EHang's Pilotless eVTOL Air Operator Certificate Application Accepted by CAAC

Rhea-AI Summary

EHang Holdings (Nasdaq: EH) announced that the Civil Aviation Administration of China (CAAC) has formally accepted Air Operator Certificate (AOC) applications from its subsidiary and joint venture. This marks the start of the review process for pilotless passenger-carrying eVTOL aircraft business licenses and operational qualifications. The CAAC has formed a specialized review team for this world-first project.

EHang is collaborating with CAAC to develop EH216-S operational standards, which will serve as a reference for the world's first commercial operation regulatory system for pilotless passenger-carrying eVTOLs. The company recently contributed to the release of China's first technical specification for eVTOL aircraft landing sites.

This milestone brings EHang closer to its goal of commercial operation of unmanned passenger-carrying aerial vehicles, representing the final step for urban air mobility entering the consumer market.

Positive

• CAAC accepted AOC applications for EHang's pilotless eVTOL aircraft
• EHang is collaborating with CAAC to develop EH216-S operational standards
• EHang contributed to China's first technical specification for eVTOL aircraft landing sites
• Progress towards commercial operation of unmanned passenger-carrying aerial vehicles

Negative

• None.

Tech Expert

The acceptance of EHang's Air Operator Certificate (AOC) application by the Civil Aviation Administration of China (CAAC) is a significant technological milestone for the company and the urban air mobility (UAM) industry. The certification process involves establishing new safety and operational standards for pilotless electric vertical takeoff and landing (eVTOL) aircraft, which is a complex and innovative undertaking. This move indicates that EHang is pushing the boundaries of traditional aviation regulations and enhancing its credibility within the industry. Technological advancements in autonomous flight systems, data analytics and safety protocols are pivotal for the successful implementation of eVTOL operations. If EHang succeeds in obtaining the AOC, it could set a global precedent and drive further investments and development in the UAM sector.

Market Research Analyst

The formal acceptance of EHang's AOC application by the CAAC potentially positions EHang as a frontrunner in the emerging UAM market. This development is not just a regulatory formality but a key step towards commercial viability. Investors should note that securing the AOC will likely enable EHang to launch commercial operations, which can significantly boost revenue streams and market share. Additionally, the collaboration with CAAC to draft new operational standards underscores EHang's proactive role in shaping industry norms. However, investors should remain cautious of the regulatory hurdles and timeframes involved in the certification process, which may affect short-term stock performance but holds considerable long-term growth potential.

Financial Analyst

From a financial perspective, the acceptance of the AOC application is a positive indicator for EHang's future revenue and profitability. The move signals potential market expansion and operational scaling, which can attract strategic partnerships and investor interest. EHang's ability to influence regulatory standards also highlights the company's leadership and innovation within the UAM sector. While the certification timeline remains uncertain, the potential for EHang to commercialize its pilotless eVTOLs can lead to substantial growth in market valuation. Investors should monitor the progress of this certification closely, as successful navigation through regulatory requirements could result in significant financial uplift and operational scalability.

GUANGZHOU, China, July 22, 2024 (GLOBE NEWSWIRE) -- EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading urban air mobility (“UAM”) technology platform company, today announced that the Civil Aviation Administration of China (“CAAC”) has formally accepted the Air Operator Certificate (“AOC” or “OC”) applications submitted by Guangdong EHang General Aviation Co., Ltd. (“EHang General Aviation”), the Company’s wholly-owned subsidiary specializing in UAM operation services, and Hefei Heyi Aviation Co., Ltd. (“Heyi Aviation”), its joint venture company in Hefei. This marks the commencement of the review process for the applicants’ business license and operational qualification for pilotless passenger-carrying aerial vehicles, with consensus reached on review procedures, subjects, and frameworks. The CAAC has established a specialized review team to move forward the subsequent review process.

As the world's first project for the OC of pilotless passenger-carrying electric vertical takeoff and landing ("eVTOL") aircraft, this milestone is paving the way for the establishment of the world's first commercial operation standard system for passenger-carrying eVTOL, which will lay a solid foundation for the commercial operation of EHang's EH216-S. In addition to EHang General Aviation and Heyi Aviation, EHang's partners in Guangzhou, Shenzhen, Taiyuan, and Wuxi are also actively preparing for OC applications, with the aim to accelerate the launching of EH216-S commercial operation and low-altitude economy demonstration projects in local cities.

