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Evio CEO Explains How Hybrid-Electric Concept Could Reduce Airline Costs

Evio CEO Details Hybrid-Electric Aircraft Strategy to Lower Regional Airline Costs
Shifting Dynamics in Regional Aviation
The regional aviation sector is undergoing a significant transformation driven by evolving economic factors and technological advancements. According to William Swelbar, chief industry analyst at Swelbar-Zhong Consultancy, the number of regional jets with 50 seats or fewer has declined by nearly 69 percent since 2015. This reduction is primarily attributed to lower aircraft utilization rates and rising labor expenses. Swelbar explains that the cost per seat for smaller aircraft has rendered their widespread use economically unviable. Conversely, the fleet of larger regional jets, accommodating 70 or more passengers, has expanded by approximately 600 aircraft over the past decade. This growth has enabled airlines to distribute costs across a greater number of passengers, thereby enhancing overall operational economics.
While Swelbar anticipates a rebound in regional jet utilization, Michael Derman, chairman and CEO of Canadian manufacturer Evio, advocates for a different approach. Derman envisions hybrid-electric aircraft designed to carry up to 100 passengers as the future of regional aviation. He asserts that the 50- to 100-seat market segment presents the most promising opportunity and that electrification offers the best solution to improve operator economics. Given the current state of battery technology, Derman considers a hybrid-electric configuration the most practical and effective path forward.
The Evio 810 Hybrid-Electric Concept
Supported by undisclosed investments and technical collaboration with Boeing, Evio introduced its 810 hybrid-electric regional aircraft concept in December. The design targets routes ranging from 200 to 350 miles and features a “strong hybrid” propulsion system. This system employs all-electric power during takeoff, landing, and short flights, while switching to hybrid mode for longer journeys, potentially extending up to 500 nautical miles. The aircraft will integrate established components, including Pratt & Whitney Canada’s PT6 E-series engine, to develop a next-generation propulsion system aimed at reducing both operating and maintenance costs. Evio plans to bring the 810 into service in the early 2030s.
Derman emphasizes the necessity for startups to deliver transformative economic benefits to operators. “If you’re coming in as a startup, you really have to provide something that materially changes the economics for those operators,” he stated. Evio has already secured conditional purchase agreements with two major airlines for up to 250 aircraft, with options for an additional 200 units.
Challenges and Industry Response
Despite its promising vision, Evio faces considerable obstacles. The company must navigate high initial development costs, regulatory complexities, and the establishment of extensive charging and maintenance infrastructure. Industry reactions remain mixed; some regional carriers are attracted by the prospect of reduced operating costs, while others express caution due to uncertainties surrounding technology maturity and integration into existing operations. Competitors may respond by advancing their own hybrid-electric initiatives, forming strategic partnerships, or investing in Evio’s technology, depending on their priorities.
Having operated in stealth mode for seven years before unveiling the 810, Evio aspires to join the legacy of Canadian aviation leaders such as de Havilland and Bombardier. Derman highlights the company’s commitment to rigorous engineering and the decision to wait until the concept was fully developed before going public. Beyond passenger transport, Evio envisions expanding its hybrid-electric platform to include cargo logistics and autonomous military applications, including intelligence, surveillance, and reconnaissance missions.
As regional aviation continues to grapple with persistent cost pressures, Evio’s hybrid-electric concept represents a potentially pivotal development—contingent on overcoming the significant technical and economic challenges ahead.

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