2024 Corporate Aviation Leadership Summit

On October 31, EHang filed an F1 form with the U.S. Securities and Exchange Commission to prepare its planned Initial Public Offering (IPO) before the end of 2019.&nbsp;The company is aiming to raise $100 million from the IPO.
The China-based group's published prospectus provides a fascinating insight into its prospects for fulfilling its ambitions to be one of the early leaders in bringing autonomous&nbsp;electric vertical takeoff and landing (eVTOL) aircraft into commercial service. To meet the SEC's transparency requirements, EHang has had to spell out risk factors associated with its business plan, and this exercise runs to 36 pages of detailed analysis of multiple risk factors. Many of these risks, such as uncertainty about the regulatory process and public acceptance of autonomous flight, would apply to any of EHang's rivals. Others are more specific to EHang's base in the People's Republic of China and the potential it to fall foul of the country's complex corporate legal requirements, such as the new Foreign Investment Law, which takes effect January 1, 2020. EHang Holdings Limited was established in December 2014 as a Cayman Islands-based offshore holding company specifically to facilitate offshore financing and listing.&nbsp;
In some respects, EHang's base in China is both a potential blessing and a curse. For instance, its close relationship with Chinese authorities has presented an opportunity for it to fast-track development work.&nbsp;
With the approval of the Civil Aviation Administration of China (CAAC), EHang earlier this year began some demonstration flights in its home city of Guangzhou and various other locations in China. In February, it filed an application with CAAC for operations in support of a customer’s logistics business under the Pilot Operations Rules (Interim) for Specific Unmanned Aircraft. The company said it is hopeful of getting this approval before year-end. In the SEC filing, EHang indicates that for now its main focus is on the Chinese market. It acknowledged that the regulatory environment for autonomous aircraft operations in the U.S. and Europe remains more complex for now. At the same time, it recognizes that Chinese legal requirements could complicate its status as an international public company.
The SEC filing also flags up the reality that the path to profitability in the urban air mobility market will require deep pockets, and it remains to be seen <a href="https://cncms.aero/node/292">whether EHang's are sufficiently deep</a>.&nbsp;
&nbsp;

Managing Editor

Charles Alcock

EHang's SEC Filing for Nasdaq IPO Sheds Light on Risks Facing eVTOL Pioneers

With the green agenda rising in the UK's 2019 general election campaign, the UK Labour Party has indicated it would consider a ban on fossil-fuel powered private aircraft flights from 2025. The November 4 statement by shadow transport secretary Andy McDonald was in response to a new report calling for electric-only private aircraft flights published by environmental and economic pressure groups Fellow Travellers and Commonwealth.&nbsp;
The report, titled "<a href="s3-eu-west-1.amazonaws.com/media.afreeride.org/documents/Jet+Set+Go+Summary.pdf">jet, set, go</a>" claims that a passenger in a private jet today emits seven times as much greenhouse gas as a business class passenger&nbsp;on an airline flight. The reported differential rises to 10 times compared with an economy class airline passenger and 150 times compared with a train passenger. According to the authors, there were 128,000 private jet flights between UK airports and the rest of Europe in 2018—representing 6 percent of total traffic—plus another 14,000 flights from the UK to points beyond Europe.
According to the authors, four out of five private aircraft journeys within Europe today could be conducted by electric aircraft from 2025. That said, they acknowledge that even if electric aircraft were widely adopted this move has the potential to reduce the UK's aviation emissions of greenhouse gases by around only 15 percent by 2050.

FutureFlight

Latest

EHang's SEC Filing for Nasdaq IPO Sheds Light on Risks Facing eVTOL Pioneers

EHang is the first eVTOL start up company to go public with an IPO on Wall Street

UK Labour Party Considers Demand for Electric-only Private AIrcraft Flights

A report by UK environmental groups Fellow Travellers and Commonwealth called for a ban on private jets from 2025.

Videos

More Articles

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN