The Vertical Space

In this episode we speak with Andrew Clare, CEO of Elroy Air, which builds the Chaparral, an autonomous hybrid-electric VTOL that hauls cargo in detachable pods for middle-mile commercial and defense logistics. Elroy is a 10-year-old company built on three then-unpopular bets: cargo over passengers, hybrid-electric over pure battery, and autonomous over piloted. Andrew, formerly CTO of Nuro, joined to turn that foundation into a scaled business, and the company has since demonstrated its transition flight, signed a US manufacturing deal with Kratos and a $200 million JV with Barq in the UAE, won a slot in the White House eVTOL Integration Pilot Program, and announced plans to go public near a billion-dollar valuation.
Most of the conversation was about what it takes to get from a working aircraft to a deployed logistics system, and why Andrew believes autonomous cargo scales well before passenger aviation. He argues one pod-based platform can serve a FedEx milk run, an Army resupply, and an ISR mission, that hybrid-electric is the only way to get useful payload and range without field charging infrastructure, and that defense demand is surging because contested logistics has become a requirement. We pushed on why a clean-sheet VTOL beats autonomy bolted onto a proven Caravan, how the automotive data-flywheel intuition transfers to a domain with far fewer cycles, and where the moat sits once hybrid-electric and autonomy are no longer contrarian. Andrew was most candid about the road ahead, from scaling production to hardening the aircraft for contested, GPS-denied operations alongside the Army.

In this episode we speak with Lauren Flanagan, CEO of Sesame Solar, which builds mobile nanogrids. The product is a self-contained unit that generates its own power from solar, batteries, and stored hydrogen, set up by one person in fifteen minutes. The company started in emergency response and extreme weather, and has moved increasingly into defense. The newer focus, and the one we spent most of the episode on, is using these nanogrids to refuel hydrogen drones in the field.
Most of the conversation was about whether that case holds up. Lauren's argument is that contested logistics have changed the math: fuel at the edge can run a thousand dollars a gallon all-in, the resupply convoy is a target, and the real cost is the lives spent guarding it, so making power where you stand becomes a strategic question rather than an efficiency one. We pushed on the parts that are harder to defend, the energy losses on the hydrogen path versus batteries, how thick the market for long-endurance hydrogen-powered flight actually is, and how you get from a fifty-day reserve to a six-month operational promise that's still backed by simulation rather than field data. Lauren was candid about what's proven and what isn't, and about which problems are physics and which are just adoption friction.

Libby Bahat returns to The Vertical Space. Last time we talked to him about building an airspace for drones in peacetime. This time he's the regulator who decides whether a 777 full of people lands in a country under missile fire. As Head of the Aerial Infrastructure Department at the Israel Civil Aviation Authority, Libby is one of a small number of people anywhere who has had to build a quantitative framework, debris models, interception zones, penetration probabilities, that lets a civil aviation authority make its own war risk call. Most regulators don't have to do this. Israel does, and Libby is the guy.
We spent most of the conversation not on the war but on the judgment underneath it: where the numbers actually come from, how wide the error bars really are, the levers a CAA actually controls, the friendly-fire failure mode etc. Libby was honest about what he wishes he had ("I wish I had a criteria, like an engineer, very specific numbers") and about what he doesn't get to have. It's a rare look at how a serious regulator reasons when the only data point that would prove him wrong is the one he's organized his entire career to never see.

We sat down with Mike Stengel of AeroDynamic Advisory to discuss what the US-Iran conflict is doing to aviation. The Middle East moves about 20% of global crude, and with the Strait of Hormuz closed and Gulf refining capacity damaged, jet fuel stocks in Asia-Pacific and Europe are drawing down while crack spreads widen in ways hedging contracts don't cover. Mike explains why US shale isn't the easy substitute, why Spirit just liquidated and JetBlue looks fragile, and why Delta's once-mocked Monroe refinery acquisition suddenly looks prescient.

The bigger question we get into is whether this is a temporary pricing event or a more permanent regime change? For the first time in decades, commercial, military, and business aviation are all riding supply-constrained tailwinds at once, but the industry spent 30 years optimizing for cheap energy and stable airspace. We dig into what fragility looks like when those assumptions break, aging fleets, narrowing corridors between unusable Middle East and Russian airspace, what the conflict is doing for SAF, and where the next contrarian bet might come from.

Admiral Phil Kenul spent decades flying NOAA aircraft into some of the most dangerous weather on earth, including multiple seasons as a P-3 Orion hurricane hunter, before transitioning into the world of UAS standards, where he now serves as Vice Chair of ASTM Committee F38. That path gives him a perspective on unmanned aviation that most people in the industry don't have. He's been the guy in the cockpit, the program manager trying to replace the cockpit with a Global Hawk, and now the person writing the standards that determine whether any of this scales commercially.
His take on the industry is refreshing. Technology, he argues, is no longer what's holding the drone industry back. Operations, regulatory approvals, and integration with legacy airspace systems are. He sees Part 108 as a genuine inflection point, one that will finally let operators fly by regulations and industry consensus standards rather than one-off waivers. But he's equally clear that getting there will take longer and cost more than most people expect, and that when the dust settles, success will go to the best operators, not the best aircraft.