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XTI Aerospace Shifts Focus to Drone Market with Drone Nerds Acquisition

XTI Aerospace pivots from TriFan 600 VTOL program to drone market after acquiring Drone Nerds, cutting spending and leveraging FCC drone ban.

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This article is based on an official press release from XTI Aerospace.

XTI Aerospace Pivots to Drone Market, Reduces Spending on TriFan 600 VTOL Program

XTI Aerospace (Nasdaq: XTIA) has officially announced a fundamental transformation of its business strategy, shifting its primary focus from the capital-intensive development of vertical takeoff and landing (VTOL) aircraft to the immediate revenue potential of the unmanned aircraft systems (UAS) market. In a letter to shareholders issued on January 20, 2026, CEO Scott Pomeroy detailed the company’s acquisition of Drones Nerds, LLC, and the subsequent restructuring of its priorities.

The strategic pivot comes as the company seeks to stabilize its financial foundation. According to the shareholder letter, XTI Aerospace will direct its near-term resources toward scaling Drone Nerds, a U.S.-based provider of enterprise drone solutions acquired in November 2025. Consequently, the company is significantly reducing expenditure on its long-standing TriFan 600 aircraft program.

This move transitions XTI from a pre-revenue development stage company into an operation generating substantial income. The company reported that Drone Nerds generated over $100 million in revenue in 2024, a figure that stands in stark contrast to XTI’s historical financial profile.

Acquisition of Drone Nerds and Financial Impact

The centerpiece of XTI’s new strategy is the integration of Drone Nerds, which XTI acquired for approximately $40 million. In his letter, Pomeroy highlighted the financial logic behind the deal, noting that the purchase price represented a multiple of less than 0.4x the subsidiary’s annualized 2025 revenue.

Drone Nerds founders Jeremy Schneiderman and Alex Nafissy have joined XTI to lead the subsidiary’s daily operations. The acquisition has already impacted market perception; the company noted that its market capitalization rebounded from under $10 million in April 2025 to nearly $65 million as of January 16, 2026. On that same date, XTI shares closed at $1.88.

Additionally, the company secured a private placement investment from Unusual Machines Inc., a manufacturer of drone components compliant with the National Defense Authorization Act (NDAA). This partnership is expected to bolster XTI’s position in the domestic drone market.

Future of the TriFan 600 Program

For years, XTI Aerospace was defined by its ambition to certify the TriFan 600, a fixed-wing VTOL aircraft designed to combine the speed of a business jet with the versatility of a helicopter. However, the new strategic direction places this program in a holding pattern.

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The CEO stated that spending on the TriFan 600 will be reduced to the “lowest practical level.” The company intends to preserve the program’s intellectual property and certification capabilities but will not prioritize it for capital allocation in the near term. Pomeroy addressed the future of the aircraft in his letter:

“Our goal is to evaluate non-dilutive funding or strategic opportunities to unlock the aircraft program’s value in the future without draining current cash reserves.”

This decision reflects the high capital requirements and long development timelines associated with certifying new manned aircraft, a challenge that has affected the broader VTOL sector.

Regulatory Tailwinds: The FCC Ban

The timing of XTI’s pivot coincides with significant regulatory changes in the United States. On December 22, 2025, the Federal Communications Commission (FCC) added foreign-made drones and components to its “Covered List.” This action prohibits new equipment authorizations for affected foreign manufacturers, effectively preventing them from marketing new models in the U.S.

XTI Aerospace views this regulatory landscape as a major opportunity. As a U.S.-based provider with established domestic supply chains, Drone Nerds is positioned to capture market share vacated by banned foreign competitors. The company aims to leverage this “FCC Ban” to expand its footprint in sectors such as public safety, energy, construction, and government services.

AirPro News Analysis

The strategic pivot by XTI Aerospace illustrates a growing trend in the advanced air mobility sector: funding fatigue. Developing clean-sheet VTOL aircraft requires billions of dollars and years of certification work with no guarantee of success. By acquiring a revenue-positive entity like Drone Nerds, XTI has effectively bought itself a lifeline, moving away from the “cash burn” model typical of eVTOL startups.

While the TriFan 600 remains technically on the books, the language regarding “lowest practical level” spending suggests it is effectively dormant until external funding appears. This pragmatic shift may serve as a blueprint for other struggling aerospace developers looking to survive in a capital-constrained environment.

Sources

Sources: XTI Aerospace CEO Letter to Shareholders (PR Newswire)

Photo Credit: XTI Aerospace – Montage

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UAV & Drones

Windracers ULTRA Mk2 Drone Launches with 2,000km Range and Heavy-Lift

Windracers introduces the ULTRA Mk2 drone featuring a 2,000km range, 150kg payload, and aviation-grade propulsion for defense and humanitarian logistics.

