Ram Menen is a Natilus advisor and member of the company’s founding team. Well known in the industry as the head of the cargo division of Emirates Airlines, he is also a founding member of TIACA (The International Air Cargo Association as well as Past President, CEO and Chairman of the Board.

As an experienced specialist in freight cargo, what is the current environment of the air cargo industry?

Air cargo has always had a very strong relationship with the world economy, and world air cargo growth tends to be roughly twice the growth of world GDP. Since the economic crisis of 2008, the industry has experienced some real fluctuations. However, beginning in 2020, this sector came into its own during the COVID-19 pandemic with revenue and yields setting unprecedented all-time highs.

Today, as the pandemic subsides and passenger capacity is redeployed, global economies are also affected by the Ukraine/Russia which has conflict plunging the world into an energy crisis. Yields are now on a downward trend, yet we predict the growth pattern will soon revert to normal. I see the yields getting back to the pre-pandemic levels in the next 2-3 years, and as margins get tighter, costs would be back in focus.

The good news is that the air cargo industry will be a growth industry for the foreseeable future, led by demand for e-commerce and the need for supply chain cost optimization, even with changes in procurement and production pattern. The industry is also challenged to reduce its dependency on China, by in-shoring/offshoring, air cargo. E-commerce will continue to grow in double digits while traditional cargo is likely to grow in lower single digit for the next 8-10 years.

How does this scenario affect Natilus?

This is where Natilus, with its lower operating cost per freight ton kilometer, will have a great advantage and add value to the cargo operators. In addition, Natilus is a purpose-built freighter, so its ‘no contours’ profile will optimize the capacity utilization by virtually eliminating loaded space loss factor. New operational efficiencies will also bring fresh cost benefits on the ground. Since Natilus will have large cargo doors and is a blended wing body design (BWB), it will be ideal for long and large/heavy cargo and will be a good replacement for B747F. The volumetric capacity of all the variants are very e-commerce friendly and ideal for low density cargo.

What is your assessment of the impact of the current pilot shortage on the air cargo industry?

Pilot shortages are likely to continue well into the next decade and we need to remain prepared to limit disruptions. Unmanned operations will lower the risk of future unknown challenges as unmanned operators or remote pilots will not need to deal with crew time limitations and can operate longer haul flights to get higher asset utilization than traditional airplanes, while lowering costs.

Are there any transport segments that you know of in which cargo is trucked to a regional airport rather than using a nearby airfield that could be served by Natilus?

Road feeder service (RFS) trucks are currently the best regional freighters for cargo operators. The Kona N3.8T freighter initially will be in direct competition with trucks for the 500-700 km range. However, Kona N3.8T will have distinct benefits where routes have large segments of water crossings or mountainous areas where trucks generally struggle to get through. Autonomous air cargo comes into its own where road infrastructure is poor and there are stringent border restrictions which can add delays to RFS.

Are there routes not being served today that could be fulfilled by Natilus?

Since the cost of operations for Natilus is lower than existing freighters, it will be more viable than ground freight in deployment on lower density traffic routes. The N3.8T is ideal for regional operations into remote and hard to reach places. All variants of Natilus will be very good for relief operations. Customized variants can also play a niche role in growing firefighting segment, especially as an unmanned vehicle, it could go into lower altitudes than manned aircraft and be more effective in putting out the fires.

Natilus has publicly announced its commitment to sustainability, and in particular, to designing aircraft and furthering new fuels that lead to lower carbon emissions and more economical operations for clients. What are your thoughts in this arena?

Natilus’s design and lower fuel burn per ton kilometer will go a long way in lowering carbon emission levels. Sustainable Aviation Fuels (SAF) will further improve emission levels. In addition, the N3.8T might benefit from a hybrid electric propulsion system, and hydrogen technology in the not-so-distant future.

Where do you expect the greatest growth in the worldwide air cargo business within the next decade and why?

The markets are very unpredictable at the moment due to the geo-political volatility worldwide. However, in the long term, I still see Asia Pacific (including China)-U.S. being the largest growth market internationally. Though there is huge growth in China and India, the U.S. domestic market is likely to continue to remain the biggest consumer market. China still controls the major percentage of raw materials (especially rare earth elements), so even if there is a shift in manufacturing/production activities, procurement of raw materials and components are still going to be from China. Africa and Latin America will also be high-growth markets, while Europe will tend to be riding a bit behind these continents. Trade between China-Africa, India-U.S., Asia Pacific/LATAM are all going to see continued growth in the next 10 years. The rebuilding of Ukraine will also have a positive effect on the cargo industry.

A friend of mine likes to say that the world’s biggest challenges are also an entrepreneur’s greatest opportunities – and our industry is certainly in challenging times.

