Joby Aviation is set to acquire Blade Air Mobility's passenger business for up to $125 million

Joby Aviation has announced plans to acquire Blade Air Mobility’s passenger business for up to $125 million, including $35 million tied to certain performance milestones and retention of some key employees. As far as available reports, only Blade’s Air mobility passenger business is up for grabs. Its medical organ transplant division is exempt. It will reportedly remain a separate public company rebranded as Strata Critical Medical, but will collaborate with Joby on medical transportation. Joby is making a push into the flying cab business Joby is currently pushing to win Federal Aviation Administration certification of eVTOLs with its CEO, JoeBen Bevirt, claiming the company is set to start FAA Type Inspection flight testing early next year, an important milestone that needs to be achieved before commercial service can begin. Bevirt said the deal allows Joby access to Blade’s existing customers, takeoff and landing locations, and a decade of operating experience. Bevirt tagged it a “launchpad” and called it a “catalyst to really grow the experience” that Blade has built. “We think that clean, quiet aircraft are going to unlock large numbers of new takeoff and landing locations,” Bevirt also added . Blade served over 50,000 passengers in 2024 from 12 urban terminals, including JFK Airport in New York and several Manhattan locations. Those passenger operations are expected to continue and will continue to be led by Blade CEO Rob Wiesenthal, but as a wholly-owned subsidiary of Joby. “We fly more people by helicopter – vertical transportation – than any other company in the world. So with the combination of the infrastructure, the flyers, the routes, a globally recognized brand, it really is to the customer… more of an asset swap,” Wiesenthal said. Wiesenthal says there will be a transition phase that will see the combined company operate both helicopters and Joby aircraft. But at some point over time, it is expected to transition to operating only electric air taxis. Joby is also working on something for the military Joby Aviation’s plans to acquire Blade have made headlines, but the company is engaged in other areas as well. Notably, it has just partnered with L3Harris Technologies to develop a gas turbine hybrid vertical takeoff and landing (VTOL) aircraft for military use. The aircraft is expected to support low-altitude missions and also offer both crewed and autonomous operations. As part of the deal, Joby will contribute aircraft design and manufacturing capabilities, while L3Harris will work on integrating sensors, communications, and autonomy systems. Flight testing is scheduled to begin this fall, and operational demonstrations have been planned to be held during government exercises in 2026. The aircraft will leverage Joby’s existing S4 platform, which the company is adapting with a gas turbine hybrid powertrain. Already, it has demonstrated capabilities for long-range hybrid flights and autonomous operation, but the new aircraft is expected to do more and will reportedly initially target military applications like airborne surveillance, reconnaissance, and contested logistics applications. “Conflicts like Russia, Ukraine, are really changing how people think about low altitude aviation generally,” Joby executive chairman Paul Sciarra said. “Getting something out there that can move very quickly from demonstration to deployability felt especially important.” KEY Difference Wire helps crypto brands break through and dominate headlines fast