Opinion: AAM needs $17B for infrastructure The “real money” lies in moving people in urban areas, according to industry expert Michael J. Dyment. By Mark Huber The advanced air mobility (AAM) industry needs to invest $16.6 billion in urban infrastructure over the next 20 years in order to produce revenue, according to Michael J. Dyment, founder and managing partner of NEXA Capital Partners. “The vertical mobility economy is the new frontier for the next 20 or 30 years in United States aviation, and it will need substantial investment,” said Dyment during the Vertiports & Airport Infrastructure Panel on Jul. 18 at the 20th Annual Electric Aircraft Symposium in Oshkosh, Wisconsin. “Operators have to invest billions of dollars to acquire fleets. In order for them to justify that type of investment in your products, they need to have an outlet, and that outlet is infrastructure.” A financial expert in aerospace and transportation, Dyment expects two-thirds of the AAM market will be in urban areas. While government–industry initiatives such as the Electric Vertical Takeoff and Landing (eVTOL) and Advanced Air Mobility Integration Pilot Program (eIPP) are a good start, investment in infrastructure such as ground facilities and low-altitude air traffic control has been lacking so far, he says. “The real money in this industry is going to be moving people in urban areas. This is [the only market] that can make this industry profitable and viable over time,” he said. “What’s missing is the networks and scale, the airport AAM facilities, urban air traffic management systems, operators, and fleets.” With the $16.6 billion investment needed being “roughly equivalent to what has been committed thus far in the development of eVTOLs themselves,” Dyment acknowledged that AAM vehicle manufacturers don’t have the capital to fund this infrastructure at scale. He encouraged manufacturers to lead the charge in justifying why it should be built. By illustrating robust urban AAM demand, he noted, they can make the business case to attract investors and federal funding to build the next generation of infrastructure in a timely manner. “AAM infrastructure can be profitable, but it is just as complex as building the vehicles themselves,” Dyment said. Mark Huber is an aviation journalist with more than two decades of experience in the vertical flight industry.
