Charles Alcock

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

Chinese company prepares to certify the larger, longer-range VT30 eVTOL model

Early eVTOL Aircraft Deliveries Boost EHang's Revenues

<h3>Chinese eVTOL aircraft maker EHang this week rolled out a public-private partnership aimed at boosting the adoption of advanced air mobility (AAM) in Guangzhou. The agreement, announced on February 6, could include an as-yet-unspecified role for Guangzhou Automobile Group Co (GAC) in the production of the two-seat autonomous EH216-S model. In return, EHang may become involved in GAC's plans to develop a flying car called GOVE.</h3>
The partnership in the city where EHang is headquartered also involves the Guangzhou Airport Economic Zone and the Guangzhou Development District Administrative Committee. The latter two partners are to focus on tasks including airspace management, infrastructure development, and developing “low-altitude flight service stations.” Guangzhou officials want to establish the heavily populated metropolitan area as an early adopter of eVTOL air services and to boost the role of local companies in the emerging AAM industry. Last year, the neighboring <a href="https://www.futureflight.aero/news-article/2023-07-25/shenzhens-baoan-district-bids-become-advanced-air-mobility-hub-china">city of Shenzhen</a> rolled out similar initiatives with EHang, as well as with rival manufacturers AutoFlight and Lilium.
<h3 class="subheading">Elected Officials Back eVTOL Growth in Chinese Provinces</h3>
Following the recent Local People’s Congress and Political Consultative Conference, officials have determined that efforts to boost the AAM sector should focus on the provinces of Guangdong, Beijing, Anhui, and Shanxi. Overall, the governments of 16 Chinese provinces now have plans for the so-called low-altitude economy.
In December, EHang conducted <a href="https://www.futureflight.aero/news-article/2023-12-29/ehang-carries-passengers-demonstration-flights-ahead-first-commercial-evtol">public demonstration flights</a> with the EH216 in Guangzhou and Hefei (in Guangdong and Anhui provinces, respectively). Following type certification of the aircraft by the Civil Aviation Administration of China in October 2023, it is still working to secure the production certificate it needs to start large-volume series production. Under an airworthiness certificate received late last year, it is already producing small numbers of the aircraft and making some deliveries to early customers, including an operator planning to start sightseeing flights at the Donghu Ecological Tourism and Scenic Area in Wuhan province.
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 <div class="field field--name-field-media-image field--type-image field--label-hidden field__item"> <img loading="lazy" src="/sites/default/files/futureflight/import/ehang3%20GOVE.jpeg" width="554" height="312" alt="Chinese automotive group GAC is developing a flying car called GOVE" title="Chinese automotive group GAC wants to develop a flying car called GOVE. (Image: EHang)">

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<div class="block block-layout-builder block-field-blockmediaimagefield-caption">
 
 
 
 <div class="field field--name-field-caption field--type-string-long field--label-hidden field__item">Chinese automotive group GAC wants to develop a flying car called GOVE. (Image: EHang)</div>
 
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<figcaption>Chinese automotive group GAC wants to develop a flying car called GOVE. (Image: EHang)</figcaption>
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EHang views GAC as an important partner that can bring expertise in smart manufacturing, as well as a well-developed supply chain. It is one of several major Chinese automotive groups that manufacture global car brands including BMW, Mercedes-Benz, Volkswagen, and Toyota. In 2023, GAC sold around 480,000 electric vehicles and is working to expand capacity at its AION “smart ecological factory” to an annual capacity of 400,000 cars.
On February 7, EHang announced a suggested retail price of $410,000 for examples of its EH216 to be sold outside China. The price is 23 percent higher than the $334,000 amount announced for the domestic market last week. However, EHang is not yet actively seeking type certification with Western regulators such as EASA and the FAA, which, in any case, have not confirmed plans to approve passenger-carrying autonomous aircraft.