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This article is based on an official press release from Windracers.

Windracers Unveils ULTRA Mk2: A Heavy-Lift Drones with 2,000km Range

Windracers has officially launched the ULTRA Mk2, the second generation of its flagship autonomous cargo aircraft. Announced at the “Windracers LAUNCH 2026” event in London on January 15, the new platform represents a significant leap in performance, doubling the range of its predecessor to 2,000 kilometers (1,240 miles). According to the company, this range capability places the ULTRA Mk2 in a select tier of “middle-mile” logistics drones capable of cross-continental flights.

The Southampton-based manufacturer positions the aircraft as a rugged, cost-effective solution for defense, humanitarian aid, and commercial logistics. The platform has already been flight-verified carrying a 100kg payload over the 2,000km distance, roughly equivalent to a flight from London to Marrakesh. A configuration designed to carry 200kg over the same distance is currently in development.

Technical Evolution: From Prototype to Production

The transition from the Mk1 to the Mk2 involves substantial hardware upgrades aimed at mass production and reliability. The most critical enhancement, according to technical specifications released by Windracers, is the propulsion system. The aircraft has moved from industrial engines to aviation-grade propulsion.

Propulsion and Aerodynamics

The ULTRA Mk2 replaces the previous Briggs & Stratton engines with two German-made Hirth F23 two-stroke engines. This upgrade doubles the power output from approximately 25hp to 50hp per engine. Consequently, the Maximum Take-Off Weight (MTOW) has increased to 510kg, allowing for heavier fuel and cargo loads.

Aerodynamically, the airframe retains its 10-meter wingspan and twin-boom fuselage but introduces a new inverted V-tail design. Windracers states that this design change reduces drag and part count, contributing to the platform’s improved fuel efficiency.

Payload Capabilities

While the aircraft maintains a “drop-floor” bay for precise parachute deliveries, a feature utilized in military and humanitarian scenarios, the payload capacity has seen a marked increase. The Mk2 offers a nominal payload of 150kg, with a maximum capacity of up to 200kg.

“With its combination of heavy-lift capability and 2,000km range now in development, Windracers ULTRA sits among a select group of long-endurance UAS that are redefining what is possible in both civil and defence operations.”

, Stephen Wright, Founder and Chairman of Windracers

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Operational History and Strategic Use Cases

Unlike many conceptual drones in the logistics sector, the Windracers platform has logged significant real-world flight hours. The company describes the aircraft as the “Jeep of the skies,” prioritizing utility and ruggedness over speed or luxury.

The platform is currently active in several high-stakes environments:

  • Defense: The system is operational in Ukraine, providing intelligence, surveillance, and reconnaissance (ISR) and logistics support. It is also used by the Royal Navy and British Army for resupply in contested environments.
  • Scientific Research: The British Antarctic Survey utilizes the drone for environmental data collection in extreme polar conditions.
  • Humanitarian Aid: The aircraft is designed to deliver aid to remote regions, such as South Sudan, where ground infrastructure is lacking.

AirPro News Analysis

The introduction of the ULTRA Mk2 significantly alters the competitive landscape for middle-mile cargo drones. By achieving a 2,000km range, Windracers moves closer to the capabilities of the Dronamics “Black Swan,” which boasts a range of approximately 2,500km. However, the two platforms serve slightly different niches.

While the Black Swan is larger with a 350kg payload, Windracers emphasizes a “low-cost” and “rugged” philosophy suitable for austere environments with poor runway quality. This contrasts with VTOL (Vertical Take-Off and Landing) competitors like the Elroy Air “Chaparral,” which requires no runway but is limited to a much shorter range of roughly 480km. Windracers appears to be betting that the trade-off of requiring a short runway (STOL) is worth the four-fold increase in range for cross-border and maritime operations.

Furthermore, the explicit mention of “sovereign capability” by UK officials suggests that Windracers is securing a foothold as a strategic national asset, insulating it somewhat from the purely commercial pressures faced by other drone logistics startups.

Future Developments

Windracers has indicated that the high-capacity configuration, capable of hauling 200kg over the full 2,000km range, is expected to be available in the coming months. The avionics system remains “masterless,” meaning the aircraft operates autonomously without the need for a remote pilot, a key factor in reducing operational costs for large-scale logistics networks.

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Photo Credit: Windracers

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Oklahoma Advances Autonomous Aviation with FlightHorizon Air Traffic System

Oklahoma deploys Vigilant Aerospace’s FlightHorizon to enable safe BVLOS drone operations and expands airspace coverage at its Air & Space Port.

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This article is based on an official press release from Vigilant Aerospace and public reporting.

