Joby Partners with Mukamalah Aviation

Rhea-AI Summary

Joby Aviation (NYSE:JOBY) has partnered with Mukamalah Aviation, a subsidiary of Saudi Aramco, to introduce electric vertical take-off and landing (eVTOL) aircraft to Saudi Arabia. The agreement contemplates the direct sale of Joby aircraft to Mukamalah, which operates the world's largest fleet of corporate aircraft. The collaboration aims to align with Saudi Arabia's Vision 2030 and net-zero emissions by 2060 goals. Joby’s aircraft, capable of carrying five people at speeds up to 200 mph, offers high-speed, low-noise, and zero-emission travel. This move builds on Joby’s recent milestones, including the first air taxi flight in NYC and the commencement of production in California.

Positive

• Agreement with Mukamalah supports Saudi Arabia's Vision 2030 and net-zero emissions by 2060 goals.
• Direct sale of Joby aircraft to Mukamalah potentially expands Joby's market reach.
• Mukamalah operates the world's largest fleet of corporate aircraft, enhancing Joby's market credibility.
• Joby's eVTOL aircraft offers high-speed, low-noise, and zero-emission travel.
• Recent milestones include first air taxi flight in NYC and production start in California.
• Over $2 billion in funding raised, including investments from major corporations like Toyota and Delta Air Lines.

Negative

• No immediate financial terms disclosed, leaving market impact uncertain.
• Potential regulatory challenges in Saudi Arabia could delay market entry.
• High competition in the eVTOL market could impact Joby's market share.
• Dependency on partnerships and regulatory approvals might slow commercialization efforts.

Market Research Analyst

Joby Aviation's recent agreement with Mukamalah, an aviation subsidiary of Saudi Aramco, to introduce eVTOL aircraft into Saudi Arabia, opens a significant new market for Joby's innovative air taxis. This agreement aligns with Saudi Arabia’s Vision 2030 initiative, which emphasizes sustainability and technological advancement, potentially accelerating Joby's market penetration and adoption in the region.

This partnership is notable for several reasons. Firstly, Mukamalah operates the world's largest fleet of corporate aircraft, making it a strategic partner for expanding Joby's market presence. This move also reflects the growing global trend towards sustainable aviation solutions, driven by regulatory pressures and consumer demand for eco-friendly options. The entry into Saudi Arabia could pave the way for further expansion within the Middle East, a region poised for rapid growth in sustainable transportation.

For retail investors, this partnership indicates Joby's commitment to diversifying its market base and enhancing its revenue streams beyond the U.S. and the UAE. However, it also brings challenges, such as navigating regulatory environments and ensuring the scalability of operations to meet Mukamalah's extensive fleet requirements. Investors should monitor how Joby manages these aspects and the timeline for the actual sale and deployment of these aircraft.

Financial Analyst

From a financial perspective, this agreement marks a strategic move for Joby Aviation. Securing a foothold in the Saudi Arabian market through a partnership with a subsidiary of Saudi Aramco could significantly bolster Joby's financial outlook. Mukamalah’s willingness to integrate Joby's eVTOL aircraft signals strong market confidence in Joby’s technology and product viability.

This partnership could lead to substantial revenue from the direct sale of aircraft, potentially improving Joby's top line. However, investors should consider the costs associated with entering a new market, such as compliance with local regulations and establishing support infrastructure. Joby has already raised more than $2 billion in funding, which should provide a cushion to manage these initial expenditures.

Additionally, this partnership could enhance Joby's attractiveness to investors by diversifying its customer base and reducing dependency on any single market. For retail investors, this move underscores the importance of monitoring Joby's quarterly financials and progress reports to gauge the success of its international expansion strategy.

Legal Expert

The partnership between Joby Aviation and Mukamalah will require navigating complex regulatory frameworks. The involvement of the Saudi General Authority of Civil Aviation (GACA) is crucial, as it will set the regulatory groundwork for the introduction of eVTOL aircraft in Saudi Arabia. This implies potential delays and additional costs associated with compliance and certification.

From a legal perspective, the Memorandum of Understanding (MoU) signifies an intent to collaborate but does not guarantee a binding commitment. Investors should be aware that while MoUs are important indicators of future business activity, they are not legally enforceable agreements. The transition from an MoU to a definitive agreement will be key and any delays or legal hurdles in this process could impact Joby's market entry timeline and financial projections.

For retail investors, it is essential to keep an eye on announcements related to regulatory approvals and legal agreements to fully understand the partnership's progress and any potential risks.

• Agreement signed with Mukamalah, aviation subsidiary of Saudi Aramco, to introduce eVTOL aircraft to Saudi Arabia
• Agreement contemplates direct sale of aircraft to Mukamalah
• Mukamalah Aviation Company operates world’s largest fleet of corporate aircraft

SANTA CRUZ, Calif. & DHAHRAN, Saudi Arabia--(BUSINESS WIRE)-- Joby Aviation, Inc. (NYSE:JOBY), a company developing electric air taxis for commercial passenger service, today announced it has signed a Memorandum of Understanding (MoU) with Mukamalah, a wholly owned subsidiary of Saudi Aramco, the operator of the world’s largest fleet of corporate aircraft, to introduce Joby’s aircraft to the Kingdom of Saudi Arabia.

Captain Khalid Al Natour, CEO of Mukamalah Aviation, signed a Memorandum of Understanding with Joby Founder and CEO JoeBen Bevirt at the Future Aviation Forum in Riyadh, Saudi Arabia. Joby Aviation Photo

The MoU, signed today between Joby and Mukamalah, contemplates the parties working together to engage with key aviation stakeholders, including The Saudi General Authority of Civil Aviation (GACA), to expedite Joby’s entry into the Saudi Arabia market, leading to the direct purchase of Joby aircraft to be used in Mukamalah’s operations.

