Journal Article

Readying for Takeoff: Challenges and Opportunities for International eVTOL Operations

Arshad, Amna, Garcia, Marcelo L

2022

Overview

Designation of eVTOL Operators In Canada, the strategic decision of an eVTOL operator to become an airline for the purposes of providing international air services is subject to a national licensing process that requires, among other conditions, compliance with ownership and control requirements and liability insurance obligations.17 At the outset, access to foreign financing, aircraft, and experienced leadership may be limited for Canadian eVTOL operators in the early stages of development due to foreign ownership and control requirements.18 However, a recent decision issued by the Canadian Transportation Agency with regard to Flair Airlines19 suggests that some level of flexibility could be possible for new entrants. U.S.-certificated eVTOL operators must decide their intended corporate structure and types of operations, comply with stringent ownership and control rules, secure required Department of Transportation and Federal Aviation Administration (FAA) operating authorizations, and meet liability insurance obligations. The FAA has been working closely with new entrants in this space and very recently granted Joby Aviation its Part 135 Air Carrier Certificate, allowing it to begin on-demand commercial air taxi operations in advance of its type and production certificates for its eVTOL aircraft.20 Designation of Traffic Rights The U.S.-Canada ATA would allow eVTOL operators that have been designated as airlines21 to operate transborder scheduled services between any point or points in Canada and any point or points in the United States, including points in third countries using fifth freedom rights.22 Quite relevant for future eVTOL operators, a designated airline would be allowed to carry its own stopover passenger traffic between points in the territory of the other party and transfer traffic from any of its aircraft to any of its other aircraft at any point on the routes.23 The entry of eVTOL operations in the U.S.-Canada transborder market may be further strengthened by the operational flexibility provisions in the U.S.-Canada ATA, most of which are currently underutilized. [...]for the purposes of U.S.-Canada transborder eVTOL operations, the term point can be interpreted as any airport or vertiport, without the need to be designated as international or to be in compliance with any other capacity conditions (for example, a minimum number of passengers per year).

• Publisher: American Bar Association
• Subject: Agreements / Air transportation / Air transportation industry / Air travel / Aircraft / Aircraft design / Airlines / Airports / Alliances / Aviation / Boundaries / Civil aviation / Commercial aircraft / Connectivity / Corporate structure / Flexibility / Insurance / International / International organizations / Leadership / Liability insurance / Operators / Ownership / Passengers / Provisions