Federal regulators have taken a major step forward for electric-powered air taxis by issuing final regulations establishing operational guidelines for the aircraft and training protocols for pilots.

Mike Whitaker, the head of the Federal Aviation Administration (FAA), said the rule recognizes air taxis as an entirely new category of aircraft that will soon appear in the skies alongside airplanes and helicopters. These aircraft are designed to take off and land vertically like helicopters, while flying like fixed-wing aircraft. Numerous companies are working to bring them to market, but their progress has been hampered by the lack of clear regulations governing their use.

Whitaker stressed that the FAA is prioritizing safety as it integrates these new aircraft into the nation's airspace. He noted that powered-lift aircraft represent the first new category of aircraft in nearly 80 years, since the introduction of helicopters, and this rule will facilitate their widespread operation.

Air taxi proponents see them as a more environmentally friendly alternative to traditional passenger aircraft that rely on jet fuel. However, current technological limitations limit their size, suggesting they will be used primarily in urban areas. Companies expect to use these aircraft to transport both people and cargo.

Joby Aviation, a California-based company in the emerging field, praised the FAA’s regulations. CEO JoeBen Bevirt noted that the rules would ensure the U.S. maintains its global leadership in the development and adoption of clean flight technology.

Airlines are eyeing air taxis as a potential solution to ferry passengers to and from airports. In 2022, Delta Air Lines announced a $60 million investment in Joby, while Toyota this month unveiled a $500 million investment. In addition, United Airlines is backing another California-based company, Archer Aviation, with an order for 200 planes that Archer said could be worth $1 billion, with an option for another $500 million.