Managing Editor

EHang Rolls Out 'Low-altitude Economy' eVTOL Air Service Plans in Guangzhou

EHang this week issued what it described as a “suggested” retail price for its EH216-S eVTOL aircraft. The Chinese manufacturer announced on February 1 that from April 1 the two-passenger, autonomous vehicle will be priced at RMB2.39 million ($334,000).
Very few other eVTOL manufacturers have published confirmed pricing for their aircraft. However, indicative pricing based on announced sales agreements with operators, suggests that Western-made models are priced in millions rather than hundreds of thousands of dollars. The closest equivalent aircraft is probably Volocopter's two-seat VoloCity for which pricing has not yet been announced.
In late 2022, Germany’s Lilium said that its Lilium Jet will cost between $7 million and $10 million, depending on the specifications selected by customers. By contrast, Pivotal has priced its <a href="https://www.futureflight.aero/news-article/2023-10-11/opener-rebrands-pivotal-unveils-helix-personal-evtol-aircraft">Helix single-seat personal eVTO</a>L, which is not being certified for commercial operations, at just $190,000.
In October, rival Chinese eVTOL manufacturer <a href="https://www.futureflight.aero/news-article/2023-10-29/chinas-tcab-tech-completes-initial-flight-testing-e20-evtol-aircraft">TCabTech</a> indicated it expects its four-passenger E20 model to be priced at just under $1 million.&nbsp; Also in China, AutoFlight is developing the four-passenger Prosperity I aircraft, for which pricing has not yet been confirmed. However, at the Paris Air Show in June 2023, the company's main financial backer Lukasz Gadowski told reporters it will likely sell for beetween $1.5 million and $2 million.
By comparison, Robinson’s U.S.-made R22 two-seat helicopter is priced at around $318,000, while the Cabri G2 made in France costs $408,000. Popular Western general aviation fixed wing aircraft, like the Cessna 172 and Piper 100i cost between around $300,000 and $400,000 new.
In mid-October 2023, the Civil Aviation Administration of China (CAAC) issued a type certificate for the EH216-S, making it the first eVTOL aircraft in the world to achieve this approval. Since then, EHang has been working to secure the production certificate it needs to conduct high-volume series manufacturing.
In late December, the CAAC issued an <a href="https://www.futureflight.aero/news-article/2023-12-22/ehang-receives-airworthiness-certificate-eh216-s-evtol-aircraft">airworthiness certificate</a> (AC) for the EH216 allowing it to deliver an aircraft to Chinese technology group Eton. Under the CAAC process, the AC supplements the <a href="https://www.futureflight.aero/news-article/2023-10-13/china-issues-worlds-first-evtol-aircraft-type-certificate-ehangs-eh216-s">type certificate</a> allowing some aircraft to be assembled&nbsp;and delivered before the company has secured its full production certificate. China’s air safety agency has also allowed EHang and partners to operate the aircraft on a limited basis in certain specific locations.
According to EHang, the announced pricing, “will more effectively cater to the market needs and further enhance the value of electric vertical takeoff and landing aircraft and urban air mobility.”
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EHang Prices Its Two-Seat Autonomous eVTOL Aircraft At $334,000

The Civil Aviation Administration of China (CAAC) has issued an airworthiness certificate to EHang for its EH216-S autonomous eVTOL aircraft. The approval confirms that examples of the two-seater manufactured at the company’s Yunfu factory conform to the type certificate for the two-seat design <a href="https://www.futureflight.aero/news-article/2023-10-13/china-issues-worlds-first-evtol-aircraft-type-certificate-ehangs-eh216-s">awarded in October</a> and adhered the air safety agency’s standard production process under its supervision.
Announcing the approval on December 21, EHang reported that the first certified EH216-S covered by the airworthiness certificate was delivered this week to aviation technology group Eton. The company is a subsidiary of the government-backed Guangzhou Development District Communications Investment Group based in the Chinese city’s Huangpu district. It intends to use the pilotless vehicle for tourist flights.
“We are thrilled to receive the world’s first certified passenger-carrying UAV from Ehang, and are proud of our Guangzhou local enterprise for this groundbreaking achievement,” said Chengjiu Zhou, general manager of Eton’s parent company. “With EHang’s leading-edge, safer, greener, more efficient, and certified passenger-carrying UAV solutions, as well as robust local government support in infrastructure and investment, we look forward to spearheading the development of the local low-altitude economy.”
Guangzhou-based EHang is preparing to <a href="https://www.futureflight.aero/news-article/2023-11-23/ehang-progresses-its-long-march-air-mobility-leadership">start series production</a> for the 455 EH216-S aircraft it says now constitute its backlog of orders. Of these, 245 are from customers in China, and 210 are from overseas (mainly within Asia). The company says it aims to achieve its first foreign type certificate within the next 12 months to allow commercial exports to begin.

