United Airlines signs agreement to acquire 100 of Heart Aerospace's ES-19 aircraft, a 19-seat electric airliner that has the potential to decarbonize regional air travel
SOURCE: United Airlines Inc.
DESCRIPTION:
CHICAGO, July 19, 2021 /3BL Media/ - United Airlines Ventures (UAV) announced today it, along with Breakthrough Energy Ventures (BEV) and Mesa Airlines, has invested in electric aircraft startup Heart Aerospace. Heart Aerospace is developing the ES-19, a 19-seat electric aircraft that has the potential to fly customers up to 250 miles before the end of this decade. In addition to UAV's investment, United Airlines has conditionally agreed to purchase 100 ES-19 aircraft, once the aircraft meet United's safety, business and operating requirements. Mesa Airlines, United's key strategic partner in bringing electric aircraft into commercial service, has also agreed to add 100 ES-19 aircraft to its fleet, subject to similar requirements.
UAV is building a portfolio of companies that focus on innovative sustainability concepts and create the technologies and products necessary to build a carbon-neutral airline and reach United's net-zero greenhouse gas emissions goals. With this new agreement, United is deepening its bold commitment to reduce its greenhouse gas emissions 100% by 2050 without relying on traditional carbon offsets, as well as enabling the growth of Heart Aerospace and participating in the development of aircraft that will reduce greenhouse gas emissions from flying.
"Breakthrough Energy Ventures is the leading voice of investors who are supporting clean-energy technology creation. We share their view that we have to build companies who have real potential to change how industries operate and, in our case, that means investing in companies like Heart Aerospace who are developing a viable electric airliner," said Michael Leskinen, United's Vice President Corp Development & Investor Relations, as well as UAV's President. "We recognize that customers want even more ownership of their own carbon emissions footprint. We're proud to partner with Mesa Air Group to bring electric aircraft to our customers earlier than any other US airliner. Mesa's long serving CEO, Jonathan Ornstein has shown visionary leadership in the field of electric-powered flight."
UAV and BEV are among the first investors in Heart Aerospace, demonstrating confidence in Heart's design and creating potential for Heart to fast track the ES-19 introduction to market as early as 2026.
"Aviation is such a critical piece of our global economy. At the same time, it's a major source of carbon emissions and one of the most difficult sectors to decarbonize," said Carmichael Roberts, Breakthrough Energy Ventures. "We believe electric aircraft can be transformational in reducing the emissions of the industry, and enable low cost, quiet and clean regional travel on a broad scale. Heart's visionary team is developing an aircraft around its proprietary electric motor technology that will allow airlines to operate at a fraction of the cost of today and has the potential to change the way we fly."
By utilizing electric motors instead of jet engines, and batteries instead of jet fuel, Heart's ES-19 aircraft will have zero operational emissions. Seating 19 passengers, the ES-19 aircraft will also be larger than any of its all-electric competitors and will be designed to operate on the same types of batteries used in electric cars. Once operational, the ES-19 could operate on more than 100 of United's regional routes out of most of its hubs. Some of these routes include Chicago O'Hare International Airport (ORD) to Purdue University Airport (LAF) and San Francisco International Airport (SFO) to Modesto City-County Airport (MOD).
"Electric aircraft are happening now—the technology is already here," said Anders Forslund CEO of Heart Aerospace. "We couldn't be prouder to be partnering with United, Mesa and BEV on taking our ES-19 aircraft to market. I can't imagine a stronger coalition of partners to advance our mission to electrify short-haul air travel."
Once operational, Heart's ES-19 could give customers access to the convenience of flight without contributing to carbon emissions that cause climate change.
"We expect the short-haul regional air travel market to play a key role in the evolution of the electric aircraft. As battery technology improves, larger-gauge aircraft should become viable but we're not going to wait to begin the journey," Leskinen said. "That's why we're looking forward to beginning our work with Heart, so that, together, we can scale the availability of electric airliners and use them for passenger flights within the next five years."
About United Airlines Ventures
United's corporate venture capital fund, United Airlines Ventures, allows the airline to continue investing in emerging companies that have the potential to influence the future of travel. The new fund will concentrate on sustainability concepts that will complement United's goal of net zero emissions by 2050 - without relying on traditional carbon offsets - as well as revolutionary aerospace developments and innovative technologies that are expected to create value for customers and United's operation. For more information about United Airlines Ventures, please visit https://www.united.com/ual/en/us/fly/company/united-airlines-ventures.html.
About United
United's shared purpose is "Connecting People. Uniting the World." For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of UAL is traded on the Nasdaq under the symbol "UAL."
About Breakthrough Energy Ventures
Backed by many of the world's top business leaders, Breakthrough Energy Ventures (BEV) invests in cutting-edge companies that will lead the world to net-zero emissions. BEV has more than $2 billion in committed capital to support bold entrepreneurs building companies that can significantly reduce emissions from agriculture, buildings, electricity, manufacturing, and transportation. BEV's strategy links government-funded research and patient, risk-tolerant capital to bring transformative clean energy innovations to market as quickly as possible.
The first fund was created in 2016 as part of the Breakthrough Energy network of initiatives and entities, which include investment funds, non-profit and philanthropic programs, and policy efforts linked by a shared commitment to scale the technologies needed to address climate change and achieve a path to net zero emissions by 2050. Visit https://www.breakthroughenergy.org/ to learn more.
About Heart Aerospace
Heart Aerospace is an electric airplane company based in Gothenburg, Sweden. The company is developing the ES-19, a nineteen-passenger aircraft scheduled to enter into service by 2026. The company was founded in 2018 and was part of the Y Combinator accelerator program in 2019. For more info, visit heartaerospace.com.
About Mesa Airlines
Mesa Airlines is a regional airline based in Phoenix, Arizona. The airline is committed to helping to decarbonize air travel as both an investor and future operator of electric aircraft. For more info, visit www.mesa-air.com.
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Certain statements in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the risks and uncertainties set forth under Part I, Item 1A., "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
SOURCE United Airlines
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KEYWORDS: NASDAQ:UAL, United Airlines Inc.
