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United Airlines invested $15 million in Eve Air Mobility and placed a conditional purchase agreement for 200 four-seat electric aircraft plus 200 options calling for first deliveries as early as 2026, the Chicago-based carrier said Thursday. Under the terms of the agreement, the companies intend to work on future projects, including studies on the development, use, and application of <a href="https://www.futureflight.aero/aircraft-program/eve">Eve’s aircraft</a> and the so-called urban air mobility (UAM) ecosystem.
The latest commitment by United comes less than a month after it placed a $10 million deposit on 100 eVTOL aircraft <a href="https://www.futureflight.aero/news-article/2022-08-11/united-airlines-places-10-million-down-payment-archer-evtol-air-taxis">with Archer Aviation</a>. The airline in February 2021 signed a provisional agreement with Archer to buy up to 200 of its four-passenger eVTOL aircraft in a deal valued at $1 billion. At the time, Archer said the pre-delivery payment represented one of the first of its kind in the nascent eVTOL industry following announcements by several manufacturers of provisional sales that appear unsupported by any type of formal payment schedule or deposit.&nbsp;
“United has made early investments in several cutting-edge technologies at all levels of the supply chain, staking out our position as a leader in aviation sustainability and innovation,” said United Airlines Ventures president Michael Leskinen. “Today, United is making history again, by becoming the first major airline to publicly invest in two eVTOL companies. Our agreement with Eve highlights our confidence in the urban air mobility market and serves as another important benchmark toward our goal of net zero carbon emissions by 2050 —&nbsp;without using traditional offsets.”
United became the first major U.S. airline to create a corporate venture fund with the establishment of United Airlines Ventures (UAV), established to support the company’s commitment to reach net zero emissions by 2050 without the use of traditional offsets. Through UAV, United claims a leadership position in investments in eVTOL and electric aircraft, hydrogen fuel cell engines, and sustainable aviation fuel. 
United says its confidence in the growth opportunities in the UAM market and Eve’s unique relationship with Embraer partly drove its investment in the eVTOL developer. The Eve-Embraer relationship allows for access to the Brazilian manufacturer’s service centers, parts warehouses, and field service technicians. United expects Eve’s service and support operations to support its entire eVTOL fleet. Meanwhile, United joins the consortium led by Eve established to simulate UAM operations in Chicago starting on September 12.
“United's investment in Eve reinforces the trust in our products and services and strengthens our position in the North American market,” said Eve co-CEO Andre Stein.“I am confident that our UAM agnostic solutions, coupled with the global know-how we have been developing at Eve and Embraer’s heritage, are the best fit for this initiative, giving United’s customers a quick, economical and sustainable way to get to its hub airports and commute in dense urban environments. It is an unparalleled opportunity to work with United to advance the U.S. UAM ecosystem, and we look forward to it.”
Eve Holdings came into being in May with the business combination between Embraer and special purpose acquisition company <a href="https://www.futureflight.aero/news-article/2022-04-14/eve-and-zanite-expect-complete-merger-and-wall-street-listing-may">Zanite</a>, enshrined with a public listing on the New York Stock Exchange that generated $377 million in proceeds. Under the terms of the deal, Embraer now holds a 90 percent stake in the eVTOL aircraft developer while Zanite shareholders and several other investors control the balance.

Senior Editor

Gregory Polek

United Airlines Invests $15 million in Eve, Signs Purchase Deal for 200 eVTOL Aircraft

