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Joby Aviation Raises $1 Billion for FAA Certification and 2026 Launch

Joby Aviation initiates $1 billion offering of convertible notes and stock to fund FAA certification, manufacturing, and 2026 commercial launch including Dubai.

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This article is based on an official press release from Joby Aviation.

Joby Aviation Initiates $1 Billion Capital Raise to Secure Commercial Launch Runway

Joby Aviation (NYSE: JOBY), a leader in the development of electric vertical take-off and landing (eVTOL) aircraft, announced on January 28, 2026, that it has launched a concurrent offering of convertible senior notes and common stock. The company aims to raise approximately $1 billion in aggregate gross proceeds to fund its final push toward Federal Aviation Administration (FAA) certification and the launch of commercial passenger operations.

According to the company’s announcement, the capital raise is structured as two separate but concurrent public offerings: the issuance of Convertible Senior Notes due 2032 and a direct sale of Common Stock. The move comes as Joby prepares for a targeted commercial entry in 2026, including operations in Dubai and other key markets.

Following the announcement, market data indicates that shares of Joby Aviation fell approximately 8–11% in after-hours trading on January 28. This reaction reflects typical investor sentiment regarding share dilution, despite the strategic necessity of the capital injection.

Breakdown of the Financial Offerings

The proposed offering is complex, involving both debt and equity instruments designed to maximize capital while attempting to manage dilution for existing shareholders. The offerings are being managed by underwriters including Morgan Stanley and Allen & Company LLC.

Convertible Senior Notes and Common Stock

Joby is offering debt securities in the form of Convertible Senior Notes that mature in 2032. These notes offer investors the ability to convert their debt into stock at a later date, providing potential upside if the company’s value increases. Concurrently, the company is selling shares of common stock directly to the public.

The “Delta Offering” and Capped Calls

To facilitate the transaction, the deal includes specific financial mechanisms aimed at hedging risk. As detailed in the offering context, a “Delta Offering” allows the banking partners to borrow and sell Joby shares. This activity facilitates hedging for investors buying the convertible notes but creates immediate selling pressure on the stock.

Additionally, Joby intends to use a portion of the proceeds to fund “capped call transactions.” These serve as an insurance policy against dilution. If Joby’s stock price rises significantly in the future, these capped calls reduce the number of new shares the company must issue to note holders upon conversion, thereby protecting the ownership percentage of current shareholders.

Strategic Rationale and Use of Proceeds

In its official statement, Joby Aviation outlined specific uses for the $1 billion war chest. The primary focus is bridging the gap between the capital-intensive development phase and revenue-generating commercial operations.

“Joby intends to use the net proceeds from the offerings… to fund its certification and manufacturing efforts, prepare for commercial operations, and for general corporate purposes.”

, Joby Aviation Press Release

Key allocation areas include:

  • FAA Certification: Completing the final stages of Type Certification (Stage 4 of 5).
  • Manufacturing Expansion: Scaling production facilities in Ohio and California to meet fleet demands.
  • Commercial Launch: Building infrastructure and training pilots for the planned 2026 launch, including the exclusive six-year operating agreement in Dubai.

AirPro News Analysis: The Cost of Certification

While a $1 billion raise is substantial, it aligns with the immense costs associated with aerospace development. As of the third quarter of 2025, Joby reported a net loss of approximately $401 million for the quarter alone. Although the company projected liquidity of roughly $1.4 billion by the end of 2025, bolstered by a previous raise in October, the burn rate required to achieve mass manufacturing and certification remains high.

We assess that this capital raise is a defensive measure to ensure the company does not face a liquidity crunch right as it enters its most critical operational phase. By securing funds now, Joby avoids the risk of needing to raise capital later under potentially less favorable market conditions.

Partnerships and Market Position

The capital raise is supported by a backdrop of strong strategic partnerships. Toyota Motor Corporation remains Joby’s largest external shareholder and a critical industrial partner. As of May 2025, Toyota had committed a total of $894 million to Joby, assisting directly with manufacturing processes and quality control.

Furthermore, Joby’s acquisition of Blade Air Mobility’s urban air mobility division in late 2025 has provided the company with immediate revenue streams and access to passenger terminals in key markets like New York and Europe. Despite these revenue sources, the company remains in a pre-profit growth phase, making external capital vital for survival.

Frequently Asked Questions

Why did Joby’s stock price drop after the announcement?
The stock dropped 8–11% in after-hours trading due to “dilution risk.” When a company issues new stock, the value of the company is spread across more shares, which can lower the price of individual existing shares. Additionally, the “Delta Offering” creates immediate selling pressure from hedging activities.

What is a Convertible Senior Note?
It is a type of debt security that pays interest (or has a zero coupon) and can be converted into a predetermined number of common stock shares or cash. It allows companies to borrow money at lower interest rates than traditional loans in exchange for giving lenders potential equity upside.

