Delta Dives into AAM by Investing US$60 Million in Joby

Delta Air Lines will invest US$60 million in Joby Aviation in an agreement that will see the U.S. carrier establish urban air transport service to and from airports where the airline has bases.

The deal, which includes the opportunity to be expanded to US$200 million at a later stage, marks Delta’s foray into the urban air mobility market and will see terminals first set up in New York and Los Angeles.

The contract, which will have Delta and Joby collaborate for a period of five years, also comes with the opportunity to be extended.

“Delta always looks forward and embraces opportunities to lead the future, and we’ve found in Joby a partner that shares our pioneering spirit and commitment to delivering innovative, seamless experiences that are better for our customers, their journeys, and our world,” said Ed Bastian, Chief Executive Officer of Delta Air Lines.

Both companies hope to help passengers cut travelling time by one day providing them with the option of flying to their destination via an eVTOL from the airport. “We’ll flash them an opportunity to enhance that experience by taking a Joby vehicle from someplace close to their home or their business right into the airport experience and cut out 50%, if not more, of their travel time on the ground,” Bastien added.

“The airport routes are the cornerstone routes for any city building really valuable infrastructure that is close to the terminal and can save customers time is critical,” JoeBen Bevirt, Founder and Chief Executive Officer of Joby Aviation, told CNBC. 

Joby has already performed more than 1,000 test flights using a prototype of its s4 eVTOL, but hasn’t set a date for its commercial debut. It is the first eVTOL company to be granted a G-1 (Stage 4) Certification Basis for its aircraft by the Federal Aviation Administration and recently received its Part 135 Air Carrier Certification.

“We share Delta’s unwavering commitment to delivering seamless and sustainable journeys to customers,” added Bevirt. “Their history of innovation, along with their vast operational expertise and leadership on climate change, make them incredible partners for Joby, and it’s an honor to be working alongside them.”