will provide Part 145 maintenance support. Fractional jet ownership company NetJets has agreed to purchase 150 Lilium Jets and operate the service.

This week, the manufacturer announced another partnership with the Philippines’ PhilJets, which intends to purchase and operate 10 Jets. Its largest agreement outside the U.S. is with Azul Brazilian Airlines: a $1 billion deal for the purchase and operation of 220 aircraft.

Lilium also has 100 aircraft orders apiece from Saudi Arabia national airline Saudia and Chinese helicopter operator Heli-Eastern. It intends to establish a footprint in both countries. Meanwhile, the firm is exploring a strategic partnership with Lufthansa to scale eVTOL operations across Europe.

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The company on Monday announced a partnership with the Philippines’ PhilJets to bring its flagship Jet and high-speed regional air mobility (RAM) services to the region, starting with the Philippines.

PhilJets operates private and commercial flights with a fleet comprising 15 private jets and helicopters, with plans to expand it in the next three years. It also has a maintenance services affiliate that supports more than 100 helicopters.

Lilium intends to launch RAM—a subset of advanced air mobility (AAM) that primarily connects cities within a region—across the continent and worldwide. Its road map contrasts with the urban air mobility (UAM) model pursued by competitors such as Joby Aviation and Archer Aviation, which plan to serve individual cities or metro areas.

The collaboration between Lilium and PhilJets follows the manufacturer’s agreement in June to deliver 100 aircraft to Chinese air transport operator Heli-Eastern.

“Our strategic partnership with PhilJets will expand our footprint even further in Asia, bringing the Lilium Jet to Southeast Asia,” said Sebastien Borel, chief commercial officer of Lilium. “The Philippines is well suited for eVTOLs to effectively connect thousands of islands together through sustainable and high-speed air mobility. Asia is a key market for Lilium, and with the unique topographical challenges this region presents, the innovative design of the Lilium Jet is uniquely suited to address them.”

A memorandum of understanding (MOU) signed this week at the Singapore Airshow signals PhilJets’ intent to purchase and operate 10 Lilium Jets.

The MOU also calls for a future strategic collaboration to build an eVTOL network across the Philippines and other Southeast Asian nations, including Cambodia. The partners will leverage PhilJets’ expertise in the ASEAN (Association of Southeast Asian Nations) market to scale up.

“With its growing economy, geography and important tourism industry, the Philippines is a great match to the Lilium Jet´s capabilities,” said Thierry Tea, chairman of PhilJets. “Innovation in aviation is gaining traction among regulators, urban planners, and industry leaders of worldwide economies. Providing efficient connectivity to customers while reducing carbon emissions is a major focus for air transport operators such as PhilJets.”

Lilium and PhilJets will jointly define routes, city pairs, and passenger demand for on-demand RAM services in Southeast Asia. They will also identify potential sites, requirements, and collaborators for landing infrastructure in the region, such as the selection of vertiport partners. Further, the partners will share vertiport specifications, and Lilium will provide access to its existing network of charging hardware providers.

“As a country with more than 7,500 islands, Lilium’s approach for regional air mobility is a perfect fit for eVTOL service in the Philippines and showcases the broader opportunities for island nations across the globe,” the manufacturer said in a news release.

In the Philippine capital, the local San Miguel Corporation is building the New Manila International Airport, expected to open in 2027. The project is one of many in the region that aims to embrace new forms of aviation.

For example, in Cambodia, the partners’ other intended launch market, the Overseas Cambodian Investment Corporation (OCIC Group) is building the Techo Takhmao International Airport to replace Phnom Penh International Airport (VDPP) in 2025.

To reduce carbon emissions, both initiatives are exploring charging stations, flight routes, and other considerations for flying taxis and electric jets.

Lilium’s collaboration with PhilJets follows the start of production of seven type-conforming Lilium Jet prototypes, which the manufacturer will deploy for European Union Aviation Safety Agency flight testing. Crewed flights are expected to begin this year, with certification via EASA intended for 2026.

The all-electric, seven-seat Jet is designed to provide low-noise, zero-emission flights in densely populated areas. It will primarily fly RAM routes between towns and inner cities, cruising at 162 knots on trips spanning 25 to 125 sm (22 to 109 nm). Unlike the tiltrotor designs of competitors, the aircraft has no moving parts: its 36 electric ducted fans support vertical takeoff and landing, with fixed wings for cruise.

Lilium is the only commercial eVTOL manufacturer with certification bases from both EASA and the FAA. It plans to leverage the Bilateral Aviation Safety Agreement between the two agencies to accelerate commercialization on the U.S. side.

In partnership with Houston-based EMCJet, a full-service aircraft brokerage and management firm, Lilium will deliver five Pioneer Edition Jets to private customers in the U.S., billed at $10 million per aircraft. The Pioneer Edition—the four-seat planned launch edition of the full-scale Jet—is aimed at wealthy GA and business aviation operators and will be the first aircraft of its kind available for private sale in the U.S., Lilium said. A total of 50 are expected to be delivered globally.