Entrepreneurship and innovation go hand in hand. It is hard to create something no one else has done before and do this against the traditions of an established industry. It takes fresh new thinking, and use of new technologies to create your prototypes, modeling and testing as well as new partnerships in engineering, design, and finance.

The transportation industry has key long-term drivers but also short-term hurdles. In the last 18 months, the U.S. saw inflation rise more than 7%, the biggest increase in nearly 40 years according to CBS News. In addition, this increase keeps edging higher – especially in other parts of the world. Much of this has been traced to the rising costs of labor, packaging, transportation and sluggish supply chain challenges – impacting everyone from governments to families.

A new vision for freight delivery must be keenly focused on being more sustainable for the long-term, which will make it concurrently less impacted and reactive to short-term fluctuating market influences. Those we can prepare for.

The key is maximizing efficiencies in our long-term delivery systems: more innovative design in our transportation vehicles; more efficient packaging that provides more volume for the same amount of weight – and more sustainable and environmentally-friendly fuels to ensure we protect our planet. If we do this, we have the opportunity to expand the air freight market from the $270B it is today to $470B by the end of the decade. In addition, if we focus on the impact of autonomous technologies to ease the labor crunch, we can ease those costs and get the logistics pipeline flowing again. This is exactly where cargo, logistics, and drone industries should be keenly focused.

Fundamental drivers for the Air Cargo Market

Demand: Since the advent of the COVID-19 pandemic in early 2020, which we all know had a severe impact on passenger flight – we witnessed the beginning of a meteoric rise in e-commerce, dramatically increasing the demand for cargo delivery. Analysts have predicted this demand to remain strong through the decade.

Air vs. Sea: There are only two ways to transport cargo across the world: by air and by sea. While air is 50% faster than shipping, it is also 13 times more expensive – so we need to dramatically reduce costs to be competitive. By designing and flying new, more efficiently-designed aircraft and cargo pallets, as well as autonomous and remote-piloting technology, the air cargo industry can gain those efficiencies to be highly competitive with shipping. If we combine this with the use of sustainable fuels, we can be successful, while being productive stewards of our environment.

Design: Today, cargo aircraft are converted passenger aircraft, and pallets have been referred to as trying to fit round pegs in a square space. It is highly inefficient in its ability to carry more capacity for the same weight. This is critical as we hedge against rising fuel costs to meet increased demand. We need new more aerodynamically designed aircraft, and newly designed highly efficient packaging pallets.

Autonomous vs. piloted aircraft: Developing autonomous solutions that are purpose-built to address the needs of the air cargo market is one important step toward developing more robust long-term solutions. Autonomous technologies seek to utilize labor more efficiently, reduce pilot hours away from home through remote piloting, and can make processes safer and more reliable — exactly why we need to innovate with autonomous aircraft, designed specifically for the middle mile cargo market.

Creating new markets: It is the middle mile where autonomous air transport can be highly competitive, especially when there is a pilot shortage on a global scale. The ability to manage flights more efficiently is an important step for aviation – and is something that can be done today. We also want to create new markets where there is now no existing infrastructure.

Climate Change: We have the evidence; now we must act. According to many studies, including those of the ClimateWorks Foundation and serious studies by Airbus and other industry leaders, when an aircraft burns jet fuel, it releases not only carbon dioxide (CO2) but also creates other byproducts including nitrogen oxides (NOx), water vapor, soot, and aerosols which, at altitude, react with the atmosphere and contribute substantially to global warming. Airbus has taken a leading role in the advent and creation of sustainable air fuels – and this is a major initiative for our industry – to police itself – before governments apply highly restrictive measures.

Innovation is usually not developed in a vacuum. It comes from need and our industry has an historic record of overcoming challenges with new ideas. When you are on the precipice of a radical breakthrough in any industry, you can create opportunities to smash the status quo and think differently. We are now at such a crossroads.

Article written and submitted by: Natilus to TIACA

SAN DIEGO (November 30, 2022) – Natilus, a U.S. corporation, is producing the world’s first purposefully designed and manufactured autonomous aircraft for air freight transport. As a big step forward, Natilus has partnered with Janicki for composite part design and fabrication, due to their renowned reputation for innovation and quality workmanship as a tier 1 supplier. Through Natilus’ design and development of a mostly composite, blended-wing body, autonomous aircraft, the company will provide customers with double the cargo volume for each trip, while simultaneously reducing up to 60% of today’s cargo transport cost. On top of the customer benefits, the technology and unique shape of the blended wing body also thrusts aerospace toward a greener future with a 50% reduced carbon footprint per vehicle, and a clear path to zero emissions with hydrogen. Natilus’ N3.8T is scheduled to fly in 2024.

