Ecojet Airlines initiates growth equity financing to complete regulatory approvals and start commercial operations

Edinburgh-based carrier Ecojet Airlines has today announced that it is initiating a £20 million round of growth financing in order to satisfy the capital requirements to obtain an AOC and Operating Licence from the UK CAA.

Ecojet, whose largest shareholder is the Ecotricity Group, a green energy company founded by environmentalist Dale Vince OBE, intends to start operations in early 2025 with a fleet of ATR 72-600 turboprops on a small network of core regional routes from its Edinburgh base. The airline has also signed an LOI with ARC Aerosystems for up to 50 of the UK manufacturer’s Linx P9 Gyrocopter aircraft, for use on sub-regional routes to secondary UK towns and cities. It also hopes to add a 19-seat type such as the DHC-6 Twin Otter to its fleet from 2026.

Core to Ecojet’s proposition is the conversion of existing aircraft types to run on zero-emissions fuel sources. In order to achieve this goal, in November 2023, the airline agreed to purchase the first 22 ZA2000 powertrains to be produced by leading US hydrogen-electric engine manufacturer ZeroAvia, as part of a larger order for up to 70 such engines, including a number of ZA600s to power its 19-seater operations.

Despite originally having aimed to launch in summer 2024, Ecojet made the decision to delay this target in order to further invest in its digital infrastructure; this will allow the airline to offer a paperless customer experience to passengers from day one.

Photo: ZeroAvia

Ecojet has now built its core team, including both management and operational staff such as pilots and cabin crew, operational infrastructure, service partnerships, including suppliers of green hydrogen to power its aircraft, technology systems, and, crucially, its first two ATR 72-600 aircraft. It has also confirmed that it hopes to use Sustainable Aviation Fuels (SAF) to power its fleet before making the transition to ZeroAvia powertrains once these engines are certified by the CAA.

The airline believes that addressing the need for sustainable air travel is high in the aviation mindset, both at the consumer level, as well as for operators and suppliers throughout the industry. It also believes that there remains substantial unsatisfied demand for regional connectivity within the UK left following the collapse of Flybe, with Ecojet also highlighting challenges from the limitations and high environmental, and financial, costs associated with land-based alternatives.

Ecojet claims that it will be able to use its modern and fit-for-purpose aircraft, infrastructure, technology and the benefits of zero emission operations, in order to offer routes which are not practicable for existing regional operators. It hopes to be able to do so at a price which is more competitive with road and rail alternatives, whilst also seeking diverse revenue streams from contract flights, freight operations, and PSO services, in addition to its scheduled network.

Photo: Ecojet

Wyvern Partners will be leading Ecojet’s growth equity funding, having been appointed as the airline’s financial advisor.

Brent Smith, Ecojet’s CEO, said that, “We have taken huge steps forward in launching Ecojet as the world’s first zero-emission airline, and are grateful for Ecotricity’s unwavering support. We look forward to becoming operational and welcoming further investors to assist with scaling the business at speed.”

Green industrialist Dale Vince, the airline’s co-founder, added that, “Ecojet has a leadership role in transforming air travel by making zero-emission air travel possible for the first time. We are now in a position to be able to invite other like-minded investors to join us in making sustainable aviation a commercial reality.”