Similar to the previous type certification process, the OC certification for EH216-S pilotless passenger-carrying aerial vehicle cannot directly follow the existing standards in civil aviation field, but rather requires innovation and improvement based on current regulations to establish a new and applicable standard. In March, the CAAC issued a Consultation Notice on the Application and Issuance of Operator Certificate under the Civil Aviation Regulations Part 92, aiming to ensure a smooth implementation of the Rules on the Safety Management of Civil Unmanned Aircraft (CCAR-92) . It clarifies the OC application procedures and requirements, standardizes the scope and key points of operational safety assessments, and refines operational management requirements. Leveraging EHang’s extensive operational data and practical experience, the Company is actively collaborating with the CAAC to develop EH216-S operational standards, which will provide a reference basis for the world's first commercial operation regulatory system for pilotless passenger-carrying eVTOLs.

In May of this year, the group standard "Technical Requirements for eVTOL Aircraft Landing Sites", primarily drafted and initiated by EHang, was released. This standard provides clear guidelines on the technical parameters of eVTOL aircraft landing sites, including physical characteristics, obstacle limitations, site selection, structural design, and specialized facilities. As China's first technical specification for eVTOL aircraft landing sites, it will serve as a reference basis for the development of eVTOL industry standards in China and will also make a significant contribution to commercial operations of EHang eVTOLs.

Recently, Song Zhiyong, CAAC Administrator, stated that China's low-altitude economy is entering a new phase of rapid growth. As the industry regulatory authority, the CAAC will prioritize five key areas of focus, including the construction of unmanned aerial vehicle (“UAV”) demonstration zones, the development of airworthiness certification capabilities, the certification of OC, planning and construction of airport facilities, and the establishment of low-altitude flight service support system.

Huazhi Hu, Founder, Chairman and CEO of EHang, commented, “We are collaborating with the CAAC to establish a new operation system for pilotless aerial vehicles, which will once again achieve a breakthrough in the global civil aviation industry. The formal acceptance of the world's first pilotless passenger-carrying eVTOL OC application has significant implications for the eVTOL industry. From obtaining the world's first type certification, production certificate, and standard airworthiness certificate for a pilotless passenger-carrying eVTOL, to enter into OC certification, we are pleased to have received high recognition from the CAAC and are one step closer to realizing our goal of commercial operation of unmanned passenger-carrying aerial vehicles, representing the final step for urban air mobility entering the consumer market. We look forward to the issuance of the world's first commercial operation standard and the first OC for pilotless passenger-carrying eVTOL , which will bring low-altitude economy accessible to the public."

About EHang

EHang (Nasdaq: EH) is the world’s leading urban air mobility (“UAM”) technology platform company. Our mission is to enable safe, autonomous, and eco-friendly air mobility accessible to everyone. EHang provides customers in various industries with unmanned aerial vehicle (“UAV”) systems and solutions: air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions. EHang’s EH216-S has obtained the world’s first type certificate, production certificate and standard airworthiness certificate for passenger-carrying pilotless eVTOL aircraft issued by the Civil Aviation Administration of China. As the forerunner of cutting-edge UAV technologies and commercial solutions in the global UAM industry, EHang continues to explore the boundaries of the sky to make flying technologies benefit our life in smart cities. For more information, please visit www.ehang.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about management’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to those relating to certifications, our expectations regarding demand for, and market acceptance of, our products and solutions and the commercialization of UAM services, our relationships with strategic partners, and current litigation and potential litigation involving us. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management’s control. These statements involve risks and uncertainties that may cause EHang’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Media Contact: pr@ehang.com
Investor Contact: ir@ehang.com

FAQ

What milestone did EHang (EH) achieve with the CAAC on July 22, 2024?

On July 22, 2024, EHang announced that the CAAC formally accepted Air Operator Certificate (AOC) applications for its pilotless passenger-carrying eVTOL aircraft, marking the start of the review process for business licenses and operational qualifications.

What is significant about EHang's (EH) AOC application acceptance?

EHang's AOC application acceptance is significant as it's the world's first project for the OC of pilotless passenger-carrying eVTOL aircraft, paving the way for the establishment of the first commercial operation standard system for such vehicles.

How is EHang (EH) contributing to eVTOL industry standards?

EHang is collaborating with the CAAC to develop EH216-S operational standards and has contributed to the release of China's first technical specification for eVTOL aircraft landing sites, providing guidelines on technical parameters and serving as a reference for industry standards.

What is the potential impact of EHang's (EH) progress on the urban air mobility market?

EHang's progress brings the company closer to realizing commercial operation of unmanned passenger-carrying aerial vehicles, representing the final step for urban air mobility to enter the consumer market and potentially making low-altitude economy accessible to the public.