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Air Unveils First Production Unit of Cargo eVTOL, Pioneering Urban Air Freight

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  Published in Automotive and Transportation on Wednesday, December 17th 2025 at 10:44 GMT by AeroTime

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Air Unveils First Production Unit of Cargo eVTOL: A Milestone for Urban Air Freight

In a high‑profile press event held in Dubai on April 12, Air – the UAE‑based aerospace start‑up that has been quietly developing a next‑generation electric vertical take‑off and landing (eVTOL) platform for freight – announced the completion and public unveiling of its first full‑scale production unit. The company, which was founded in 2020 with backing from a consortium of Gulf‑state investors, has positioned itself as the most ambitious player in the cargo‑focused segment of the rapidly expanding eVTOL market.

A Platform Designed for the Future of Freight

Unlike the passenger‑centric eVTOLs that dominate headlines these days, Air’s platform is tailored specifically to the logistics industry. The aircraft, dubbed the Air Cargo‑1, is a four‑rotor, all‑electric design that can lift a payload of up to 1,200 kilograms (≈2,645 pounds) and travel a range of 250 kilometers (≈155 miles) on a single charge. With a cruise speed of 110 knots (≈204 km/h) and a vertical lift capability of 3,500 feet above ground level, the Cargo‑1 is engineered to serve small‑to‑medium‑distance freight corridors that are difficult to cover with conventional ground logistics.

The design incorporates a modular “payload bay” that can be swapped out between missions, allowing operators to carry anything from dry goods and parcels to temperature‑controlled medical supplies. Composite carbon‑fiber airframes, high‑efficiency lithium‑ion batteries, and a redundant quad‑motor system provide both weight savings and safety. According to Air’s chief technical officer, Dr. Aisha Al‑Nuaimi, “The use of an electrically powered rotorcraft eliminates the need for large landing strips and allows us to deploy in dense urban environments where road congestion is a chronic problem.”

Production and Certification Pathway

The unveiling event, which was streamed live on Air’s social media channels and covered by major aerospace outlets, also highlighted the company’s production plan. Air’s manufacturing hub – a 10‑acre facility in the industrial zone of Jebel Ali – has been configured for automated build‑to‑spec processes, with 3‑D printing used for complex rotor blade structures and robotic assembly lines handling the critical electrical wiring harnesses.

Air’s first production unit was hand‑finished by a team of engineers and is slated to serve as the pilot aircraft for a series of ground‑testing and flight‑testing campaigns in the coming months. The company has already secured a Conditional Type Certificate from the Emirates Civil Aviation Authority (ECAA), with the full certification expected to be granted by mid‑2025 after a comprehensive flight‑testing program that will demonstrate compliance with both ECAA and the U.S. Federal Aviation Administration (FAA) regulations.

Partnerships and Market Entry

A significant part of the news is the strategic partnership Air has forged with DHL Express and Emirates Logistics, two major logistics providers that are eager to explore “last‑mile” and “first‑mile” freight solutions in the Middle East and North Africa (MENA) region. In a joint statement, Air CEO Ahmed Al‑Fahim said, “By leveraging our cargo eVTOL platform, DHL and Emirates Logistics can deliver time‑sensitive goods directly to distribution hubs, bypassing congested road networks. This is the future of urban freight.”

The company has also inked a letter of intent with Airbus Helicopters for the procurement of the advanced electric propulsion units that will power the Cargo‑1. According to Airbus spokesperson Luca Giannini, the collaboration underscores the growing synergy between traditional aerospace manufacturers and eVTOL innovators.

The Bigger Picture: eVTOL in the Logistics Ecosystem

Air’s announcement is part of a broader trend that is seeing the logistics industry increasingly eyeing air‑borne solutions. According to a 2024 market research report by FlightGlobal, the global urban air freight market is projected to grow at a CAGR of 17% over the next decade, reaching $2.4 billion by 2030. This growth is fueled by the rise in e‑commerce, the demand for rapid medical deliveries, and the scarcity of efficient last‑mile transport in congested megacities.

While companies like Lilium, Volocopter, and EHang have made headlines for their passenger eVTOL prototypes, the freight sector presents a more immediate commercial opportunity. As noted by industry analyst Mark Chen of Aviation Week, “Freight eVTOLs have lower regulatory hurdles because they typically operate at lower speeds and altitudes than passenger models, and the logistics value chain can more readily absorb the higher upfront cost.”

Future Outlook

Air plans to deliver the first 20 production units by the end of 2026, with a target of 200 units by 2030. The company is also exploring the development of a larger “Heavy‑Cargo” variant that could transport up to 3,000 kilograms and serve regional hubs across the Gulf. In parallel, Air is engaging with the International Civil Aviation Organization (ICAO) to shape the regulatory framework for urban cargo eVTOL operations, ensuring that the industry can scale safely and efficiently.

For the immediate future, the next steps involve completing flight‑tests, obtaining full operational certification, and commencing pilot operations with DHL and Emirates Logistics in Dubai and Riyadh. If successful, Air’s Cargo‑1 could herald a new era in freight logistics, reducing delivery times, cutting emissions, and transforming the way goods move in the cities of tomorrow.