$$$$$$$$$$$
Innovation and capital will take the path of least resistance, and industry can act quickly but only in response to clarity from regulators.
This path of least resistance means identifying opportunities leading to an acceptable return on investment in the least amount of time.
If regulation resists or restricts innovation, investors will not engage.
If offshore opportunities motivate investment, it will be valuable to know that and encourage regulators to reassess how they are restricting development and deployment of AAM.
Financing for air transportation infrastructure is well-established, combining a mix of public and private sources to address both the airside (e.g., runways) and terminal-side (e.g., gates, concourses, etc.) for airports.
Similar financing will evolve for new AAM infrastructure but will likely have different requirements and needs for support.
Most, if not all, of the economic concerns relate to the scalability of AAM operations.
Business case closure will be largely dependent on the cost associated with solving the barriers to entry and bringing cost to the consumer in line with traditional modes of ground-based transportation or by creating value with respect to the new locations it can uniquely serve or the time it can save.
The value delivered to the consumer by utilizing AAM, whether it be for simple package delivery or point-to-point personal transportation, will define acceptance and economic viability.
Value per seat-mile or freight cost per mile will be the metric by which businesses will be built.
For air taxi operations, current estimates of per-seat mile cost for a two-person aircraft average approximately $11 per mile.
Early versions of air taxi operations using a five-seat eVTOL air vehicle have an estimated cost of approximately $6.25 per mile.
These costs are presently higher than a luxury car ride share.
If the time savings to the consumer has value, the higher cost may be acceptable.
NEW AVIATION TECHNOLOGY PROMPTS INSURANCE PROVIDERS TO RECALIBRATE RISK ASSESSMENTS
The Warsaw System on air carriers liability
Contact Me
Sarah Nilsson, J.D., Ph.D., MAS
602 561 8665
You can also fill out my
Get Social with Me
Legal Disclaimer
The information on this website is for EDUCATIONAL purposes only and DOES NOT constitute legal advice.
While the author of this website is an attorney, she is not YOUR attorney, nor are you her client, until you enter into a written agreement with Nilsson Law, PLLC to provide legal services.
In no event shall Sarah Nilsson be liable for any special, indirect, or consequential damages relating to this material, for any use of this website, or for any other hyperlinked website.
Steward of
I endorse the following products
KENNON (sun shields)
Print 