Honeywell International Inc HON and key Toyota Motor Corp TM supplier Denso Corp DNZOY have formed a long-term partnership to develop and manufacture electric propulsion systems for aircraft with a focus on air taxis and delivery vehicles.
What Happened: The two companies plan to use their automotive and aerospace expertise and have their first electric propulsion motors ready for flight tests in 2022 and they are in “advanced discussions with current and prospective customers,” according to a statement.
Both Honeywell and Denso aim to tap the air mobility market and claim they are focusing on making the new aircraft safer, more efficient, quieter, cleaner for the environment when compared with traditional helicopters and small aircraft, and easily facilitate transportation in and between cities.
Why It Matters: Manufacturers including Boeing Co BA, Airbus SE EADSY, Cessna-maker Textron Inc TXT, and a dozen of other startups are vying to bring their electric-powered aircraft to the market, ahead of competitors, amid growing interest.
Package delivery company United Parcel Service Inc UPS said last month it is buying 10 small electric-powered aircraft that take off like helicopters and fly like planes, aiming to reduce its costs from contracting with small air freighters to reach far-flung areas. The first delivery of the ALIA-250 from Stone Point Capital-backed Beta Technologies is expected in 2024.
Price Action: Honeywell shares closed 0.81% higher at $225 on Monday.
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