After selling the Pioneer Edition, the manufacturer will roll out its flagship, seven-seat model worldwide. Orlando International Airport (KMCO) is expected to serve as an initial hub for U.S. operations.

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Eve Air Mobility—the manufacturer of an electric vertical takeoff and landing (eVTOL) air taxi designed for a pilot plus four passengers—on Monday announced an agreement with Singapore-based aviation firm Yugo Global Industries to study the potential for UAM and eVTOL flights across Southeast Asia.

A memorandum of understanding (MOU) signed by the partners calls for a specific focus on the infrastructure required to support air taxi operations. The partnership will also explore UAM regulations, the size and capabilities of planned service centers and vertiports, and other aspects of the ecosystem as needed, Eve said.

“We are looking forward to collaboratively working with Yugo to study and help define the UAM ecosystem in Singapore and Southeast Asia,” said Johann Bordais, CEO of Eve. “Our goal is to also understand and define a business model that not only enables eVTOL flights in the region but also advances the overall mobility ecosystem.”

The firm’s new partner, Yugo, is a private aviation network with a global presence but a focus on Southeast Asia. It primarily provides VIP, corporate, leisure and family, medical, emergency, and cargo flights for high net worth individuals, conglomerates, and multinational companies. The firm also works with local air transport operators, such as the Philippines’ PhilJets and Cambodia’s Helistar.

Yugo’s partner fleet comprises rotorcraft such as the Bell 505 Jet Ranger X helicopter and business jets such as the Gulfstream G650ER. It also includes aircraft from OEMs such as Airbus, Bombardier, Dassault, Cessna, Robinson, and Leonardo subsidiary AgustaWestland.

“We strongly believe that Southeast Asian economies will greatly contribute to the development of the eVTOL and UAM industry,” said Thierry Tea, chairman of Yugo. “Our collaboration with Eve will offer valuable insights into the essential requirements for regional air mobility development.”

The MOU with Yugo is the latest bid on the Asia-Pacific market by Eve, which on Monday reiterated its commitment to introducing UAM to the region. The manufacturer has also partnered with stakeholders such as Singapore-based air mobility provider Ascent and vertiport developer Skyports to build the ecosystem that will support its operations in Southeast Asia.

“These types of collaborations and agreements are a critical first step toward pursuing eVTOL flights,”  said Bordais. “We are looking forward to working with Yugo and other key stakeholders as we begin this project.”

Eve in addition said it has begun construction of its first full-scale air taxi prototype, which it expects to begin testing this year. The lift-plus-cruise design uses eight lift rotors for vertical takeoff and landing and one push rotor for cruise, minimizing the number of moving parts compared to tiltrotor eVTOL designs. It’s expected to have a range of about 60 sm (52 nm) and a cruise speed of 100 knots.

Like its competitors in the eVTOL space, Eve is working with a long list of supplier partners that will provide aircraft components and systems, among them Thales, Honeywell, BAE Systems, and avionics OEM Garmin. It’s expected to debut a full-scale cabin mockup at the Singapore Air Show this week.

Eve claims its backlog of 2,850 aircraft preorders is the most in the industry, an assertion backed up by the most recent edition of SMG Consulting’s Advanced Air Mobility Reality Index.

Ahead of the company’s planned 2026 entry into service, the National Civil Aviation Agency of Brazil (ANAC) in December released proposed airworthiness criteria for the air taxi. These include the regulator’s proposed requirements for how the aircraft is designed and operated. Public comments are expected to close this month, and ANAC may make a few tweaks to the criteria before publishing a final document.

Eve pointed to a few developments in Southeast Asia that could help prepare the region for air taxi services by 2026.

The Philippines’ San Miguel Corporation, for example, expects to open the New Manila International Airport in 2027, while the Overseas Cambodian Investment Corporation (OCIC Group) is building Cambodia’s Techo Takhmao International Airport for a 2025 opening. Both sites are exploring charging stations, flight routes, and other considerations for flying taxis and electric jets to reduce carbon emissions. Singapore could be the next Asia-Pacific nation to look at UAM infrastructure.

“Singapore is the first mover in Southeast Asia for UAM, and this can provide neighboring countries a template to support further ecosystem development in the region,” Eve said Monday in a news release. “For instance, OCIC Group is partnering with [Singapore] Changi Airport and Singapore Airline Engineering, [the MRO subsidiary of Singapore Airlines Group].”

In addition to air taxi services, Eve expects to offer Southeast Asian customers access to a worldwide network of service centers through its relationship with Embraer. It is also developing a range of customer support solutions, including flight operations solutions, network optimization, data management, and eVTOL health monitoring.

In the U.S. Eve is eyeing operations with partner (and investor) United Airlines, with plans to launch in the San Francisco Bay Area in 2026. Further, it is collaborating with Blade Air Mobility to add service to South Florida.

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