When will Joby Aviation begin commercial flights?
Joby is targeting 2026 for its initial commercial passenger operations, with Dubai expected to be one of the first launch markets.

Sources

Photo Credit: Joby Aviation

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Technology & Innovation

Safran and H55 Partner for Certified Electric Propulsion in Bristell B23 Energic

Safran and H55 collaborate to integrate a certified electric propulsion system into the Bristell B23 Energic, targeting pilot training and serial production in 2027.

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This article is based on an official press release from H55 and Safran.

Safran Electrical & Power and H55 have officially partnered to integrate the Safran ENGINeUS electric motor into H55’s Electric-Aviation propulsion system. The collaboration, announced in a joint company press release, will power the fully electric Bristell B23 Energic aircraft, marking a significant step forward for zero-emission general aviation.

The agreement targets the certification of electric propulsion solutions for CS-23 and Part 23 Level 1 and 2 aircraft. By combining Safran’s European Union Aviation Safety Agency (EASA) certified motor technology with H55’s advanced energy storage capabilities, the companies aim to accelerate the availability of certified electric propulsion for next-generation two- to six-seat aircraft.

According to the press release, the Bristell B23 Energic will serve as the initial certification platform, specifically targeting the rapidly expanding electric pilot training market. This sector is increasingly driven by the demand for lower operating costs and zero-emission flight operations.

Accelerating Certified Electric Aviation

Certification remains one of the most significant barriers to entry in the electric aviation sector. Both Safran and H55 have recently achieved key EASA certification milestones, positioning their partnership to deliver a comprehensive, certifiable electric propulsion system to original equipment manufacturers (OEMs).

Safran Electrical & Power has committed to supporting both the prototype and serial production phases of the Bristell B23 Energic, which are slated to begin in 2027. The company will also provide dedicated in-service support for the aircraft once it enters operation.

“As the only certified electric motor in the aviation market, ENGINeUS continues to set the industry standard, offering an outstanding power-to-weight ratio and proven, reliable performance,” said Agnès Pronost-Gilles, Executive Vice President & General Manager of the Power Division at Safran Electrical & Power.

The Bristell B23 Energic Platform

The Bristell B23, manufactured by Czech-based BRM AERO, is already a popular platform among flight schools in Europe and North America. The aircraft is currently certified under both EASA and Federal Aviation Administration (FAA) regulations and is available in several engine configurations. According to the company, the manufacturer currently produces more than 110 aircraft annually.

Integrating the combined H55 and Safran electric powertrain allows operators to transition to zero-emission training with minimal disruption. Flight schools will benefit from the same cockpit and support network while utilizing a new, environmentally friendly powertrain.

“When you combine the standard-bearer for certified energy storage with the standard-bearer for certified electric motors, you give OEMs something they haven’t had: a complete, certifiable electric propulsion system,” noted Rob Solomon, CEO of H55.

AirPro News analysis

We view the Partnerships between H55 and Safran as a maturing of the electric aviation supply chain. Instead of OEMs attempting to develop bespoke electric powertrains from scratch, they can now rely on established aerospace suppliers for certified, off-the-shelf components. H55 brings eight years of experience building battery architectures, which complements Safran’s established manufacturing scale.

By targeting the pilot training market first, H55 and Safran are focusing on a segment where the limitations of current battery technology, namely range and endurance, are less restrictive. Flight training typically involves short, frequent flights, making it an ideal use case for early electric aircraft adoption and a practical stepping stone toward larger zero-emission platforms.

Frequently Asked Questions

What aircraft will use the new electric propulsion system?

The fully electric Bristell B23 Energic, manufactured by BRM AERO, will be the first aircraft to utilize the integrated Safran and H55 propulsion system.

When will serial production begin?

According to the companies’ official announcement, Safran will support prototype and serial production phases beginning in 2027.

What makes this partnership significant for electric aviation?

The collaboration combines Safran’s EASA-certified ENGINeUS electric motor with H55’s certified energy storage architecture, providing aircraft manufacturers with a complete, certifiable electric propulsion system that reduces development time and risk.

Sources

Photo Credit: H55

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Airbus Launches Modular Multi-Orbit Aircraft Connectivity Platform

Airbus introduces HBCplus, a modular connectivity system enabling multi-orbit satellite access and flexible upgrades by 2028.

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In an era where passengers expect their in-flight internet to mirror the speeds and reliability of their home networks, we are seeing Airbus push to transform the aviation connectivity landscape. According to an official press release from the aerospace manufacturer, the company is shifting the industry away from closed, proprietary systems and toward open, adaptable architectures.

