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Barq Group and Elroy Air Launch $200M VTOL Cargo Aircraft JV in Abu Dhabi

Barq Group and Elroy Air form a $200M joint venture to manufacture Chaparral hybrid-electric VTOL cargo aircraft in Abu Dhabi, targeting MENA middle-mile logistics.

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This article is based on an official press release from Elroy Air and Barq Group.

Barq Group and Elroy Air Announce $200 Million Joint Venture to Manufacture Autonomous Cargo-Aircraft in Abu Dhabi

Barq Group, a leader in smart mobility based in the United Arab Emirates, and Elroy Air, a U.S. developer of autonomous aerospace technology, have signed an initial agreement to establish a joint venture (JV) valued at $200 million. The partnership focuses on establishing a Manufacturing facility in Abu Dhabi to produce the Chaparral, a hybrid-electric vertical take-off and landing (eVTOL) cargo aircraft.

According to the announcement, the joint venture aims to address the critical “middle-mile” logistics gap across the Middle East and North Africa (Middle-East) region. By localizing manufacturing, the companies intend to support the UAE’s strategic push for autonomous transport and industrial self-reliance.

Establishing a Regional Aerospace Hub

The agreement outlines a phased approach to introducing the Chaparral aircraft to the region. Under the terms of the deal, the joint venture will oversee flight operations, manufacturing, and aftermarket services, including maintenance, repair, and overhaul (MRO).

The companies have set a clear timeline for deployment:

  • 2027: Initial flight operations are scheduled to begin in the UAE utilizing aircraft manufactured in the United States.
  • 2028: Full-scale local manufacturing of the Chaparral is expected to commence at the new facility in Abu Dhabi.

Ahmed AlMazrui, Co-founder and CEO of Barq Group, emphasized the scale of the commitment in a statement regarding the deal:

“This $200 million investment is more than a manufacturing agreement; it is a commitment to building a self-sustaining aerospace ecosystem in the UAE. The massive demand we are seeing from logistics providers across MENA makes it clear that local production is the only way to scale effectively.”

The project aligns with Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster and the national “Make it in the Emirates” strategy, which prioritizes the development of local industrial capabilities.

The Chaparral: Specifications and Capabilities

The Chaparral is designed specifically for middle-mile logistics, the transport of goods between distribution centers or to remote locations, bypassing the need for traditional airports or ground infrastructure. Elroy Air describes the aircraft as a “lift + cruise” hybrid-electric VTOL system.

Key Technical Specifications

According to technical data released by Elroy Air, the Chaparral features:

  • Payload Capacity: 300 lbs (136 kg).
  • Range: 300 miles (482 km).
  • Propulsion: A hybrid-electric powertrain utilizing a turbine generator to charge batteries in-flight.
  • Infrastructure Requirements: A landing zone of approximately 50 square feet (4.6 square meters).

A critical feature for the MENA region is the aircraft’s independence from electric charging infrastructure. Because the turbine generator charges the batteries during flight, the Chaparral does not require ground-based charging stations, enabling operations in remote deserts, offshore platforms, or mountainous terrain.

Dr. Andrew Clare, CEO of Elroy Air, highlighted the regional suitability of the aircraft:

“Demand for the Chaparral in the MENA region has been immense… Abu Dhabi is the ideal strategic hub for our first international manufacturing footprint.”

AirPro News Analysis

The “middle mile” is historically the most inefficient segment of the supply chain in the MENA region due to challenging geography and sparse infrastructure. Traditional cargo aircraft require runways that do not exist at many remote industrial sites, while ground transport is often slowed by indirect routes through deserts or archipelagos.

By deploying a VTOL system that requires zero airport infrastructure, this joint venture directly targets these inefficiencies. Furthermore, the hybrid powertrain distinguishes the Chaparral from purely electric competitors, which may struggle in regions lacking robust electrical grids at every delivery point. This move also positions Barq Group and Elroy Air to compete with other emerging players in the region, such as Dronamics, which has also secured agreements in the UAE.

