Aerospace & Defense Practice

Building digital
platforms to enable
advanced air mobility
Advanced air mobility could revolutionize passenger transportation,
and the digital platforms that support it must be equally innovative.
by Adam Mitchell and Robin Riedel

© XH4D/Getty Images

December 2022
 Advanced air mobility (AAM) is expected to take This article explores how AAM operations will
off in the second half of this decade. This new form require new digital platforms that differ significantly
of transportation uses electric vertical takeoff from those of traditional aviation, as well as the
and landing vehicles (eVTOLs)—small, battery- issues that companies must consider when
powered aircraft that can transport passengers developing these platforms. It also provides a
and cargo—for a range of urban and regional framework to help AAM players decide whether it
transportation use cases, including commuting, is best to own specific parts of a digital platform or
airport taxi services, and medical transport. Fast, access them through partners and suppliers.
clean, and expected to be comparable in price to
black-car taxi services when operating at scale, Developing new digital platforms
AAM is poised to transform how people move to suit AAM’s unique needs
across and between cities. To put the AAM software opportunity in
As with any new sector, the landscape is evolving perspective, consider that commercial airlines
rapidly. Investors are intrigued, with total spent more than $50 billion on software and
disclosed investment in AAM start-ups exceeding information technology in 2020—roughly
$15 billion through the first ten months of 2022. 5 percent of their total spending. These platforms
If governments begin certifying AAM passenger enable many core functions in commercial and
travel starting in 2025 as expected, eVTOL entry business aviation, from developing complex flight
into service could occur in the mid to late 2020s. schedules and assigning crew, to determining
The global AAM market could eventually reach which aircraft and airport staff need to be at which
tens or even hundreds of billions of dollars in value. gates at what time, to allowing customers to book
tickets and make changes when weather disrupts
Until now, the nascent AAM industry has primarily
the operations. Within AAM, digital platforms will
focused on developing and certifying eVTOL
also enable important functions along most of the
vehicles. With entry into service approaching,
AAM value chain as well as adjacent areas.
however, companies across the AAM value chain
have begun shifting attention to air mobility Existing airline solutions will likely be unsuitable
operations, including the new digital platforms for some functions in AAM because the operations
that will enable this ecosystem. These new involved are often different, especially for new
platforms will touch all parts of operations and use cases. Exhibit 1 shows more than 50 activities
customer experience, and there will be significant that AAM digital platforms will need to manage,
value at stake for players, including OEMs and organized into major functional areas.
operators, who can use these platforms to play Based on our previous work mapping the AAM
an orchestrator role within the broader AAM value chain, we believe that technology providers
ecosystem. This ecosystem will include not just could capture significant value from new software
the direct eVTOL flight operations but many other offerings that enable eVTOL operations and related
applications, including those for orchestration services. Digital platforms could comprise 5 percent
of intermodal trips, predictive maintenance, and of the total spending in the AAM value chain by
regulatory interactions. Some of these platforms 2030, similar to that of commercial aviation, and this
have been publicly announced. For instance, figure could increase up to 30 percent if mobility
Volocopter, an early entrant to the AAM industry services, such as customer interfaces for ordering
targeting entry into service between 2024 rides and intermodal integration, are included.
and 2026, has shared details about its VoloIQ
platform, which will assist with flight operations, Digital platforms for AAM will need to be built and
infrastructure management, and fleet service tested relatively quickly, as they need to be available
management, among other capabilities. in time for entry to service of eVTOLs in three to
five years. This time frame could be challenging

2 Building digital platforms to enable advanced air mobility

Web <2022>
<Building digital platforms for next generation air mobility>
Exhibit 1
Exhibit <1> of <2>

Advanced air mobility will involve more than 50 different activities, many
related to flight operations.

