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35 Air & Space Law. 1 (2022-2023)

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THE


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AMERICAN BAR ASSOCIATION


& SPACE


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VOLUME   35, NUMBER 1,   2022


Readying for Takeoff:

Challenges and Opportunities for

International eVTOL Operations


By Marcelo  L. Garcia and Amna  Arshad


                   The COVID-19 pandemic  not
                   only challenged airlines' adap-
                   tive capacity, but also prompted
                   the restructuring of costs, opera-
                   tions, and business models across
                   the aviation industry.' Growing
                   support for the global net-zero
                   carbon agenda by international
                   organizations,2 regional and
national governments,3 and industry associations' will
likely affect how airlines do business and realign their
revenue streams and networks in the coming years. In
the meantime, regional air connectivity has emerged
as a key policy priority for many governments around
the world, and some airlines are already capitalizing
on the growth of inter- and intraregional demand
These market conditions make cross-border electric
vertical take-off and landing (eVTOL) operations rele-
vant for existing and future air operators.
  The  hurdles facing eVTOL aircraft operations-and
other Advanced Air Mobility (AAM) solutions-within
national boundaries are numerous and even more
heightened if transposed into an international cross-
border context. However, governments, industry,
and capital investment funds should have significant
opportunities to shape the future of a nascent industry
and facilitate the launch of cross-border eVTOL opera-
tions in the coming years.
  An  in-depth exploration of the legal aspects affect-
ing commercial eVTOL services is beyond the scope
of this article. Instead, this article investigates the legal
issues that may affect cross-border eVTOL operations
in the U.S.-Canada context-which may also apply


to other cross-border environments in other regions
of the world-providing an initial assessment of the
framework for operating international scheduled air
services and potential regulatory challenges such as
airline designation, passenger facilitation, aviation
safety and security, as well as infrastructure-related
antitrust considerations.

The Rise and Commercial Potential of Transborder
eVTOL  Operations
Until now, the use of eVTOL has been discussed
within the context of AM' and Urban Air Mobil-
ity (UAM),7 focusing mainly on inter- and intracity
air taxis' and regional connectivity.' The assumption
hitherto has been that eVTOL operations would be
deployed domestically.
  However, the growing demand  for price-com-
petitive and point-to-point regional air services,
compounded  by the imperatives associated with the
global net-zero carbon agenda, may justify a busi-
ness case for the operation of eVTOL flights across the
U.S.-Canada border. With 90 percent of the Canadian
population living within 150 miles of the U.S. bor-
der, the so-called transborder market includes densely
populated city pairs under 200 miles apart that could
be operated by eVTOL: Windsor-Cleveland (170
miles), Vancouver-Seattle (142 miles), Victoria-Seattle
(105 miles), Toronto-Buffalo (100 miles), and Windsor-
Detroit (3 miles), to name a few.
  From  a purely commercial perspective, airlines asso-
ciated with the purchasing of eVTOL aircraft seem to
agree that scheduled eVTOL flights are preferable to
                              continued on page 12


                     Forum             on Air and Space Law
Published in The Air & Space Lawyer, Volume 35, Number 1, 2022. © 2022 by the American Bar Association. Reproduced  permission. All rights reserved. This information or any portion
thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.