2024 Corporate Aviation Leadership Summit

Losses at Eve Holding continued to increase during the second quarter of 2022, as the former Embraer business unit stepped up investment in the development of the four-passenger eVTOL aircraft it aims to start delivering in 2026. Announcing financial results for the first time since its Wall Street initial public offering in May, the company said that its net loss for the first half of this year increased by $16.7 million to $21.3 million and that the deficit for the second quarter alone was $11.8 million compared with $2.4 million in the same period of 2021.
Balancing the unsurprising losses is Eve's total reported liquidity, including cash, equivalents, and financial investments, of $330.8 million. Cash raised from financing was boosted by the net proceeds so far from its New York Stock Exchange listing of $329.1 million.
The investment required to bring its new eVTOL vehicle to market will be substantial. Eve is committed to addressing all aspects of the envisaged urban air mobility operations, with work in progress to develop new air traffic management systems, and also plans to provide maintenance and support services to operators.
While no revenues are flowing yet, the company has started to log commitments from prospective customers. At the end of June, Eve had a backlog of 1,910 conditional sales agreements for the&nbsp;eVTOL vehicle. Since then, it has received another non-binding order from Embraer and BAE Systems for up to 150 eVTOLs that will be used <a href="https://www.futureflight.aero/news-article/2022-07-19/embraer-bae-strengthen-plans-use-eves-evtol-defense-applications">for defense and security applications</a>. This latest order brings the total number of units in Eve’s backlog up to 2,060, with an estimated value of nearly $6 billion, Eve’s co-CEO Jerry DeMuro said during an August 4 call with investors.&nbsp;
Via letters of intent, those orders have come from 22 different customers consisting of “operators from around the globe with different aviation backgrounds, including fixed wing and helicopter operators, rideshare providers, and more recently, a defense player with the potential to expand the applications of our UAM solutions,” DeMuro said. As the company advances its eVTOL development in the coming years, it will begin converting those letters of intent into firm orders and collecting down payments of up to 50 percent of the value of the vehicles ordered, Eve’s chief financial officer Eduardo Couto said during the call.&nbsp;
The IPO in May, which followed Eve's business combination with special purpose acquisition company Zanite,&nbsp;raised a total of&nbsp;<a href="https://www.futureflight.aero/news-article/2022-05-10/embraer-backed-eve-boosts-evtol-plans-377-million-initial-public-offering">$377 million</a>. “We believe this funding provides an excellent foundation for the development and certification of our eVTOL and other elements of the urban air mobility ecosystem that we expect to launch in 2026,” DeMuro said.
“The bulk [of&nbsp; funds raised] was invested in our eVTOL development, and a portion was used for the development of our service and support solutions and the development of our <a href="https://www.futureflight.aero/news-article/2022-07-22/eve-partners-halo-urban-air-traffic-management-solutions">urban air traffic management system</a>,” Couto said. “We are the only eVTOL company with a complete solution, including the vehicle, service and support, and air traffic control,” he added.
Despite the increased spending, Couto said the company ended the second quarter of 2022 with about $330 million in cash and no outstanding debts. “We feel extremely comfortable with our current cash position, as it gives Eve plenty of resources to maintain our eVTOL development for multiple years,” he said.
Eve officials did not specify when the company expects to <a href="https://www.futureflight.aero/news-article/2022-02-16/eve-prepares-fly-full-scale-evtol-prototype-order-book-swells">begin flight testing a prototype</a>, perhaps reluctant to firm up projections made back in February when they said this was expected "in the next few months." The company hasn’t disclosed many details about its design, other than <a href="https://www.futureflight.aero/news-article/2022-07-17/eve-reveals-new-evtol-design-and-cabin-mockup">a cabin mockup</a> it revealed at the 2022 Farnborough Airshow last month. However, Eve officials did explain some recent changes to their design during the call with investors.&nbsp;
“We have been evaluating variations of our lift plus cruise configuration. Now, I believe that the current configuration is mature enough to disclose to the market,” Eve’s co-CEO André Stein said during the call. “The aircraft remains simply designed with eight lifters and pushers, allowing for a reliable and safe platform designed for vertical takeoff and landing and avoiding moving parts,” Stein said. “The simple design is a differentiator in our certification efforts.”
Eve’s chief technology officer Luiz Valentini explained that the company recently made two major changes to the eVTOL's configuration. First, they changed the placement of the rotors to allow for smaller motors that use less power, which “is helpful with respect to the sizing and the weight of the vehicle,” Valentini said. “It allows us to reduce the weight, which of course brings benefits in terms of energy efficiency and noise and other aspects.”
The second major design change Valentini discussed was the replacement of a wing-and-canard configuration in favor of a wing and empennage. “We find that this configuration with the conventional placement of wing and tail gives us a little bit more flexibility to adjust the stability and controllability of the vehicle in the future, and to make minor adjustments if we have to,” Valentini said.&nbsp;
Capable of carrying four passengers and one pilot, Eve’s eVTOL will have a range of about 100 kilometers (60 miles) on a single charge, which will allow it to fly for about 30 minutes. Although the aircraft will be piloted initially, Eve plans to eventually switch over to autonomous operations.
Eve will first seek type certification for its eVTOL aircraft with the Brazilian aviation authority <a href="https://www.futureflight.aero/news-article/2022-02-10/brazilian-regulator-agrees-process-certifying-eves-evtol-aircraft">ANAC</a>, which has bilateral air safety agreements with the U.S. Federal Aviation Authority (FAA) and the European Union Aviation Safety Agency (EASA). The company expects to achieve type certification by 2025, with the first deliveries expected in 2026.

