Technology & Innovation
Air2Pay Cuts Airline Payment Fees via Open Banking Innovation
Paxport’s Air2Pay reduces transaction costs by 0.3-0.7%, saving airlines millions annually through bank transfers and virtual card technology.

Revolutionizing Airline Payments: How Air2Pay Cuts Costs Through Bank Transfers
In an industry where profit margins often hover around 2-3%, airlines constantly seek ways to optimize operational costs. Payment processing fees represent a significant expense, with traditional card networks charging between 1-3% per transaction. For carriers handling billions in annual revenue, these percentages translate into massive overhead that directly impacts profitability.
Paxport’s Air2Pay emerges as a potential game-changer, leveraging open banking technology to bypass card network fees. This solution arrives as airlines face increasing pressure to modernize payment systems while managing post-pandemic recovery costs. The aviation payment landscape has remained relatively unchanged for decades, creating ripe conditions for disruption through financial technology innovations.
The Air2Pay Architecture
At its core, Air2Pay combines virtual card technology with direct bank transfers through Open Banking APIs. Each transaction generates a unique virtual card containing flight-specific metadata like passenger details and routing information. This approach maintains familiar payment workflows while embedding three key innovations:
1. Real-time FX conversion at interbank rates (saving 0.5-2% vs. commercial rates)
2. Automated reconciliation through machine-readable transaction data
3. Split-payment capabilities for complex multi-party bookings
The system integrates with existing airline reservation systems through Paxport’s distribution ecosystem, which already connects 200+ airlines with global travel sellers. Early adopters report 68% faster payment settlement times compared to traditional card processing.
“Where traditional payments create 7 separate touchpoints for reconciliation, Air2Pay collapses this into a single automated process,” explains Dave Robinson, Pax2Pay Managing Director.
Financial Impact Analysis
For a mid-sized airline processing $500 million annually, the savings could be substantial. Typical payment costs break down as:
– Card network fees: $10M (2% of total)
– FX losses: $2.5M (0.5%)
– Reconciliation labor: $1.8M
Air2Pay’s blended cost structure reduces these expenses to an estimated 0.3-0.7% of transaction volume. This translates to potential annual savings exceeding $11 million for our example carrier. The platform also introduces new revenue streams through rebates on volume processed – a model similar to credit card reward programs.
Industry-Wide Implications
The aviation sector processes over $800 billion in annual card payments. A 1% reduction in processing fees industry-wide would unlock $8 billion in savings – equivalent to the combined market cap of three mid-sized European carriers. This financial engineering comes as IATA pushes its New Distribution Capability (NDC) standard, which Air2Pay complements through enhanced payment flexibility.
Security benefits add another layer of value. Virtual cards’ single-use nature reduces fraud exposure, while the elimination of bulk card data storage minimizes PCI compliance burdens. Emirates has reported 40% fewer payment-related fraud incidents after implementing similar virtual card solutions in 2022.
“We’re not just changing how airlines get paid – we’re redefining their entire financial supply chain,” states Simon Taylor, Paxport’s Head of Commercial.
Future of Aviation Payments
As Air2Pay gains traction, expect ripple effects across travel finance. Hotel chains and cruise operators already monitor its adoption, recognizing similar pain points in their payment workflows. The technology’s API-first design enables rapid adaptation to other sectors, potentially disrupting the $1.4 trillion global travel payments market.
Regulatory tailwinds boost Air2Pay’s prospects. The EU’s PSD2 directive mandates open banking infrastructure, while the UK’s CMA9 initiative pushes similar reforms. These frameworks create legal pathways for bank transfer solutions to challenge card networks’ oligopoly, particularly in aviation’s multinational transaction environment.
FAQ
How does Air2Pay handle chargebacks compared to traditional cards?
The system uses escrow-style holds on bank transfers, reducing chargeback risks through prefunded transactions.
Can airlines using legacy systems integrate Air2Pay?
Yes, through API gateways that interface with common PSS platforms like Amadeus Altéa.
What currencies does Air2Pay support?
Currently 11 currencies including EUR, USD, and GBP, with plans to add 8 more by 2025.
Photo Credit: news.alaskaair.com
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Technology & Innovation
Joby Aviation and Virgin Atlantic Finalize UK eVTOL Agreement
Joby Aviation and Virgin Atlantic sign a binding UK air taxi deal at Farnborough 2026, targeting Heathrow and Manchester hubs.

Joby Aviation, Inc. and Virgin Atlantic have finalized a multi-year commercial agreement to launch electric air taxi services in the United Kingdom, establishing Virgin Atlantic as the exclusive airline partner for the manufacturer’s UK operations.