Advanced air mobility activities by category, Most significant requirement differences compared
nonexhaustive with traditional aviation software platforms

Crew Batteries Flight acceptance and Vertiports

• Pilot scheduling • Battery integration and scheduling • Platform, parking, and
• Pilot initial training development • Customer interface charger scheduling and
• Pilot recurrent training • Battery life cycle tracking • Pricing assignment
• Pilot duty and rest-timing • Battery management • Demand forecast • Parking scheduling and
training software/facilities • Flight planning assignment
• Pilot currency tracking • Battery recycling and • Aircraft, battery, and crew • Charger scheduling and
second life assignments and routing assignment
• Battery assignments and • Access rights/security
routing • Attendee scheduling
• Crew assignments and • Environmental/noise impact
routing tracking
• Vertiport airspace control

Flight operations and Customer Maintenance Safety

air traffic management • Safety briefings • Equipment health tracking/ • Ongoing risk assessment
• Flight release and tracking • Customer research and predictive maintenance • Flight operations quality
• Air traffic control interface feedback • Maintenance records and assurance/flight data
• Micro-weather • Security screening/profiling minimum equipment list monitoring
• Weight and balance • Billing/invoicing • Maintenance program and • Safety reports and
• Emergency response • Communication/marketing personnel scheduling investigations
• Operational flight plans and • Loyalty • Maintenance personnel • Regulator interface
charts • Customer profiles and training
care/relations • Parts inventory and supply
chain
• Vehicle grooming

McKinsey & Company

because operators may need to build some of these of aircraft, evolving business models, geographies,
systems concurrently, from the ground up, and shift and regulatory frameworks.
some focus from hardware to software. By contrast,
Other major considerations that could affect AAM
traditional aviation software evolved over decades.
platform development include the following:
The platforms must also be flexible enough
to support both urban and regional use cases — New operational needs: Air mobility operations
for passengers and cargo, since operators are may sometimes be more complex, especially
envisioning flights both within and between cities. as passenger volumes rise, and flight delays
Finally, they must be appropriate for different types or cancellations may be common, especially in

Building digital platforms to enable advanced air mobility 3

 the early days of the industry; digital platforms Digital platforms for AAM must also be better
for AAM must address the industry’s unique than today’s commercial operations platforms
needs, including those related to operations at managing irregular operations, including
at vertiports (such as facilities with eVTOL unexpected changes in flight schedules, missed
landing pads and, in many cases, maintenance connections, and route diversions. For example, in
capabilities), battery management, and commercial aviation, a 30-minute delay of a five-
intermodal integration. hour flight does not typically have a big impact on a
journey, and passengers have few alternatives. On a
— Seamless multimodal transportation: eVTOLs 20-minute flight, the same delay would matter more
may only be used for one leg of a passenger’s and providers must offer good recovery options;
journey, and multimodal platforms that ensure otherwise customers may choose to avoid AAM and
a seamless transition to ride-hailing vehicles or instead opt for point-to-point ground transportation.
other transport modes will be essential, or else Many urban vertiports might have space constraints
passengers may simply opt for ground transport. that could present difficulties. If an eVTOL breaks
— Ability to adapt to constantly changing down or its departure is delayed on the only available
technologies and business models: AAM landing pad at the facility, other vehicles would be
relies on important technological advances, unable to use it.
including leading-edge batteries. Other To avoid such problems, AAM platforms must
advances, including autonomous-flight manage demand and capacity in real time—for
capabilities, may further transform the industry. instance, by quickly rerouting eVTOLs to other
Operators will need platforms that support vertiports within range. Ensuring that these decisions
these technologies—for instance by monitoring can be made quickly is particularly important in AAM.
battery life. While traditional aircraft carry fuel for such diversions
and at least 30 minutes of additional circling and
Unique operations requiring
holding, that will not be possible for eVTOLs because
customized platforms
of tight battery capacity.
As with commercial airlines, AAM operators will
need software to manage staffing of vertiport Other major operational concerns involve air-
ground personnel and ensure that aircraft and traffic management (ATM) for piloted aircraft and
crews are routed appropriately. But AAM operations unmanned aircraft system traffic management
also differ from those of traditional aviation, (UTM) for unmanned aircraft. ATM/UTM and
necessitating new or upgraded platforms to handle operations platforms will need to be integrated,
some functions. regardless of which entity ends up managing the
immediate airspace around vertiports. ATM/UTM
The number of flights involving smaller aircraft
standards have not yet been finalized for AAM,
traveling shorter distances will increase. With this
however, so there is still some uncertainty about
shift, the number of people transported on AAM
what parties will be involved. Special platforms
flights may eventually exceed the volumes for
may also be required if vertiports decide to offer
commercial and business aviation for large operators.
any value-added services, including eVTOL and
This development will likely increase the complexity
automotive charging facilities, maintenance, repair,
of flight planning, demand forecasting, assigning
and overhaul services, or e-commerce such as
aircraft to different routes, and managing battery
click-and-collect delivery of consumables for
life. In commercial aviation, demand is relatively
eVTOL riders.
predictable and operators may set flight schedules
up to a year in advance. With AAM, by contrast, For best results, developers will configure
demand is more uncertain because bookings will operational platforms with AAM’s unique features
occur hours, if not minutes, before a flight. in mind. For instance, handling large and sudden

