Cost will be a further issue. Skyports Managing Director Duncan Walker says initial routes might cater to curious tourists and wealthy business travelers, but the companies hope to bring down costs enough to make it a mass-market product. Citi estimates the eventual cost of a ride at about $3.75 per mile—cheaper than a limousine but still double the cost of ground-based ride-hailing.

Citi expects designers to keep tweaking the technology and working with regulators so they can start to offer regular air taxi services from 2025. This could come even sooner: Uber Technologies Inc. is targeting launches in Los Angeles, Dallas, and Melbourne as early as 2023. In a report last month, Citi said up to 20,000 electric passenger aircraft could be sold annually by 2030.

This article was provided by Bloomberg News.

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