The New Era of Clean Aviation is Rolling, But Needs More Power for Takeoff

The aviation industry is on the brink of a new era, one powered by electricity. This transition is clear from events like Switzerland’s Electrifly-In, which celebrated its 8th edition in 2024. But while the event showcases innovation, exemplarily organized by a highly determined team of individuals deeply involved in general aviation, it also reveals deeper challenges that need to be addressed for the industry to truly take flight. Despite the passion and commitment behind the scenes, electric aviation is struggling to scale due to hurdles like limited technology breakthroughs and difficulty in attracting long-term investment. These challenges reflect a broader issue in the sector, requiring more robust collaboration and capital to fuel sustainable growth.

A Steady but Limited Growth Path

Since its inception in 2017 as the “Smartflyer Challenge” at Grenchen Regional Airport, Electrifly-In has maintained its mission to promote electric and hybrid aircraft. What started with the Smartflyer team, creators of a four-seater hybrid aircraft, has evolved into a broader European fly-in for electric aviation. Yet, while the organizers have successfully kept the community engaged, the event's size remains relatively small, with the number of exhibitors staying consistent over the years. The anticipated leaps in technological breakthroughs and increased investor interest have yet to materialize in a significant way.

For example, despite the strong presence of companies like the local Dufour Aerospace, and Elektra Solar from Germany, or academic projects like AeroDelft coming all the way from Netherlands, and the ETH team of Cellsius, the event hasn't seen an exponential increase in participants or technological breakthroughs.

Bertrand Piccard's Vision and the Turning Point for Aviation

In 2020, Bertrand Piccard, the renowned Swiss aviator and environmentalist, took on the role of patron for Electrifly-In, eTrophy, and Symposium. Known for his pioneering work in solar-powered flight, Piccard firmly believes that we are at a turning point in aviation. He highlighted the growing momentum for electrified aircraft, particularly in training and private aviation. Piccard pointed out the environmental benefits of quiet, clean electric planes, not just for the atmosphere, but also for communities living near airports. He likened critics of electric aviation today to those who dismissed the Wright brothers in 1903.

His patronage back in 2020 underscored the importance of the event in driving forward conversations about electric flight and promoting sustainability within the sector.

The Investor Dilemma: Long-Term Capital for Long-Term Returns

One of the core challenges electric aviation faces is the type of capital it requires. Unlike typical tech startups, which can attract short-term venture capital (VC) focused on quick returns, the electric aviation industry demands patient capital. This form of long-term investment isn't as easy to secure, especially for smaller-scale projects like the Smartflyer, unless they can prove a wider business case and mitigate risks associated with components certification and aircraft safety.

Smartflyer AG requires substantial long-term investment to advance its projects, as demonstrated by their CHF 4.1 million budgeted expenses. Most of this funding would have came from a special aviation tax in Switzerland that stopped in 2023, so a shortfall of CHF 2 million remains. To address this, Smartflyer is offering a convertible loan investment opportunity, with up to CHF 2 million available at a 6% annual interest rate, maturing in 2028. Despite securing CHF 150,000 already, attracting larger, long-term investments is crucial for scaling these technologies.

The slow nature of aerospace certifications, stringent regulatory requirements, and the long development timelines mean that many potential investors shy away from committing large sums. Without significant technological breakthroughs or a clear commercial pathway, it remains difficult for small startups to capture the attention of major financial players.

General Aviation: An Overlooked Opportunity

While business and commercial aviation sectors draw attention due to their substantial CO2 emissions, general aviation - a smaller, but still significant sector - needs more focus. The slow pace of innovation in this space is frustrating, particularly as smaller players like Elektra Solar in Germany work on promising electric solutions. The company's Elektra Trainer aircraft is a shining example of what’s possible, winner of eTrophy 2024, for the second year in a row.