The binding agreement, signed at the Farnborough International Airshow on July 22, 2026, formalizes a partnership initially announced in 2025. According to a Joby Aviation press release, the deal will integrate ground-to-airport air taxi flights into Virgin Atlantic’s booking channels, allowing passengers to schedule connections to long-haul flights using Joby’s all-electric vertical take-off and landing (eVTOL) aircraft.
Planned UK operations and hubs
The companies plan to establish initial operational hubs at London Heathrow Airport (LHR) and Manchester Airport (MAN). Joby expects its aircraft, which features six tilting propellers and a maximum route deployment range of 100 miles, to significantly reduce ground transfer times.
Early route planning estimates a flight time of eight minutes from London Heathrow to Central London. In northern England, flights from Manchester Airport to Leeds are projected to take 15 minutes.
“This agreement marks an exciting next chapter in our partnership with Joby and a significant step towards bringing electric air taxi services to the UK. Together, we’ll create more seamless journeys for our customers, making it easier than ever to travel between towns, cities and our airports,” Virgin Atlantic CEO Corneel Koster said in the company statement.
Certification progress and Delta partnership
The UK agreement expands upon Joby’s existing mutually exclusive partnership with Delta Air Lines, which was established in 2022 to pioneer community-to-airport transportation in the United States. Delta Air Lines currently holds a 49 percent stake in Virgin Atlantic.
Joby is currently navigating the regulatory approval process to bring its aircraft to market. According to reporting by Aerospace Global News, Joby founder and CEO JoeBen Bevirt confirmed at the Farnborough Airshow that the company is now in the fifth and final stage of aircraft certification with the Federal Aviation Administration (FAA).
The manufacturer submitted its validation application for UK certification in 2022 under the Bilateral Aviation Safety Agreement between the FAA and the UK Civil Aviation Authority (CAA). Bevirt told Aerospace Global News that the company’s goal is to conduct its first UK flight from London to Farnborough in 2028.
AirPro News analysis
We view this finalized agreement as a logical consolidation of Joby Aviation’s transatlantic strategy. By leveraging the existing equity and joint venture relationship between Delta Air Lines and Virgin Atlantic, Joby secures a captive premium passenger base in two of the world’s most congested urban airspaces. The 2028 target for initial UK flights aligns with the typical timeline for completing FAA certification and securing subsequent CAA validation. However, regulatory timelines at both agencies remain the primary pacing factor for the entire eVTOL sector, and infrastructure development at major hubs like London Heathrow will require significant coordination with local authorities.
Sources: Joby Aviation
Photo Credit: Joby Aviation
Technology & Innovation
Collins Aerospace Completes 1MW Hybrid-Electric Powertrain Test
Collins Aerospace finishes SWITCH project lab testing of a 1MW hybrid-electric powertrain, advancing Clean Aviation goals for single-aisle aircraft.

On July 22, 2026, Collins Aerospace announced the successful completion of integrated lab testing for a 1-megawatt hybrid-electric powertrain subsystem, marking a critical milestone in the European Union’s Clean Aviation SWITCH project. The technology will now transfer to Airbus for aircraft-level integration, advancing the development of microhybridization for next-generation single-aisle commercial aircraft.
In a press release issued during the Farnborough International Air Show, the RTX business unit confirmed that the testing took place at The Grid, its electric power systems laboratory in Rockford, Illinois. The subsystems operated successfully alongside simulated aircraft and engine systems. The initiative aims to reduce fuel consumption and emissions by at least 30 percent compared to 2020 state-of-the-art aircraft, aligning with the broader goals of the Clean Aviation Joint Undertaking.
Powertrain specifications and the SWITCH project
The testing at The Grid involved an 800-volt powertrain and two 1-megawatt class motor generators integrated into a simulated Pratt & Whitney Geared Turbofan (GTF) engine. According to reporting by Aviation Week, the total power of the turbine engine being hybridized is approximately 20 megawatts, while The Grid laboratory itself possesses an 8-megawatt total power capacity.
The four-year SWITCH project, launched in January 2023 with a budget of £67.6 million ($77.1 million), represents a collaborative effort involving Collins Aerospace, Airbus, Pratt & Whitney, GKN Aerospace, and MTU Aero Engines. Kristin Smith, Vice President of Electric Power Systems at Collins Aerospace, noted the scale of the achievement.
“This is the largest integrated systems test conducted at The Grid since its opening in 2023,” Smith stated in the company release. “By combining our technology expertise with deep industry collaboration, we are demonstrating how hybrid-electric systems can significantly reduce fuel consumption for next-generation aircraft.”
Transitioning to the LEIA project and Airbus integration
With the SWITCH testing phase complete, focus now shifts to the Airbus-led Large scalE Integration demonstrator of hybrid electrical Architecture (LEIA) project. Preliminary work for LEIA began in December 2025. Collins Aerospace will act as the technical lead for energy sources, supplying scalable electric motor generators, electronic controllers, and power distribution equipment.