EHang Receives Airworthiness Certificate For EH216-S eVTOL Aircraft

EHang this week achieved a breakthrough in its efforts to get established in the Gulf region’s emerging advanced air mobility sector, signing a purchase agreement of 100 of its EH216 autonomous eVTOL aircraft with Abu Dhabi-based Wings Logistics Hub. Announcing the strategic partnership on Monday, the Chinese manufacturer said it has also joined the Smart and Autonomous Vehicle Industries (SAVI) Cluster established in October.
Wings Logistics Hub, which is part of the investment group Ethmar International Holding, will help EHang to achieve UAE type certification for the two-passenger EH216-S vehicle, as well as the -L and -F logistics and freight versions. The Civil Aviation Administration of China issued <a href="https://www.futureflight.aero/news-article/2023-10-13/china-issues-worlds-first-evtol-aircraft-type-certificate-ehangs-eh216-s">type certification</a> for the aircraft in October and EHang is now working to secure full production approval. It aims to start making deliveries to Wings Logistics Hub as early as the first quarter of 2024 to support plans for trial operations, as it has been doing with some other <a href="https://www.futureflight.aero/news-article/2023-11-23/ehang-progresses-its-long-march-air-mobility-leadership">export and domestic customers</a>.
The SAVI Cluster, which is located in Masdar City, is backed by the Abu Dhabi Department of Economic Development and the Abu Dhabi Investment Office as part of a plan for the emirate to be an early adopter of new transportation technology. Abu Dhabi officials believe the initiative, which it says will attract private technology and infrastructure businesses and public agencies, could generate AED 90 billion&nbsp;to 120 billion (up to $32.6 billion) and generate between 30,000 and 50,000 jobs.
Rival eVTOL aircraft developers Joby and <a href="https://www.futureflight.aero/news-article/2023-10-17/abu-dhabi-launches-evtol-air-taxi-plan-through-alliance-archer-aviation">Archer </a>recently became SAVI members. Wings Logistics Hub is a tech start-up looking to expand into multiple mobility and logistics activities with ground, sea and air applications. It has not said whether it intends to operate the EHang aircraft itself or provide these to another partner or customer. Earlier this year, UPS said it will evaluate the Beta Technologies eVTOL aircraft for <a href="https://www.futureflight.aero/news-article/2023-03-17/ups-will-test-betas-electric-aircraft-uae-cargo-missions">cargo missions in the UAE</a>.
“Introducing electric aviation to the UAE is anticipated to alleviate congestion with zero emissions and, consequently, attract significant foreign direct investment and generate thousands of jobs in the region over the next decade,” said Mohamed Al Dhaheri, a board member of Wings Logistics Hub. “We take pride in our participation in the SAVI Cluster and remain steadfast in our commitment to advancing smart and autonomous vehicle technologies for passenger transportation, mobility, logistics, and smart city management in the UAE.”
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<div class="block block-layout-builder block-field-blockmediaimagefield-caption">
 
 
 
 <div class="field field--name-field-caption field--type-string-long field--label-hidden field__item">Hussain Al Hammadi, the UAE's ambassador to China, inspected the EH216 eVTOL aircraft during a recent visit to EHang in Guangzhou. (Image: EHang)</div>
 
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<figcaption>Hussain Al Hammadi, the UAE's ambassador to China, inspected the EH216 eVTOL aircraft during a recent visit to EHang in Guangzhou. (Image: EHang)</figcaption>
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Earlier this month, the UAE’s ambassador to China, Hussain Al Hammadi, visited EHang’s headquarters in Guangzhou. He inspected the EH216 aircraft and was briefed on the company’s plans for advanced air mobility.
Last week, EHang's local partner in Brazil, Gohobby, publicly presented the first example of the EH216-S to be delivered to the country. The aircraft will be used solely for testing, training and demonstrations until the aircraft achieves type certification with the local regulator ANAC.
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Abu Dhabi Mobility Group Signs For 100 of EHang's Autonomous eVTOL Aircraft

