Ecojet Airlines Initiates Growth Equity Financing.
The purpose led regional airline, is initiating a £20 million growth financing which will satisfy its capital requirements to obtain an Aircraft Operator Certificate (“AOC”) from the UK’s Civil Aviation Authority and start commercial operations from its Edinburgh base.
Ecojet’s largest shareholder is Ecotricity, the British green energy company founded by Dale Vince OBE, alongside its CEO, Brent Smith and aviation specialists Airline Management Group. Ecotricity has been continuing to fund the business while it seeks to raise growth financing.
Since its creation in early 2023, the Company has progressed its plan to be the world’s first zero emission commercial airline using hydrogen-electric propulsion on its aircraft to operate a number of regional UK routes.
In November 2023, it signed an agreement with ZeroAvia Inc., the market leading US hydrogen-electric engine manufacturer, to acquire the first 22 of ZeroAvia’s ZA2000 engines to retrofit on Ecojet’s aircraft.
Ecojet originally planned to be operational in 2024 but delayed its target launch to invest further in its digital infrastructure inter alia ensuring a paperless customer experience for its passengers.
The Company has now built its core team, operational infrastructure, service partnerships (including access to green hydrogen), technology systems and contracted on delivery of its first two aircraft. Ecojet’s fleet will initially use conventional fuel efficient/SAF powertrains until the ZeroAvia engines are delivered.
Electric-Hydrogen Air Travel
Addressing the urgent need for sustainable air travel is high in the aviation mindset – both at the consumer level as well as operators and suppliers.
The application of electric-hydrogen technology has advanced dramatically in recent years. As applied to road vehicles, the technology is advanced and commercially available but suffers from the challenges of building an infrastructure which could make it commonplace.
The use of electric-hydrogen propulsion technology for air travel is also well advanced and proven. It offers a solution for air travel on shorter haul flights but not, at this point, for long haul flights. ZeroAvia expects to receive certification for use of its powertrains on commercial fl ights in 2026 and Ecojet has addressed the green
energy infrastructure requirement for its operations.
Other than offering the prize of genuinely sustainable air travel, Ecojet expects the adoption of the technology to also reduce operating and maintenance costs. This will allow its purpose led business plan to also deliver appropriate profitability and rapid growth.
Regional Air Travel/Connectivity and the benefits of creating an airline with no legacy challenges
Ecojet believes that there is substantial unsatisfied demand for regional air transportation within the UK which has not been addressed by appropriate available capacity and which will be its primary focus.
Connectivity within the UK is already challenged by the limitations and high environmental (and financial) costs of road and rail alternatives.
As a new airline, with fit for purpose modern aircraft, infrastructure, technology and the benefits of zero emission operations, Ecojet will be able to off er routes which are not currently available (nor practicable for existing regional operators) at a price competitive with road and rail alternatives.
The Company’s aircraft will offer scheduled services, contract flights, cargo as well as public service obligation
(“PSO”) contracts.
Wyvern Partners has been appointed financial adviser to Ecojet and is leading the growth equity financing.
Dale Vince, green industrialist and co-founder of Ecojet said: “Ecojet has a leadership role in transforming air travel by making zero emission air travel possible for the fi rst time. We are now in a position to be able to invite other like-minded investors to join us in making sustainable aviation a commercial reality.”
Ecojet CEO, Brent Smith said: “We have taken huge steps forward in launching Ecojet as the world’s first zero emission airline and are grateful for Ecotricity’s unwavering support. We look forward to becoming operational and welcoming further investors to assist with scaling the business at speed.”
See the latest press articles – click on the links below:
