When Embraer spinoff Eve on Dec. 21 confirmed plans to combine with Zanite Acquisition Corp., it became the sixth company in the urban air mobility space to link up with a special purpose acquisition company (SPAC). Rather than speak to the continued strength of SPACs, however, the deal illustrates the funding vehicle’s decline as an ample source of outside capital — even as it cements Embraer’s strategy of using partnerships to expand into new markets.
While such deals across the rising eVTOL industry seemingly represent a new aerospace business model in which customers have a stake in the overall success of the product, a detailed review of securities filings and other fine print by The Air Current reveals a far more transactional arrangement. Airlines are lending their branding and credibility in exchange for a possibly lucrative piece of a buzzy market, regardless of whether or not an aircraft will be delivered or even formally ordered.
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