Oklahoma Cements Status as Autonomous Aviation Hub with Advanced Air Traffic System

In a decisive move to secure its position as a national leader in the unmanned aerial systems (UAS) sector, the Oklahoma Department of Aerospace and Aeronautics (ODAA) has successfully deployed a cutting-edge air traffic management system at the Oklahoma Air & Space Port. The initiative, which began with a Contracts awarded to Oklahoma City-based Vigilant Aerospace in February 2025, utilizes the company’s FlightHorizon software to enable safe Beyond Visual Line-of-Sight (BVLOS) drone operations.

According to the official announcement, the project aims to replace traditional human “visual observers” with “electronic observers.” This shift allows unmanned aircraft to fly longer distances without the logistical burden of a chase plane, a capability essential for the commercial viability of drone delivery and advanced air mobility services. As of early 2026, reports indicate the system is fully operational and undergoing significant expansion.

Establishing a “Digital Twin” of the Airspace

The core of this infrastructure project is Vigilant Aerospace’s FlightHorizon command-and-control system. The Software creates a real-time “digital twin” of the airspace by fusing data from ground-based Radar-Systems and aircraft transponders. This allows operators to visualize and track air traffic across a vast area, ensuring that unmanned systems can safely coexist with general aviation.

NASA-Licensed Technology

The system’s reliability is rooted in its development history. FlightHorizon is built on two exclusively licensed NASA patents invented at the Armstrong Flight Research Center. According to technical specifications released regarding the project, these patents cover:

  • Patent No. 9,405,005: Methods for integrating aircraft transponders into unmanned systems for collision avoidance.
  • Patent No. 10,302,759: Technology that fuses radar data with other inputs, allowing the system to detect “non-cooperative” traffic, aircraft that are not broadcasting a transponder signal.

By acting as an automatic detect-and-avoid system, the software predicts flight trajectories and issues avoidance commands to pilots or autopilots, meeting critical FAA safety standards.

“Oklahoma understands the importance of the autonomous aviation industry for the state and our nation and is taking the lead… We are proud that our technology can serve as the cornerstone of this initiative.”

Kraettli Epperson, CEO of Vigilant Aerospace (Feb 2025)

Operational Status and Network Expansion

While the initial contract was signed in early 2025, recent updates confirm the project has moved rapidly into the execution phase. According to operational reports from September 2025, the system was successfully installed and active at the Oklahoma Air & Space Port in Burns Flat, one of only 14 FAA-licensed spaceports in the United States.

During live training exercises conducted in late 2025, the system demonstrated the ability to correlate data from mobile surveillance radars (provided by partner DeTect, Inc.) and ADS-B transponders. This capability allowed instructors to monitor live flights alongside virtual scenarios, validating the system’s utility for complex training environments.

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Expanding the Safety Corridor

Following the successful initial deployment, the coverage area is currently being expanded. Data indicates the sensor network is growing from an initial 5,000 square kilometers to approximately 10,000 square kilometers. This massive corridor is designed to facilitate long-range autonomous flight testing, positioning Oklahoma as a prime location for aerospace companies preparing for future regulatory shifts.

Structurally, the state’s oversight of this sector has also evolved. In July 2025, the Oklahoma Space Industry Development Authority (OSIDA) was merged into the ODAA, consolidating state aerospace and space oversight under a single agency to streamline operations and funding management.

AirPro News Analysis

The timing of Oklahoma’s investment, funded via the 2022 “Preserving Rural Economic Prosperity” (PREP) fund, appears strategically aligned with federal regulatory timelines. With the aviation industry anticipating the finalization of the FAA’s Part 108 rule in 2026, which will normalize BVLOS operations, Oklahoma is effectively building a “field of dreams” infrastructure.

By establishing the physical safety net (radars) and the digital framework (FlightHorizon) ahead of the rule, the state removes a significant capital barrier for private companies. Instead of building their own surveillance networks, Drones operators can plug into Oklahoma’s existing system. This approach not only attracts commercial drone delivery and air taxi firms but also complements Vigilant Aerospace’s growing portfolio, which includes a spot on a $46 billion U.S. Air-Forces contract awarded in June 2025.

Frequently Asked Questions

What is BVLOS?
BVLOS stands for Beyond Visual Line-of-Sight. It refers to drone operations where the pilot cannot see the aircraft with their naked eye. Safe BVLOS is required for long-distance applications like package delivery, infrastructure inspection, and agriculture.

Where is the system located?
The system is deployed at the Oklahoma Air & Space Port at Clinton-Sherman Airport in Burns Flat, Oklahoma.

Who funded this project?
The project was funded by the Oklahoma Legislature through the “Preserving Rural Economic Prosperity” (PREP) fund.

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Photo Credit: Vigilant Aerospace

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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:

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  • 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.

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Photo Credit: Elroy Air

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