Historically, upgrading an aircraft’s satellite connectivity was a cumbersome process. It required grounding the plane for extensive structural modifications, as each antenna needed a customized mounting plate specific to a single satellite communications (satcom) provider. This often left Airlines locked into one vendor, struggling to keep pace with rapid technological advancements.

To address these challenges, Airbus has detailed its “Connected Aircraft” ambition, which unifies hardware, software, and satellite networks. By providing end-to-end connectivity, the company aims to help airlines deliver a seamless digital experience for passengers while simultaneously boosting operational efficiency and data visibility.

The HBCplus Platform and Modular Upgrades

At the core of this connectivity overhaul is HBCplus, an aviation-grade installation designed by Airbus to offer unprecedented flexibility. The system allows aircraft to connect to multiple satcom providers operating across various satellite orbits, ensuring that an aircraft’s access is no longer restricted to a single network during operations.

As outlined in the company’s press release, Airbus is developing a new modular approach for the HBCplus system. This upgrade will enable access to major Low Earth Orbit (LEO) constellations, specifically naming Amazon LEO, OneWeb, Telesat, and SpaceSail. The modular design can accommodate up to two antennas and allows airlines to switch or update their vendors through a simple overnight retrofit, drastically reducing aircraft downtime.

The next iteration of the HBCplus system is planned to enter service in 2028. It will incorporate a modular antenna system based on Electronically Steered Antenna (ESA) technology, optimizing speed, cost, and geographic coverage.

“Connectivity is a fast moving market, with new service providers and antenna technologies evolving rapidly. Thanks to our HBCplus modular solution, we will provide our customer with a flexible platform, providing access to the most competitive technology and service provider options at all times,” said Tim Sommer, Airbus Vice President and Head of Connected Aircraft Programme, in the press release.

Multi-Orbit Satellite Integration

LEO, MEO, and GEO Capabilities

To guarantee a reliable global connection, the Airbus Connected Aircraft utilizes a combination of different satellite orbits, each serving a specific purpose in the connectivity ecosystem.

A major focus of the new architecture is Low Earth Orbit (LEO) technology. Orbiting at altitudes between 500 and 2,000 kilometers, LEO constellations consist of hundreds of moving satellites that provide very low latency (under 50 milliseconds) and true global coverage, including remote polar routes.

The system also integrates Medium Earth Orbit (MEO) satellites, positioned at approximately 8,000 kilometers, which offer high throughput and a round-trip latency of about 150 milliseconds. While not as fast as LEO, MEO speeds are more than sufficient for high-speed video conferencing. Finally, Geostationary Earth Orbit (GEO) satellites, located 36,000 kilometers above the equator, complement the network by providing additional bandwidth for specific use cases, despite a higher latency of over 600 milliseconds.

Open Digital Ecosystem

Beyond hardware and satellite links, Airbus is introducing a new open and scalable digital platform. Built as an end-to-end integrated operating system, this platform aggregates and manages data by combining onboard systems, ground systems, AI, and Internet of Things (IoT) devices such as sensors and cameras.

According to the Airbus release, this digital infrastructure turns the aircraft into a powerful asset. Airlines will have the capability to upload existing applications, such as Airbus’s own Skywise, integrate third-party software, or even develop their own custom applications to optimize daily operations and personalize the passenger journey.

AirPro News analysis

In our view, the transition to an agnostic, modular connectivity framework represents a significant operational shift for the airline industry. By eliminating the structural airframe modifications previously required to change satcom providers, we believe Airbus is effectively breaking the vendor lock-in that has long plagued airline IT procurement. The ability to perform overnight retrofits not only protects the airline’s hardware investments but also ensures that carriers can dynamically negotiate with satellite providers based on performance and cost, rather than being tethered to legacy hardware. Furthermore, we note that the integration of AI and IoT into an open operating system suggests that in-flight connectivity is evolving from a mere passenger amenity into a critical operational tool for predictive maintenance and real-time fleet management.

Frequently Asked Questions (FAQ)

What is Airbus HBCplus?
HBCplus is an aviation-grade connectivity installation developed by Airbus that allows aircraft to connect to multiple satellite communications providers across different orbits, eliminating the need to be locked into a single network.

When will the next iteration of HBCplus be available?
According to Airbus, the next iteration of the HBCplus system, which will feature Electronically Steered Antenna (ESA) technology, is planned to enter service in 2028.

What satellite orbits does the Airbus system use?
The system utilizes a multi-orbit approach, combining Low Earth Orbit (LEO) for low latency and polar coverage, Medium Earth Orbit (MEO) for high throughput, and Geostationary Earth Orbit (GEO) for complementary bandwidth.

