Terra Drone makes big move in the US with Aloft investment

Japan’s leading drone and advanced air mobility company makes its first major move to enter the U.S. market, building a global air traffic control system for unmanned aircraft known as Unmanned Air System Traffic Management (UTM). We are further advancing our efforts.

Terra Drone Corporation has made a major investment in Silver Spring, Maryland-based Aloft Technologies, becoming its largest shareholder, the companies announced Tuesday.

Indeed, as the number of low-altitude aircraft such as drones, vertical takeoff and landing aircraft, and short-hop air taxis increases, the development of global UTM systems is gaining urgency. Aircraft typically occupy altitudes below 4,000 feet, much lower than commercial aircraft.

“There are many restrictions in place to ensure safety when flying over populated areas,” Yuki Ueno, Terra Drone’s executive director, said in an interview. “But with a system like UTM, not only can we fly beyond visual line of sight and in more risky areas, but everything can be made more digital, automated, and better managed by UTM. That allows for busier flights, more relevant, repetitive or denser flights in a safe and efficient way. But you can’t do that without UTM. .”

Mr. Ueno, who will also join Aloft’s board of directors under the new agreement, will help companies such as Joby and Archer Aviation plan to launch advanced air mobility (AAM) services in time for the 2028 Summer Olympics in Los Angeles. The development of UTM will be a future challenge. Even more urgent.

Aloft previously secured investment from Boeing Corporate Venture Capital and Travelers Insurance, and is a Federal Aviation Administration-certified leading provider of manned aircraft systems services.

It is because of this expertise that Terra Drone invested in Aloft and made it an affiliate.

“Aloft has over 80% of the market share, so it can be said to be quite dominant,” Ueno explained. “It’s not a big company, probably about 15 employees, but it’s a very solid and focused company, and I believe the founders are really visionary people.”

The investment in Aloft is in line with Terra Drone’s ultimate goal of building a global UTM system, primarily by working with technology-focused companies.

Belgium-based UTM provider Unifly became an affiliate of Terra Drone in 2023.

Mandatory UTM systems have been implemented in 27 European countries, Ueno said, and the pace of standardized air traffic systems for UAS is now accelerating in the United States.

Last July, the FAA announced Innovate28, an advanced air mobility implementation plan aimed at delivering advanced air mobility systems in time for the 2028 Summer Olympics.

It is described by the FAA as a “living document” and is updated regularly. Key features of Innovate28 include:

・Provision of air traffic control using existing systems

・Use of existing airports and heliports

・Establishment of a predetermined route

The establishment of Innovate28 is a testament to the speed of UAM’s growth in the United States, especially when compared to Japan, where Terra Drone is based.

UTM development is an important addition to Terra Drone’s other major activities.

“We started UTM in 2016,” says Ueno. “We also have a lot of business in other industries, including providing drone-based solutions such as surveying and inspection, and for example, large oil and gas companies around the world, Japan’s largest energy company, and We also serve some of the world’s largest energy companies. Aramco is our shareholder and customer.”

All of this is lucrative for Terra Drone, one of the world’s top two drone service operators, but the company has yet to break into the U.S. market. By finding the right partner, a long-held goal was achieved.

According to FAA statistics, the United States currently has approximately 2.4 times as many registered drones and 62 times as many manned aircraft as Japan, and further growth is expected over the next four years.

“It’s truly one of the biggest markets in the world. That’s why we always wanted to expand into the U.S. market,” Ueno said.

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