Air travel is back in a big way. Demand is expected to be up 4% this year compared to 2019.
It’s great news for airlines. But for passengers, not so much.
Busier flights and longer queues at airports already cause headaches for air travellers. And the aviation industry’s growing environmental impact can’t be ignored — according to the International Energy Agency, it already accounted for 3.1% of global CO2 emissions in 2019. If no changes are made, it will account for as much as 27% by 2050.
Startup and corporate innovators are tackling these problems head on. According to McKinsey, $3bn was invested in the future air mobility industry in 2022, as companies race to build new kinds of electric- and hydrogen-powered aircraft. Meanwhile, the market for smart airport technologies — spanning AI, augmented reality and automation — is expected to grow to $24.3bn by 2032, up from $7.1bn in 2022.
Here’s how Europe’s aviation sector is taking off — and what might lift it to new heights.
Where are Europe’s aviation innovation hubs?
According to Dealroom, the majority of startups working on sustainable aviation solutions are based in the US. The UK comes second, with Dealroom listing 20 sustainable aviation startups based there, followed by France (15) and Germany (13).
France, in particular, is building on its legacy: In 1975, the first Concorde flight took off from Paris’s Orly airport. This year, its operator, Groupe ADP, an international airport operator which runs 26 airports globally, launched the Paris-Orly 2035 development project, a new airport model where airports become hubs for mobility and clean energy solutions. Through its Innovation Hub, Groupe ADP’s innovation department, the company has conducted 135 experiments with startups since 2022.
Startups in France — working with and without major airports — include electric-hybrid aircraft company VoltAero and hydrogen-powered electric aircraft startup Beyond Aero, as well as aviation spare parts marketplace Aero-Bay, aviation decarbonisation software Estuaire and Alltheway, a baggage handling company that allows passengers to have their bags collected from the city, before they make their way to the airport.
What solutions are Europe’s aviation startups working on?
According to Dealroom, there are 69 startups around the world working on sustainable aviation fuel solutions, 49 building new types of aircraft, and 22 building batteries, charging equipment and other types of energy infrastructure needed to decarbonise the aviation industry.
1/ New types of aircraft
When it comes to reinventing the flying machine, two solutions are popular among startups: jets powered by electricity or hydrogen, and smaller electric take-off and landing (eVTOL) aircraft.
Beyond Aero, based in France, is building an hydrogen-electric business jet, which it successfully took for a test flight in February. Compared to traditional kerosene-powered aircraft, a battery powered aircraft can eliminate flight emissions, while hydrogen-powered electric aircraft can produce a 50-90% reduction.
Futuristic-looking eVTOLs are being pitched as air taxis — a new form of inter-city transport. Makers in Europe include Volocopter, which has raised $796m in total according to Dealroom, and Lilium, another Germany-based eVTOL maker that went public via a SPAC deal in 2021.
Daniel Wiegand, Lilium’s cofounder and chief engineer, says the experience of hopping on an eVTOL should be similar to hopping on a train, with no security checks required given the relatively small size of the aircraft. “You basically arrive [at the vertiport] and five minutes later you should be flying,” he says.
Other companies, such as Volocopter, are looking to air taxis to supplement rescue helicopters, to provide rapid assistance from the air. As well as emergencies, these vehicles could possibly be used for inter-hospital transport.
2/ Sustainable airport tech
Airports are pollution hotspots, with 25% of a flight’s emissions occurring during take-off and landing.
To bring electric-powered jets into service, charging infrastructure will be needed. Electro.Aero and AeroVolt are two European startups working on this. AeroVolt has already installed chargers at six regional UK airports.
Decarbonising aviation will begin with small aircraft, and will only be possible with the full involvement of the airport ecosystem
Paris-based Smart Airport Systems has created a ‘taxibot’ to tow aircrafts between terminal gates and take-off points, to avoid using jet fuel. The company says its solution can reduce emissions by up to 85%.
In February, Groupe ADP and Dassault Innovation announced a partnership to decarbonise Paris-Le Bourget Airport. Solutions include electrifying ground operations equipment and researching how to distribute sustainable aviation fuel effectively.
“Decarbonising aviation will begin with small aircraft, and will only be possible with the full involvement of the airport ecosystem,” Augustin de Romanet, Groupe ADP’s CEO, said at the time of the announcement.
3/ Streamlining the airport experience
Airports are also upgrading their tech to keep passengers moving through the terminals, both to improve passenger satisfaction and avoid hefty fines. Earlier this year, Dublin Airport received a €0.21 per passenger fine from the Irish Aviation Authority, because of how long it was taking to clear security queues.
According to Lufthansa Innovation Hub, top causes of frustration among passengers are flight irregularities (cited by 36% of negative reviews), luggage (17%) and check-in and boarding (13%).
Alltheway says 1,300 people have used its inner-city baggage collection service since it launched last summer, with 60% dropping bags off the day before their flight. Founder Emilie Gazeau says airports could improve efficiency by 10-20% by processing baggage outside of the airport.
Another company is UK-based Zamna which uses blockchain technology to check passengers’ documents before arriving at the airport — a pilot with US airline WestJet found it was able to decrease manual document checks by 40%.
Scaling for success
As de Romanet, Groupe ADP’s CEO, commented, reducing the environmental impact of aviation will only be possible with buy-in from the full ecosystem — and to truly scale startups need to work with or outcompete the companies which dominate the industry.
It is now a question of ensuring that everywhere in the world where Groupe ADP and its partners are present becomes a key player in the local innovation scene
That’s where corporate partnerships can make a big difference — providing capital, R&D, expertise, deployment opportunities and access to other partnerships.
By market cap, Groupe ADP is one of the biggest airport companies in the world. One of its airports, Charles-de-Gualle airport in Paris is the 11th busiest airport in the world by passenger traffic.
As part of its Innovation Hub in Paris, which sets up experiments with startups and acquires stakes in startups, Groupe ADP is hosting its fourth edition of Airport Innovation Days, providing an opportunity for startups working on transportation and aviation solutions to promote their products and services, meet potential investors and take part in a one-day competition.
“After the age of maturity in Paris, it is now a question of ensuring that everywhere in the world where Groupe ADP and its partners are present (26 airports) becomes a key player in the local innovation scene,” says Joyce Abou Moussa, deputy director of international development, Groupe ADP. “Particularly for young entrepreneurs.”
Groupe ADP’s Airport Innovation Day takes place in Paris on December 4th. Apply here by November 4th at 12pm local time to get your chance to pitch your startup in front of international experts.
