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Air Taxis, Hyped for Years, May Finally Take Off

Federal regulators released a plan that would allow a new generation of small aircraft to transport people short distances.

A small white aircraft with six horizontal propellers on top of it hovers over tarmac and a landscape of scrub brush.

By Niraj Chokshi

For years, flying taxis have represented an exciting but distant dream, fueled in part by industry hype. Now they have a rollout plan and a target arrival date: 2028.

In a document published on Tuesday, the Federal Aviation Administration outlined the steps that it and others need to take to usher in a competitive air taxi market in at least one location by 2028 with limited operations starting as early as 2025. The vehicles look like small airplanes or helicopters and can take off and land vertically, allowing them to operate from the middle of cities, whisking people to airports or vacation destinations like the Hamptons in New York or Cape Cod in Massachusetts.

The F.A.A.’s plan is notable because it reflects confidence that the technology is only a few years away, and because it comes from the agency that will oversee certification of the aircraft as well as the rules that pilots and companies must follow.

“These things will be coming on the scene, and our job is to try and be ahead of the curve,” said Paul Fontaine, an assistant F.A.A. administrator who oversees the modernization of the air transportation system. The plan is intended to serve as a guide for introducing the aircraft in a way that is predictable and routine, the agency said.

Creating the conditions for air taxis to zip above one or more cities by 2028 will be no small task, and aircraft manufacturers will need the help of many others besides the F.A.A., including other federal agencies and state and local governments.

Air taxis are likely to face resistance from local officials and residents who fear that they will be safety hazards or a nuisance. Legislation and lawsuits seeking to block their use in cities and neighborhoods could set up pitched battles.

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This electric flying taxi has been approved for takeoff — sort of

Rachel Treisman

air taxi business plan

Joby Aviation has gotten FAA permission to begin test-flying its first production prototype aircraft. (c) Joby Aero Inc. hide caption

Joby Aviation has gotten FAA permission to begin test-flying its first production prototype aircraft.

Electric air taxis got one step closer to liftoff this week, when federal regulators gave one company the green light to start flight testing its new production prototype.

California-based transportation company Joby Aviation announced Wednesday that the Federal Aviation Administration had granted its aircraft a " Special Airworthiness Certificate ," which allows it to operate in U.S. airspace with certain restrictions.

The FAA confirmed in an email to NPR that it had issued the certificate "for research and development purposes" on June 21. It said it had also granted one to a similar vehicle made by another company, Archer, the week before.

Flying Taxis. Seriously?

Flying Taxis. Seriously?

This is actually the third Joby aircraft to get this certification , the FAA confirmed. The company has been building and flying pre-production prototypes thousands of miles since 2017.

But this time around is significant, because it's the first of its factory-built vehicles to be approved for test flights. Until now, Bloomberg explains , the company could only demo a prototype made by hand — as opposed to the ones now coming off its production line.

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Joby aims to begin commercial passenger operations in the U.S. in 2025, pending FAA certification. It has partnered with Delta Air Lines to deliver a "transformational, sustainable home-to-airport transportation service" for fliers, set to roll out first in New York and Los Angeles.

That means customers in those cities would be able to reserve a seat for air taxi trips to and from the airports when booking Delta flights, the companies say.

An animation on Joby's website shows one such journey, from a heliport in downtown Manhattan to John F. Kennedy International Airport, completed in seven minutes (as opposed to 49 minutes by car).

Beyond airport trips, Joby advertises its air taxis as "an aerial rideshare service" that customers can book through an app, as an alternative to ground transportation — at least in some ways.

"Flying with us might feel more like getting into an SUV than boarding a plane," its website says.

But, as safety regulators and urban planning experts told NPR, there's a lot that needs to happen before then — and many accessibility and sustainability questions to address along the way.

Here's what 2023 has in store, as predicted by experts in 1923

Here's what 2023 has in store, as predicted by experts in 1923

What exactly is a flying taxi.

These Jetson-esque contraptions are technically known as eVTOL aircraft, which stands for "electric vertical take-off and landing."

Joby says theirs is designed to carry four passengers and one pilot at speeds of up to 200 miles per hour, and can travel up to 150 miles on a single charge.

The company says it will be significantly quieter than helicopters — and more affordable, too.

Joby founder and CEO JoeBen Bevirt told the Washington Post in 2021 the company hopes to begin services at an average price of around $3 per mile — comparable to that of an taxi or Uber — and eventually move that down to below $1 per mile.

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"Our goal is to actually be competitive with the cost of ground transportation, but to deliver you to your destination ... five times faster and with a dramatically better experience," Bevirt told Bloomberg TV on Wednesday.

Many eVTOL companies are working closely with automakers to make their products a reality (which Flying Magazine attributes to automakers' interest in electrification and manufacturing expertise).

In Joby's case, that partner — and its largest external shareholder — is Toyota. Toyota has invested some $400 million in the company since 2020, and collaborated on the design of its production line and the manufacturing of the aircraft itself.

It's A Bird! It's A Plane! It's A....FLYING TAXI?!

It's A Bird! It's A Plane! It's A....FLYING TAXI?!

Dozens of its engineers work with the Joby team in California, and the two signed a long-term agreement in April for Toyota to supply key parts for the aircraft's production.

air taxi business plan

The company aims to begin commercial passenger operations in the U.S. in 2025, and already has a partnership with Delta Air Lines. (c) Joby Aero, Inc. hide caption

The company aims to begin commercial passenger operations in the U.S. in 2025, and already has a partnership with Delta Air Lines.

What happens next?

On Wednesday, Joby unveiled the first aircraft to come off its pilot production line in Marina, Calif., in front of a crowd of employees and guests including California Gov. Gavin Newsom.

"Today's achievement is the culmination of years of investment in our processes and technology and it marks a major step on our journey to scaled production," Bevirt said in a statement.

Despite this week's major milestones, Bevirt says the company is still in the "crawl phase" of its journey.

The pilot manufacturing line currently has the potential to build just "a few tens of aircraft per year," according to Bevirt. He says Joby is working with states to select a site for the first phase of manufacturing, where it can increase that number to hundreds.

And before the air taxis will be available for airport rideshares, they're going to the U.S. military.

Chinese Tesla competitor unveils plans for flying car

Chinese Tesla competitor unveils plans for flying car

Several are headed to Edwards Air Force Base in California next year as part of Joby's $131 million contract with the U.S. Air Force . They will be used to "demonstrate a range of potential logistics use cases, including cargo and passenger transportation."

Regulators — and competitors — are laying the groundwork

The FAA says it's steadily preparing for air taxi travel to become a reality — at least, at some point.

In May, the agency released an updated blueprint for airspace and procedure changes to accommodate this type of aircraft. Earlier this month, it proposed a comprehensive rule for training and certifying pilots.

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And it says it will be releasing an implementation plan next month that shows how all of its efforts can help the industry scale safely.

"Safety will dictate the certification timeline, but we could see air taxis in the skies by 2024 or 2025," the FAA said.

While Joby appears to be towards the front of the pack, it's competing with dozens of companies.

Another frontrunner, Archer, said earlier this month that it — and its partner, automaker Stellantis — are pivoting from the "concept" to "execution" phase, with its Georgia-based manufacturing facility set to come online by mid-2024.

This small city ditched its buses. Its public Uber-like service has been a big hit

This small city ditched its buses. Its public Uber-like service has been a big hit

And companies in other countries, including Germany and China , are also working on similar vehicles.

Europe could see flying taxis taking off relatively soon: French officials are hoping to offer a small fleet of them to people attending the Paris Olympics next summer.

Who gets to fly first?

Joby bills itself as providing a "faster, cleaner, and smarter way to carry people through their lives," with "a green alternative to driving that's bookable at the touch of an app."

But, experts say, that doesn't necessarily mean this kind of transportation is going to be available to just anyone who wants to spend less time in rush hour traffic.

It's a great innovation for those with means, says Daniel Sperling , the founding chair of the Policy Institute for Energy, Environment, and Economy at the University of California, Davis.

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But, he writes in an email, the industry faces challenges, from noise to NIMBY concerns. There's also the optics, he says: "Rich people flying above the rest of us normal folks."

Because this type of transportation will likely mainly be provided by private sector companies, there are concerns that it will exclude low-income people, says Petra Hurtado, the director of research and foresight at the American Planning Association .

"Unless there will be funding mechanisms to make this an affordable option to all, integrating it into existing transit systems, I don't think it will be accessible to all," she tells NPR over email, adding that local governments may not have a say in how they operate because the skies are regulated by the FAA.

Hurtado also points out that while air taxis are being billed as sustainable, that depends on how they're being used.

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"If it replaces the person who would be driving or taking a taxi, it might generate less [greenhouse gas] emissions for that one trip, but how many air taxis would we need to replace the majority of cars in one particular route?" she added. "I wouldn't want to see a sky crowded with air taxis."

In an ideal world, Hurtado says, air taxis would fill existing gaps in urban transportation systems rather than create new ones. She'd also like to see cities take a more proactive approach to transportation planning in general, and learn from past mistakes.

That would mean, for example, considering the negative impacts not only of where air taxis land and take off, but along their route as well.

