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AIR Opens New Facility to Boost eVTOL Production Amid Rising Demand

AIR Opens New Facility to Boost eVTOL Production Amid Rising Demand
TEL AVIV, Israel, July 1, 2025 – AIR, a prominent manufacturer of midsize electric vertical takeoff and landing (eVTOL) aircraft, has officially opened a new 32,000-square-foot production facility in central Israel. This development represents a major milestone in the company’s strategy to expand manufacturing capacity in response to growing global demand for advanced air mobility solutions.
Expanding Production Capabilities
The newly inaugurated facility is equipped to support the simultaneous assembly of up to six aircraft at various stages of production, significantly enhancing AIR’s output capabilities. It will manufacture both the company’s uncrewed cargo eVTOL and its piloted two-seater model, which is anticipated to qualify as a light sport aircraft (LSA) under the Federal Aviation Administration’s forthcoming MOSAIC rule update. This regulatory shift is expected to facilitate faster market entry and increase accessibility for AIR’s aircraft.
Designed with a comprehensive range of operational capabilities, the site includes an aircraft assembly line, an engineering laboratory, a composite materials workshop, and a paint shop. These integrated functions enable AIR to streamline production processes and shorten delivery timelines. Additionally, the facility allows for in-house testing of aircraft prior to deployment on the flight line, ensuring compliance with stringent safety and quality standards. AIR’s manufacturing approach incorporates automotive industry practices, utilizing Tier 1 suppliers for proven subsystems that are integrated on-site to maintain efficiency and scalability.
“This is a pivotal moment for AIR as we expand our operations and continue to redefine air mobility,” stated Rani Plaut, CEO and co-founder of AIR. “As we scale production and grow our team, we’re not just building aircraft—we’re creating a future where air mobility is seamlessly integrated into everyday life.”
Strategic Outlook and Industry Context
Under the leadership of Vice President of Operations Roi Peleg, the facility is expected to reach full operational capacity by the end of the summer. It will also serve as a prototype for a larger, more advanced manufacturing hub planned for the United States. The forthcoming U.S. facility will incorporate automated production lines designed to meet anticipated high demand from American customers across various sectors.
AIR’s expansion occurs within a rapidly evolving and highly competitive eVTOL market. The company faces challenges including regulatory complexities, technological advancements from competitors such as Archer Aviation, and concerns over potential market saturation as new entrants emerge. Recent industry developments, such as the partnership between Leonardo and Bombardier on maritime aircraft, highlight the accelerating pace of innovation and strategic alliances shaping the advanced air mobility sector.
Market analysts suggest that AIR’s new facility may stimulate increased investor interest in the eVTOL industry, prompting competitors to expedite their development schedules or pursue new collaborations to strengthen their market positions.
“This new site is integral to AIR’s focus on multi-domain eVTOL development,” said Chen Rosen, CTO and co-founder of AIR. “It was built with future growth in mind, ensuring we can adapt and lead as the industry evolves.”
As AIR advances its production capabilities, the company aims to play a central role in defining the future of air mobility, navigating the balance between rapid expansion and the dynamic challenges of a global market.

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