Companies Envision Taxis Flying above Jammed Traffic

Companies such as Archer Aviation, whose eVTOL aircraft is seen here, are working on electric-powered aircraft that take off and land vertically like helicopters. (AFP)
Companies such as Archer Aviation, whose eVTOL aircraft is seen here, are working on electric-powered aircraft that take off and land vertically like helicopters. (AFP)
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Companies Envision Taxis Flying above Jammed Traffic

Companies such as Archer Aviation, whose eVTOL aircraft is seen here, are working on electric-powered aircraft that take off and land vertically like helicopters. (AFP)
Companies such as Archer Aviation, whose eVTOL aircraft is seen here, are working on electric-powered aircraft that take off and land vertically like helicopters. (AFP)

As urban traffic gets more miserable, entrepreneurs are looking to a future in which commuters hop into "air taxis" that whisk them over clogged roads.

Companies such as Archer, Joby and Wisk are working on electric-powered aircraft that take off and land vertically like helicopters then propel forward like planes.

"'The Jetsons' is definitely a reference that people make a lot when trying to contextualize what we are doing," Archer Vice President Louise Bristow told AFP, referring to a 1960s animated comedy about a family living in a high-tech future.

"The easiest way to think about it is a flying car, but that's not what we're doing."

What Archer envisions is an age of aerial ride-sharing, an "Uber or Lyft of the skies," Bristow said.

Neighborhood parking garage rooftops or shopping mall lots could serve as departure or arrival pads for electric vertical take-off and landing (eVTOL) aircraft.

Commuters would make it the rest of the way however they wish, even syncing trips with car rideshare services such as Uber which owns a stake in Santa Cruz, California-based Joby.

Joby executives said on a recent earnings call that its first production model aircraft should be in the skies later this year.

That comes despite a Joby prototype crashing early this year while being tested at speeds and altitudes far greater than it would have to handle as part of an air taxi fleet.

Joby has declined to discuss details of the remotely piloted aircraft's crash, which occurred in an uninhabited area, saying it is waiting for US aviation regulators to finish an investigation.

"We were at the end of the flight test expansion campaign at test points well above what we expect to see in normal operations," Joby executive chairman Paul Sciarra told analysts.

"I'm really excited about where we are right now; we have demonstrated the full performance of our aircraft."

Its eVTOL aircraft have a maximum range of 150 miles (241 kilometers), a top speed of 200 miles per hour and a "low noise profile" to avoid an annoying din, the company said.

Joby has announced partnerships with SK Telecom and the TMAP mobility platform in South Korea to provide emissions-free aerial ridesharing.

"By cooperating with Joby, TMAP will become a platform operator that can offer a seamless transportation service between the ground and the sky," TMAP chief executive Lee Jong Ho said in a release.

Joby has also announced a partnership with Japanese airline ANA to launch air taxi service in Japan.

And Toyota has additionally joined the alliance, with an aim to explore adding ground transportation to such a service there, Joby said.

Rethinking required
Hurdles on the path include establishing infrastructure and adapting attitudes to make air taxis a part of everyday life.

"For mass adoption, people need to have a mindset change," Bristow said.

"Getting people to want to travel in a different way will take some rethinking."

The need for the change, though, is clear, she reasoned.

Roads are congested with traffic that wastes time, frays nerves and spews pollution.

"There is nowhere else for traffic to go," Bristow said.

"You have to go up."

Miami and Los Angeles are already exploring the potential of aerial ridesharing, and Archer is hoping to have a small air taxi service operating in at least one of those cities by the end of 2024.

"It's a monumental task that we're taking on," Bristow said.

"It's going to take a while before the infrastructure supports the mass expansion of what we're trying to do."

Archer last month announced that it teamed with United Airlines to create an eVTOL advisory committee.

The US airline has pre-ordered 200 Archer aircraft with an eye toward using them for "last-mile" transportation from airports, Bristow told AFP.

"Imagine flying from London to Newark, New Jersey, then getting in an Archer and being deposited somewhere in Manhattan," Bristow said.

More time for life
Silicon Valley startup Xwing specializes in making standard aircraft capable of flying safely without pilots, with an aim of turning commuting by air into a cheaper and more efficient way to travel.

"We're strong believers here that the industry is going through a pretty dramatic transformation," Xwing chief and founder Marc Piette told AFP.

"In a few years you'll start seeing taxi networks of electric aircrafts regionally or on long hauls and it's going to be quite a different landscape."

Thousands of regional airports used mostly for recreation could become part of aerial commute networks, air mobility consultant Scott Drennan told AFP.

To Drennan, the primary reason for taking to the skies is to "give people back their time."



Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)

Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia.

Its earnings were dented by rising research and development costs and the ramp-up of manufacturing capacity for advanced semiconductors, the company said in a statement. Slowing demand for conventional memory chips used in PCs and mobile phones also weighed on earnings, it added.

The world's largest memory chip, smartphone and TV maker expects to log an operating profit of 6.5 trillion won ($4.5 billion) for the three months ended Dec. 31, well below an LSEG SmartEstimate of 7.7 trillion won.

The expected profit is 131% higher than the same period a year earlier, but down 29% from a disappointing third quarter. Preliminary revenue came in at 75 trillion won, slightly lower than analysts' estimates.

Rival SK Hynix is Nvidia's main supplier of high-bandwidth memory (HBM) chips used in artificial intelligence graphics processing units (GPUs) whereas Samsung has struggled to meet Nvidia's requirements.

Nvidia CEO Jensen Huang told reporters in Las Vegas on Tuesday that Samsung has to "engineer a new design" to supply HBM chips to his company, adding that "they can do it and they are working very fast," Korea JoongAng Daily reported.

Samsung said at the time of its third-quarter earnings that it was making progress in supplying HBM chips to Nvidia but has not made any public updates since then.

Greg Noh, an analyst at Hyundai Motor Securities, said Samsung's profit was possibly eroded by one-off costs as well as disappointing chip and display earnings.

Samsung finished 3.4% higher with analysts attributing the gain to the sense that the company's woes had already been factored in and were unlikely to get worse.

"There are concerns about Samsung's major businesses continuing to lose competitiveness. But chip demand may have bottomed already," said Lee Min-hee, an analyst at BNK Investment & Securities, adding that smartphone demand in China may gradually improve.

Shares of Samsung, South Korea's biggest company by market value, slumped 32% last year, far more than a 10% decline for the wider market.

By contrast, SK Hynix is expected to post record earnings for the fourth quarter and its stock surged 23% last year.

Samsung will release detailed fourth-quarter results on Jan. 31.

RISING COMPETITION

Samsung said fourth-quarter earnings also fell for its division that designs and manufactures logic chips, hit by slower mobile phone demand, lower utilization rates at its factories and higher research and development costs.

The division may have widened losses to about $1.5 billion in the fourth quarter from about $960 million in the preceding quarter due to struggles to increase production yields, analysts said.

Earnings for its devices business, which includes mobile phones, TVs and household appliances, dropped as it has been some time since new mobile phone models were launched and because competition has increased, Samsung said.

Analysts said its mobile division earnings may have declined year on year due to lower sales for its premium foldable phones.

Slowing demand likely offset the positive impact of weakness in the local currency which boosts earnings from overseas.

The South Korean won dropped to its weakest level in 15 years in December after President Yoon Suk Yeol's martial law decree triggered political turmoil. It was also hurt by US President-elect Donald Trump's pledges of higher tariffs on imports.