4 Building digital platforms to enable advanced air mobility

shifts in passenger volume will require platforms possible. As AAM gains scale, however, operators
with enough compute power to collect and analyze will need to offer solutions that optimize routes.
large amounts of data very quickly. Platforms must
In the event of irregular operations, AAM operations
also be usable in different operating environments
systems must also communicate in real time
because vertiports will come in many shapes
with other mobility platforms to ensure that
and sizes—some will be extensions of current
transportation at later stages of the journey are
airports, others will be “greenfield,” purpose-
adjusted. For instance, they could be configured to
build vertiports, and still others may be converted
release a ride-hailing driver to take other fares if a
parking garages.
flight is delayed by 20 minutes.
The need for integration with When looking at the customer journey as a whole,
multimodal mobility platforms operators must decide whether they want to own
As AAM gains scale, customers will want to book certain parts or simply enter agreements with
seamless, point-to-point travel through ride-hailing mobility platforms that will manage them. Consider
platforms such as Uber and Lyft, or platforms the process by which a customer books an eVTOL
developed by AAM operators. Already, many flight through a ride-hailing platform. Will the AAM
operators envision a world where customers can operator own any part of the digital experience, and
call a ride-hailing vehicle to their home and travel to if so, where will the handoff between systems occur
a nearby vertiport, where they will board an eVTOL in the customer journey? Questions may also arise
that will take them to a second vertiport near their about the best user experience to offer. If a ride-
final destination. If necessary, another ride-hailing hailing app is offering access to flights from multiple
vehicle will be waiting at the vertiport to transport eVTOL operators, would customers want the option
customers over the last mile of their trip. This is to choose among operators, or would most prefer to
critical for AAM to gain scale because the process simply be routed through the most efficient route?
must be easy for customers. Further, time savings
Leading-edge technologies—and equally
must be calculated on a door-to-door level, not just
sophisticated platforms to support them
for the flight portion of the journey.
AAM relies on innovative technologies, and
In addition to ensuring a seamless user experience, operators will need sophisticated platforms to
AAM customer platforms must be fully integrated support their use. Consider the following examples
with operations platforms. Such connections to see why.
will allow the platforms to optimize routes and
Battery life cycle management. Batteries are
passenger scheduling in real time based on
a cost driver and will largely determine whether
potential itineraries, demand, pricing, vertiport
operators can make a profit—and that means
availability, and vehicle location. For instance,
companies will need to build battery-management
a platform may use ground and air traffic data
systems or find a partner that can help them track
to determine whether passengers should take
and optimize battery usage.
a 20-minute ride-hailing car trip followed by a
20-minute flight, or a 30-minute car trip followed Operators must integrate battery-management
by a ten-minute flight. In other instances, software into their digital platforms for AAM to
passengers may choose to alter parameters make better decisions about battery replacements
of their trip mid-route. If they were originally or swaps. For instance, all batteries deteriorate
scheduled to transition from a ride-hailing vehicle over time, and operators may choose to actively
to an eVTOL, for example, they might instead assign aircraft with the most depleted batteries
decide to remain in ground transportation for the to shorter missions to prolong their use in service
entire trip. With early AAM use cases, it’s unlikely while directing new batteries to aircraft with longer
that such complex, mid-trip switching will be missions. A platform that helps them monitor