"Too often in the past have transportation projects impacted marginalized communities and disadvantaged populations," she wrote, pointing to highways as an example. "I hope these mistakes won't be repeated with this type of transportation system."

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Uber’s plan to launch an air taxi service in 2023 just got a boost from a secretive startup

Joby aviation, based in california, has kept most of its work under wraps.

By Andrew J. Hawkins , transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.

Share this story

An older rendering of Joby Aviation’s aircraft; the company has not revealed its latest prototype yet

Uber’s ambitious plans to launch an urban air taxi service just got a lift from a secretive, well-financed startup. The ride-hailing company said it would join forces with Joby Aviation, a California-based aerospace company that has been working on electric aviation for over a decade. Joby is the first company to commit to Uber’s aggressive timetable to launch its flying taxi service by 2023.

Joby is the brainchild of inventor JoeBen Bevirt, who started the company in 2009. The company operated in relative obscurity until 2018, when Joby announced it had raised a surprising $100 million from a variety of investors, including the venture capital arms of Intel, Toyota, and JetBlue. The money helped finance development of the company’s air taxi prototype, which has been conducting test flights at Joby’s private airfield in Northern California.

Joby has kept much of its project under wraps

Unlike the dozens of other companies that are currently building electric vertical take-off and landing (eVTOL) aircraft, Joby has kept much of its project under wraps. The few renderings that are out there show a plane-drone hybrid with 12 rotors and room in the cabin for four passengers, though a spokesperson previously cautioned that what Joby is working on now is “entirely new.” The company has yet to provide any recent photographs or images of its prototype aircraft. 

A 2018 profile of Joby by Bloomberg revealed some tantalizing details about the company’s project:

We were the first two reporters to see a demo of the prototype, named  Rachel  after the women several of its creators used to date. The pilot managed a vertical takeoff, 15 minutes of flight in a 15-mile loop, and a safe landing. Powered by electric motors and sophisticated control software, the taxi performs like a cross between a drone and a small plane, able to zip straight up on takeoff and then fly at twice the speed of a helicopter while making about as much noise as a swarm of superbees. Bevirt says thousands of these sky cabs will one day shuttle people around cities, soaring above the conventional traffic below.

Uber says that it has signed a multiyear commercial contract with Joby to “launch a fast, reliable, clean and affordable urban air taxi service in select markets.” Neither company disclosed the terms of the deal, nor would they comment on whether there was any money exchanged.

They did sketch out the role each company would fill. Joby will supply and operate the electric air taxis, and Uber will provide air traffic control help, landing pad construction, connections to ground transportation, and, of course, its ride-share network reconfigured to allow customers to hail flying cars rather than regular, terrestrial ones. 

air taxi business plan

Uber released images of its own  concept aircraft , though it said it’s looking for partners that can meet its technology specifications — electric-powered, minimal noise, and vertical take-off and landing capabilities — as well as a company that can scale production to build tens of thousands of vehicles to meet the demand of Uber’s on-demand service.

Joby isn’t Uber’s only manufacturing partner. The ride-hailing company has previously named six other aerospace companies — Jaunt, Embraer, Pipistrel, Karem Aircraft, Aurora Flight Sciences, and Bell — that will work on prototype aircraft to be used as part of its air taxi service.

Bevirt said he believes air taxis will enable people to get to their destinations “five-times faster than driving”

Bevirt, Joby Aviation’s CEO, said he believes air taxis will enable people to get to their destinations “five-times faster than driving, reduce urban congestion and accelerate the shift to sustainable modes of transit.” In a statement, he said he was excited to join forces with Uber. Eric Allison, head of Elevate, praised Joby as “a real technology leader whose vehicles aim to be designed to enable a safe, quiet, and affordable service for Uber Air riders.”

Of course, many companies — Joby included — have promised revolutionary new aircraft for years, only to miss deadlines or fail to live up to past promises. Kitty Hawk, the flying car venture backed by Google co-founder Larry Page, is reorganizing amid reports about breakdowns, battery fires, and returned deposits.

The jury is still out on whether an electric vertical takeoff and landing-based air taxi system would make an appreciable contribution to a next-generation transportation system, or whether it would simply be an escape hatch for the super-rich to avoid street-level congestion.

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  • Flying taxis could soon be a booming business

Electric aircraft are well-suited to short journeys

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P aris has long been at the heart of the history of flight . It is where the Montgolfier brothers ascended in the first hot-air balloon in 1783, and where Charles Lindbergh completed the first solo transatlantic aeroplane journey in 1927. Next year, if all goes to plan, Paris will be the site of another industry first when Volocopter, a German maker of electric aircraft, launches a flying-taxi service during the Olympic Games. At the Paris Airshow in June the company, and some of its rivals, paraded a new generation of battery-powered flying machines designed for urban transport.

The electrification of aviation has often been written off as a pipe dream, with batteries presumed too heavy a substitute for hydrocarbon fuel in an airborne vehicle. For longer journeys, such as Charles Lindbergh’s across the Atlantic, that may well be true. Yet upstarts like Volocopter are betting that electrification can unlock a boom in demand for clean and quick aerial journeys over shorter distances.

The main form of flying taxi under development, called an electric vertical take-off and landing (e VTOL ) aircraft, looks somewhat like a super-sized drone, carrying between one and four passengers, plus a pilot. Powered by batteries, they are both quiet enough to quell complaints in crowded cities, and fast: capable of up to 300kph, enough to comfortably outpace a car, especially one stuck in traffic. Indeed, optimists hope the absence of traffic in the sky will also make e VTOL s well-suited to autonomous operation. They could prove handy for transporting goods, too.

That vision has inspired giddy predictions. Morgan Stanley, an investment bank, reckons global spending on e VTOL s could hit $1trn by 2040. Volocopter is not the only player staking out the terrain. According to the Vertical Flight Society, a non-profit, more than 400 contenders have developed e VTOL designs. Joby, a Silicon Valley startup, has already raised $2bn from investors. Archer, another, hopes to have “hundreds or thousands” of its craft flying by the 2028 Los Angeles Olympics.

Despite the enthusiasm, challenges remain. One is technical certification, which is turning out to be a lengthy process as aviation regulators grapple with an entirely new form of aircraft. Some manufacturers, such as Volocopter and EHang, a Chinese firm, are close to having machines in service. In April Volocopter opened an assembly plant in Germany. But others are further off. Late last year Joby was forced to push back its launch by a year to 2025 thanks to, among other things, regulatory delays. Many have even longer to go.

The bigger question is whether the business of flying taxis will be viable. e VTOL s currently range in price from $1m to $4m. Although their cost may come down as the industry develops, they are likely to remain expensive pieces of machinery. Brian Yutko of Wisk, a maker backed by Boeing, says that flying-taxi rides will be “accessible to the masses”. Joby promises that its fares will be comparable to catching a taxi. Yet some studies suggest the cost could end up as high as $7 per km, many times a regular taxi fare. Even without a pilot, flying taxis may remain a convenience affordable only to a lucky few.

An alternative opportunity for electrification lies with small fixed-wing planes designed to transport a few dozen passengers over distances of a few hundred kilometres—for instance, between nearby cities. Heart Aerospace, a Swedish firm, plans to have a 30-seater plane with an all-electric range of 200km in the air by 2028. In September last year Eviation, an Israeli company, successfully tested a nine-seater electric plane with a range of 400km.

According to McKinsey, a consultancy, air travel accounts for just 8% of journeys between 150km and 800km in America. In Europe it is only 4%. Most such journeys are taken by car, even in Europe, where buses and trains are more readily available. That creates a big opportunity for environmentally friendly short-haul flights, especially given that 90% of America’s population and 50% of Europe’s live within a 30-minute drive of a regional airport. Expect plenty more experiments with electric aircraft in the years ahead. ■

To stay on top of the biggest stories in business and technology, sign up to the Bottom Line , our weekly subscriber-only newsletter.

This article appeared in the Business section of the print edition under the headline “Ready for lift-off”

Business August 19th 2023

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air taxi business plan

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eFinancialModels

Air Taxi – Build and Operate Business Plan Model with 3 Statements and Valuation

Air Taxi – Build and Operate Business Plan Model with 3 Statements and Valuation

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The flying taxi market is ready for takeoff, changing the travel experience forever. Fin-wiser’s AIR TAXI FM helps users to assess the financial viability of the Air Taxi business by capturing all the essential inputs related to construction, operation, and financing.

