Pictured above: The AIR One Cargo model for unmanned cargo transport

Israeli aerospace startup AIR, which develops eVTOL (electric vertical take-off and landing) aircraft for cargo and personal transportation, has raised $23 million in a new funding round led by Entrée Capital, with participation from Dr. Shmuel Harlap, an early investor in both Mobileye and AIR. The funding will accelerate AIR’s commercial expansion in the United States, the company’s main target market, where it also plans to establish a production line. According to AIR, it expects to deliver around 15 unmanned cargo aircraft within the next year, and has already received about 2,500 non-binding preorders for its personal eVTOL.

In early July, AIR inaugurated a manufacturing and assembly facility in Gedera, Israel, capable of assembling up to six aircraft simultaneously.

The company views recent U.S. regulatory reforms as a key catalyst for growth in the advanced aviation industry. On July 11, 2025, President Donald Trump signed a sweeping executive order aimed at accelerating the integration of autonomous aviation technologies – including drones and eVTOLs – into U.S. airspace. The order includes the launch of a national eVTOL Integration Pilot Program, under which at least five projects will be selected to explore advanced civil applications: urban air taxis, emergency medical deliveries, rural transportation access, and AI-driven logistics services.

On July 22, 2025, U.S. Transportation Secretary Sean Duffy announced a new regulatory framework issued by the Federal Aviation Administration (FAA) as part of the MOSAIC (Modernization of Special Airworthiness Certification) reform. This initiative is intended to advance Light Sport Aviation (LSA). The reform removes outdated weight limits, expands the LSA category to include higher-performance aircraft with additional seats and advanced technologies, and will allow two-seat eVTOLs – such as AIR’s – to operate under the LSA category.

Potential for 15,000 Aircraft Per Year

AIR believes that its personal eVTOL aircraft complies with the new LSA standards and could be among the first vehicles certified under this category in the U.S. The AIR ONE platform is an all-electric vertical take-off and landing aircraft designed with four dual propellers in a drone-like configuration, and short fixed wings for efficient forward cruising. Its battery system is developed and manufactured by Amisel, based in Ashdod, Israel.

Designed for personal use, the vehicle weighs approximately 970 kg and can carry two passengers or up to 250 kg over short distances of up to 180 km, at a top airspeed of 250 km/h. It is intended to function as a personal transportation solution, similar to a car, for daily commuting above traffic. The aircraft is sized to fit in a home garage or standard parking spot. According to AIR’s estimates, the U.S. market potential could reach up to 15,000 vehicles annually. The company has also developed an unmanned cargo version, called AirCargo, for logistics applications.

[Image: AIR’s cargo drone, AIR One Cargo, on display]

AIR, the developer of electric vertical take-off and landing (eVTOL) aircraft for civilian and logistics use, has inaugurated a new production and assembly plant in Pardes Hanna, Israel. Spanning 3,000 square meters, the facility will allow simultaneous assembly of up to six aircraft and marks AIR’s transition to commercial-scale serial manufacturing. The move is aimed at accelerating the delivery of its growing order backlog across the personal air mobility, transportation, and defense sectors.

According to AIR, the site is a state-of-the-art manufacturing center featuring a final assembly line, an engineering lab, a composite materials workshop, a metalworks division, and more. The plant will also serve as a launchpad for AIR’s planned U.S.-based facility, which will include an automated production line. The site will be managed by Roy Peleg, AIR’s Chief Operating Officer. Recently, AIR announced a partnership with German engineering firm EDAG for production of the aircraft chassis, and completed a nighttime field test of its cargo model in northern Israel.

The AIR ONE platform falls into the eVTOL category, using four dual-propellers in a drone-like configuration combined with short fixed wings for horizontal flight. Its battery system is developed and manufactured by Amicell, an Israeli company based in Ashdod. Weighing approximately 970 kilograms, the aircraft is designed for personal use and can carry two passengers (or a payload of up to 250 kg) over short distances of up to 180 kilometers, with a maximum cruising speed of 250 km/h. It is envisioned as a personal transport solution akin to a car—intended, for example, for daily commutes above urban traffic congestion. Its compact size allows it to be stored in a standard garage or parking space.

According to AIR’s estimates, the U.S. market has the potential for 15,000 vehicles sold per year. In addition to the manned model, the company has also developed an unmanned cargo version, AIR One Cargo, designed specifically for freight delivery.