Eve is stepping up its efforts to test the basis on which eVTOL aircraft could operate air taxi services in crowded cities, with a planned urban air mobility (UAM) simulation in Chicago. In an August 23 announcement, the eVTOL aircraft developer said the exercise will involve helicopters operated as part of the rideshare network of its prospective customer <a href="https://www.futureflight.aero/news-article/2021-06-24/eve-provide-60000-evtol-flight-hours-private-flight-group-blade">Blade Air Mobility</a>.
Last year, Eve conducted a similar exercise in the Brazilian city of Rio de Janeiro, with local helicopter charter operator <a href="https://www.futureflight.aero/news-article/2022-05-26/helisul-probed-human-realities-urban-air-mobility-services">Helisul Aviation</a> providing aircraft for a structured 30-day trial to map out prospective routes and operating procedures with passengers on board. This work, which was also supported by flight booking service Flapper, resulted in the publication of a <a href="https://www.futureflight.aero/news-brief/2022-05-10/eves-concept-operations-rio-de-janeiro-offers-urban-air-mobility-blueprint">concept of operations</a> for eVTOL flights in and around the city that has been presented to Brazilian air safety regulator ANAC. 
Like <a href="https://www.futureflight.aero/news-article/2021-06-24/eve-provide-60000-evtol-flight-hours-private-flight-group-blade">Blade</a>, Helisul also plans to add Eve's eVTOL vehicle to its fleet from 2026, and <a href="https://www.futureflight.aero/news-article/2021-07-22/eve-guarantees-evtol-flight-hours-flapper-charter-platform-latin-america">Flapper</a> also intends to offer flights to its on-demand customers. Blade has also committed to adding the rival Beta Technologies' Alia eVTOL vehicle to its fleet.
Starting on September 14, Blade will arrange services around the Chicago area each morning and afternoon, with flights available to passengers via its app from the downtown Vertiport Chicago to "helistops" the northern suburb of Schaumburg and the southern suburb of Tinley Park. Eve, which will start ground testing on September 12, will&nbsp;study operations, ground services, passenger journeys, and eVTOL operator needs, allowing for more accessible and faster connections to the city center.&nbsp;
Eve will perform the ground tests at <a href="https://www.futureflight.aero/news-article/2021-08-10/vertiport-offers-warm-welcome-chicago-evtol-aircraft-operators">Vertiport Chicago </a>simulating services, infrastructure, and equipment requirements for the eVTOL aircraft. The public company, which is majority owned by Brazilian aircraft manufacturer Embraer, says that&nbsp;the study will help it to understand the infrastructure and ecosystem needed to enable the launch and expected long-term growth of UAM in a major North American city.
“Simulating the eVTOL operation in Chicago allows us to study how people will experience this service and understand the entire ecosystem requirements for our product and services, while showcasing the benefit of urban air mobility in one of North America's most prominent and populated cities,” said Eve co-CEO André Stein. “We are wrapping up preparations to execute these simulations seamlessly and look forward to helping prepare Chicago for a local zero-emission UAM solution that is quiet, efficient, and sustainable.”
The consortium of partners Eve assembled for the simulation also include regional&nbsp;airlines Republic Airways and Skywest, Halo Aviation, Vertiport Chicago, the villages of Tinley Park and Schaumburg, Spanish infrastructure and renewable energy conglomerate Acciona, and Brazilian UAM logistics specialist Speedbird Aero. 
"For Eve, it is essential to understand and address through these projects involving partners and the community the key challenges associated with the main pillars of the UAM ecosystem,” said Eve vice president of services and fleet operations Luiz Mauad. “Our proposal brings together all stakeholders and counts on different views and feedback to structure and deliver the best solutions." 
&nbsp;

Eve to Conduct UAM Simulation Out of Chicago Vertiport Using Helicopters

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

Science & Technology Editor

Hanneke Weitering

Eve Commits to Long-term Investment in Urban Air Mobility

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

Eve Partners with Halo for Urban Air Traffic Management Solutions

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United Airlines Invests $15 million in Eve, Signs Purchase Deal for 200 eVTOL Aircraft

Eve to Conduct UAM Simulation Out of Chicago Vertiport Using Helicopters

Eve Commits to Long-term Investment in Urban Air Mobility

Eve Partners with Halo for Urban Air Traffic Management Solutions

Eve Unveils New-Look eVTOL Aircraft and Passenger Cabin

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