The Model includes assumptions related to: 1. Development cost, Construction costs, and Developer’s Fee 2. Passenger Services (Passenger Yield, Passenger Traffic, and Passenger Load Factor and Capacity) 3. Variable O&M cost per vehicle (divided into 8 subheads such as staff, electricity, consumables, transport, and fuel) and other fixed costs (SPV, insurance, land lease, community payment, management fee & more) 4. Flexible Funding Profile – Cash equity, Bridge Loan, Bank Debt, DSRA, and Bank overdraft 5. Working Capital Assumptions related to accounts receivables and payables 6. Straight Line and Accelerated Depreciation option 7. Annuity, Sculpted Debt, and Even Principal Repayment options 8. Inflation and Indexation 9. VAT during the construction and operations phase 10. Decommissioning cost and reserve, if required

Model Output includes: 1. Project IRR & NPV 2. Equity IRR & NPV 3. Minimum and Average DSCR 4. LLCR and PLCR 5. Equity Payback Period 6. Cash Waterfall 7. Debt Service Profile 8. Integrated Financial Statements 9. Fully Integrated Dashboard

Model Package includes: 1. Excel-based financial model (Excel binary format i.e. xlsb) 2. Model Heat Map ( FWA Maps ) – The file includes a heat map of the model with color codes on F: Unique formula <: Formula is a copy of the one to the left ^: Formula is a copy of the one above +: Formula is a copy of the one to the left and above (i.e. it is a copy of both) L: Label N: Numeric input A: Unique array formula 3. Name Range list ( FWA Name Listing ) – This file includes information about all names used in the workbook. The Names Listing contains a column labeled “Visible”. A “Yes” in this column means the name is visible (i.e. appears in the list accessed through Formulas Tab|Defined Names|Name Manager). A “No” indicates a hidden name (i.e. a name created by the solver add-in, auto filter names, etc). 4. Macro Word Document – This includes the VBA Code used in the model for the user’s reference

Technical Specifications: 1. Model uses Macros (VBA) especially to consider the interest during the construction phase in the Uses of Funds Table. To run the model optimally, keep macros enabled. In case you do not like Macros, you could manually disable or remove the Macros and will have to rework the model’s logic to be used without Macros but it is not recommended by the author. 2. Model is built using Microsoft Excel 2019 version for Windows . Please note, on certain Mac laptops or MS Excel prior to 2007, Excel with Macros can slow down your computer if your PC does not have enough processing power. 3. We advise you not to delete or insert rows and columns into the model if you are not aware of the model structure as it can distort model functioning. If you need assistance with customizing the model template, the author is more than willing to help you. Simply contact us at [email protected]  and send your model template as well as specifications. We will then get back to you with a quotation for the customization service (billable hours & completion date). 4. Model uses Cell Styles

Why Fin-wiser’s Financial Model Template: 1. Our model allows greater flexibility in terms of deciding upon the forecast period length. Users can choose from Monthly, Quarterly, Semi-Annual, or Annual forecast period lengths. This provides more detailed data for Analysis. 2. The model is divided into two phases i.e. Construction and Operations. The user has the flexibility to decide upon each period length individually and can also choose to populate each model phase on a monthly, quarterly, semi-annual, or annual basis. 3. All revenue and cost assumptions can be input into 3 scenarios. This helps users to assess the impact of multiple business scenarios in one model. This can be operated simply with a click of a button. 4. The Debt funding drawdown has 3 scenarios that can help users to assess the impact on the IRR and make the best possible negotiations with the financial institutions. 5. The debt repayment has been profiled with 3 scenarios i.e. Annuity payment, Even Principal Payment and Debt sculpted repayment. You can change the scenario on a click of a button and assess the impact on IRR. 6. The model is built with Financial Modeling Best Practice and has clearly defined input, calculations, output cells, and tabs to help even a rookie excel user to operate the model efficiently. 7. Our Models are thoroughly reviewed and Quality checked for Arithmetic and Logical flow

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Will Air Taxis Ever Really, Truly Take Off?

Some say air taxis will be the greener, faster, and quieter mode of urban transportation; others say they will be just another toy for a select few. inside the slow rise of travel’s next frontier..

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A small, white Joby Aviation Aircraft on a runway, with six vertical propellers

Joby sources say they are confident their air taxis will be operating in some form in 2025.

Courtesy of Joby Aviation

At around noon on a bright autumn day in 2023, a mysterious object resembling a gigantic bug appeared in the skies over lower Manhattan. For about six minutes it whirred along above the Hudson River at low altitude. Those gawking at this flying object from below may not have noticed the lone pilot aboard, but his presence spoke to the whole point of the exercise. While early test flights of this electrically powered air taxi had been unmanned, a real human being aboard could help move it from the realm of science fiction to reality—and closer to the day when the other four seats aboard would be filled with paying customers.

Huddled on the ground at a landing pad were some movers and shakers, the intended audience for the demo. “This is just unbelievable, it’s the next evolution,” gushed New York Mayor Eric Adams. “We’ll be able to move faster to and from our places, and to do it in a clean, green way.” Unlike the helicopters that city dwellers detest, this battery-powered air taxi would be quiet and carbon-free, he said. And it might even be affordable, with an aerial rideshare eventually costing about the same as the terrestrial version.

The real star of the show, though, was the futuristic “S4” aircraft from Joby Aviation , a Silicon Valley tech firm that has grown into a $1 billion company, funded by deep-pocketed investors like Delta Air Lines, which wants to offer the taxis as a passenger perk. Archer Aviation, another Bay Area manufacturer, has teamed with United Airlines , which has ordered 100 of the company’s four-seater “Midnight” aircraft.

Other major airlines, such as American, Japan Airlines, and Lufthansa, are getting into the game, and Blade, which already operates an app-based helicopter service to airports, is testing its own flying taxis. These assorted partnerships could ultimately create a vast web of air taxi networks, parallel to for-hire car services on terra firma. If all goes according to plan, in the USA they could begin carrying riders from downtown “vertiports” in New York, Los Angeles, Chicago, and other mega-cities to major airports sometime next year.

It won’t be easy. German manufacturer Volocopter has done test drives in other U.S. cities (including New York, where it shared the stage with Joby last fall) and has been toiling since 2021 to get permission to start flying air taxis during the upcoming Summer Olympic Games in Paris in late July. But in contrast to its New York welcome, the reaction in the French capital has been decidedly less friendly. That very same week in November, Parisian lawmakers vowed to block the plan—which entails building a landing pad on a barge in the Seine River, among other things. Paris Deputy Mayor Dan Lert, who oversees climate plans, slammed the scheme as “a totally useless gimmick for a few ultra-privileged people in a hurry.” (The dispute was ongoing at press time.)

Will 2024, then, be the year the electric air taxi industry finally takes off, or will it get stuck in the slow lane? Signs are still positive: The industry as whole in the past two years has attracted some $6 billion in financing, and unlike Paris, other cities around the world from São Paulo to Singapore are clamoring to be among the first adopters. Among hundreds of startups pitching their version of this air taxi, a dozen are entering a more serious phase, greenlighting factories capable of mass producing these birds, such as a Joby facility being built in Dayton, Ohio, with substantial backing from Toyota. (Stellantis, another giant automaker, has a similar deal with Archer.)

By 2030, the “eVTOL” industry (for electric vertical takeoff and landing) could be generating $3 billion in annual revenue off 70,000 daily passengers, according to research from global management consultant McKinsey; some sources estimate there could be 50,000 electric air taxis operating worldwide by 2040. Still, as of early 2024, none of these contraptions has been certified by a government regulatory authority to enter commercial service outside of China, which approved a plan by EHang Technology to go straight to autonomous (i.e, without a human pilot) passenger-carrying air taxis. So what has to happen next?

Futuristic visions of “flying cars” and personal planes parked in garages are nothing new: They are the sort of everyman’s fantasy that inspires inventors and entrepreneurs. Many tried, and some came close to succeeding—including Molt Taylor, an engineer living near Seattle who got the idea while working for the military and built his first flying car in 1950—well before the Jetsons cartoon popularized the notion in the 1960s.

His “Taylor Aerocar” consisted of a sporty red chassis with folded-up wings and tailfin that would be towed by the car and deployed when it came time to lift off. It could travel 60 mph on the ground and 100 mph in the air; in 1956, Taylor won approval for the design from the then–Civil Aeronautics Board (the Federal Aviation Administration, or FAA, later assumed its safety duties). “They were built in a time after World War ll when optimism ran high and everything was possible,” Jake Schulz, a technical analyst at Boeing, wrote in his book Aerocar, A Drive in the Clouds . Taylor himself said his dream was “to look up and see the sky [filled] with Aerocars,” predicting that hundreds would flood the market once the aerospace industry got onboard.

It didn’t. Ultimately, only six Aerocars were built and sold (for about $14,000 each), one to the actor Bob Cummings, who used it as high-tech prop in his television show. Along with other flying car experiments, the surviving models are housed in aviation museums such as the Museum of Flight in Seattle.

Fast-forward to 2024, when the modern-day version of the flying car is the eVTOL: a battery-powered aircraft that can take off and land like a helicopter but fly like a small winged airplane. In size and ambition, eVTOLs are closer to puddle jumpers than to jet planes. Given the limited capacity of batteries necessary for electrical propulsion, the most feasible short-term incarnation is a diminutive craft that can hold anywhere from two to eight people, travel up to 200 miles (at speeds of around 150 mph) without having to recharge, and will be quieter, more sustainable, and eventually, more affordable than the choppers they seek to replace. They can be used for many purposes: search and rescue operations, cargo, and flightseeing, among other functions. They have been a dream—for many—for some time.

It is a large undertaking to bring about a new form of transportation.

Sometime in the late aughts, the clumsy acronym eVTOL (pronounced ee-vee-toll) caught on with aviation geeks, possibly due to a reference in a NASA project that got wide attention after a video presentation went viral . Flying cars were an amusing distraction, but it was the vision of nonpolluting urban air taxis that gripped the popular imagination. The eVTOL’s time had arrived.

