WASHINGTON, Sept 12 (Reuters) - The Trump administration

announced a new pilot program on Friday to speed the deployment

of flying air taxis as companies work to meet regulatory hurdles

for advanced air mobility.

The Federal Aviation Administration said the program will

include at least five projects from public-private partnerships

with state and local governments and private sector companies to

enable safe operations for electric vertical takeoff and landing

(eVTOL) aircraft.

Joby Aviation ( JOBY ) praised the program, saying,

"aircraft in the program can begin operations in select markets

ahead of full FAA certification, a critical step in preparing

for scaled commercial service."

Air taxi stocks rose on the program first reported by

Reuters. Joby shares were up 5% while Archer Aviation ( ACHR ) was up 3%.

Air taxi firms are racing to secure approvals and

commercialize air taxi aircraft to meet the growing demand for

faster and more sustainable urban transportation. They tout

eVTOLs that can take off and land vertically to ferry travelers

to airports or for short city trips, allowing them to beat

traffic.

President Donald Trump directed the creation of the program in

June in an executive order.

A number of other countries, including India, China, and the

United Arab Emirates, are working to speed deployment of eVTOLs,

which could begin carrying paying passengers as early as next

year.

FAA Administrator Bryan Bedford said the agency will take

lessons learned from the pilot projects to enable safe, scalable

operations nationwide.

The projects are expected to include short-range air taxis,

longer-range, fixed-wing flights, cargo and logistics, and

supply serving emergency management, medical transport, or

offshore energy facilities.

Participants will use piloted, optionally piloted, or

unmanned advanced air mobility that will generally be over 1,320

lbs (599 kg) and may be capable of carrying passengers, and use

technologies enabling safe integration of these aircraft into

the national airspace system.

The FAA finalized comprehensive training and pilot

certification rules for flying air taxis in October 2024.