Joby Aviation (JOBY) On Track for Commercial Launch in 2025
Joby Aviation JOBY has announced the submission of all its Certification Plans to the Federal Aviation Administration (FAA). This marks significant progress toward completing the third stage out of the five required for certifying its aircraft for commercial use. The Certification Plans details the tests, analyses and design reports that Joby intends to conduct to ensure compliance with safety regulations.
The company, focused on developing electric vertical take-off and landing (eVTOL) aircraft for commercial passenger service, had previously completed the first and second stages of the certification process, making it the first eVTOL company to achieve these milestones. We note that Joby Aviation is the first eVTOL company to have its Certification Basis published in the Federal Register. The recent submission of the Certification Plans demonstrates Joby's commitment to leading the way in certifying eVTOL aircraft with the FAA and moves it a step closer to achieving its target of launching commercial passenger service by 2025.
The third stage submittals by Joby encompass a range of Area-Specific Certification Plans (ASCPs) covering both hardware and software aspects of its five-seat eVTOL aircraft. These plans encompass various systems onboard the aircraft, including flight controls, energy storage and distribution, propulsion, cybersecurity, and systems safety. By submitting these plans, Joby is taking a proactive approach to ensuring compliance and safety in its aircraft.
The news of Joby's progress in the certification process and the commencement of production could have a positive impact on the company's stock. The company's growing partnerships and contracts, such as the one with the U.S. Air Force, demonstrate its potential for commercial success.
We remind investors that Joby, currently carrying a Zacks Rank #2 (Buy), recently celebrated the launch of production at its pilot production line in Marina, CA. The first aircraft produced on this line received a Special Airworthiness Certificate from the FAA, allowing it to begin flight testing. This milestone is part of Joby's contract with the U.S. Air Force. The contract is valued at up to $131 million. The impending delivery of the aircraft to Edwards Air Force Base will further bolster Joby's credibility and provide valuable testing opportunities.
Other Transportation Players to Consider
Investors interested in the Zacks Transportation sector may also consider Copa Holdings CPA and Global Ship Lease GSL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is benefiting from an improvement in air travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from the first quarter of 2019 on higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable as well. The Zacks Consensus Estimate for CPA’s current-year earnings has been revised 25.08% upward over the past 60 days.
Global Ship Lease is being aided by the bullish sentiment surrounding the containership market. GSL’s strong balance sheet is an added positive.
The uptick in trading volumes bodes well for Global Ship Lease. The Zacks Consensus Estimate for current-year earnings has moved up 5.9% over the past 60 days. GSL surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters, the average beat being 15.64%
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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