Business

US Launches Pilot Program to Speed Air Taxi Deployment
By Reuters | 12 Sep, 2025

The FAA program will include at least five partnerships between private companies and various state and local governments.

A Joby Aviation Air Taxi is seen outside of the New York Stock Exchange (NYSE) ahead of their listing in Manhattan, New York City, U.S., August 11, 2021. REUTERS/Andrew Kelly/File Photo

The Trump administration announced a new pilot program on Friday to speed the deployment of flying air taxis as companies work to meet regulatory hurdles for advanced air mobility.

The Federal Aviation Administration said the program will include at least five projects from public-private partnerships with state and local governments and private sector companies to enable safe operations for electric vertical takeoff and landing (eVTOL) aircraft. 

Joby Aviation praised the program, saying, "aircraft in the program can begin operations in select markets ahead of full FAA certification, a critical step in preparing for scaled commercial service."

Air taxi stocks rose on the program first reported by Reuters. Joby shares were up 5% while Archer Aviation was up 3%.

Air taxi firms are racing to secure approvals and commercialize air taxi aircraft to meet the growing demand for faster and more sustainable urban transportation. They tout eVTOLs that can take off and land vertically to ferry travelers to airports or for short city trips, allowing them to beat traffic.

President Donald Trump directed the creation of the program in June in an executive order.

A number of other countries, including India, China, and the United Arab Emirates, are working to speed deployment of eVTOLs, which could begin carrying paying passengers as early as next year.

FAA Administrator Bryan Bedford said the agency will take lessons learned from the pilot projects to enable safe, scalable operations nationwide.

The projects are expected to include short-range air taxis, longer-range, fixed-wing flights, cargo and logistics, and supply serving emergency management, medical transport, or offshore energy facilities.

Participants will use piloted, optionally piloted, or unmanned advanced air mobility that will generally be over 1,320 lbs (599 kg) and may be capable of carrying passengers, and use technologies enabling safe integration of these aircraft into the national airspace system.

The FAA finalized comprehensive training and pilot certification rules for flying air taxis in October 2024.

(Reporting by David Shepardson; Editing by Mark Porter, Rod Nickel)