Embraer’s Eve secures LOIs for eVTOLs, to list at NYSE

SkyWest and Republic Airways Holdings, the parent companies of US regional capacity providers SkyWest Airlines and Republic Airways, have signed tentative orders for 100 and 200 electric vertical take-off-and-landing (eVTOL) aircraft manufactured by Eve Air Mobility, a subsidiary of Embraer.

Both Memoranda of Understanding are non-binding and are subject to regulatory and performance criteria.

SkyWest said it would eventually seek to deploy the eVTOLs around the United States. Initially, however, it will work together with Eve to “develop a portfolio of services-based capabilities to optimize eVTOL performance in key early adopter cities”. The two companies will establish joint teams to work on vehicle and “vertiport” design, as well as the certification roadmap.

In turn, Republic Airways Holding sees the future of the eVTOLs in key East Coast cities, such as Boston, New York, and Washington. The holding said it would explore opportunities to use the Eve aircraft across its subsidiaries, including LIFT Academy flying school. Republic Airways and Eve will also establish a working group to explore commercial opportunities for the eVTOLs.

Eve also announced another tentative order for 200 eVTOLs placed by lessor Azorra Aviation. The start-up further said that its parent’s defence wing would cooperate with BAe Systems to explore potential e VTOL military use.

Eve was created by Embraer within its start-up incubator EmbraerX programme and incorporated as a stand-alone firm in 2020. As it grows, the manufacturer plans to spin the company off through an eventual listing on the New York Stock Exchange through a merger with a special purpose acquisition company (SPAC), Zanite Acquisition Corp. Embraer plans to retain an 82% share in Eve following its listing. Eve expects to raise USD542 million during the listing, including USD305 million in new capital from Embraer (USD175 million), Zanite Acquisition Corp. (USD25 million), and a consortium of industry players, including Azorra Aviation, BAE Systems, Bradesco BBI, Falko Regional Aircraft, Republic Airways, Rolls-Royce, and SkyWest (USD105 million in total).

The new developments follow the recent tentative order for fifty Eve’s eVTOLs by Sydney Seaplanes, and earlier partnerships with Widerøe (WF, Bodø) and Kenya Airways (KQ, Nairobi Jomo Kenyatta). In its disclosure announcing the planned NYSE listing, Eve said it had tentative orders from 17 customers for a total of 1,735 eVTOL aircraft valued at USD5.2 billion.