Company Backgrounds and Market Position

Barq Group is the Abu Dhabi-based smart mobility arm of the larger conglomerate, distinct from other entities sharing the name in the region. Since launching its mobility division in April 2023, Barq has focused on eco-friendly transport solutions, previously signing agreements for ground-based electric delivery vehicles. This JV marks a significant expansion into aerial logistics.

Elroy Air, headquartered in South San Francisco, was founded in 2016. The company reports a commercial order backlog exceeding $3 billion, representing over 1,000 aircraft, with interest from major global customers including FedEx and Bristow Group.

Frequently Asked Questions

What is the value of the joint venture?
The agreement represents a $200 million investment to build a manufacturing facility and establish operations in Abu Dhabi.

When will the aircraft begin flying in the UAE?
Flight operations using U.S.-built aircraft are scheduled to begin in 2027, with locally manufactured aircraft entering service in 2028.

Does the Chaparral require charging stations?
No. The aircraft uses a hybrid-electric powertrain where a turbine generator charges the batteries in-flight, eliminating the need for ground charging infrastructure.

Sources

Photo Credit: Elroy Air

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UAV & Drones

Zuri Unveils Uncrewed Cargo VTOL With 6M Euro Series A

Czech developer Zuri launches its hybrid-electric cargo VTOL, opens a 6M euro Series A, and targets first deliveries by 2029.

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Czech aircraft developer Zuri has officially unveiled its uncrewed cargo vertical takeoff and landing (eVTOL) aircraft, marking the company’s first commercial product launch. The announcement on August 27, 2026, coincides with the opening of a €6 million Series A funding tranche designed to finance the upcoming flight test campaign for its Technology Demonstrator 2.0 (TD 2.0).

In a press release issued today, Zuri detailed its strategic shift toward commercializing an uncrewed logistics variant before pursuing a passenger-carrying model. The hybrid-electric tiltrotor targets civil and defense logistics operations, including offshore platform resupply and disaster relief, utilizing a regulatory pathway that bypasses traditional passenger type certification.

Hybrid-electric architecture and performance capabilities

The Zuri cargo VTOL utilizes a hybrid-electric powertrain featuring an in-flight generator, a design choice intended to overcome the range limitations of current battery technology. According to the Manufacturers, the hybrid system achieves an energy density of 1,500 watt-hours per kilogram at the system level. This compares favorably to current aviation batteries, which typically offer between 230 and 280 watt-hours per kilogram.

This power architecture enables a total useful load of 165 kg, which includes both payload and fuel. The aircraft is designed to carry a 115 kg payload across a maximum design range of 679 km. When factoring in a full 30-minute fuel reserve, the range with a 115 kg payload is 569 km. For shorter missions, the aircraft can transport a heavier 145 kg payload over a distance of 272 km.

Zuri also outlined a sensing configuration for the aircraft. By replacing cargo capacity with extra fuel tanks and sensor payloads, the VTOL can achieve an estimated range of 1,908 km. The aircraft operates at a cruise speed of 220 km/h.

Series A funding and flight test schedule

To bring the cargo variant to market, Zuri is raising a €6 million Series A first tranche. The company confirmed that €1.1 million has already been committed by existing investors in the current round. Since its founding, Zuri has raised a total of €7.6 million.

Zuri founder and CEO Michal Illich emphasized the culmination of the company’s research and development efforts in the official announcement.

“We spent nine years and more than fifteen aircraft teaching ourselves what this architecture can do. The uncrewed cargo VTOL is the first one we are building for someone else to fly. This round funds the demonstrator and its full flight test campaign.”

The company established its foundational architecture decisions, including tilting rotors and wing-borne cruise, in 2017. Zuri registered its first aircraft with the Civil Aviation Authority of the Czech Republic (CAA CZ) in 2018 and achieved full-scale hover with its initial technology demonstrator in 2021. Test-Flights for TD 2.0 is planned to begin in early 2027, with the company targeting first commercial deliveries of the cargo aircraft between 2027 and 2029.

