Trailblazing Tales from Asia
Your exclusive gateway to the latest developments across transportation and space, and most importantly, how to finance it all - debt, equity and defi! We follow and forecast where the money's at.
Asia has remained resilient amidst a challenging external environment, with the World Economic Forum even calling the return of the “Asian Century”, forecasting that Asia will continue to be the leading driver of the global economy.
Join us as we navigate through the latest roundup to uncover key developments across the region.
Summary
ICAO Amendments Lay the Groundwork for International RPAS Operations
India's ideaForge Gains DGCA Type Certification; Eyes U.S. Market
Malaysia and Singapore Look to Develop Cross-Border Drone Delivery
EHang's EH216-S Production Certificate Granted by CAAC
China’s Autoflight Delivers its First Prosperity Evtol Aircraft to a Customer in Japan
Australia’s Vertiport Player Skyportz Launches Expression of Interest
China’s Tcab Tech Secures an Additional $20 Million USD
Incheon Metropolitan City Unveils its AAM Concept of Operations
Japan’s Ministry Of Economy, Trade, And Industry Eyes $26 Billion Nextgen Aircraft Program
China's First Hydrogen-Powered Four-Seat Aircraft Takes Maiden Flight
UPS Plans New Hub In Clark, Philippines
Vietnamese, Dutch Businesses Seal 18 Cooperation Agreements at Mekong Delta Forum
India’s Adani Group to Invest $7 Billion in Airports
Air New Zealand Announces Open Call for SAF Innovators
TotalEnergies and Airbus Sign Strategic SAF Agreement
EVIDENT and Anisos Capital Group Prepare for World's First Tokenized Aviation Finance Fund
Nothing in this newsletter should be construed as legal or financial advice.
Uncrewed Aircraft Systems (UAS)
PANS & SARPs - new standards for international air navigation
During its 231st Session, the International Civil Aviation Organization Council approved amendments to 15 of the 19 Annexes to the Convention on International Civil Aviation. Meanwhile, a new "Procedure for Air Navigation Services (PANS) on Information Management" was endorsed.
These developments establish new Standards and Recommended Practices (SARPs) tailored for remotely piloted aircraft systems (RPAS) and set the stage for a regulatory framework enabling international RPAS operations.
💡The changes introduce three criteria for international air navigation: a remote pilot license, a certificate of airworthiness, and an RPAS operator certificate.
INDIA
Last month, India's ideaForge Technology Limited announced that its flagship product, the Q6 uncrewed aerial system (UAS), received type certification from the Directorate General of Civil Aviation (DGCA). The Q6 offers mapping, inspection, and security solutions for India’s civil drone market.
💡Beyond India, the Mumbai-based company is now targeting the U.S. market, conducting product demonstrations.
MALAYSIA / SINGAPORE
In late February, Malaysia's Aerodyne Group and Singapore's DroneDash Technologies (DroneDash) forged an agreement to introduce cross-border drone delivery services between the two sides. The drone delivery services between Malaysia and Singapore combine the technologies of both companies to enhance logistics efficiency and advance the region's supply chain capabilities.
💡 Aerodyne and DroneDash will cooperate on regulatory requirements and operational permits to initiate shore-to-shore drone operations along the Malaysia-Singapore corridor, marking a milestone in logistical efficiency.
Advanced Air Mobility (AAM)
CHINA
EHang has received a production certificate (PC) from the Civil Aviation Administration of China (CAAC), allowing the company to commence mass production of its EH216-S autonomous eVTOL aircraft. Announced in Guangzhou on April 7th, the PC follows the acquisition of type and airworthiness certifications in late 2023.
💡The PC marks a significant milestone for the EH216-S, paving the way for mass production and advancing toward commercial operations.
China’s AutoFlight has reached a significant milestone with the delivery of its first Prosperity electric vertical takeoff and landing (eVTOL) aircraft to an advanced air mobility (AAM) operator in Japan. Scheduled demonstration flights are planned for the 2025 Osaka World Expo by the Japanese company.
The April 3 announcement comes shortly after AutoFlight's recent achievement of type certification (TC) for its CarryAll cargo eVTOL by the Civil Aviation Administration of China (CAAC).
💡The move marks the world's first delivery of a civilian ton-class eVTOL aircraft.
AUSTRALIA
Skyportz, an Australian vertiport company, launched an Expression of Interest on March 28, for smaller investors interested in acquiring shares in the company through an Australian Securities & Investments Commission (ASIC) regulated crowdfunding initiative.
💡Based in Melbourne, Skyportz is a frontrunner in Australia's emerging vertiport sector. The company partnered with the Victorian State Government when Melbourne was chosen as a launch site for Uber's introduction of air taxis.
CHINA / MIDDLE-EAST
China’s T-Cab Tech has its sights set on the Middle East following a recent Series A financing round, securing 20 million USD. Announced on March 26th, the fresh funds stem from an unnamed strategic investment fund, aimed at introducing its E20 eVTOL air-taxi to the Middle East.
💡The most recent funding follows a pre-Series A financing round initiated in February. During that phase, TCab obtained 100 million yuan ($15 million) earmarked for the manufacturing and testing of a full-scale E20 prototype.
S. KOREA
Incheon, South Korea, in partnership with the Institute for Aerospace Industry-Academia Collaboration (IAIAC) and the MITRE Corporation, has unveiled the AAM Concept of Operations (ConOps) for the South Korean city. Released March 18, the ConOps provides a comprehensive strategy for the seamless integration of AAM into Incheon's transportation network.