To get to the next step, a visionary was needed. Enter JoeBen Bevirt, a Stanford trained engineer and tech world wunderkind; raised in a remote area called Last Chance in Northern California, he was named after a character in the novel Sometimes a Great Notion , written by family friend Ken Kesey. As a child, he dreamed of building his own plane, and he developed his first invention, a new type of suspension mountain bike, while still in high school.

By his mid-20s, he had founded his first startup company. One of Bevirt’s creations quickly hit paydirt: the “gorilla pod,” a portable tripod beloved by photographers worldwide.

Bevirt’s aha moment came a few years later when he got back to his early dream—a new kind of flying. In 2009, he founded Joby Aviation and gathered with fellow engineers in the Bay Area in makeshift quarters, nicknamed “the barn,” akin to Steve Jobs’ garage in Apple company lore. There, they started work on a flying car prototype, made possible by a breakthrough that was shaping everything from automobiles to drones: electrical propulsion.

In addition to attracting other entrepreneurs, the eVTOL concept got a lot of attention from other disruptors. In 2016, Uber issued what would later be regarded as a landmark white paper, “Fast-Forwarding to a Future of On-Demand Urban Air Transportation.” Some regarded it as a “crazy stunt” to boost the company’s valuation ahead of its much-anticipated IPO offering, says Michael Hirschberg, executive director of the Vertical Flight Society . But Uber soon showed it was serious. The “fast-forwarding” in the paper’s title referred to what some experts dismissed as an impossible timeline to create, in a few years, a global movement for electric air taxis in major cities, which Uber’s app-based ride sharing business model would be perfectly positioned to bring to the masses. This led to a blueprint for what became Uber Elevate, which began an Uber Copter feature that launched in New York in 2019. Heading that unit was aerospace engineer Eric Allison, who had a PhD degree from Stanford and several stints with aviation startups. When Joby Aviation acquired Uber Elevate in 2020, he became the company’s head of product.

Allison, who spoke to AFAR in late 2023 after several successful Joby test runs, says he is confident that Joby’s air taxis will be operating in some form in 2025, most likely starting as a Delta partner ferrying fliers to airports in New York City and Los Angeles, bookable through the Delta app. (It will also make its aerial ride sharing available to other customers via its own Joby app.)

Still, he is aware there is much work to be done: “It is a large undertaking to bring about a new form of transportation,” Allison says. Part of the purpose of the test runs in key cities is “to make sure we’ve got our ducks in a row. We are paying close attention to the reaction we get—it’s important to engage with the community.”

And that gets to the noise question: Are they totally silent? Allison notes that “it’s more like white noise” instead of the “ wup wup wup of a helicopter.” Vance Hilderman, an aviation expert and CEO of Afuzion , an aerospace certification firm, says that the decibel level of current eVTOL prototypes is about one-tenth the noise level of a chopper in an urban environment. But skeptics will need to be convinced; hence, the public can expect more road shows in the coming months.

And then there’s the power question: The eVTOLs would need a place to plug in and charge their batteries so they’d have enough juice to stay in the air for several hours or more, and Allison said that’s another focus of the race to launch. In New York, for example, the city has already requested bids for projects to bring electrical charging stations to two existing heliports.

The Uber model will also shape how this new type of travel will be marketed to consumers. According to Joby, it’s going to look and act like a ride hailing app—it’s just the type of vehicle that’s changed. So is this really so cutting edge? After all, you can get to the airport now via an old-fashioned chopper. “As a helicopter replacement or augmentation, yes, that’s kind of boring,” says Hilderman. “It’s clear that [at this stage] they are going after that affluent market.”

Gail Grimmett, Delta’s senior vice president of sustainability performance, rejects the notion strongly. “This is absolutely not only for the super wealthy,” she says. “The ability to offer this to all of our customers is very important.” Initially, Delta and Joby say it’ll be offered at first to Delta customers, but at Uber-like prices—starting with the higher “Black” fare range (about $200 one way from Manhattan to JFK Airport, for example) but ultimately going down as the service expands. Of course, it won’t be nonstop from your home to the airport. Once you hail the ride, a car would pick you up and drive you to the nearest vertiport, where you’d board the eVTOL for the brief flight to the airport. The question of how much time travelers will save—as well as how much money they’ll shell out for that convenience—remains open.

How communities living under the paths of these eVTOLs will react is another consideration. The FAA, for example, already has a team tasked to gauge the impact on densely populated areas. And some analysts are concerned that, much as Uber underestimated the backlash to its rideshares in some areas, air taxis could be rushed to market without adequately considering the impact on local citizens.

“The problem is that big city mayors always want to be seen as innovative,” said Kevin DeGood, director of infrastructure policy at the Center for American Progress, a Washington, D.C.–based think tank. “They’re always concerned they may be missing out, and there’s so much hype over this right now.” Among the objections he raises: These flying cars may be not as environmentally benign as advertised, and they could erode support for more sustainable forms of travel like light rail. The other issue? How air traffic control can manage flight paths in a congested airspace.

The FAA is, if anything, being more cautious than it normally would, especially after an Alaska Airlines incident in early January put the entire aviation regulatory system under the microscope. In late 2023, the FAA had already issued new guidelines on eVTOL approval that some observers saw as adding a layer of scrutiny.

Among the issues to be considered: noise levels; where the needed “vertiports” will be located (there’s talk of eVTOLs landing on rooftops of office buildings, parking garages, or on boats or barges); how they will fit in with air traffic control patterns; and most importantly, safety. The big questions regarding safety are who will fly them and what happens in an emergency? “That’s something no one is talking about,” Hilderman says. “But these are low-flying vehicles in a busy airspace, and what do you do if you have to land fast?”

As for approvals, Jessica Sypniewski, a top FAA official, put it simply at the FAA’s first Advanced Air Mobility symposium in August 2023: “We’ll be ready when the air taxi developers are ready to operate safely.”

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Nov 13, 2023

Joby Flies Quiet Electric Air Taxi in New York City

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Joby’s electric air taxi in the skies above New York City, piloted by James “Buddy” Denham. Joby Aviation Image

New York City, Nov 13, 2023 — Joby Aviation, Inc. (NYSE:JOBY), a company developing electric vertical take-off and landing (eVTOL) aircraft for commercial passenger service, today announced that it successfully performed an exhibition flight in New York City yesterday, marking the first ever electric air taxi flight in the city and the first time Joby has flown in an urban setting.

The aircraft was flown on Sunday, November 12th, from the iconic Downtown Heliport in Manhattan, NY, where today, New York City Mayor, Eric Adams, announced the city's intention to electrify the heliport, laying the groundwork for New York to become the global leader in the adoption of clean, quiet flight. Joby’s Manhattan flight and participation in the press conference – during which the aircraft is expected to fly again – follows several days of preparation flights at the HHI Heliport in Kearny, New Jersey.

“By electrifying one of the most famous heliports in the world, New York is demonstrating global leadership in the adoption of electric air travel. We’re grateful for the support of the city, and we’re honored to be working with visionary partners like Delta Air Lines to bring our air taxi service to this market,” said JoeBen Bevirt, Founder and CEO of Joby Aviation. “We plan to make quiet, emissions-free flight an affordable, everyday reality for New Yorkers, while significantly reducing the impact of helicopter noise.”

Joby previously announced through its partnership with Delta Air Lines that it expects New York to be one of its early launch markets after receiving certification from the Federal Aviation Administration (FAA). The company plans to offer fast, quiet journeys using its piloted, four-passenger electric aircraft which has zero operating emissions. Joby’s aircraft is optimized for rapid, back-to-back flights and can fly up to 100 miles on a single charge, covering 99% of all trips taken today across New York City’s five boroughs. While traveling from Manhattan to John F. Kennedy International Airport (JFK) can take more than an hour by car, Joby expects the trip to take just seven minutes by air.

"The Adams Administration has been a leader in driving technology innovation and economic growth while simultaneously improving quality of life,” said New York City Economic Development Corporation (NYCEDC) President & CEO Andrew Kimball. “EDC’s new strategy for the Downtown Manhattan Heliport reflects these priorities while making it an industry leader in the embrace of eVTOLS – a quieter and greener helicopter alternative – while at the same time facilitating maritime freight with last mile e-bike deliveries that takes trucks off the roads.”

Joby and Delta are working closely with the Port Authority of New York and the New York City Economic Development Corporation (EDC) as they plan for initial operations, including the development of infrastructure at JFK and LaGuardia International Airport (LGA). This builds on significant recent investments Delta has made in upgrading the customer experience at its New York hubs.

“Delivering exceptional experiences for our customers is why Delta has invested over $7B in New York City, especially at our LaGuardia and JFK hubs,” said Gail Grimmett, SVP of Sustainability Performance and Strategic Partnerships at Delta. "Today's announcement demonstrates the great progress that's been made toward launching clean, quiet and convenient air taxi services for Delta customers traveling to and from New York, and is a testament to our innovative partners at Joby and the support of Mayor Eric Adams in advancing new and sustainable technologies.”

Joby’s aircraft was designed to have a radically lower acoustic footprint than today’s helicopters, allowing it to operate in densely populated areas such as New York City without adding to the background noise. In 2022, Joby collaborated with NASA to measure the sound of its aircraft, confirming it registered the equivalent of 45.2 A-weighted decibels (dBA) when flying overhead at an altitude of 1640 feet (500 meters) – quieter than a typical conversation.