Regulatory pathway and market positioning

Zuri intends to certify the uncrewed cargo VTOL under the European Union Aviation Safety Agency (EASA) Specific category. Operations will be risk-assessed using the Specific Operations Risk Assessment (SORA) framework. This approach allows the company to begin commercial operations without securing a traditional passenger type certificate.

According to reporting by Aviation Week on August 27, 2026, Zuri’s pivot to an uncrewed cargo platform is a strategic move to generate revenue faster while continuing to pursue its long-term ambition of developing a passenger aircraft. The market demand for such platforms has already been demonstrated. In November 2025, Aviation International News reported that Ambitious Air Mobility Group (AAMG) signed a binding investment agreement to back Zuri’s platform, which included forward orders for uncrewed and optionally piloted variants for logistics and defense applications.

AirPro News analysis

We view Zuri’s pivot to an uncrewed cargo variant as a pragmatic response to the current realities of the advanced air mobility sector. The capital requirements and regulatory timelines for certifying passenger-carrying eVTOLs have proven daunting for many Startups. By targeting the EASA Specific category and utilizing the SORA framework, Zuri is charting a much shorter path to commercial revenue.

Furthermore, the commitment to a hybrid-electric powertrain rather than a pure battery-electric system aligns with the practical needs of logistics operators. Pure Electric-Aviation struggle to offer the range required for offshore resupply or regional cargo transport. Zuri’s claimed 1,500 watt-hours per kilogram system-level energy density provides the operational flexibility that defense and civil logistics customers actually require, positioning the company well in a market segment that values payload and range over zero-emission marketing.

Sources: Zuri

Photo Credit: Zuri

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UAV & Drones

FAA Launches BEYOND Phase 2 to Expand Drone Integration

The FAA announced BEYOND Phase 2 on Aug 27, 2026, adding up to 8 new participants to advance BVLOS drone operations.

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The Federal Aviation Administration (FAA) announced the launch of Phase 2 of its BEYOND program on August 27, 2026, aiming to double the initiative’s size by adding up to eight new lead participants to advance drones integration into the National Airspace System (NAS).

In a press release issued by the agency, officials confirmed the expansion targets remaining regulatory and operational hurdles for beyond visual line of sight (BVLOS) operations, public safety missions, and on-airport drone activities. The program’s second phase was authorized under Section 920 of the FAA Reauthorization Act of 2024.

Building on Phase 1 milestones

The BEYOND initiative originally launched in October 2020 as the successor to the 2017 Unmanned Aircraft Systems Integration Pilot Program. During the first phase, participating entities generated substantial operational data to inform future rulemaking and safety protocols.

According to the FAA, Phase 1 participants logged more than 70,000 total flights. Of those, more than 48,000 were conducted beyond visual line of sight. This data collection is intended to help regulators understand the safety and scalability of complex drone operations across various sectors.

“As drone technology continues to advance, the FAA is focused on building a regulatory framework that is safe, scalable and grounded in real-world data,” FAA Administrator Bryan Bedford stated in the release. “Phase 2 of BEYOND will expand the partnerships and operations needed to address remaining challenges in beyond visual line of sight operations, public safety missions, on-airport operations and other complex airspace environments.”

Strategic expansion and regulatory push

For Phase 2, the FAA will select up to eight additional state, local, tribal, and territorial entities to serve as lead participants. These new partners will join existing participants in testing advanced Unmanned Aircraft Systems (UAS) capabilities in complex airspace environments.

U.S. Transportation Secretary Sean P. Duffy framed the expansion as a critical step for maintaining global competitiveness in aerospace technology and manufacturing.

“America leads the world in aviation, and this expansion will help keep it that way,” Duffy said. “Under President Trump’s leadership, this Department is cutting through barriers, advancing innovation and making sure the next generation of aviation technology is developed, tested and built right here in the United States.”