💡Incheon’s ConOps could potentially serve as a model for cities worldwide.
Logistics, Infrastructure & Ports
PHILIPPINES
Logistics firm United Parcel Service (UPS) announced last month that its investment commitments in Asia Pacific have surpassed $250 million since the start of 2023. Among these investments is a recent agreement with the Luzon International Premiere Airport Development Corporation (LIPAD) to expand operations at Clark Airport in the Philippines.
Construction on the new Clark hub is slated to commence in February 2025, with operations projected to commence by late 2026.
💡The latest development will further expand UPS's portfolio in Asia-Pacific.
INDIA
India’s Adani Group has signaled intent to invest ₹60,000 crore ($7.26 billion) over the next decade in its airports business, in addition to the ₹18,000 crore ($2.18 billion) already allocated for the construction of the first phase of the Navi Mumbai airport.
$3.63 billion will be directed towards enhancing airport terminal and airside facilities within the next five years. This is aimed at boosting the current annual passenger handling capacity from 100-110 million to 250-300 million. The other $3.63 billion will be reserved for airport hotels, multiplexes, and other amenities.
💡Presently, Adani operates seven airports—Lucknow, Ahmedabad, Jaipur, Guwahati, Thiruvananthapuram, Mumbai, and Mangalore—in India, with plans for a new airport in Navi Mumbai.
Energy Transition
JAPAN
Japan's Ministry of Economy, Trade, and Industry (METI) has unveiled an ambitious multi-billion-dollar plan aimed at the development of next-generation aircraft. Collaborating with the private sector, the government plans to invest ¥4 trillion ($26.46 billion) to bring a narrow-bodied aircraft to fruition by 2035.
Although no specific technology has been selected, the initiative seeks to explore a range of options, including hybrid electrics, hydrogen combustion, and hydrogen fuel cells. METI will soon announce an official strategy for the new aircraft program.
💡Following the demise of Mitsubishi’s SpaceJet, METI is seeking to reignite the nation's aviation ambitions.
CHINA
China’s Liaoning General Aviation Academy has successfully conducted the inaugural flight of a prototype four-seat light aircraft powered by hydrogen combustion.
💡The flight test signifies the debut of China's first independently developed general aviation aircraft powered by a hydrogen internal combustion engine.
MALAYSIA
Yinson Holdings Bhd raised RM 283.2 million from The Retirement Fund Inc (KWAP) under a “responsible investing” theme. Proceeds from the investment will primarily be used to expand Yinson's renewables and green technology businesses.
💡This is one of the rare instances of Asia based pension funds making significant investments in the energy transition within the transportation sector. This marks the long-awaited increasing investor appetite for energy transition themes which has been lagging in Asia compared to N. American and European markets.
Sustainable Aviation Fuel
SINGAPORE
Singapore’s Apeiron Bioenergy (Apeiron), a leading player in Singapore's sustainable energy sector, successfully raised a green trade loan from Cathay United Bank. The loan proceeds will support Apeiron's procurement of used cooking oil (UCO) for the production of sustainable aviation fuel (SAF).
💡Unknown to most of the aviation sector, SAF’s most common feedstock, UCO often comes from Asia, one of the world’s richest agricultural and most populous regions. UCO procurement penetration in Asia, however, remains incomplete (despite aviation commentators frequently highlighting that no amount of UCO will be sufficient to satisfy the demand for SAF). This first bank financed trade loan is monumental and (to our knowledge) one of the first commercial bank driven loans granted to a private player unaffiliated to a government procurement program or state backed incentives program. Given that the industry continues to grapple with SAF price uncertainty, the uniqueness of this loan signals an increasing confidence and understanding of the importance of the energy transition for aviation.
NEW ZEALAND
Air New Zealand has launched a global search for SAF innovators and start-ups to become its supply partner.
The airline’s Opportunity Statement, unveiled on March 19, outlines Air New Zealand's SAF needs, taking into account its network, fleet, sustainability goals, and criteria for innovators.
💡This marks the first instance where an airline has globally solicited potential suppliers to collaborate on supply opportunities.
GLOBAL / SINGAPORE AIRSHOW
TotalEnergies has inked an agreement with Airbus to supply sustainable aviation fuel (SAF) for over half of the manufacturer's needs in Europe. Announced at the Singapore Airshow, the move aims to reduce the aviation sector's CO2 emissions in line with TotalEnergies' goal of achieving net carbon neutrality by 2050.
The partnership also involves establishing a dedicated research program to develop 100% sustainable fuels for both current and future aircraft designs. It will also investigate the potential of sustainable aviation fuel compositions to reduce CO2 emissions and other effects like contrails.
💡Amidst rising air travel demand, decarbonizing aviation is considered essential for meeting mid-century climate goals. Yet, barriers persist, particularly in financing. In response, two industry heavyweights, TotalEnergies and Airbus, are strategically positioning themselves to address these challenges.
Aviation Asset Tokenisation
Invest Hong Kong (InvestHK) announced on February 5th that it has thrown its support behind EVIDENT Platform Services Limited (EVIDENT), a licensed fintech company, to establish its global headquarters in Hong Kong. Collaborating with Anisos Capital Group, EVIDENT is launching the world's first tokenized aviation finance fund, with a focus on aircraft leasing.
💡With aviation contributing $3.5 trillion to global GDP and primarily controlled by major entities or wealthy individuals, the rise of aviation asset tokenization opens doors for investors previously sidelined from the industry.
Nothing in this newsletter should be construed as legal or financial advice.
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