EHang founder, chairman, and CEO Huazhi Hu has dismissed a negative critique of its prospects in the eVTOL aircraft market by short-seller Hindenburg Research as "false information." In a <a href="https://hindenburgresearch.com/ehang/">report published</a> on November 7, Hindenburg accused EHang of misleadingly claiming to have preorders for more than 1,300 of its two-seat EH216-S autonomous eVTOL aircraft, insisting that 92 percent of these are&nbsp;"based on dead or abandoned deals, failed partnerships, and newly formed customer&nbsp;entities with no discernable operations." The report details a number of the sales agreements, including those signed with United Therapeutics and <a href="https://www.futureflight.aero/news-article/2022-04-11/preorder-100-ehang-evtol-aircraft-paves-way-urban-air-mobility-indonesia">Indonesia's Prestige Aviation</a>.
In response to questions from AIN, the Chinese company would not say who will be the first operators of the EH216-S. It did say&nbsp;that it expects the first commercial operations to be sightseeing flights for tourists that it will be operated either by EHang itself or by unspecified customers. EHang said that its “order pipeline” for series production now includes more than 100 aircraft, which suggests that the larger numbers of provisional sales have yet to be firmed up.
The Hindenburg report also focuses on the recent issuing of type certification&nbsp;for the EH216-S by the <a href="https://www.futureflight.aero/news-article/2023-10-13/china-issues-worlds-first-evtol-aircraft-type-certificate-ehangs-eh216-s">Civil Aviation Administration of China</a> (CAAC). It claims that the certification&nbsp;"comes with numerous flight restrictions" that would "invalidate the bulk of potential commercial use cases, including restrictions against flying in densely populated areas, in shared airspace, and out of sight of a ground crew."
In a written statement, EHang told AIN that early operations will be conducted “under the guidance of the CAAC” following regulations such as the country’s Interim Measure for Flight Management of UAVs. The company said it is now reviewing where to launch initial operations, taking account of existing partnerships with Chinese cities including Shenzhen, and tourism areas such as Jishou Aizhai and Hechi Fengshan.
<h3 class="subheading">EH216-S Flights Restricted for Now</h3>
In the <a href="https://ir.ehang.com/news-releases/news-release-details/how-ehang-plans-shape-future-urban-air-mobility">company's response to Hindenburg</a>, Hu acknowledged that the EH216-S will be "subject to operational restrictions at [the] initial stage for safety" and that "EHang will gradually lift these operational limitations with the ultimate goal to realize broader commercial operation scenarios across urban areas."
Hu did not directly address accusations that EHang has given misleading accounts of its aircraft sales but did report that it is working to secure the production certification needed to begin <a href="https://www.futureflight.aero/news-article/2023-03-22/ehang-targets-domestic-evtol-aircraft-deliveries-chinese-type-certification">series manufacturing</a>. "As we sell and deliver more eVTOLs per customers' requests and steadily expand our commercial operations in the future," he said, "our cash flow will improve and we are confident that the company can generate positive cash flow in the next few quarters."
Responding to Hindenburg Research’s suggestion that EHang has insufficient capital to scale up production of the EH216-S and will not be able to compete with better-funded Western rivals, Hu said his company will exercise “financial prudence” in executing its long-term growth strategy, “no matter what our global peers are doing with their financial and other resources.”
Stating that he wants to avoid investors in Nasdaq-listed EHang being “misled by rumors and false information in the stock market” Hu concluded that&nbsp;“the most effective way to defeat rumors is to deliver excellent operating and financial results and let rumors and misinformation crumble on their own.”
According to EHang, authorities in Southeast Asian countries such as Indonesia are expected to issue type certificates based on validations of the CAAC airworthiness approval. On this basis, the company expects the process for getting clearance to export the EH216-S will be simplified.
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EHang Founder Refutes Negative Hindenburg Research Report about eVTOL Aircraft

