Lotte launches alliance on urban air mobility for synergy with retail, leisure biz

[Photo by Lotte Group]

Lotte Group has joined forces with global aviation technology firms to venture into the urban air mobility market with an eye on synergy with its retail-to-leisure services.

The Korean conglomerate said Tuesday that its holding entity Lotte Corp. and car rental unit Lotte Rental Co. signed an agreement with U.S-based gyroplane manufacturer Skyworks Aeronautics, American battery technology startup Mobius.Energy, Korean air mobility startup MintAir, the Institute for Aerospace Industry-Academia Collaboration (IAIAC) and Incheon Metropolitan City for collaboration in urban air mobility industry at the 2021 K-UAM Confex exhibition in Incheon.

On Wednesday, Lotte Corp shares closed 1.06 percent lower at 32,600 won ($27.57) and those of Lotte Rental down 0.76 percent at 39,200 won in Seoul.

The partners plan to conduct test flights of electric-powered UAM vehicles in 2022 with a goal to operate urban air vehicles between Incheon International Airport and Jamsil, southern Seoul, from 2024.

Lotte Rental will build UAM infrastructure, including helipad for UAM vehicles’ take-off and landing, and charging station with the holding unit’s support, according to Lotte Group.

Skyworks Aeronautics will design and manufacture UAM vehicles and Mobius.Energy will lead battery module development. MintAir will be in charge of operating the UAM vehicles. Incheon Metropolitan City and IAIAC support on test flights and project operation.

Lotte Group has been actively exploring growth opportunities in the mobility sector with an aim to create synergy with its existing businesses, ranging from retail shopping, hotel and theme park to logistics.

The undiscovered field of UAM is bustling with big Korean companies.

Hyundai Motor has created a consortium with telecom giant KT and Hyundai Engineering & Construction for collaboration in UAM business. The consortium on Tuesday received flag carrier Korea Air Lines as a new partner.

SK Telecom has teamed up with Hanwha Systems, T Map Mobility, Korea Airports Corp., and Korea Transport Institute for UAM market.

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