“We selected Janicki because they are a family-owned and operated company, founded and run by engineers with the highest qualifications and experience in designing large-scale, high-precision prototypes, tools and production parts,” said Natilus CEO Aleksey Matyushev.

“Janicki is pleased to partner with Natilus on the 3.8T prototype. Autonomous aircraft are the future of the air freight industry, and we are very excited to be working on this leading-edge project,” said John Janicki, president of Janicki.

Environment Stewards

Janicki also shares the Natilus commitment to produce the most advanced and sustainable products, while being responsible stewards of our environment, instituting practices that protect the environment through continual improvements to save fuel and water, reduce waste, air emissions, noise, and material consumption. In 2011, Janicki worked with the Bill and Melinda Gates Foundation to create a low-cost waste treatment plant, later establishing their sister company, Sedron Technologies. Sedron continues to develop cost-effective waste and water treatment solutions globally.

About Janicki
Janicki is a privately owned engineering and manufacturing company, specializing in advanced composite materials and exotic metals. With large-scale facilities and high precision equipment, Janicki produces parts, tools, and assemblies for aerospace, marine, energy, space, military, architectural and transportation customers. Janicki’s proprietary 5-axis CNC machines are unrivaled in scale and precision, with machining envelopes up to 100 feet in length. As a full-service engineering company, Janicki specializes in large, complex projects with demanding timelines. For more information, visit www.janicki.com.

About Natilus
Natilus was co-founded by Aleksey Matyushev and Anatoly Star in 2016 to expand and democratize the air cargo transport industry by designing and manufacturing a new fleet of blended wing body (BWB) autonomous freight aircraft that will increase volume by 60% and lower costs by 60%, while reducing carbon emissions by 50%. Natilus aircraft use existing ground infrastructure and standard air cargo containers, to produce an innovative turnkey solution for customers.

The Natilus family of cargo aircraft includes:

• 3.8 ton payload short-haul feeder UAV
• 60 ton payload medium/long range UAV
• 100 ton payload long-range UAV

Natilus Fact Sheet: https://natilus.co/natilus-faqs/

Media Kit: https://natilus.co/media-kit/

Who benefits from more Sustainable and Economic Air Freight? You…Your business…Your Shareholders…Your Customers – Our Planet

Natilus, a U.S. company producing the world’s first purposefully designed and manufactured autonomous aircraft for air freight transport, has announced that it has selected Pratt & Whitney Canada to supply the engines for the first of the Natilus family fleet: the N3.8T. The company is initially producing the N3.8T as a prototype and as a long-term short-haul air cargo feeder. The first N3.8T aircraft is under production and is scheduled to fly in 2024.

Key Points

• Pratt & Whitney Canada PT6A-67D engine selected for the Natilus N3.8T short-haul feeder
• Natilus is first to manufacture purposeful innovative cargo aircraft, designed to accommodate 60% more volume to increase efficiency and sustainability
• Natilus pledges 60% reduction in cost and 50% fewer carbon emissions per flight.

SAN DIEGO, CA (August 23, 2022) – Natilus, a U.S. company producing the world’s first purposefully designed and manufactured autonomous aircraft for air freight transport, has announced that it has selected Pratt & Whitney Canada to supply the engines for the first of the Natilus family fleet: the N3.8T. The company is initially producing the N3.8T as a prototype and as long-term short-haul air cargo feeder. The first N3.8T aircraft is under production and is scheduled to fly in 2024.

“Natilus has designed and developed a blended-wing autonomous aircraft that can offer services at a fraction of the cost of today’s transport, while reducing negative impacts on our environment. We wanted to select an engine supplier that shares our vision of innovation, safety and efficiency. Pratt & Whitney Canada is recognized and respected for their worldwide support of customers, while the PT6A engine is the benchmark in reliability and has an unmatched history of performance with low TBO (Time between Overhauls),” said Aleksey Matyushev, Natilus Co-founder and CEO.

“Pratt & Whitney has a long-standing commitment to supporting innovation for sustainable aviation, and so we are pleased that Natilus has recognized the capabilities of the PT6 engine family to increase efficiencies in the air cargo transport industry while reducing carbon emissions,” said Nicholas Kanellias, vice president, General Aviation, Pratt & Whitney Canada. “The selection of the PT6A-67D to power Natilus’ innovative cargo aircraft further asserts the dependability, versatility and flexibility of the PT6 turboprop engine family, the world’s most popular engine in its class.”

