Eviation (Arlington, WA) has halted work on its electric-powered Alice aircraft and laid off most of its staff as it seeks additional funding, according to several news reports.
ch-aviation has reached out to CEO Andre Stein, who earlier confirmed to The Air Current that production had been paused temporarily to focus on "identifying the right long-term partnerships to help us make the electric commercial, regional flight a reality".
"We at Eviation are proud of what we have accomplished in advancing electric flight. This decision was not made lightly," he was cited as saying. "The measure gives the company time to consider strategic options. The company will work with customers, suppliers, and staff to ensure minimal disruption."
Stein made no mention of layoffs. However, The Air Current and The Seattle Times, citing two impacted employees, reported that Eviation had laid off most of its staff. "The company is pausing operations indefinitely," said an engineer. "Most of the engineering team is gone."
Eviation is predominantly owned by Singapore-based Clermont Group. A spokesperson said in a statement: "The Clermont Group remains committed to revolutionising air travel through innovative electric solutions. We will continue to seek long-term strategic partners who share our vision and passion for building the future of flight."
Founded in 2015, Arlington-based Eviation successfully completed the first test flight of Alice in 2022. The prototype was designed for up to nine people and was powered by two MagniX engines and a battery system from Austria's AVL, with a maximum speed of about 260 knots (480 km/h).
After the 2022 flight, Eviation decided to redesign the aircraft and delayed its entry into service until at least 2027. The company worked on updating its technology, including selecting new motors and bringing in new suppliers. The conceptual design review was completed in April 2024 when the company reported orders totalling more than USD5 billion. However, according to The Seattle Times, the ownership structure, which includes ties to an Israeli company, lately resulted in challenges in attracting external suppliers.
While the company announced a substantial number of deals with various customers, most of these were non-binding Letters of Intent. UrbanLink Air Mobility placed an order for ten with ten more options in October 2024, while DHL Express signed for 12 electric freighter versions of the aircraft. Non-binding LOIs were signed with Germany's flyv (Germany) (25 aircraft), Solyu, a South Korea-based lessor (25 aircraft), Aerolease Aviation, a US-based lessor (50), Cape Air (75), GlobalX (50), Evia Aero (25), Northern Territory Air Services (20), Aerus (30), and Air New Zealand (up to 23).
