Terra Drone
A leading Japanese drone and advanced air mobility company has taken its first major step into the US market and continues its efforts to create a global air traffic control system for unmanned aerial vehicles known as Unmanned Aerial System Traffic Management, UTM.
Terra Drone Corporation has made a major investment in Silver Spring, MD-based Aloft Technologies Inc., becoming its largest shareholder, the companies announced Tuesday.
Terra Drone
Indeed, the development of a global UTM system has gained increasing urgency as the number of low-altitude aircraft such as drones, vertical takeoff and landing craft, and short-haul air taxis increases. They typically occupy altitudes well below commercial aircraft at 4,000 feet and below.
Yuki Ueno, CEO of Terra Drone
Terra Drone
“Above populated areas, there are many restrictions to ensure safety,” Yuki Ueno, CEO of Terra Drone, said in an interview. “But if we have a system like UTM, it not only gives us the ability to do beyond the visual line of sight or fly in slightly more risky areas that can be more digitized and automated and managed properly by UTM. It then allows for busier flights and more suitable, repeat or busier flights in a safe and efficient manner. But without UTM, we can’t do that.”
Ueno, who also joins Aloft’s board of directors under this new deal, notes that with companies like Joby and Archer Aviation planning to launch advanced air mobility, or AAM, services to coincide with the Summer Olympics in 2028 in Los Angeles, the development of UTM becomes even more urgent.
Aloft has previously secured investments from Boeing’s Corporate Venture Capital and Travelers Insurance and is a leading provider of FAA-certified services for unmanned aircraft systems.
It was this kind of experience that led Terra Drone to invest in Aloft and turn it into a subsidiary,
“Aloft has over 80% market share, which is pretty dominant, I would say,” Ueno explained. “This is not a big company. It’s like there’s only about 15 people, but it’s a really solid and focused company, and we believe the founders are really visionary people.”
The investment in Aloft is in line with Terra Drone’s ultimate goal of creating a global UTM system, largely through alignment with companies specializing in the technology.
Belgium-based UTM provider Unifly became an affiliate of Terra Drone in 2023.
A mandatory UTM system has been implemented in 27 European countries according to Ueno, and now the pace for a standardized air traffic system for UAS is gathering pace in the US
Last July, the FAA released Innovate28, its advanced air mobility deployment plan aimed at enabling advanced air mobility systems in time for the 2028 Summer Olympics.
Described by the FAA as a “living document,” it will be updated periodically. The main features of Innovate28 are:
· Provision of air traffic control through existing systems
· Use of existing airports and helipads
· Establishing predetermined routes
The creation of Innovate28 is a testament to the speed at which UAM is growing in the US – especially compared to Terra Drone’s home nation of Japan.
The development of UTM is an important complement to Terra Drone’s other major activities.
“We started doing UTM in 2016,” Ueno said. “We have also done many other industry verticals such as providing drone-based solutions such as surveying or inspections, serving for example the major oil and gas companies globally, the largest energy company in Japan and also the largest energy company in the world. Aramco is our shareholder and customer.”
All of this has been lucrative for Terra Drone, one of the top two drone service operators in the world, but the company has yet to break into the US market – a long-term goal that has now been achieved by finding the right partner.
Based on FAA data, there are currently about 2.4 times more registered drones and 62 times more registered manned aircraft in the US than in Japan, with further growth expected over the next four years.
“It really is one of the biggest markets in the world. That’s why we’ve always wanted to enter the American market,” Ueno said.
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