The direct sale of aircraft to business customers such as Mukamalah and government partners like the U.S. Department of Defense forms one pillar of Joby’s commercialization strategy, alongside the direct operation of Joby aircraft in core markets such as the U.S. and the United Arab Emirates, and partnered operations in other markets.

JoeBen Bevirt, founder and CEO, Joby Aviation, said: “Saudi Arabia presents a remarkable opportunity for our technology and the scope and scale of Mukamalah’s operations make them a natural partner for us.

“We’re looking forward to supporting Mukamalah as they introduce emissions-free aircraft to their fleet and we’re excited to explore wider opportunities across the region, in support of the Kingdom’s commitment to sustainability, which is a pillar of Vision 2030, and their overall goal of reaching net-zero emissions by 2060.”

Mukamalah operates 55 aircraft from different fleets, serving 13 airports throughout Saudi Arabia, nine of which are fully managed and operated by Mukamalah, along with more than 300 helipads, both on- and off-shore.

Captain Khalid Alnatour, CEO, Mukamalah, said: “As part of our ongoing commitment to achieving the Kingdom’s sustainability goal, we are proud to be working with Joby to explore introducing emissions-free aircraft to our fleet and to the Kingdom.

“Over the past years, we have already invested in a more sustainable future, including taking steps in Sustainable Aviation Fuel testing, supporting the development of hydrogen solutions in the aviation ecosystem, and supporting the Kingdom’s green initiatives by delivering sustainable aviation solutions.

“We are excited to work with Joby and we look forward to furthering our shared goals as we strengthen our partnership and develop further innovative sustainable solutions together.”

A spokesperson for GACA, the Saudi General Authority of Civil Aviation, said: “We are proud to be working together with Joby and Mukamalah on the regulatory framework necessary to support the introduction of eVTOL aircraft. These initiatives will help the Kingdom of Saudi Arabia meet its climate goals and steer the nation towards a sustainable future.”

Joby’s aircraft is designed to carry a pilot and up to four passengers at speeds of up to 200 mph (321 km/h), offering high-speed mobility with a fraction of the noise produced by helicopters and zero operating emissions. In November 2023, Joby’s aircraft became the first air taxi to fly in New York City, building on a number of recent successes including the launch of production at the Company’s Pilot Production Line in California in June 2023 and the first ever delivery of an electric air taxi to the U.S. Department of Defense in September 2023.

Joby is listed on the New York Stock Exchange and has raised more than $2 billion of funding to date, including investments from Toyota, Delta Air Lines, SK Telecom, Uber and Baillie Gifford.

About Joby

Joby Aviation, Inc. (NYSE:JOBY) is a California-based transportation company developing an all-electric, vertical take-off and landing air taxi which it intends to operate as part of a fast, quiet, and convenient service in cities around the world. To learn more, visit www.jobyaviation.com.

About Mukamalah

Mukamalah Aviation Company (Mukamalah) provides safe, reliable and trustworthy end to end aviation solutions. Its services include passenger flights, search & rescue missions, cargo, medical evacuation, executive flights, geological surveying, airport management & operations, offshore support & oil spill spraying and MRO. Headquartered in Dammam, Mukamalah operates more than 55 aircraft from different fleets and serves 18 airports throughout Saudi Arabia. It also manages nine airports and over 300 helipads, both on and offshore. To learn more, visit www.mukamalah.com.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the development and performance of our aircraft, our regulatory outlook, progress and timing; our plans to sell aircraft in the Saudi Arabian market; our business plan, objectives, goals and market opportunity; and our current expectations relating to our business, financial condition, results of operations, prospects, capital needs and growth of our operations. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including: our ability to launch our aerial ridesharing service and the growth of the urban air mobility market generally; our ability to produce aircraft that meet our performance expectations in the volumes and on the timelines that we project, and our ability to launch our service; complexities related to obtaining certification and operating in foreign markets; the competitive environment in which we operate; our future capital needs; our ability to adequately protect and enforce our intellectual property rights; our ability to effectively respond to evolving regulations and standards relating to our aircraft; our reliance on third-party suppliers and service partners; uncertainties related to our estimates of the size of the market for our service and future revenue opportunities; and other important factors discussed in the section titled “Risk Factors” in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2024, and in future filings and other reports we file with or furnish to the SEC. Any such forward-looking statements represent management’s estimates and beliefs as of the date of this release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240521221682/en/

Joby Aviation

Investors:

investors@jobyaviation.com

Media:

press@jobyaviation.com

Source: Joby Aviation, Inc.

FAQ

What is the significance of Joby's partnership with Mukamalah Aviation?

The partnership aims to introduce Joby's eVTOL aircraft to Saudi Arabia, supporting the country's Vision 2030 and net-zero emissions by 2060 goals.

How will Joby's eVTOL aircraft be used in Saudi Arabia?

Joby's aircraft will be directly sold to Mukamalah and used in their operations, potentially enhancing sustainable aviation in the region.

What are the features of Joby Aviation's aircraft?

Joby's eVTOL aircraft can carry a pilot and up to four passengers at speeds up to 200 mph, offering low-noise and zero-emission travel.

What recent milestones has Joby Aviation achieved?

Joby recently conducted the first air taxi flight in NYC and began production at its Pilot Production Line in California.

How much funding has Joby Aviation raised to date?

Joby Aviation has raised over $2 billion in funding from major investors including Toyota, Delta Air Lines, and Uber.