Powered by a Geiger Engineering HPD-50D dual-rotor motor, the Elektra Trainer provides redundancy and efficiency. A modified version of the Elektra One, which first flew in 2011, this new model is certified in Germany's ultralight class. Romanian-born engineer Calin Gologan, the project innovator, has built an aircraft with impressive aerodynamics and a glide ratio of 25. Its 12 kW propulsion system allows for a 120 km/h cruise speed with minimal energy consumption, and additional battery packs can extend its flight endurance to three hours. However, despite such advancements, these innovators are still not attracting either the mass attention or the large-scale capital they deserve.

Pipistrel, the Slovenian pioneer of certified electric aircraft (pictured in the featured image), achieved a great milestone in 2020 with EASA certification, after 13 years of research and development. However, since its acquisition by Textron in 2022, it has struggled to offer a viable alternative for flight schools in Europe, mainly due to the lack of infrastructure, high maintenance costs, and expensive battery overhauls. Despite its early success, these factors have prevented widespread adoption of its electric planes within the aviation training sector.

Rotax, the technological leader in fossil fuel engines that currently powers much of the European training sector, should play a key role in the early stages of aviation's electrification. Despite aviation units representing only 1% of Rotax’s total sales, their influence could be crucial in accelerating the transition. Their involvement could help avoid the long-term "Innovator's Dilemma," as outlined by Christensen, where established companies risk falling behind. Rotax's power and reach could serve as a vector for change, helping to bridge the gap towards sustainable aviation solutions.

Co-opetition and the Bigger "Bigger Picture": The Need for Infrastructure Change

The broader shift towards electric aviation requires more than just new aircraft. It demands changes across the entire aviation ecosystem - from maintenance practices to infrastructure upgrades at airports. Drawing on the concept of co-opetition, where companies collaborate and compete simultaneously, the future of aviation will need multi-stakeholder cooperation to advance. Collaboration across the industry, from governments to manufacturers, will be essential to address challenges such as charging or hydrogen infrastructure, pilot retraining, and safety regulations.

For example, both academic projects Cellsius and AeroDelft could initiate a joint effort to develop hydrogen infrastructure, inspired by the Toyota and BMW collaboration from over a decade ago. Despite their early partnership in 2011, hydrogen technology has yet to achieve widespread commercialization, highlighting the challenges ahead.

The slower pace of innovation in these areas, combined with the failure to recognize the bigger "bigger picture" from the early days, are key bottlenecks dragging the industry.

Lessons from the Automotive Industry: Hydrogen and Collaboration

As aviation explores alternative fuels, hydrogen technology is emerging as a potential solution, though still in its infancy. The mentioned collaboration between BMW and Toyota, who both have long invested in hydrogen technology, exemplifies the potential for the aviation industry to follow suit. Recently, Toyota and BMW strengthened their collaboration to advance a hydrogen-powered future, combining their engineering resources to push hydrogen fuel-cell technology towards commercial viability. This kind of collaboration between aviation stakeholders could accelerate innovation and overcome technical hurdles, making hydrogen a more scalable solution for aviation. Looking over the fence at the automobile industry in a more collaborative way, like the early partnership between Toyota and BMW, could provide valuable lessons.

The salutary participation of GreenGT at Electrifly-In 2024 further emphasized this need. Since 2008, GreenGT has been a Swiss leader in fuel cell development and system integration, playing a critical role in advancing clean hydrogen technologies for sustainable transportation.

Swiss Aerospace Ventures: Bringing Power to the Next Generation of Aviation

At Swiss Aerospace Ventures, our mission is to boost innovation in this rapidly evolving sector. By forming stronger cross-functional teams and identifying the right sources of patient capital, we aim to accelerate the growth of sustainable aviation. We are fully committed to supporting innovators like Elektra Solar and Smartflyer, ensuring they have the resources and collaborations they need to succeed.

The upcoming Electrifly-In 2025, scheduled for September 12-14, will serve as the next major platform to showcase the efforts of the entire industry . Together, we will bring more power to this growing movement and help drive the industry towards a cleaner, quieter, and more efficient future.