ELECTRON Aerospace is part of ELECTRON Holding, an Amsterdam-based integrated battery-electric aircraft designer and manufacturer, and future regional air mobility operator founded in 2021.
You spent 15 years as a pilot for Flybe, Europe’s largest regional airline at the time. What events unfolded in 2020 that led you to launch an emission-free airline?
Flying is in my DNA, thanks to my mother, who was and still is a glider pilot. My journey started with model aircraft, and I eventually became an airline pilot for 15 years at Flybe. Flybe was hit hard during COVID-19. Virgin and others pulled out of the takeover, with losses exceeding $500 million (£400 million) not a surprise in uncertain times of COVID-19, Flybe ceased operations in March 2020. Despite its much-appreciated efforts to connect smaller communities, it wasn't profitable, typically incurring annual losses of about $12.5 million (£10 million). However, the revenue lost from the lack of connecting passengers on long-haul flights was more significant for potential buyers like Virgin.
I often flew between the UK and the Netherlands for family reasons and noticed that the aviation sector lacked sustainable solutions. While vertical takeoff and landing aircraft (or short eVTOLs) gained traction, they couldn't hope to cover routes like London to Amsterdam due to limited range.
Conventional short-haul flights could be electrified with technological advances, which is essential since about one-third of global aviation emissions come from short-haul flights. The technology is improving, and it's time to make this shift.
How large of a problem is the lack of regional air connections on a global scale?
Regional airports are increasingly losing service. In the U.S., NASA's "Regional Mobility" report shows that 77% of passengers use just 0.6% of the airports. It is our internal ELECTRON estimate that worldwide, roughly 80% of passengers travel through fewer than 1% of airports. This disparity means that most people are stuck using a handful of airports, while private flights offer flexibility but at a high environmental cost and price point.
Private aviation is extremely polluting, with emissions of around 1,300 grams of CO2 per passenger-kilometer, ten times higher than commercial flights and roughly 50 times more than trains or electric cars. Also, 50% of the private flights in Europe are for journeys of less than 500 kilometers. To make a meaningful impact, electrification should start small, as developing a large, 100-200-seat aircraft will cost billions and take a decade and a half. Beginning with smaller, five-seaters as the next logical step up from the electric two-seaters already flying, allows us to operate commercially, reduce emissions this decade and reach a broad audience. Ultimately, unlocking regional airports and providing a more direct, cost-effective service.
Brexit prompted you to firmly establish ELECTRON in the Netherlands. How do the opportunities in the EU compare to those in the UK and beyond?
Brexit was a major factor for us, along with the availability of grants. The UK has the Aerospace Technology Institute (ATI), while EU funds became less accessible after Brexit. The UK emphasizes technology development, which is great for intellectual property but often lacks clear market timelines. On the other hand, product development focuses on proven technologies that can quickly meet market demands, allowing us to make a more immediate impact. We feel the technology is already there, what we need is product development and funding for that.
Regulatory concerns also played a role. Europe’s EASA provides aircraft certification that is recognized globally, and it has a bilateral agreement with the U.S. FAA. This offers access to a vast market, whereas the UK Civil Aviation Authority (CAA) only grants (or granted at the time) access to the UK without such bilateral agreements. Despite the UK's bad ground infrastructure making for a great market case for Regional Air Mobility, its market is tiny compared to the global opportunities offered by EASA certification.
Which European and international markets offer the most growth potential for regional air mobility?
McKinsey's mid-2023 report on regional air mobility forecasts a rise from $5 billion to over $100 billion within 12 years. Although some passengers will switch from current air travel or create new demand by making trips they previously avoided, most will come from current road transport. With over 2,700 suitable airports in Europe and 5,500 in the U.S., regional aviation can cut travel times and reduce emissions on a big scale. Globally, there are about 35,000 airports, and ~98% of them are underutilized. By leveraging zero-emission planes and regional airports, we can provide more efficient transportation for trips that currently require four to eight hours by car.
What are the biggest barriers to ELECTRON’s operations keeping you awake at night?
The private aviation industry saw a boom due to COVID-19 and a significant influx of retail investment ( largely from relief measures) went into eVTOL companies like Joby Aviation, Lilium, Vertical Aerospace and Archer who floated on the NYC via SPACs in 2020-2021. Since then, deal flow has plummeted by 50% twice over. Investors remain wary due to market volatility, leaving venture capital firms hesitant to commit funds for long-term projects, especially when currencies may devalue over time. Aircraft manufacturing is capital-intensive, highly regulated, and takes a long time. Despite these challenges, we're optimistic that a new investment wave will come. eCTOL (Electric Conventional Takeoff and Landing) aircraft have not yet seen the massive investment that eVTOL (Electric Vertical Takeoff and Landing) aircraft have, and we believe a surge in funding is necessary for the aviation sector to make meaningful progress toward net-zero emissions.
Fuel tanking, where airlines carry extra fuel to save on costs at cheaper airports, causes emissions globally that surpass all emissions reduced by Tesla so far. While the EU ETS imposes a fee of $96 (€90) per ton of CO2, airlines still find it financially advantageous to carry extra fuel, even if it burns 1% more during flight. Pilot organizations and unions will play a pivotal role in reducing fuel tanking. Slowly but surely, communities like Safe Landing advocate for collective action to say "enough is enough," refusing to contribute to unnecessary emissions through these outdated practices.
You have had orders for your new Electron 5 model from taxi operators in Berlin and New York - Air2 and Hopscotch Air. When can we expect the Electron 5 model to hit the market?
Since hiring experienced aerospace engineers in 2022, we've been on track to certify and deliver the Electron 5 by the end of 2028. We plan to fly our prototype in 2026, and it will be 98% similar to the final production model. By leveraging existing suppliers in the 100+-year-old aerospace industry, we can focus on the aircraft itself while ensuring certification-ready quality from day one. Our approach differs from other companies building novel “unorthodox” aircraft that build prototype after prototype without delivering a certified aircraft. Instead, we've built strong relationships with the aerospace supply chain and are developing a normal aircraft that happens to be electric to ensure a smooth market entry.