Building digital platforms to enable advanced air mobility 5

 battery depletion and connects with the software Choosing where to play in the
that manages second-life applications would be AAM software ecosystem
very useful. The platforms could inform them when Players in AAM must identify which parts of the
a battery has reached its minimum capacity and value chain are core strategic priorities and what
might be sent to a recycling program, allowing digital platforms they should own, because they
them to recoup a portion of their costs. provide the greatest opportunity for differentiation.
Safety management for autonomous flights. Identifying priorities may be difficult, partly
While most eVTOLs will have a pilot in the aircraft because the best choice may change over time as
during entry into service, many operators envision the industry evolves or as organizations develop
a world in which flights are highly autonomous in new capabilities. As a first step, AAM players could
an effort to reduce costs to the point where a trip determine which platforms will generate direct
is comparable to existing ground transportation revenue streams as stand-alone businesses,
options today. especially for control-points in the value chain
While autonomous flight would require multiple that are difficult to commoditize (Exhibit 2).
platforms, those related to safety are paramount. For example, operators might determine that
Any operator of autonomous eVTOLs would need battery management is a core platform that will
the ability to take control of an aircraft remotely in generate significant direct revenue as a stand-
the event of an emergency and land it safely—and alone business. Developing greater competencies
that would require integrating systems for ATM/ in this area could also allow them to increase
UTM with those for vertiport operations. Both efficiency within their core operations because
systems would also have to link to those of public- batteries account for a high portion of their total
sector police, fire, and ambulance agencies to allow cost of ownership.
for a coordinated response if a vehicle makes an A second group of software applications may not
unplanned landing outside of a vertiport. directly generate revenue but instead produce

Web <2022>
<Building digital
Exhibit 2 platforms for next generation air mobility>
Exhibit <2> of <2>

Operations platforms for advanced air mobility can assist with three plays in
the value chain.

Value chain plays and example software/platforms

Value chain play Direct revenue Synergies Enablers

Create meaningful direct Create synergies with direct- Products that are required for
revenue streams as stand-alone revenue businesses (eg, usage day-to-day operations; OEMs
businesses; provides more direct data which will allow the OEM may be required to build these in
ownership over core parts of to build better hardware or the early stages of the industry,
value chain (eg, batteries could customer experiences) but they may not be a strategic
make up >10% of total cost of differentiator over the long term
ownership)

Example software/ Flight planning; battery Equipment health tracking/ Pilot scheduling; micro-weather;
platform management software/facilities predictive maintenance; loyalty billing/invoicing

McKinsey & Company

6 Building digital platforms to enable advanced air mobility

 value-added synergies. These could include loyalty and many companies may choose to procure them
Find more content like this on the
programs, which may reveal valuable customer from third parties if they are not the long-term
McKinsey Insights App
data that could eventually inform demand planning natural owner.
and customer-experience design. For OEMs, an
equipment-health-tracking tool or predictive-
maintenance platform might improve reporting AAM has the potential to transform how we move
about general wear and tear, equipment problems, within and between cities and regions, and there
and necessary repairs and, in turn, provide valuable is tremendous value at stake for those who build
data to regulators that could help reduce reserve the digital platforms that will enable and direct this
requirements for aircraft over time. ecosystem. This will not be easy, however, since
Scan • Download • Personalize
many of these platforms must be built from the
The third group of applications are market
ground up and scaled before the end of the decade
enablers. They are essential for operations but are
to enable commercial operations of eVTOLs.
unlikely to generate significant synergies or help
Winners can start by determining which of these
operators and manufacturers with differentiation.
platforms are core strategic priorities and should be
Nonetheless, in the early stages of AAM, there
owned by their business to increase opportunities
may be a need for players to build these offerings
for differentiation. Winners may also initially focus
themselves if no other options are yet available in
on the core capabilities needed to launch a business
the market. Examples include billing and invoicing
before addressing other, less mission-critical parts
software, weather tracking, and crew scheduling.
of the value chain.
In time, these tasks may become commoditized,

Adam Mitchell is an associate partner in McKinsey’s Toronto office, and Robin Riedel is a partner in the Bay Area office.

Designed by McKinsey Global Publishing

Copyright © 2022 McKinsey & Company. All rights reserved.

Building digital platforms to enable advanced air mobility 7