Embraer’s electric taxi firm Eve unveils plans to list, announces new orders

It’s a big day of announcements for Eve, the urban air mobility company founded by Brazilian aircraft manufacturer Embraer and which is working to bring its electric air taxi to the world. 

On December 21, 2021, the company unveiled plans to list on the New York Stock Exchange through a merger with Zanite Acquisition Corp, and revealed new orders from Azorra, Republic Airways and Skywest, plus a partnership with BAE Systems. 

Zanite, a special acquisition company focusing on aviation, will combine with Eve in a deal valuing the company at some $2.4 billion. It will then change its name to Eve Holding and be listed on the NYSE. Embraer will remain the majority shareholder with an 82% stake. The transaction is set to close in the second quarter of 2022.  

The company is also being funded by $237 million cash in trust from Zanite, plus private investment totalling $305 million, taking its total value to $2.9 billion. That comprises $175 million from Embraer, $25 million from Zanite Sponsor and $105 million from a consortium of other investors, who include Azorra Aviation, BAE Systems, Bradesco BBI, Falko Regional Aircraft, Republic Airways, Rolls-Royce and SkyWest (SKYW), Inc. 

Eve plans to use the proceeds from the transaction to further develop and commercialize its electric vertical take-off and landing (eVTOL) aircraft. Entry into service for the aircraft is planned for 2026.   

“We believe that the urban air mobility market has enormous potential to expand in the coming years based on an efficient, zero-emissions transport proposition, and that with this business combination, Eve is very well positioned to become one of the major players in this segment,” Francisco Gomes Neto, president and CEO of Embraer, said in a statement on December 21, 2021. 

Andre Stein, Co-CEO of Eve, said the company was founded to make safe and affordable urban air transportation and reduce global carbon emissions. “The transaction announced today with Zanite is a major milestone that will accelerate our strategic plan and support us in realizing our vision.” 

Shares in Embraer jumped 16% after the deal was announced.  

Who has ordered Eve’s vehicle? 

Eve also made several order announcements on December 21, 2021 with some of its new investors.  

Lessor Azorra and carrier Republic Airways signed a Letter of Intent (LoI) to order up to 200 eVTOL aircraft each, while Skywest signed a Memorandum of Understanding and an LoI for 100 aircraft.   

Eve also announced a partnership with BAE Systems to explore developing the eVTOL aircraft for the defense and security market. The two companies said the vehicle could be used in different ways, such as for personnel transportation, surveillance and reconnaissance, disaster relief and humanitarian response and that it could lower environmental impact and reduce operational costs. 

In total, Eve says it has an order pipeline worth some $5.2 billion, comprising 1,735 vehicle orders from 17 customers.  


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