JAKARTA - The Office of the Inspector General of the US Department of Transportation announced Monday, March 7 that it will review the regulator's progress in establishing the basis for certifying low-altitude aircraft known as "flying taxis."

They see business interest in the Urban Air Mobility business, or automated electric planes, which can be used for passengers and cargo and designed to operate in populated areas, have grown substantially.

This creates a "new and complex safety challenge" for the Federal Aviation Administration (FAA), which is currently reviewing applications for certification of eVTOL (electric vertical take-off landing) aircraft.

This sector includes electric vertical takeoff and landing or eVTOL aircraft, aircraft, which use electric propulsion to take off, hover, and land vertically. These planes usually only carry a few passengers per pilot.

"We will cooperate fully with the auditing Inspector General's Office and look forward to providing information on our extensive safety efforts in this area," a source at the FAA said in a statement.

In highlighting the challenges for the FAA, the inspector general's office noted that existing regulations for certifying aircraft in use "still aim for traditional small aircraft with a pilot on board, whereas eVTOL aircraft may be fully autonomous or pilotless."

Established aviation and automakers such as Boeing, Embraer, Airbus, United Airlines, Toyota Motor Corp, and Stellantis are among the companies that have been pouring big bucks into the fledgling business of eVTOL aircraft.

Morgan Stanley analysts last year estimated the potential market for eVTOL could be worth $1 trillion by 2040, assuming favorable regulations, however.

But they say the regulatory risk is one of the most underestimated for the sector given the stringent safety requirements, particularly for operating in congested urban environments, as well as noise and pollution concerns.

The FAA said last week that the agency and the UK's civil aviation authority had a series of discussions "focused on facilitating the certification and validation of new eVTOL aircraft, production, airworthiness, operations, and personnel licensing."


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