The Civil Aviation Administration of China (CAAC) today issued a type certificate for EHang’s EH216-S two-seat eVTOL aircraft, clearing the way for commercial passenger-carrying flights to begin in China. The approval announced early on Friday makes the two-seat model the first eVTOL vehicle in the world to be cleared for commercial use. The achievement is especially remarkable given that EHang’s aircraft will operate autonomously with no pilot on board.
According to Guangzhou-based EHang, it has completed the entire process since January 2021 when CAAC accepted its application for type certification, with the so-called “special conditions” covering the new category of aircraft having been published in February 2022. The Chinese regulator has given the start-up a high degree of latitude in permitting it to conduct <a href="https://www.futureflight.aero/news-article/2023-08-18/ehang-reports-certification-testing-complete-eh216-s-evtol-aircraft">extensive flight testing in multiple locations</a>, including public demonstrations with passengers on board.
In an October 13 press release, EHang explained that the validation process for the EH216-S, “scrutinized components, equipment, and the entire aircraft for prefabricated defects, faults, and interferences.” It said that the process has encompassed more than 500 specific test items and 40,000 test flights resulting in adjustments and formal conformity assessments covering 65 “major categories” and 450 individual test items.
EHang will now be increasing production rates at its<a href="https://www.futureflight.aero/news-article/2023-03-22/ehang-targets-domestic-evtol-aircraft-deliveries-chinese-type-certification"> Yunfu factory</a> and stepping up deliveries to operators in China. It has not yet said where and when the first commercial passenger flights will begin with the EH216-S, but it has already begun deliveries to domestic customers including <a href="https://www.futureflight.aero/news-article/2023-09-29/ehang-delivers-five-evtol-aircraft-chinese-tourism-company">Shenzhen Boling Holding Group</a>.
The company intends to produce variants of the model that could be used for applications including firefighting. It is also working on a l<a href="https://www.futureflight.aero/news-article/2021-12-23/ehang-announces-launch-order-longer-range-vt-30-evtol-aircraft">arger, four-seat VT-30 aircraft </a>that would have a longer range than the EH216-S, which is limited to 35 km (22 miles).
“I extend my heartfelt gratitude to the CAAC, the expert team, and all EHang employees for their unwavering dedication,” commented the company’s founder, chairman, and CEO Huazhi Hu. “Our self-developed EH216-S passenger carrying UAV [uncrewed air vehicle] system has finally met the high expectation to secure the first type certificate in the global eVTOL industry, marking a significant chapter in aviation history.”
Hu indicated that EHang itself now intends to commercial operations that could include air taxi and sightseeing flights. “This will enable us to steadily progress towards our strategic goal to be an urban air mobility platform operator, and commit to our mission to enable safe, autonomous, and eco-friendly air mobility accessible to everyone,” he concluded.
EHang has previously reported multiple provisional orders for the EH216-S from customers outside China. The company has yet to say how and when it intends to secure type certification in other jurisdictions, including dominant regulators such as the FAA and EASA.
No other air safety agency in the world has yet confirmed a regulatory path to approving commercial, passenger-carrying flights in an eVTOL aircraft. The earliest anticipated type certification outside China is in Europe where Volocopter aims to get approval for its two-seat, piloted VoloCity vehicle in time for the 2024 Olympic Games next Summer in Paris. In the U.S., leading eVTOL developers Joby and Archer currently aim to achieve type certification in 2025.
On Friday morning, trading in EHang shares was due to resume on New York's Nasdaq market. On October 9, the company <a href="https://www.futureflight.aero/news-article/2023-10-11/futureflight-weekly-news-roundup">suspended trading</a> in anticipation of what it said would be a "significant development" by the end of this week.
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EHang

News

Early eVTOL Aircraft Deliveries Boost EHang's Revenues

EHang Rolls Out 'Low-altitude Economy' eVTOL Air Service Plans in Guangzhou

EHang Prices Its Two-Seat Autonomous eVTOL Aircraft At $334,000

EHang Receives Airworthiness Certificate For EH216-S eVTOL Aircraft

Abu Dhabi Mobility Group Signs For 100 of EHang's Autonomous eVTOL Aircraft

EHang Founder Refutes Negative Hindenburg Research Report about eVTOL Aircraft

China Issues the World's First eVTOL Aircraft Type Certificate to EHang's EH216-S Autonomous Vehicle

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