Technology & Innovation
Merlin and IAI Partner on AI Autonomy for Cargo Freighters
Merlin and IAI sign MoU to integrate AI-powered autonomy into 777-300ERSF and A330-300 freighter conversions.

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.
Photo Credit: Merlin, Inc.
Technology & Innovation
Vlindair Launches as Europe’s First All-Electric Regional Airline
Dutch startup Vlindair targets 2031 service launch on routes up to 500 km, spending five years building infrastructure ahead of EASA certification.

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.
Photo Credit: Vlindair
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
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