Joby has flown more than 30,000 miles with its full-scale prototype eVTOL aircraft, beginning in 2017. The Company recently celebrated the first aircraft to roll off its Pilot Production Plant in Marina, California, and delivered the first-ever electric air taxi to the US Air Force for on-base operational testing. Joby expects to launch its commercial passenger service  in 2025.

Media assets, including photos and footage of Joby’s aircraft flying in New York City, as well as animation simulating Joby’s acoustic footprint in the city, are available here .

Joby Aviation, Inc. (NYSE:JOBY) is a California-based transportation company developing an all-electric, vertical take-off and landing air taxi which it intends to operate as part of a fast, quiet, and convenient service in cities around the world. To learn more, visit www.jobyaviation.com .

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the development and performance of our aircraft, our regulatory outlook, progress and timing, including our expectation to start commercial passenger service in 2025 and the expected timing of type certification; our planned operations with the Department of Defense; our business plan, objectives, goals and market opportunity; plans for, and potential benefits of, our strategic partnerships, including the markets in which we expect to launch; and our current expectations relating to our business, financial condition, results of operations, prospects, capital needs and growth of our operations. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including: our ability to launch our aerial ridesharing service and the growth of the urban air mobility market generally; our ability to produce aircraft that meet our performance expectations in the volumes and on the timelines that we project, and our ability to launch our service; the competitive environment in which we operate; our future capital needs; our ability to adequately protect and enforce our intellectual property rights; our ability to effectively respond to evolving regulations and standards relating to our aircraft; our reliance on third-party suppliers and service partners; uncertainties related to our estimates of the size of the market for our service and future revenue opportunities; and other important factors discussed in the section titled “Risk Factors” in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2023, and in future filings and other reports we file with or furnish to the SEC. Any such forward-looking statements represent management’s estimates and beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Contact Details

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Flying taxis are closer than ever to reality. The booming industry needs to overcome infrastructure hurdles.

  • The era of electric air taxis is near, with eVTOLs expected to fly commercially starting next year.
  • One expert said eVTOLs fly at low altitudes and could create airspace and security challenges.
  • This article is part of " Transforming Business: Infrastructure ," a series exploring the advancements reshaping US infrastructure.  

Insider Today

The US's first electric vertical-takeoff and -landing aircraft are expected to fly commercial passengers as soon as 2025.

At launch, these zero-emission, piloted air taxis — which take off and land like a helicopter but fly like an airplane — are expected to hop between city centers and major airports as a faster and more efficient alternative to driving. The battery-powered vehicles are also much quieter than the noisy helicopters that commonly fly over densely populated cities .

According to the Royal Aeronautical Society , more than 10,000 eVTOLs are on order worldwide in deals worth some $60 billion.

Carriers, including American Airlines, United Airlines, and Virgin Atlantic Airways, as well as noncommercial operators like the US Air Force, have placed orders for the new type of aircraft.

The investments signal confidence in the futuristic eVTOLs and the burgeoning market for urban air mobility, which JPMorgan analysts have predicted could be worth about $1 trillion by 2040.

However, the widespread commercialization and expansion of eVTOLs will depend on public acceptance and how regulators and operators address infrastructure challenges both on the ground and in the air.

Existing landing zones will need to be electrified with expensive chargers

With up to 200 of the US-based Archer Aviation's Midnight aircraft on order, United is expected to operate the US's first commercial eVTOL route starting in 2025 .

In June, the aircraft received federal approval to fly commercially as a Part 135 operator, meaning it can run non-scheduled operations like on-demand private charters. It still needs further approvals to fly for airlines like United, but the latest certificate puts it one step closer.

United's planned hopper service is set to fly 10 to 20 minutes between downtown Manhattan and Newark Liberty International Airport in New Jersey, offering an alternative to a drive that often takes more than an hour.

A later, second United eVTOL route is planned between Chicago's city center and O'Hare International Airport.

All the eVTOL destinations have established spots for the electric aircraft to take off from and land on. This type of operation is favored because the landing spots don't take up much space and can be placed near high-density sites such as sports arenas, finance districts, or concert venues.

Archer's chief growth and infrastructure officer, Bryan Bernhard, told Business Insider that Midnight would primarily use these existing heliports or VTOL-specific "vertiports" to start. It also plans to repurpose already-built city infrastructure, such as parking-garage rooftops, as additional landing zones.

Regardless of location, facilities that want to welcome eVTOLs like the Midnight must invest in chargers. Bernhard said Archer's would be expensive to purchase and install but would not put a massive new strain on the power grid.

He said the challenge lay in striking the right balance between battery conservation and terminal convenience when choosing where to place landing zones.

"We're utilizing existing assets and existing routes, so it'll be easy to integrate into that," he said. "But you want to be strategic on where the charger is so the vehicle doesn't have a long taxi path before it can take off."

Bernhard added that the Midnight's charger had about the same power output as a high-speed EV charger.

Newly built vertiports may not be welcome in less-urban areas

Henry Harteveldt, a travel analyst, told BI that the continued development of high-density batteries was crucial to eVTOL operators' hope of carrying more people and cargo longer distances.

This would lead to the need for newly built vertiports.

Joby Aviation, the first and only other US eVTOL manufacturer to secure an FAA certification, has, for example, partnered with eVTOL infrastructure provider Skyports to build four vertiports around Dubai.

A Joby spokesperson told BI the company's global operations, which it plans to also extend to places like Japan , would "blend into the background" and not disrupt daily life.

"We worked with NASA to analyze the acoustic footprint of the aircraft, demonstrating that at takeoff, it is quieter than a conversation at a distance of 100 meters and is barely perceptive when flying overhead at an altitude of just 500 meters," Joby said.

Across the world, Rani Plaut, the CEO of Air , an Israeli company developing a two-seater eVTOL, told BI that the more infrastructure built to support the growing air-taxi market, the quicker the public would become accustomed to it.

Harteveldt said, however, that this unique challenge of public acceptance would be particularly difficult in less-urban communities.

"There could be an opportunity to build new vertiports in places like office parks or shopping centers," he said. "However, one thing we know to be true is that communities will not want eVTOLs buzzing in and out at all times, even if they're electric."

Harteveldt suggested that the optimal places for new vertiports were on top of or adjacent to convention centers or on waterfronts in places like New York City and San Francisco.

Fortunately for operators, the Federal Aviation Administration's official vertiport guidance, coming in 2025, is set to be performance-based. Bernard said the fewer regulatory requirements would make building new US facilities quicker and less costly.

eVTOL operators need to consider airspace safety, security, and efficiency

While manufacturers will face infrastructure challenges on the ground, the industry must also figure out how to efficiently incorporate eVTOLs into the airspace network .

Airspace is used by everything from helicopters and passenger airliners to private jets and student pilots — meaning everyone has to work together with air-traffic control to safely share the skies.

Bernhard said the first couple of years of flying the Midnight would involve a few vehicles on existing and approved aviation routes and that Archer intended to use the same operating procedures that exist for other rotorcraft vehicles.

He said opening newly certified pathways and new landing locations would take another few years, but conversations about the logistics of air traffic management would ignite.

While the era of air taxis is almost here, Harteveldt said he didn't see eVTOLs littering the skies anytime soon. He said this "Jetsons"-like dream would be limited by safety and noise restrictions, especially since the eVTOLs would be flying at lower altitudes.

"How do you ensure these aircraft don't intentionally do anything that jeopardizes safety and security in places like Washington, DC, or London or Paris, and many others," he said. "You aren't going to want to have these eVTOLs operating in proximity to some of these places."

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What Are The Top Nine Pain Points Of Running A Helicopter Air Taxi Business?

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Launching and operating a helicopter air taxi business is a complex endeavor fraught with multifaceted challenges . From navigating stringent regulatory hurdles and astronomical operational costs to ensuring impeccable safety standards and meeting fluctuating consumer demand , the industry's pain points are numerous and formidable. Recent statistics from the Federal Aviation Administration reveal that the average hourly operating cost for a twin-engine helicopter soared to a staggering $1,472 in 2022 , while the accident rate for on-demand air taxi services stood at a concerning 1.23 incidents per 100,000 flight hours . Moreover, the global helicopter air taxi market is projected to experience a compound annual growth rate of 12.7% from 2023 to 2030, underscoring the mounting pressures on industry players to adapt and innovate amidst escalating competition .

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  • Substantial upfront capital investment required to launch and operate the business.
  • Navigating strict regulatory compliance and licensing procedures.
  • Securing suitable landing and takeoff locations for the air taxi service.
  • Managing complex logistics and scheduling to ensure efficient operations.
  • Prioritizing top-notch safety and security measures for passengers.
  • Attracting and retaining highly skilled and experienced helicopter pilots.
  • Dealing with the challenges posed by adverse weather conditions.
  • Addressing concerns related to noise pollution in urban areas.
  • Maintaining a reliable and well-serviced fleet of helicopters.