Future testing for the LEIA project will span multiple European sites, including facilities in Toulouse, France; Frankfurt, Germany; Cork, Ireland; Rome, Italy; and Solihull, United Kingdom. Aviation Week reports that ground demonstration tests are planned for 2027 at Airbus facilities in Toulouse, utilizing a modified Airbus A400M iron bird test rig.
The technology centers on microhybridization, which allows for power extraction, insertion, and transfer between the high- and low-pressure shafts of the engine. This capability can be utilized for taxiing, takeoff power boosts, and transient operating conditions. Aviation Week identifies this system as a leading candidate for Airbus’s next-generation single-aisle aircraft concept, known as the eAction.
“One of the advantages of hybrid-electric propulsion is not to have this power takeoff wasted, but to use it,” Pierre Durel, Project Officer at Clean Aviation, told Aviation Week.
AirPro News analysis
We view the successful integration testing at The Grid as a strong indicator that microhybridization is maturing from a conceptual framework into a viable hardware pathway for the mid-2030s single-aisle replacement cycle. The €4.1 billion Clean Aviation Joint Undertaking is heavily incentivizing European and US aerospace manufacturers to collaborate on these transitional technologies. By targeting a 2030 timeline to reach Technology Readiness Level (TRL) 6, the consortium is aligning its development schedule precisely with the anticipated launch windows for the successors to the Airbus A320neo and Boeing 737 MAX families. The ability to extract and insert power dynamically across engine shafts offers a pragmatic step toward emission reductions without requiring the immediate leap to fully electric-aviation or hydrogen propulsion systems.
Sources: RTX
Photo Credit: RTX
Technology & Innovation
GE Aerospace Completes First Hybrid-Electric Flight Above 30,000 Feet
GE Aerospace, NASA, BETA Technologies, and Boeing achieve world’s first hybrid-electric flight above 30,000 feet on a Saab 340B testbed.

GE Aerospace, in collaboration with NASA, BETA Technologies, and Boeing, has successfully completed the world’s first flight of a hybrid-electric aircraft above 30,000 feet.
The milestone, announced in a July 20 press release during the Farnborough International Airshow, utilized a modified Saab 340B testbed to demonstrate the viability of megawatt-class hybrid propulsion at altitudes typical for commercial regional aviation.
Engineering the hybrid-electric testbed
The testbed aircraft, a Saab 340B that standardly seats 30 to 36 passengers, features a unique asymmetrical propulsion setup. The left wing retains a standard GE CT7 turboprop engine. The right wing houses a fully integrated megawatt-class, multi-kilovolt hybrid-electric propulsion system.
Multiple aerospace manufacturers collaborated to integrate the experimental hardware onto the regional airframe. Boeing subsidiary Aurora Flight Sciences supplied the modified, inverted nacelle required to house the hybrid system, while BAE Systems provided the battery architecture.
BETA Technologies Founder and CEO Kyle Clark highlighted the dual benefits of the configuration in a statement provided by GE Aerospace.
This hybrid electric system improved the high-altitude performance and climb capability while creating a flying laboratory to inform all future hybrid designs.
Flight testing and transatlantic journey
The aircraft completed its initial flight in the hybrid-electric configuration on May 3, 2026. The high-altitude milestone occurred shortly after on May 20, 2026, when the aircraft exceeded 30,000 feet. During the testing phase, the longest single flight in hybrid-electric operation lasted more than two hours.
Following domestic testing in the United States, BETA Technologies pilots ferried the aircraft across the Atlantic Ocean for its public debut at Farnborough. The transatlantic journey included stops in Newfoundland, Greenland, Iceland, and Scotland. During each leg, the hybrid system was engaged to provide electric assist during climbs and to recharge the batteries using a generate mode.
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. described the achievement as a historic moment for the aviation industry, noting the partnership’s goal to accelerate hybrid-electric technology to meet customer demands for efficiency, durability, and range.
NASA partnership and future implications
The development of the megawatt-class powertrain stems from a 2021 contract awarded to GE Aerospace under the NASA Electrified Powertrain Flight Demonstration (EPFD) project. The contract, valued at $179 million, funded the design, build, and flight testing of the hybrid system.
AirPro News analysis
We view the 30,000-foot milestone as a critical validation point for hybrid-electric architectures in regional commercial aviation. While fully electric propulsion remains constrained by battery energy density limitations for passenger aircraft, hybrid systems offer a pragmatic transitional step. By utilizing electric assist during high-thrust phases like takeoff and climb, operators can significantly reduce fuel burn and emissions without sacrificing the range and payload capabilities required for profitable regional routes. The successful transatlantic ferry flight demonstrates the operational robustness of the system outside a highly controlled local test environment.
Sources: GE Aerospace
Photo Credit: GE Aerospace
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