Science & Technology Editor

Hanneke Weitering

Eve Commits to Long-term Investment in Urban Air Mobility

Halo Aviation has agreed to be the first launch customer for Eve's urban air traffic management (UATM) software. The two companies signed a letter of intent this week at the UK’s Farnborough International Airshow to collaborate on the product’s development and introduction.&nbsp;
This letter of intent represents the first such deal for Eve Urban Air Mobility. The company is developing UATM services with the backing of its parent company, Embraer, the Brazil-based aerospace manufacturer. Embraer already has experience with air traffic management (ATM) solutions through its subsidiary Atech, which specializes in civil and military ATM systems.&nbsp;
Halo is a new private urban air mobility company owned by the business aviation group OneSky Flight. It is a collaboration between the British helicopter operator Halo Aviation and U.S.-based Associated Aircraft Group (AAG), both of which were acquired by OneSky Flight in 2021. Last year, Halo also <a href="https://www.futureflight.aero/news-article/2021-06-01/halo-agrees-buy-200-eve-evtol-aircraft-urban-air-mobility-network">agreed to buy 200 of Embraer’s Eve eVTOL aircraft</a>, with the first deliveries expected in 2026.
Under the new agreement, Halo will utilize Eve’s UATM software for helicopter and eVTOL flights in the UK&nbsp;and in the U.S. Before the company receives its first <a href="https://www.futureflight.aero/aircraft-program/eve">Eve eVTOL</a> deliveries, it will provide flights with Halo Aviation’s fleet of Leonardo AW109 and AW169 helicopters, and AAG’s Sikorsky fleet.&nbsp;
Eve’s UATM software will not focus specifically on its own eVTOL operations, as its fleet will need to share airspace with other eVTOLs, helicopters, and airplanes. Rather, the company aims to offer a scalable solution that can integrate with the urban air mobility ecosystem as a whole, including other fleet and vertiport operators.&nbsp;
“Eve's agnostic portfolio of solutions addresses the complexity of UAM networks, which require holistic and integrated services across the ecosystem that connect stakeholders to maintain and improve safety, optimize performance, and reduce operating costs,” said Andre Stein, co-CEO of Eve.&nbsp;
Halo and Eve have not disclosed the value of their deal.

Eve Partners with Halo for Urban Air Traffic Management Solutions

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News and developments about everything that goes into the cabin of an aircraft, from floor coverings to headliners, with a special emphasis on in-flight entertainment, communications and other electronics for passengers. If it is in the cabin of an aircraft, it’s covered here.

News and issues regarding all manner of civil and military rotorcraft and their powerplants, including helicopters, tilt rotors and unmanned air vehicles.

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Eve Unveils New-Look eVTOL Aircraft and Passenger Cabin