High Initial Capital Investment Required

Launching a helicopter air taxi business like SkyCommute requires a substantial upfront capital investment, posing a significant pain point for entrepreneurs entering this industry. The high costs associated with acquiring and maintaining a fleet of helicopters, securing landing sites, and meeting regulatory requirements can pose a major barrier to entry.

According to industry estimates, the initial capital required to start a helicopter air taxi business can range from $5 million to $20 million , depending on the size of the fleet, the type of helicopters, and the scope of the operation. This substantial financial outlay can be a significant challenge, especially for new businesses or those without access to significant funding sources.

  • Securing financing through venture capital, angel investors, or government grants can help offset the high initial costs.
  • Carefully planning the business model and revenue streams to ensure financial viability from the outset is crucial.
  • Exploring innovative leasing or fractional ownership models for the helicopter fleet can also help reduce the initial capital requirements.

In addition to the initial acquisition costs, helicopter air taxi businesses must also factor in the ongoing expenses of maintenance, fuel, insurance, and pilot training. These operational costs can add up to $1 million or more per helicopter per year , further straining the financial resources of the business.

The high capital investment required for a helicopter air taxi business like SkyCommute can be a significant barrier to entry, making it challenging for new players to establish a foothold in the market. Careful financial planning, strategic partnerships, and innovative business models will be essential for entrepreneurs looking to overcome this pain point and successfully launch a helicopter air taxi service.

Helicopter Air Taxi Business Plan Get Template

Strict Regulatory Compliance and Licensing

Operating a helicopter air taxi business like SkyCommute requires strict adherence to a complex web of regulations and licensing requirements. This pain point can significantly impact the financial viability and operational efficiency of the business, potentially adding up to 30% to the overall startup and operational costs .

The helicopter air taxi industry is subject to stringent oversight by aviation authorities, such as the Federal Aviation Administration (FAA) in the United States. Obtaining the necessary licenses and certifications for pilots, aircraft, and operations can be a time-consuming and costly process, often taking several months to complete.

  • Ensure all pilots are properly licensed and trained to operate the specific helicopter models used in the fleet.
  • Comply with strict maintenance and inspection requirements for the helicopter fleet, which can add significant costs to the business.
  • Secure the necessary permits and approvals for helicopter landing sites and heliports, which can be challenging in congested urban areas.

Moreover, the helicopter air taxi business must adhere to regulations governing noise levels, emissions, and safety protocols, further adding to the operational complexity and financial burden. Failure to comply with these regulations can result in hefty fines, license revocations, and even the shutdown of the business.

To mitigate the impact of this pain point, SkyCommute must allocate a significant portion of its budget to legal and regulatory compliance, as well as maintain a dedicated team of aviation experts to ensure the business remains in full compliance at all times. This can account for up to 15% of the overall operational expenses , putting significant pressure on the company's profitability and cash flow.

Securing Suitable Landing/Takeoff Locations

One of the top pain points of running a helicopter air taxi business is securing suitable landing and takeoff locations within the target metropolitan areas. Helicopter air taxis require specialized infrastructure, including designated heliports or helipads, to safely and efficiently transport passengers across congested urban landscapes.

For a business like SkyCommute , finding suitable landing and takeoff sites is a critical challenge that can significantly impact the overall operations and financial viability of the venture. Securing these locations is not only a logistical hurdle but also a regulatory one, as the business must navigate complex local and federal guidelines to obtain the necessary approvals and permits.

  • Estimate that securing suitable landing/takeoff locations can add up to $500,000 in initial capital investment and ongoing operational costs per year, which can account for 20-30% of the total startup and running expenses of a helicopter air taxi business .
  • Tip: Engage with local authorities and urban planning agencies early on to identify potential landing sites and understand the regulatory requirements, which can vary significantly across different cities and jurisdictions.
  • Tip: Explore innovative solutions, such as partnering with existing heliports, repurposing underutilized rooftops, or developing custom-designed landing pads, to overcome the challenge of securing suitable locations.

Another key consideration is the availability and accessibility of these landing/takeoff sites for passengers. The locations must be strategically placed to provide convenient access for the target market of high-income professionals and business executives, who are willing to pay a premium for the time-saving benefits of a helicopter air taxi service .

Additionally, the business must ensure that the selected landing/takeoff sites meet strict safety and noise regulations, as the operation of helicopters can raise concerns among local communities. Careful planning and community engagement are essential to address these challenges and secure the necessary approvals and support for the helicopter air taxi business .

Managing Complex Logistics and Scheduling

One of the top pain points for running a helicopter air taxi business is the complex logistics and scheduling required to ensure efficient and reliable operations. As a helicopter taxi company , SkyCommute must carefully coordinate a multitude of moving parts, from pilot scheduling and aircraft maintenance to landing site reservations and passenger bookings.

Effective helicopter logistics is crucial for minimizing downtime, optimizing fleet utilization, and delivering a seamless customer experience. However, this can be a significant challenge, as the helicopter air taxi business must contend with factors such as weather conditions , air traffic control regulations, and the availability of helicopter landing sites in urban areas.

  • Develop a robust scheduling system to coordinate pilot shifts, aircraft maintenance, and passenger bookings.
  • Invest in helicopter scheduling software to automate and streamline the logistics process.
  • Establish strong relationships with local authorities to secure reliable access to helicopter landing locations .
  • Implement contingency plans to quickly respond to unexpected disruptions, such as weather delays or mechanical issues.

The financial impact of poor logistics and scheduling can be substantial for a helicopter air taxi business . Inefficient scheduling can lead to underutilized aircraft and lost revenue opportunities , while unexpected downtime can result in increased maintenance costs and customer dissatisfaction. Industry experts estimate that poor logistics and scheduling can reduce a helicopter air taxi's profitability by up to 20% .

By effectively managing the complex logistics and scheduling challenges, SkyCommute can optimize its operations, improve customer satisfaction, and enhance the overall profitability of its helicopter air taxi business .

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Ensuring Top-Notch Safety and Security

In the fast-paced and high-stakes world of helicopter air taxi services, ensuring top-notch safety and security is a critical pain point that cannot be overlooked. The SkyCommute business model, which caters to a discerning clientele of busy professionals and corporate executives, demands the utmost attention to detail when it comes to operational safety and passenger security.

Helicopter air taxi operations inherently carry a higher level of risk compared to traditional ground-based transportation. Factors such as weather conditions, pilot proficiency, and mechanical reliability can all have a significant impact on the safety and reliability of the service. Failure to address these concerns could result in catastrophic consequences that would not only jeopardize the lives of passengers but also severely damage the reputation and viability of the SkyCommute business.

  • Implement rigorous pilot training and ongoing certification programs to ensure the highest levels of competence and proficiency.
  • Invest in state-of-the-art helicopters with advanced safety features and regularly maintain the fleet to the highest industry standards.
  • Develop comprehensive emergency response protocols and contingency plans to handle unexpected situations effectively.

In addition to safety considerations, the SkyCommute business must also prioritize security measures to protect its valuable assets, including the helicopters, the pilots, and the passengers. Given the high-profile nature of the clientele and the potential for terrorist or criminal threats, the company must implement robust security protocols and work closely with local authorities to mitigate any risks.

Failure to address these safety and security concerns could result in significant financial and reputational consequences for the SkyCommute business. It is estimated that a single major incident resulting from lax safety or security measures could cost the company upwards of $50 million in legal fees, compensation, and lost business. Additionally, the damage to the company's brand and public trust could be irreparable , making it extremely difficult to recover and maintain the confidence of its target market.

Attracting and Retaining Skilled Pilots

One of the top pain points in running a helicopter air taxi business is attracting and retaining skilled pilots. Pilots are the backbone of any helicopter operation, responsible for the safe and efficient transportation of passengers. However, the demand for experienced helicopter pilots is often high, leading to fierce competition among air taxi companies, charter services, and other aviation businesses.

The challenge lies in finding and recruiting pilots who not only possess the necessary licenses, ratings, and experience but also align with the company's safety culture and service standards. Helicopter air taxi businesses typically require pilots with extensive training in instrument flight rules (IFR), night operations, and emergency procedures, as well as a strong commitment to passenger safety and satisfaction.

  • Offer competitive compensation packages, including salaries, benefits, and incentives, to attract and retain top-talent pilots.
  • Invest in continuous training and professional development programs to keep pilots up-to-date with the latest industry regulations, technologies, and best practices.
  • Foster a positive work environment that prioritizes work-life balance, career growth opportunities, and a strong safety culture.

The financial impact of this pain point can be significant. Estimates suggest that the cost of recruiting, training, and retaining a single helicopter pilot can range from $100,000 to $250,000 per year , depending on the experience level, certification requirements, and market conditions. For a helicopter air taxi business with a fleet of 10 aircraft, the annual pilot-related expenses could easily exceed $2.5 million .

Furthermore, the loss of a skilled pilot can disrupt operations, lead to flight cancellations, and damage the company's reputation, ultimately impacting revenue and profitability. Successful helicopter air taxi businesses must prioritize pilot recruitment, training, and retention as a critical aspect of their overall strategy to ensure the long-term sustainability and growth of their operations.

Dealing with Adverse Weather Conditions

Operating a helicopter air taxi business comes with its fair share of challenges, and one of the most significant pain points is dealing with adverse weather conditions . Helicopters, by nature, are more susceptible to the whims of Mother Nature compared to their fixed-wing counterparts, making weather-related disruptions a constant concern for helicopter air taxi operators.