Today, there are only two ways to move cargo internationally: by air and by sea. The difference between the cost and time of these two modes of transportation is dramatic, with sea freight currently 13 times less expensive, but 50 times slower in delivery. Natilus intends to revolutionize the air transport industry by providing the timeliness of air freight at an affordable cost reduction of 60% to increase the competitiveness of the air cargo market.

About Natilus
Natilus was co-founded by Aleksey Matyushev and Anatoly Star in 2016 to expand and democratize the air cargo transport industry by designing and manufacturing a new fleet of blended wing body (BWB) autonomous freight aircraft that will increase volume by 60% and lower costs by 60%, while reducing carbon emissions by 50%. Natilus aircraft use existing ground infrastructure and standard air cargo containers, to produce an innovative turnkey solution for customers.

The Natilus family of cargo aircraft includes:

• 8 ton payload short-haul feeder UAV
• 60 ton payload medium/long range UAV
• 100 ton payload long-range UAV

Natilus Fact Sheet: https://natilus.co/natilus-faqs/
Media Kit: https://natilus.co/media-kit/

Kavin Gustafson with Think Flight featured Natilus’ CEO and Co-Founder Aleksey Matyushev in this educational and inspiring video about BWB aircraft. The future of transport is definitely HERE!

San Diego has one of the richest aerospace heritages of any city in America. Ryan Aeronautical Co. built Charles Lindbergh’s “Spirit of St. Louis” aircraft in the mid-1920s. During World War II, Consolidated Aircraft Corp. mass-produced planes such as the B-24 Liberator and the PBY Catalina.

In the 1950s, Convair’s Atlas Launch Vehicle helped usher in the Space Age. And, as everyone who has watched “Top Gun” knows, North Island Naval Air Station is home to some of the best combat pilots in the world.

A startup company called Natilus Inc. is planning to write the next chapter in San Diego’s illustrious aviation history. It is developing a large unmanned cargo aircraft that may someday revolutionize the air freight and logistics industry.

Natilus plans to design and manufacture a family of aircraft that feature a blended-wing body (BWB) configuration. Unlike traditional tube-and-wing airplanes, BWBs combine the wing, body and tail into a single wing that can generate a 30 percent reduction in fuel consumption.

“The blended-wing design with our patent-pending diamond cargo configuration allows for more volume, helping our customers optimize for the reality of today’s e-commerce freight,” says Aleksey Matyushev, CEO of Natilus. “For the same weight of tube-and-wing aircraft, [our plane] will transport more than twice as much revenue cargo for the same trip, lowering costs by 60 percent and reducing CO2 emissions by 50 percent.”

Generally speaking, whatever machines we humans design to transport ourselves from place to place are pretty… pretty to look at. On the other hand, when it comes to cargo and freight transporters, looks are not exactly at the top of the list of priorities for the designers and engineers putting them together. Unless your name is Natilus.

The word probably doesn’t ring any bells, given how probably most of you coming here to autevolution are not in need of such services, but if the company manages to make these things a reality, it’ll probably be as famous as FedEx.

Natilus (like Jules Verne’s submarine, or the Lincoln SUV, only misspelled, and with wings) is a blended wing body (BWB) machine, meaning an aircraft that shows no clear distinction between its main body and the wings. Unlike flying wing aircraft though, or lifting bodies, when it comes to BWBs both fuselage and wings are there, only nicely hidden into one another.

Although this design comes with its share of disadvantages for passenger use (like, say horrible evacuation times during an emergency), it does come with a lot more advantages over conventional aircraft when it comes to cargo transport. And that’s exactly what Natilus is trying to exploit with plans to make not just one, but an entire family of remotely piloted UAVs shaped like this.

Read the entire article on Autoevolution.com

As the potential for unmanned aerial vehicles to become involved in freight grows, Californian start-up Natilus looks ready for take-off, as chief executive Aleksey Matyushev tells Rebecca Jeffrey.

In a market seeing unprecedented freighter demand there is one company that has racked up $6bn in orders before its pilot unmanned aerial vehicle (UAV) aircraft has even launched.

California-based start-up Natilus has designed four high-volume UAVs ranging from 3.8 tons to 130 tons, with the goal of reducing airfreight costs by 60%.

Developed for e-commerce, the UAVs have been designed to offer 40-60% more volume than a traditional two-wing aircraft, says Aleksey Matyushev, chief executive, co-founder and one half of the brains behind the company.

Matyushev is an aerodynamicist by trade with an aerospace engineering skillset that has proved valuable for the development of the N3.8T, a 3.8 ton payload short-haul feeder UAV; the N60T, a 60 ton payload medium/long-range UAV; the N100T, a 100 ton payload long-range UAV; and the N130T, a 130 ton payload long-range UAV.

Read the entire article on Cargo News Quarterly, Summer 2022 Edition.