Merlin, Inc. and Israel Aerospace Industries (IAI) have signed a Memorandum of Understanding (MoU) to integrate AI-powered autonomous flight systems into large commercial cargo aircraft. The agreement, announced on July 23, 2026, targets the integration of Merlin’s autonomy technology into IAI’s passenger-to-freighter conversion programs.

The partnership aims to lay the groundwork for civil certification and commercial deployment of autonomous flight technologies within the global air cargo network. According to a press release issued by Merlin, the collaboration will focus on the company’s “Condor” product family, an autonomy system designed specifically for large, multi-crew Part 25 aircraft.

Integrating autonomy into freighter conversions

IAI operates a major passenger-to-freighter conversion business. The Israeli aerospace manufacturer holds the Federal Aviation Administration (FAA) supplemental type certificate for the first Boeing 777-300ERSF freighter conversion and is actively developing a conversion program for the Airbus A330-300.

By partnering with IAI, Merlin intends to embed its certifiable autonomy architecture directly into these heavy-lift cargo platforms. Merlin Chief Executive Officer Matt George noted that IAI’s expertise in aircraft certification, advanced avionics, and freighter conversions makes the manufacturer a critical partner for the Condor program.

“Merlin’s collaborations with IAI and World Star Aviation reflect growing industry recognition that AI-powered autonomy can enhance safety, improve operational efficiency, and help operators scale existing fleets to meet increasing demand,” George stated.

The MoU follows Merlin’s May 14, 2026, introduction of the Condor product family. At that time, the Boston-based company outlined its strategy to bring aircraft-agnostic AI autonomy to commercial transport, beginning with the cargo sector through a relationship with aircraft lessor World Star Aviation.

Strategic positioning and financial context

The agreement aligns with broader growth initiatives for both companies. IAI reported $7.4 billion in revenue and $712 million in profit last year, maintaining a current order backlog of $29 billion. The state-owned aerospace company is currently preparing for an Initial Public Offering (IPO) on the Tel Aviv Stock Exchange, with a potential dual-listing on the Nasdaq, targeting an estimated valuation between $25 billion and $30 billion.

Merlin brings its own established defense contracts to the commercial partnership. The company holds an indefinite-delivery/indefinite-quantity (IDIQ) contract with the United States Special Operations Command (USSOCOM) for a C-130J autonomy program, which carries a total ceiling value exceeding $100 million.

IAI Chairman of the Board Boaz Levy highlighted the strategic nature of the agreement, noting that autonomy will play an increasingly important role in the years ahead.

“Our collaboration with Merlin reflects a shared commitment to advancing next-generation capabilities that can enhance safety, efficiency, and operational flexibility across the aviation industry,” Levy said.

AirPro News analysis

We view this MoU as a significant step in the maturation of autonomous flight technology from experimental defense applications to commercial Part 25 operations. While the agreement remains non-binding and specific initial platform selections are pending future phases, aligning with an established conversion house like IAI provides Merlin with a realistic pathway to FAA certification.

The cargo sector has long been identified as the logical entry point for large-scale autonomous operations. By targeting passenger-to-freighter conversions rather than clean-sheet aircraft designs, Merlin and IAI can leverage proven airframes like the Boeing 777-300ERSF and Airbus A330-300. This approach mitigates the aerodynamic and structural certification risks, allowing regulators to focus primarily on the autonomy systems and human-machine interface.

Sources: Merlin, Inc.

Dutch aviation startup Vlindair has launched with the objective of becoming Europe’s first all-electric regional passenger airline, targeting a 2031 entry into service for routes up to 500 kilometers.

In a company announcement released in July 2026, Vlindair outlined a five-year pre-launch strategy focused on securing landing rights, evaluating route demand, and establishing operational infrastructure ahead of aircraft certification. The company intends to operate first-generation electric passenger aircraft, specifically evaluating nine-seat models, as European Union Aviation Safety Agency (EASA) certification timelines mature.

Phased operational strategy

Rather than immediately acquiring aircraft, Vlindair is dedicating its initial five years to building the necessary ecosystem for commercial electric-aviation. The company cited the variable nature of aircraft development and certification timelines as the primary driver for this phased approach.

According to a 2024 report by Deloitte cited by the startup, electric aircraft could serve nearly 300 million passengers annually on intra-European Union flights by 2040. Vlindair aims to capture a portion of this emerging market by establishing the commercial framework early.

“We are not just here to be part of that market, we want to help shape it,” said Vlindair co-founder Yona Hümmels. “This means for the next years, our job is not to fly, but to build a movement by making the case to travellers, to communities, to airports, and to policymakers that electric aviation is something Europe should back.”

The company is currently raising seed funding and engaging with sustainable mobility investors across Europe to finance this pre-launch phase.

Industry partnerships and advisory board

To support its operational development, Vlindair has assembled an advisory network featuring established European aviation stakeholders. The startup is receiving strategic advice, knowledge sharing, and innovation support from Transavia Ventures.

Nico Gielen, Director of Transavia Ventures, noted that a dedicated commercial operator has been the missing component in the electric aviation ecosystem. He described Vlindair’s approach as substantive, operationally grounded, and well-positioned within the European market.

The company also announced its initial advisory board members, drawing from various sectors of the Dutch aviation industry:

• Merlijn van Vliet, CEO of NRG2fly and E-Flight Academy
• Gerben Groothuis, Innovation Director at Twente Airport
• Kristina Palovicova, Lead Sustainability & Innovation at Transavia

Vlindair co-founder Sietse Bakker stated that the technology is arriving and the environmental case is undeniable. He emphasized that the company’s focus is on being ready when the aircraft are certified, aiming to create maximum value for passengers, regions, and investors.

AirPro News analysis

We note that Vlindair’s timeline aligns with the projected maturation of several European nine-seat electric aircraft programs currently in development. By focusing on the operational and regulatory groundwork now, the startup is attempting to solve the infrastructure side of the zero-emission equation before the hardware is fully certified. The 500-kilometer range target is realistic for first-generation battery-electric technology, capturing a segment of the European short-haul market that is under increasing regulatory pressure to decarbonize. Securing landing rights and establishing charging infrastructure at regional airports will likely be the most significant hurdles during the company’s five-year pre-launch phase.

Sources: Vlindair, Deloitte

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