On a cold morning last November, a gathering of 800 people took place before sunrise in a South Burlington hangar to observe Beta Technologies’ inaugural electric aircraft flight, developed on its newly scaled production line.
The Alia CX300, piloted by Beta’s founder and CEO, Kyle Clark, is one of the company’s two aircraft models. Clark flew the aircraft for over an hour, ascending through clear skies in a silent electric airplane, expressing his gratitude for the experience.
Clark stated to TechCrunch that every part of the airplane was designed, built, assembled, and tested by their team. He described the experience as extraordinary, flying solo at 7,000 feet in a system that hadn’t existed a few years prior.
For Clark, achieving a successful launch was significant to honor commitments to the company’s board. At Beta, there is a strict rule of fulfilling promises, which was crucial for instilling trust for future commitments.
Beta was able to fly the airplane on its set goal date of November 13, which Clark mentioned to TechCrunch demonstrated the importance of meeting promises to their board for future reliability.
Clark is unique in the electric aviation industry due to his decision to base Beta in Vermont instead of Silicon Valley, home to many competitors. His distinctive approach is evident in Beta’s electric aircraft designs and its business strategy, which includes an electric vehicle (EV) aircraft charging business.
Clark, educated at Harvard and a former professional hockey player and pilot instructor, has also chosen not to accept venture capital.
Clark’s career has revolved around power electronics controls, and he regularly flies multiple aircraft. He even taught his daughter to fly before she could drive. Clark emphasized Beta’s distinctive culture and entrepreneurial prowess over their West Coast counterparts.
Despite being less visible than competitors Archer Aviation and Joby Aviation, Beta has accumulated notable piloted flight hours and secured financially-backed customer orders.
Beta’s approach to the market contrasts with its competitors, Archer and Joby, who are developing electric vertical takeoff and landing vehicles (eVTOLs) for sale and operation in air taxi networks, with Archer also collaborating with the Department of Defense in partnership with Anduril.
Beta aims to be the original equipment manufacturer (OEM), focused on producing a conventional electric aircraft, the Alia CX300 eCTOL, and an eVTOL named the Alia A250 eVTOL. The two aircraft differ only in propulsion and propellers, which Beta argues lowers production costs and simplifies certification.
The creation of two aircraft types allows Beta to cater to a broader customer base; eCTOLs suit regional flights, while eVTOLs fit urban settings. Launching with an eCTOL provides a more immediate path to commercialization, with the goal of certifying the Alia CX300 for commercial flight by 2026. Clark anticipates the FAA certification for the A250 about 12 to 18 months later.
Beta’s electric aviation charging network, which Archer is using, offers an earlier revenue stream, despite competition. The network boasts 46 sites across 22 states and New Zealand, with more in development, aiming for 150 operational sites by 2025.
Beta plans to begin operations in 2025 with Air New Zealand, which has agreed to purchase the CX300s for mail delivery and may buy more. Other customers include United Therapeutics, UPS, and the U.S. Air Force.
The competition remains fierce. Archer raised substantial funds, focusing on defense, and Joby secured significant backing from companies like Delta and Uber, both tapping into venture capital for early funding.
Beta, by contrast, has raised $1.15 billion from institutional investors. Clark cites Beta’s efficiency as maximizing their impact due to this funding strategy. A recent milestone saw Beta pilots conduct the CX300’s first airport-to-airport mission in New York, aided by its charging infrastructure.
Beta has also completed multiple piloted tests with its eVTOL model, the Alia A250, while Archer has flown theirs remotely, and Joby commenced piloted tests in October 2023.
Beta claims an efficient manufacturing setup in Vermont, claiming capabilities to produce 300 aircraft at peak. Clark noted Beta’s operational production facility stands out in the industry.
Clark’s background spans reliable power systems from his academic career to launching Beta in 2017. He has a hands-on aviation background and some unconventional past roles, such as briefly playing NHL hockey.
Clark’s approach to designing Beta’s power systems differs from competitors like Archer and Joby, who favor distributed power systems for redundancy. Beta opts for a consolidated battery system under the seats, offering equal power distribution to all motors, theoretically enhancing reliability.
Clark emphasizes the need for experienced leadership in safety-critical power systems, contrasting the stakes in aviation with software development.
Beta’s funding strategy has involved institutional investors such as Fidelity and Qatar Investment Authority, avoiding venture capital due to early customer backing from United Therapeutics. Clark highlighted “regret assist game theory” learned from United’s CEO to prioritize steering clear of undesirable business outcomes, emphasizing maintaining capital control.
Each Beta aircraft build remains cash-neutral, covering parts and labor through financially-backed orders, which has led to positive contribution margins. Investor funds have primarily supported manufacturing and certification efforts to ensure growth focus, illustrated by investments such as a $170 million facility.
Clark sees process engineering as vital to profitability and quality construction, underscoring its importance alongside the allure of quiet, advanced aircraft.