Sources: Airbus

Photo Credit: Airbus

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Airbus AI Smart Catering Cuts Airline Food Waste by Double Digits

Airbus and Virgin Atlantic test AI Smart Catering to reduce airline cabin food waste using crew tablet cameras and real-time tracking.

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

The global airline industry is grappling with a massive waste problem, generating an estimated 3.6 million tonnes of cabin and catering waste annually. According to an official press release from Airbus, this figure,based on 2024–2025 data from the International Air Transport Association (IATA) and the Aviation Sustainability Forum (ASF),is projected to reach four million tonnes by late 2025. Without intervention, this volume could double by 2040 as passenger numbers continue to climb.

A significant portion of this waste, between 18% and 20%, consists of untouched food and beverages. Due to strict international regulations, much of this untouched food is either incinerated or sent to landfills. To combat this environmental and operational challenge, Airbus has introduced a new artificial intelligence-driven solution aimed at drastically reducing in-flight food waste.

In 2025, Airbus partnered with Virgin Atlantic to test its “Smart Catering” concept in live conditions. The system utilizes AI and data tracking to automatically monitor passenger meal consumption, providing airlines with actionable insights to better match catering supply with actual passenger demand.

Deploying AI on the Catering Trolley

The Smart Catering solution is designed to integrate seamlessly into existing cabin crew workflows without requiring additional hardware. According to the Airbus release, the system utilizes AI software installed on standard crew tablets and mobile devices.

Camera-Based Tracking and Intelligent Assistance

As cabin crew members pull meal trays from the trolley, the device’s existing camera uses AI recognition to identify and track the food and beverages being served. This transparent tracking updates onboard stock in real time. Beyond simply counting meals, the system provides crew members with live inventory status, item locations within specific galleys or trolleys, and crucial allergy and nutritional information.

Elise Weber, Airbus’ Head of Service Ecosystem Connected Aircraft, highlighted the operational benefits for the crew in the company’s statement:

“During the flight tests, the tool provided features like interactive galley search, live inventory, and intuitive dietary information free crew from manual forms and reporting, allowing them to focus on the passenger. The system provided real-time availability and location status of all food and beverage, and could indicate in which trolley and galley they can be found during the flight.”

From Ground Mock-ups to Transatlantic Flights

Before taking to the skies, the Smart Catering system underwent initial testing at a Virgin Atlantic ground cabin mock-up center in the United Kingdom. Following these successful ground trials, the technology was deployed on actual passenger flights to validate its performance in real-world conditions.

Live Flight Trials

Airbus reports that the in-flight reality checks took place on two Virgin Atlantic routes: an A330 flying from London to New York and an A350 traveling from London to Orlando, including their return legs. The data collected during these flights is fed into a “ground cloud,” allowing airlines to analyze route-level insights and quantify precise passenger demand.

Darryl Bailey, Head of Inflight Services at Virgin Atlantic, praised the collaboration in the press release:

“At Virgin Atlantic, we’re always looking for innovative ways to elevate our premium onboard experience while reducing our environmental impact. Collaborating with Airbus on the Smart Catering trials has given us valuable insight into how data and AI can help us better match customer preferences, minimise waste, and operate more efficiently.”

Targeting Double-Digit Waste Reduction

By leveraging fleet-wide catering intelligence, airlines can move away from broad estimations and toward precise demand fulfillment. Airbus notes that this data-driven approach has the potential to yield double-digit reductions in the preventable waste associated with carrying excess food and beverages on board.

AirPro News analysis

The aviation industry’s push toward sustainability often focuses heavily on sustainable aviation fuel (SAF) and next-generation propulsion. However, cabin waste represents a highly visible and immediate area where operational efficiencies can yield tangible environmental benefits. By utilizing existing hardware,such as crew tablets,Airbus is lowering the barrier to entry for airlines looking to adopt smart technologies. If the double-digit waste reduction claims hold true across larger fleet deployments, AI-driven catering could become a standard operational requirement rather than a premium novelty, helping carriers cut both weight-related fuel costs and landfill fees.

Frequently Asked Questions

What is Airbus Smart Catering?
Smart Catering is an AI-driven software solution that uses camera recognition on crew tablets to track passenger meal and beverage consumption, helping airlines reduce food waste.

How much food waste does the airline industry generate?
According to 2024–2025 data cited by Airbus, the industry generates about 3.6 million tonnes of cabin waste annually, with 18% to 20% being untouched food and drink.

When and where was the system tested?
Airbus tested the system in 2025 in partnership with Virgin Atlantic, conducting ground trials in the UK and live flight tests on A330 and A350 aircraft flying from London to New York and Orlando.

Where can the industry see this technology?
A working prototype of the Smart Catering solution is being showcased at the Aircraft Interiors Expo (AIX) in Hamburg from April 14 to April 16, 2026.

Sources

Photo Credit: Airbus

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