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The fascinating fine print behind Delta’s bet on Joby

Delta is making a real commitment to eVTOL developer Joby Aviation, with a clear appreciation for the risks involved.

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Release Date
October 12, 2022
The fascinating fine print behind Delta's bet on Joby
For nearly two years, Delta Air Lines has been conspicuously absent from the urban air mobility bandwagon, with Chief Executive Ed Bastian telling investors only that the company was “studying the space” as competitors United Airlines and American Airlines lined up their own deals with developers of electric vertical take-off and landing aircraft.

Now, Delta is getting on board in a big way, announcing a $60 million equity investment in eVTOL developer Joby Aviation and plans to develop a premium home-to-airport service using Joby’s electric air taxis.

Related: Airlines lend brands for cheap eVTOL shares

In an industry that is still another two years or more away from commercial service, Delta’s late arrival is not a major handicap. Indeed, a close review of filings with the U.S. Securities and Exchange Commission suggests that Delta has likely vaulted ahead of United and American in the UAM race, establishing a substantive agreement with a pioneering eVTOL developer that has an impressive head start on certification.

Yet, this meaningful commitment to the UAM sector also comes with a heightened awareness of its risks. The airline’s agreement with Joby implicitly acknowledges that eVTOL aircraft could be difficult to certify and expensive to insure — and that any serious accident could destroy public confidence in them.

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