Trump administration seeking P3s to advance air taxi sector

Launch of U.K.'s Air-One Vertiport Flying Taxi Project
The Air-One vertiport, developed by Urban-Air Port, for the vertical take-off and landing of flying taxis and autonomous delivery drones, in the U.K. in 2022. President Donald Trump recently signed an executive order accelerating the sector in the U.S.
Chris J. Ratcliffe/Bloomberg

The Trump administration is looking for state and local governments that want to partner with public entities to accelerate the development of electric flying taxis.

The Federal Aviation Administration on Friday announced the Electrical Takeoff and Landing Integration Pilot Program, calling for public-private partnerships that will create a handful of projects to develop so-called advanced air mobility projects. The transportation option has the potential to expand connectivity to rural areas, reduced traffic in cities, and improve emergency services or medical transport, the FAA said.

The FAA is seeking submissions from states, local governments and tribes that collaborate with private companies to expedite the deployment of electric vertical takeoff and landing, or eVTOL, aircraft.

The administration plans to award at least five pilot projects that will run for three years. It's looking for P3s that develop piloted or uncrewed AAM aircraft that will capable of carrying passengers and cargo, as well as developing related technology. The program will help identify regulatory and financing hurdles, the administration said.

"This pilot program gives us another opportunity to advance the administration's plan to accelerate safe eVTOL and advanced air mobility operations across the United States," said FAA administrator Bryan Bedford in a statement. "We will take the lessons learned from these projects to enable safe, scalable AAM operations nationwide." 

The program comes as municipalities, states and airports are considering how to integrate aircraft that are highly automated, electrically powered, and have vertical take-off and landing capability into the existing aviation environment, according to a Government Accountability Office 2024 report.

The sector will require new infrastructure on the ground, such as vertiports and charging stations, some of which may be financed with municipal bonds and public private partnerships. Airport Improvement Program grants may also be used for so-called advanced air mobility infrastructure.

The GAO notes that AAM proponents have proposed locating the infrastructure at airports, cargo logistics hubs, hospitals, and on top of parking garages. Initial AAM operations in the 2025-2028 time frame are expected to primarily use existing airports and heliports, the report said.

Many states and airport operators have already been eying the technology. Utah, for example, in a 2022 report on developing the state's AAM sector, named a variety of financing options for vertiports, including municipal bonds, P3s, and the state infrastructure bank.

The pilot program is the first federal initiative designed specifically to accelerate real world electric air taxi operations in the U.S., said private company Archer Aviation Inc., the "official air taxi provider" for the Los Angeles 2028 Olympics. "This is a landmark moment for our industry," said Archer CEO Adam Goldstein in a statement.

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Public-private partnership Infrastructure Airport revenue bonds Trump administration Washington DC
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