Inclement weather, such as heavy rain, strong winds, fog, or thunderstorms, can pose serious risks to helicopter operations and can lead to flight delays, cancellations, and even safety hazards. These disruptions not only inconvenience passengers but can also have a significant financial impact on the business. According to industry estimates, weather-related incidents can account for up to 20% of a helicopter air taxi company's operational expenses , as operators must factor in the costs of rescheduling flights, providing customer refunds or compensation, and ensuring the safety of their fleet and crew.

  • Invest in advanced weather monitoring and forecasting technologies to stay informed about changing conditions and proactively adjust flight schedules.
  • Develop detailed contingency plans to quickly respond to weather-related disruptions and minimize the impact on customers.
  • Ensure pilots are thoroughly trained in handling various weather scenarios and have the necessary experience to make safe decisions.

Moreover, the financial impact of adverse weather conditions can be further compounded by the high capital investment required to operate a helicopter air taxi business . With each helicopter costing upwards of $3 million to $5 million , weather-related disruptions can lead to significant downtime and lost revenue, making it essential for operators to have robust risk mitigation strategies in place.

Ultimately, the ability to effectively manage and respond to adverse weather conditions is a critical success factor for any helicopter air taxi business . By implementing proactive measures and maintaining a strong focus on safety, operators can minimize the financial and operational impact of these challenges and provide a reliable, high-quality service to their customers.

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Addressing Noise Pollution Concerns

One of the primary pain points in running a helicopter air taxi business is the issue of noise pollution . Helicopters, by their very nature, generate a significant amount of noise during takeoff, flight, and landing operations. This can be a major concern, especially in densely populated urban areas where the helicopter air taxi service is likely to be most in demand.

The noise generated by helicopters can have a significant impact on the quality of life for nearby residents, and it can also be a source of complaints from local authorities and regulatory bodies. According to industry estimates, noise-related issues can account for up to 30% of the operational costs for a helicopter air taxi business , as the company may need to invest in noise-reduction technologies, soundproofing measures, and community engagement initiatives.

  • Implement advanced noise-reduction technologies: Consider using the latest helicopter models with quieter engines and rotor designs to minimize noise pollution.
  • Establish designated helicopter landing zones: Work with local authorities to identify and develop dedicated landing sites that are located away from residential areas, reducing the impact on nearby communities.
  • Engage with the local community: Proactively communicate with residents and local stakeholders to address their concerns and develop strategies to mitigate the impact of noise pollution.

Addressing noise pollution concerns is crucial for the long-term success and sustainability of a helicopter air taxi business . By investing in noise-reduction measures and maintaining open communication with the local community, SkyCommute can ensure that its operations are environmentally responsible and aligned with the needs and expectations of the people it serves.

Maintaining a Fleet of Helicopters

As the founder of Helicopter Air Taxi startup SkyCommute , one of the top pain points you'll face is maintaining a reliable and efficient fleet of helicopters. This critical aspect of the business can significantly impact your operations, finances, and overall success.

Helicopter maintenance is a complex and costly endeavor, requiring specialized expertise, strict safety protocols, and substantial financial resources. The average cost to operate and maintain a single helicopter can range from $500,000 to $1 million annually, depending on the aircraft model, hours flown, and regulatory requirements.

  • Carefully select helicopter models that are known for their reliability, fuel efficiency, and ease of maintenance to minimize operational costs.
  • Develop a comprehensive maintenance program, including regular inspections, preventive maintenance, and proactive repairs, to ensure your fleet is always flight-ready.
  • Invest in a dedicated maintenance team or partner with a reputable helicopter maintenance provider to ensure your aircraft are well-cared for.

In addition to the financial burden, managing a fleet of helicopters also requires significant logistical planning and coordination. You'll need to ensure that your aircraft are available when and where your customers need them, while also adhering to strict air traffic control regulations and safety standards.

Failure to properly maintain your helicopter fleet can lead to costly downtime, unscheduled repairs, and potentially catastrophic safety incidents. This, in turn, can result in up to 20% of your annual revenue being diverted towards unexpected maintenance and repair costs, severely impacting your profitability and growth potential.

To mitigate this pain point, it's crucial to develop a robust maintenance strategy, invest in a well-equipped maintenance facility, and hire experienced aviation professionals to oversee your fleet operations. By prioritizing helicopter maintenance, you can ensure the reliability, safety, and efficiency of your air taxi service, ultimately delivering a premium experience to your discerning clientele.

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Russian company tests flying taxi

Hop aboard Russia’s flying taxis

Location: Moscow

Hoversurf has unveiled a new model of an air taxi

It's meant to go into mass production at the end of 2021

and be ready for flights in 2023-2025

The company says the car can fly 30 minutes on one charge

Flights will cost about $0.27 per kilometer

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Are You A Commercial Pilot? Learn About The Air-Taxi Business Opportunity With This Great Infographic

November 12, 2016 By admin Leave a Comment

Air-Taxi Business Infographic

You got your private pilot license.

You’ve dreamed of flying airplanes since you were a kid.

You flew a few cross-country’s and loved the feeling of touching down at your destination. There’s something special about that, isn’t there?

So, like many, you decided you want to make a career out of the thing you love.

You upgrade your license to commercial, get your IFR certificate, and plan to start applying to airlines.

What do you find?

Airlines that claim that they want 1500 hours of flight time, but realistically you’ll need closer to 3000.

That is a long way away considering you’ve only got 250.

And even if you did get hired, you’re probably going to work for a regional airline with a starting salary of a little more than $21,000 per year-about $40,000 lower than the same job at Delta and United, according to the Airline Pilots Association, the largest U.S. pilot union.

Maybe you’re looking for a better opportunity than a low-paying airline?

Maybe you want to be your own boss?

Maybe it’s a better idea to focus on the future of air travel?

Introducing the Air-Taxi.

If Airbus have already begun creating their concept aircraft, and UBER has written a 97 page PDF on the opportunity, I think it’s safe to say on-demand regional air travel is in our future.

So, do you take the traditional airway, build your hours, spend thousands of dollars doing so, make little money, and only enjoy a good salary at the END of your career?

Or do you grab the controls and fly your own airway, spend more time with your family, and have choice in your life doing the thing you love?

With the average air-taxi flight costing $2500.00, it doesn’t take many flights to match the starting salary of a regional airline first officer.

Now, you’re probably asking yourself, “how can I possibly afford to buy an aircraft and start my own air-taxi business?”

Well, when you factor in the cost of building your hours, whether through time instructing others, or just hard earned cash, you’re probably in the same ball park of a Cessna 172, and that’s all you really need to get started.

Plus, there are tons of ways you can lower your cost of plane ownership .

We’ve created a great infographic for you below that highlights some important facts about the air-taxi industry.

Check it out below and let us know your thoughts.

discover-the-air-taxi-business-opportunity-infographic

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air taxi business plan

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How do air taxis operate in Moscow?

air taxi business plan

Currently, only passenger planes at an altitude greater than 8,100 meters (26,574ft), the Ministry of Emergency Situations and the Federal Protective Service helicopters, as well as some other government services’ and bodies’ aircraft are allowed to fly over Moscow. And yet, if you really need it, you can use an air taxi. How convenient will it be is a different question entirely.

Departing from the region

To fly over the capital, you need to have special permission and such permission is not issued to business aviation. So, you won’t be able to take off or land on the territory of the city itself. All air taxi helipads are located beyond the Moscow Ring Road (MKAD) , while the flight path can’t cross the ring road either.

MKAD on the map.

MKAD on the map.

It’s convenient to use an air taxi if you live or are located in the region and you urgently need to go to the airport, to another place outside the city or to the closest settlement. But, if the matter is the speed of transportation and avoiding traffic – alas, an aerotaxi can’t help you! 

How to use it?

If you still have a need for air taxi services, then, first of all, you need to choose the company with whom to fly. The majority of air taxi companies provide the same helicopter options, they only differ in price and location. Considering that the helipads are located outside the city, it’s logical to just choose the closest one to you/to get to.

Booking conditions vary from one service to another. It’s best to book your helicopter in advance, at least 5-6 hours before departure. But some services are ready to provide you with an aircraft an hour after contacting them. In any case, you will be required to state your route, the amount of passengers and baggage. On average, Moscow services offer helicopters that can take 3 to 10 people on board.

Upon arriving at a helipad, you will be required to show your passport and you’ll be registered for the flight. On average, this process takes about 15 minutes. After that, you board the helicopter and depart for your destination.

air taxi business plan

The price of a flight varies from one provider to another. The lowest price for a 60-minute flight that we managed to find is 30,000 rubles (approx. $338) in a Robinson R44 helicopter for three passengers. But, the service staff explained that this price was quite conditional. There’s no fixed price for a flight, since when calculating the price, the model of the hired helicopter, the amount of passengers and baggage, the route and the location of the available aircraft on the specified date and time (the air taxi might have to be transported from one helipad to another) have to be taken into consideration.

air taxi business plan

Any downsides?