The BEYOND Phase 2 announcement follows a series of recent aviation modernization initiatives from the U.S. Department of Transportation (USDOT). On August 6, 2025, Duffy introduced a proposed rule for BVLOS drone operations, known as Part 108, designed to establish a consistent regulatory framework for scaling commercial drone missions. The department has also announced major infrastructure investments throughout August 2026, including a $615 million allocation for airport improvements and the opening of a new manufacturing plant for air traffic control modernization.

AirPro News analysis

We view the launch of BEYOND Phase 2 as a necessary bridge between the experimental data collection of the past decade and the impending codification of Part 108. By specifically targeting on-airport operations and public safety missions, the FAA is shifting its focus toward high-risk, high-value environments where integration with crewed aircraft is unavoidable. The addition of up to eight new municipal or tribal entities suggests the agency recognizes that local infrastructure and community acceptance remain significant bottlenecks for scaled UAS operations. The data gathered in this second phase will likely serve as the operational baseline for finalizing the Part 108 BVLOS rules.

Sources: Federal Aviation Administration

Photo Credit: Federal Aviation Administration

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UAV & Drones

GA-ASI and Fujitsu Sign MOU for MQ-9B Support in Japan

GA-ASI and Fujitsu signed an MOU to establish domestic MQ-9B maintenance and operational support in Japan.

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To support Japan’s expanding fleet of MQ-9B Unmanned Aircraft Systems (UAS), General Atomics Aeronautical Systems, Inc. (GA-ASI) and Fujitsu Limited signed a Memorandum of Understanding on August 27, 2026, establishing domestic maintenance and operational support capabilities.

Announced in a joint press release, the agreement aims to secure a sustainable operational foundation for the aircraft as the Japan Coast Guard (JCG) and Japan Maritime Self-Defense Force (JMSDF) increase intelligence, surveillance, and reconnaissance (ISR) missions across the country’s vast Exclusive Economic Zone (EEZ).

Expanding maritime surveillance in Japan

Japan has actively expanded its unmanned maritime surveillance capabilities in response to a complex regional security environment. The JCG began operating the MQ-9B SeaGuardian from JMSDF Hachinohe Air Base in October 2022 to complement existing manned maritime patrol Military-Aircraft.

The Japanese MQ-9B fleet initially operated under a Company-Owned, Company-Operated (COCO) model managed by GA-ASI. The program proved successful, leading the Japanese government to convert the leased aircraft into direct sales and place additional Orders, a milestone GA-ASI announced on March 24, 2026.

Domestic sustainment and technical collaboration

The shift to direct ownership necessitates a localized sustainment infrastructure. The MOU between GA-ASI and Fujitsu covers discussions on Avionics maintenance, parts management, maintenance training, and support services within Japan. The companies will also explore future technical collaboration regarding mission systems and systems integration.

Fujitsu brings 10 years of accumulated experience and expertise in providing maintenance and operational support for maritime patrol aircraft operated by the JMSDF.

Kenichiro Miyazaki, Head of the National Security Business Unit for Fujitsu Limited, outlined the company’s role in the new agreement.

“We are delighted to have signed this MOU with GA-ASI to explore collaboration opportunities related to the MQ-9B. Leveraging the technological capabilities Fujitsu has cultivated in the defense sector, as well as our extensive experience in maintenance and operational support, we will contribute to strengthening a sustainable maintenance framework for the MQ-9B in Japan. This MOU marks the first step toward advancing the collaboration between our companies.”

AirPro News analysis

We view the Partnerships between GA-ASI and Fujitsu as a necessary maturation of the MQ-9B program in Japan. The transition from a contractor-operated leasing model to direct government ownership requires a robust, localized sustainment network. By aligning with Fujitsu, which already possesses a decade of experience supporting JMSDF maritime patrol aircraft, GA-ASI mitigates supply chain risks and ensures higher operational availability for a platform that has become central to Japan’s maritime domain awareness strategy.

Sources: Fujitsu Limited

Photo Credit: GA-ASI

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