Delta Partners With Flying-Taxi Maker For Rides To Airports

Delta Air Lines, Inc DAL forged a multi-year, multi-market commercial and operational partnership with Joby Aviation, Inc JOBY, to deliver transformational, sustainable home-to-airport transportation service to Delta customers, beginning in New York and Los Angeles.
Delta has made an upfront equity investment of $60 million in Joby for a 2% stake in Joby, with the opportunity to expand the total investment up to $200 million as the partners achieve substantive milestones on the development and delivery of the service.
Over the past two years, air-taxi manufacturers raised more than $7 billion from investors. However, shares in companies including Joby have fallen as investors grew concerned about potential delays in entering revenue service, the Wall Street Journal reports.
Also Read: United Invests Another $15 Million in Electric Flying Taxi Market with Eve
The partners will work together to create a differentiated, premium experience for Delta customers featuring seamless booking, simplified transit, and more significant time savings.
The partnership will be mutually exclusive across the U.S. and U.K. for five years following the commercial launch, potentially extending that period.
Companies involved in the nascent air taxi industry worked to obtain certification for their aircraft and how those vehicles are flown, among other permissions.
Bastian said he envisioned the service as part of Delta’s premium offering. But that won’t necessarily mean the price tag will be prohibitive, Joby CEO JoeBen Bevirt said.
Its peer, United Airlines Holdings, Inc UAL expects pricing for its electric flying-taxi service to be comparable to a ride in an Uber Technologies, Inc UBER Black car.
Price Action: DAL shares traded higher by 2.41% at $30.13 in the premarket on the last check Tuesday.
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