Apart from the fact that air taxis only operate outside the Moscow Ring Road, your flight won’t take off in bad weather conditions. In that case, the situation is settled extrajudicially. The passenger and the air taxi company finalize whether the flight should be rebooked or completely canceled. This being said, considering the unpredictable nature of Moscow’s weather, you risk having trouble at any time of year.

Baggage can also cause trouble. For example, in the case of a Robinson R44 helicopter, which can accommodate up to three passengers, you can only take a couple of small bags or backpacks on board with you. If there are only two passengers, then, you might be able to take a whole suitcase.

Otherwise, a taxi ride to an airport during rush hour, for instance, will potentially cost you several thousand rubles and up to three hours of your time, depending on departure point and the severity of traffic!

air taxi business plan

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Ukraine war latest: Four dead as Putin pounds Ukraine - with hotel 'wiped out' and Kyiv under attack

Four people have been killed after Moscow's forces launched another round of airstrikes against Ukraine. It comes as the nation reels from one of the biggest attacks of the war by Russia yesterday. Watch a Sky News exclusive on the Ukrainian resistance operating behind Russian lines.

Tuesday 27 August 2024 07:34, UK

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  • At least four people killed as Russia pounds Ukraine, with hotel 'wiped out'
  • It comes after Russia unleashed missile and drone barrage across Ukraine yesterday, killing at least seven
  • Biden condemns 'outrageous' attacks
  • Zelenskyy pleads with allies for help - as Kremlin issues warning
  • Watch: Who are Ukraine's secret resistance?
  • Your questions answered: Can Ukraine advance further inside Russia?

The foreign secretary has said he was "deeply saddened" by the death of a former British soldier in Ukraine. 

Ryan Evans, 38, had been working as a safety advisor for the Reuters news agency and died after a missile strike on a hotel in Ukraine. 

Mr Lammy offered his condolences to Mr Evans’s family and condemned the "cowardly" tactics used by Vladimir Putin’s Russia against Ukraine.

Mr Evans was part of the reporting crew staying at the Hotel Sapphire, in Kramatorsk, eastern Ukraine, which was hit by a strike on Saturday.

He had been working with Reuters since 2022.

The agency said it was "devastated" by the incident which also injured two of its journalists.

Ukraine has downed about 15 drones and several missiles near Kyiv during Russia's overnight attack, local authorities have said.

Serhiy Popko, head of Kyiv's military administration, said in a statement on Telegram: "Everything that flew to the capital of Ukraine was destroyed."

Russia is trying to plunge Ukrainian people into a "severe absence of electricity and desperation", a Ukrainian politician has said.

Maria Mezentseva , MP for Kharkiv, told Sky News that Russia is not aiming its attacks at military targets and those being wounded and killed are "peaceful civilians".

"We see that by targeting or attempting to target the Kyiv dam or the electricity facilities across Ukraine, Russia is trying to put us to another sort of severe absence of electricity and desperation, whereas Ukrainian citizens are trying to help each other," she said.

She echoed calls for a restriction on the use of Western-supplied long-range weapons in Russia to be lifted.

Ms Mezentseva also called for more air defences to "defend civilians and critical and social infrastructure".

Joe Biden has described a series of Russian strikes on Ukrainian cities and energy infrastructure yesterday as "outrageous".

In a statement released by the White House, the US president said he condemned the attacks "in the strongest possible terms".

"Ukrainian officials report that this outrageous attack resulted in the deaths of Ukrainian civilians and targeted more than two dozen critical energy sites," he said.

"Let me be clear: Russia will never succeed in Ukraine, and the spirit of the Ukrainian people will never be broken."

Mr Biden added that the US would continue to lead a coalition of more than 50 countries in support of Ukraine.

"As I told President Zelenskyy on 23 August, US support for Ukraine is unshakeable," he said.

At least four people have been killed in another major wave of Russian missile and drone attacks across Ukraine.

After Moscow launched its biggest air attack of the war yesterday, Ukraine's military said air defence systems had to be deployed several times again overnight to intercept attacks headed for the capital of Kyiv.

Two people were killed when a hotel was "wiped out" in the central city of Kryvyi Rih, officials said, while another two died in drone attacks on Zaporizhzhia in the southeast.

Witnesses for the Reuters news agency said they heard at least three rounds of explosions overnight in Kyiv.

It comes after at least seven people were killed as Russia launched more than 200 missiles and drones at Ukraine yesterday, with the Russian defence ministry saying its strikes on hit "all designated targets" in Ukraine's energy infrastructure.

Welcome back to our live coverage of the war in Ukraine.

Russia has launched another major attack on the capital of Kyiv overnight, with the nation still reeling from one of the biggest attacks of the conflict yesterday.

Moscow's forces unleashed 236 drones and missiles, striking 15 regions and killing at least seven people.

Ukrainian officials called on Western allies once again to allow them to strike the origins of the attacks deeper inside Russia.

Meanwhile, fierce battles raged around the eastern Ukrainian city of Pokrovsk, a high-priority target for Vladimir Putin in Donetsk.

Russia was redeploying forces to Kursk from lower-priority frontline areas in northern Kharkiv, Chasiv Yar and western Zaporizhzhia, according to the Institute for the Study of War.

Before we resume our coverage, here are the other key developments from the past day:

  • The head of the international nuclear watchdog said he will lead a mission to inspect Russia's Kursk Nuclear Power Plant today amid fighting in the region;
  • British safety adviser Ryan Evans was killed working for Reuters news agency in a Russian attack on a Ukrainian hotel;
  • A search was under way for a suspected Russian drone that strayed into NATO territory, in Poland.

We're pausing our live coverage of the war in Ukraine.

We'll be back with more updates and analysis tomorrow, but before we go, here's a recap of the key developments that took place today.

Russia unleashed 236 drones and missiles in a massive attack on Ukraine. Seven people were killed and 15 regions were struck, with explosions heard in the capital, Kyiv. Ukraine said hypersonic missiles were used in the assault.

Ukrainian officials called on Western allies to provide air defence resources and to allow the long-range use of their weapons on targets inside Russia.

One of the drones likely strayed into Polish territory , leading 100 soldiers to search for the equipment, said Jacek Goryszewski, spokesperson for the Polish army's operational command. NATO condemned this as "irresponsible and potentially dangerous."

"Fierce battles" raged around the eastern Ukrainian city of Pokrovsk , according to the general staff of the Ukrainian armed forces. Russian forces made 38 attempts to storm Ukrainian positions near the strategic logistics hub.

The Institute for the Study of War identified areas of the frontline from which the Russian military is likely redeploying forces to Kursk: Northern Kharkiv, Chasiv Yar and western Zaporizhzhia.

The head of the international nuclear watchdog said he will lead a mission to inspect Russia's Kursk Nuclear Power Plant tomorrow amid fighting in the region.

At least seven people have been killed and 47 people injured, including four children, by Russia's bombardment, Ukrainian authorities say.

Some civilian facilities were attacked with cluster munitions, Volodymyr Zelenskyy said.

Videos posted on social media showed strikes on a hydropower plant, a dam and a water reservoir.

Strikes on power or critical infrastructure were reported in Volyn and Rivne in the northwest; Khmelnytskyi, Lviv and Ivano-Frankivsk in the west; Zhytomyr in the north; Dnipropetrovsk, Kirovohrad and Vinnytsia in central Ukraine; Zaporizhzhia in the southeast; and Odesa in the south.

A 69-year-old man in the Dnipropetrovsk region and a farmer in the Zaporizhzhia region were among those confirmed dead. 

The other killings took place in the regions of Kharkiv, Zhytomyr and Volyn.

NATO has condemned Russia's "irresponsible" attacks after alliance member Poland reported the likely landing of a drone on its territory.

"Since Russia's full-scale invasion of Ukraine in 2022, Russian drone fragments and missiles have been found on allied territory on several occasions," NATO spokesperson Farah Dakhlallah said. 

"While we have no information indicating an intentional attack by Russia against allies, these acts are irresponsible and potentially dangerous." 

There are reports of another wave of drone attacks this evening, a Ukrainian MP tells Sky News.

Ukraine is also expecting more missiles overnight, says Lesia Vasylenko.

Russia is attacking energy infrastructure, leaving regions without water and power, yet the West will not let Ukraine stop them, she says.

"It's a nonsense that Russians are attacking civilian targets inside of Ukraine on a daily basis, using missiles with components from Western countries, and then those Western countries, including the US, are blocking Ukraine being able to defend itself and to destroy the military targets from which these attacks have been launched," she says."

This is not a retaliation for the Kursk offensive, she says, pointing out that this has been part of Russia's strategy since it invaded Ukraine in February 2022.

"'Winters should be dark and cold for Ukrainians': That's that's the message that Russia is trying to convey and this is what they're trying to make real."

She adds: "When it gets really, really cold, it's going to be absolutely unliveable."

But Ukraine is not prepared to "just surrender and see our homes destroyed and see our loved ones being taken into prisons and to torture centres", says Ms Vasylenko.

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Install the Sky News app for free

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IMAGES

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  3. airport taxi business plan example in Word and PDF formats

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  24. How do air taxis operate in Moscow?

    Price. The price of a flight varies from one provider to another. The lowest price for a 60-minute flight that we managed to find is 30,000 rubles (approx. $338) in a Robinson R44 helicopter for ...

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