The long-term viability of the eVTOL aircraft market will depend on the ability to adapt and certify the segment’s vehicles for autonomous flight, according to Embraer executives assembled at the company’s main facilities in Sao Jose dos Campos, Brazil, for a series of media briefings this week. Discussing the prospects for the eVTOL vehicle under development by&nbsp;Eve Urban Air Mobility, which is <a href="https://www.futureflight.aero/news-article/2022-05-12/cash-reserves-boosted-eve-says-its-ready-accelerate-plans-advanced-air">majority-owned</a> by the aircraft manufacturer, Embraer's engineering head Luis Carlos Affonso said a key benefit of advanced air mobility lies with the immunity from pilot shortages full flight autonomy would allow.
Eve aims to start deliveries of its four-passenger eVTOL model in 2026, and already has collected more than 1,800 provisional commitments from operators. Initially, the planned air taxi services will operate with a pilot on board.
“This is something that could dramatically change the economics and allow the industry to grow because today there is a shortage of pilots,” he explained. “If you think of eVTOL [aircraft] today, it’s one pilot for four passengers…Eve will only fulfill the vision of scaling if it is autonomous.”
Eve co-CEO Andre Stein didn’t disagree that, in the long-term, large-scale adoption of eVTOL applications eventually will require flight autonomy. However, he also acknowledged that it will take some time for regulators and the public to accept the concept.
“There is enough market to start,” said Stein. “It’s not like you’re going to have 50,000 aircraft by 2026. But to reach the market that you’re talking about [50,000 aircraft by 2035], you’re going to need [autonomous operation]. But to start you don’t.”
Stein noted that enough markets exist today to make a business case based on the cost savings that an eVTOL machine offers over a conventional helicopter. “Even if you can expect to [operate an eVTOL aircraft] for something about six times less than an equivalent turbine helicopter that can do the same mission, that addresses a lot of markets already,” he explained. “But to scale, I completely agree [with Affonso].”
Stein added that the adoption of autonomous operation will not happen uniformly across various markets. Markets in Asia, for example, will likely see pilotless eVTOL flights before the U.S. does,&nbsp;he explained. “Some regions might have it pretty soon," said Stein. "You’re seeing things happen in China, for example, with other players. But to have that with the FAA might take longer.”
Eve has acknowledged the challenge of overcoming people’s safety concerns about flights with no pilot on board and Stein called for early engagement with the public and regulators. The fact that autonomous ground vehicles will likely come first will also help, he said. “And that’s a much harder point, both in terms of technology and perception,” he said, referring to the adoption of autonomous cars. “So if that’s in place it will help create the perception that these things are safe.”
In fact, Stein maintained, autonomous cars will present more of a technological challenge than autonomous eVTOL operations “by a big margin.”
“It will be a very structured operation…no drunken guy crossing in front of you in the sky,” he said. “You will be flying a known network, you’ll know where you’re going to fly and your alternate even before you take off.”
Embraer and Eve last month concluded a <a href="https://www.futureflight.aero/news-brief/2022-05-10/eves-concept-operations-rio-de-janeiro-offers-urban-air-mobility-blueprint">30-day trial</a> with Brazilian helicopter operator Helisul to evaluate autonomous operations over Rio de Janeiro. &nbsp;The aerial data collection and real-time evaluation of the technologies in urban scenarios used regular piloted helicopters as part of the Embraer Autonomous Systems project (Project EASy).
During the trial, Embraer and Eve and program partners Daedalean, Iris Automation, and Near Earth Autonomy explored various scenarios for takeoff, climb, cruise, approach, and landing phases of flight.

Senior Editor

Gregory Polek

Long-term Business Case for eVTOL Makers will Hinge on Autonomous Operation, say Embraer Execs

The Japan Civil Aviation Bureau has commissioned Skyports and Eve Urban Air Mobility to develop a concept of operations (CONOPS) for advanced air mobility in the country, including eVTOL air taxi services.&nbsp;&nbsp;The project, which is also backed by Japan Airlines and trading group Kanematsu, will focus on issues such as airspace design for eVTOL aircraft, operational arrangements, and infrastructure, the companies announced on February 17.
The Japanese government has established a Public-Private Conference for the Future of Air Mobility Revolution and has expressed support for plans to launch commercial eVTOL flights during the 2025 World Expo to be held in&nbsp;Osaka. This objective—which is being advanced by the Ministry of Economy, Trade, and Investment and the Ministry of Land, Infrastructure, Transport, and Tourism—also involves other eVTOL vehicle developers, including Joby, Vertical Aerospace, EHang, Volocopter, and local manufacturer SkyDrive.
This week, during a press conference at the Singapore Airshow, Eve’s co-CEO, Andre Stein, said the company aims to be ready to fly a full-scale proof-of-concept prototype of its four-passenger eVTOL aircraft within the next few months. It seeks&nbsp;to bring the aircraft into service in 2026 with a range of just over 60 miles. The company predicts that by 2035, the Asia-Pacific region will be the world’s largest AAM market with over 25,000 eVTOL aircraft making 400,000 flights each day and carrying 500 million passengers per year. It also has plans to support air taxi operations in the Americas.
“Our partnership with Eve continues to provide an important means of helping authorities around the world understand and develop optimum conditions to enable commercial electric air taxi operations,” said Skyports CEO Duncan Walker. “We are honored to be able to bring our unique knowledge of infrastructure provision to bear for JCAB to accelerate the adoption of advanced air mobility across Japan.”
Skyports, which already operates commercial cargo drone flights, intends to develop and operate vertiports&nbsp;worldwide. It is also partnered with other eVTOL aircraft developers including Volocopter, and also with South Korean group Hanwha, which is partnered with U.S. company Overair to develop the Butterfly aircraft.

Eve Air Mobility

News

Eve Commits to Long-term Investment in Urban Air Mobility

Eve Partners with Halo for Urban Air Traffic Management Solutions

Eve Unveils New-Look eVTOL Aircraft and Passenger Cabin

Long-term Business Case for eVTOL Makers will Hinge on Autonomous Operation, say Embraer Execs

Skyports and Eve Start Work on eVTOL Concept of Operations for Japan

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN