On a cool morning in November, a gathering of 800 individuals assembled at a hangar in South Burlington, before sunrise, to witness Beta Technologies’ first electric aircraft’s initial flight. This aircraft was constructed on the company’s new scaled production line.
The Alia CX300, piloted by Beta’s founder and CEO, Kyle Clark, completed a flight lasting over an hour. As the aircraft ascended through clear skies, Clark experienced a sense of gratitude for the “perfectly quiet electric airplane.”
Clark emphasized the significance of their accomplishment by noting, “Every component in that aircraft was designed, built, assembled, and tested by us.” He further expressed the special opportunity of flying at 7,000 feet in a system inconceivable a few years ago.
Achieving a successful launch was vital for Clark to fulfill his promises to Beta’s board. He adheres to a straightforward rule: promises must be kept.
Clark stated the importance of this milestone, sharing, “We aimed for November 13, and on that morning, we flew the airplane.” He highlighted that fulfilling this commitment was significant for maintaining trust with the board for future promises.
Clark stands out in the electric aviation industry, as Beta is headquartered in Vermont instead of Silicon Valley. This reflects his company’s distinct approach, including aircraft design and a strategic focus on an EV aircraft charging business.
With a background in power electronics and experiences as a former professional hockey player and pilot instructor, Clark has eschewed venture capital. He described Beta’s distinct culture and approach as diverging from other West Coast companies.
Despite lesser visibility than Archer Aviation and Joby Aviation, Beta has advanced its piloted flight hours and secured financially-backed customer orders.
Beta’s market strategy diverges from competitors, with the company focusing on being the OEM. It is developing both the Alia CX300 eCTOL and Alia A250 eVTOL, identical except for propulsion and propellers, optimizing production and certification.
Creating two aircraft types allows Beta to reach a broader customer base, with eCTOLs suited for regional flights and eVTOLs for urban settings. Beta anticipates the Alia CX300 to be the first eCTOL certified for commercial use by this year or by 2026, with A250 certification following 12 to 18 months later.
Beta’s electric aviation charging network offers a nearer-term revenue path, with operational sites in 22 states and New Zealand and plans to expand to 150 sites by 2025.
Starting operations in 2025 with Air New Zealand, Beta will provide CX300s to deliver mail. Other clients, like United Therapeutics and UPS, use Beta’s aircraft for diverse purposes, including medical, logistics, and military applications. Recent orders include passenger aircraft from Blade and Helijet.
Facing stiff competition, companies like Archer and Joby are securing significant funding and strategic partnerships. Archer, focusing on defense, notably raised $300 million in February. Joby secured substantial investments from firms like Delta and Toyota, enhancing their funding but has been testing remotely.
Beta, funded with $1.15 billion from institutional investors rather than venture capital, emphasizes operational efficiency. In February, the CX300 accomplished its first airport-to-airport mission across four New York regional airports.
Beta continues to conduct piloted hover and transition tests with the Alia A250 eVTOL, where Archer’s similar flights have only been remote. Joby commenced piloted tests in October 2023.
Clark stressed that Beta operates privately in Vermont and advances significantly in aircraft flying, charging capabilities, and production infrastructure. Their Vermont facility aims to produce up to 300 aircraft at its peak.
With a fully operational production facility, Beta distinguishes itself in the industry.
Clark’s career in reliable power systems architecture spans several roles, including teaching and founding an induction power supply company. Additionally, Clark, a former NHL player after his studies in material sciences at Harvard, possesses diverse early work experiences.
Despite his diverse background, Clark identifies as both technically knowledgeable and grounded, portrayed in interactions such as presenting CX300 to Air New Zealand in casual attire.
Clark’s technical approach to Beta’s aircraft power system architecture contrasts their competitors. Placing all battery packs together, connected by a singular ring bus, offers every motor access to every battery, providing system redundancy.
He remarked on how crucial technical experience is for leaders in safety-critical power systems, noting the high stakes of aircraft design and testing.
Beta’s $1.15 billion funding from institutional investors like Fidelity and Qatar Investment Authority follows a strategy Clark developed with guidance from United Therapeutics’ CEO, focusing on preventing business failures over prioritizing equity control.
By maintaining cash-neutral production through financially-backed orders, Beta plans to achieve positive contribution margins, pursuing net profitability in over a year.
Investor funds primarily support manufacturing facilities and aircraft certification, as seen in Beta’s $170 million bespoke factory.
Clark emphasized that precision in production engineering ensures long-term cost-effectiveness and is just as important as the appeal of flying quiet, efficient aircraft.
