Japanese companies assess business models for commercial air taxis

Japanese companies, including major financial institutions and insurers, are collaborating to explore the commercial deployment of air taxis in western Japan, particularly in the Kansai region comprising Osaka and Kyoto prefectures. SkyDrive Inc, a Japanese startup, is at the forefront of this initiative with its compact, vertical takeoff and landing aircraft. The primary objective is to develop sustainable business models, necessary infrastructure, and demand generation strategies through tourism.

The Japanese government's roadmap, updated in March, anticipates the launch of these commercial services between 2027 and 2028. SkyDrive, based in Toyota, Aichi Prefecture, showcased its battery-powered multirotor aircraft at the 2020 Osaka-Kansai World Exposition, demonstrating its potential for practical use. The initiative, involving 15 companies, aims to tackle challenges such as the establishment of vertiports, charging infrastructure, and pricing strategies.

Participants include MUFG Bank, Senshu Ikeda Bank, Tokio Marine & Nichido Fire Insurance, and Mitsubishi HC Capital Inc., among others. These entities are expected to meet regularly to pool their expertise and consider the commercial viability of the service. A decision on the formation of a jointly owned company to operate the service is anticipated around next summer.

SkyDrive, in collaboration with Osaka Metro Co, acknowledges the lack of takeoff and landing sites as a significant barrier to the widespread use of such vehicles, especially in urban areas where land is scarce. Other major airlines in Japan are also preparing for similar commercial operations using aircraft developed by other companies.

Oracle Corp, a joint venture between Japan Airlines Co and Sumitomo Corp, plans to initiate commercial services using aircraft from US company Archer Aviation, with expected launch in fiscal 2028 or later.