Richard Chandler and the Eviation aircraft, Alice. Photo / Supplied
Eviation, the firm owned by New Zealand billionaire Richard Chandler, has been named as a pioneer in Time’s list of the 100 most influential companies.
Based in Washington state, the company has already flown its test aircraft, Alice, and is 70 per cent owned by Chandler’s investment firm Clermont.
Travel company Intrepid, which has a growing presence in New Zealand, also makes Time’s list - named as a leader for its backing of “responsible globetrotting”.
Chandler has told the Herald he had a family connection to pioneering aviation and he now has the financial means (Forbes puts his wealth at US$2.6b - NZ$4.2b), motivation and opportunity to shake up air travel with technology that can be scaled up.
“We have an opportunity to really make a contribution with our creativity and our capital and our heritage and leaving a legacy in a very important industry,” Singapore-based Chandler said en route to the test flight in Washington state last September.
Not only is he the cornerstone owner of Eviation, he owns the firm MagniX, the engine-maker which has developed a high-torque battery-powered propulsion system.
Eviation’s plane, Alice, was the result of seven years of engineering and development.
“In cars, you can change the vehicle structure so it supports the weight of the batteries,” chief executive Gregory Davis told Time. “It’s a bit more challenging with an airplane.”
Alice’s range is a little under 480km, but it’s enough for the commuter carriers interested in zero emissions and saving money on fuel. Eviation has orders for more than 400 planes, worth over US$4 billion.
Last year Air New Zealand said Eviation was a contender to supply aircraft for a test fleet of planes in its move to cut emissions.
Eviation is one of four companies that Air NZ is partnering with and signed a statement of intent to order. It says this demonstrates its ambition to acquire three aircraft initially, with further options for 20, from one or more of the partners subject to an evaluation process. Others include Beta, VoltAero and Cranfield Aerospace.
The nine-passenger Alice - its name inspired by Lewis Carroll’s Alice in Wonderland - has already won scores of orders.
Cape Air and Global Crossing Airlines, both US-based regional airlines, have placed orders for 75 and 50 Alice aircraft respectively. DHL Express is Eviation’s first cargo customer, with an order for 12 Alice eCargo planes.
Chandler told the Herald the aircraft would be ideal for New Zealand conditions, where towns surrounded by mountains or water are otherwise expensive to reach.
Battery power for planes would be cheaper than aviation fuel, and with many fewer moving parts than conventional aircraft engines, they were much easier and cheaper to maintain.
“I think New Zealand is an ideal market for Alice,” says Chandler. “As soon as you’re crossing water or going over mountains, you can shorten those routes and do so very efficiently.”
The biggest challenge is solving the equation of power to weight - batteries are heavy but technology is advancing quickly.
Chandler backed the Israel-founded Eviation after weighing up whether to retrofit engines to existing aircraft or go for a clean-sheet design.
MagniX – which in 2021 won a US$74m award from Nasa – has successfully trialled its engines in two conventional light aircraft, but Chandler decided investing in an airframe start-up was the best strategy.
At the end of 2018 Clermont invested in Eviation to ensure the Arlington, Washington state company had the best chance of success because at that point it lacked the capital to progress the plan.
Following the test flight the Seattle Times reported pilot Steve Crane as saying Alice “flew and handled wonderfully”. It was fast and very responsive on the flight to 1200m altitude.
The flight was brief but allowed checking for pitch authority, stability and the ability to land safely, the Times reported.
Chandler told the Herald he is keen to ride as a passenger when regulators permit, and is already very familiar with the plane.
“It’s a beautiful plane to be on. It’s just a wonderful passenger experience - it’s better than going to Disneyland.”
The Chandler brothers’ legacy began in Auckland in 1903, when Chicago-born Edward Chandler founded an advertising firm, Chandler & Co.
In 1973, his son Robert and his wife Marija opened Chandler House, a department store in Hamilton. In 1982, sons Richard and Christopher joined the business. The company grew to include a department store in Auckland and a chain of fashion stores.
Four years later, Richard and Christopher began their own story, establishing Sovereign Asset Management.
They invested in emerging markets, often at times of political and economic uncertainty. Sovereign began by investing in Hong Kong real estate in 1987 and went on to be among the first portfolio investors in Brazil and Russia.
In the 2000s, Sovereign returned to Asia, investing in listed companies in Japan, India and South Korea.
In 2006, following the de-merger of Sovereign, Richard Chandler established the Clermont Group in Singapore. Clermont Holdings is dedicated to building a group of businesses in healthcare, financial services, and aerospace.
It bought a healthcare business in Vietnam in 2013. Hoan My is now the country’s largest private healthcare provider, with 15 hospitals and six clinics, serving more than five million patient visits a year.
SBFC is a financial services company in India, bought by Clermont in 2017. From a small, bankrupt business, it says SBFC is today one of India’s fastest-growing financial services companies with 135 branches in 104 towns and cities across the country.
Pioneering aviation runs in Richard Chandler’s blood.
In the 1940s his uncle, George Watt, was integral in the development of the jet engine.
Melbourne-based Intrepid Travel which is pushing further into the New Zealand market is recognised as a “leader”. It too wants to cut emissions from aviation. In 2021 it bought a 60 per cent stake in Haka Tours and ANZ Nature Tours.
It has a staff of about 30 plus tour guides based in New Zealand.
Intrepid has focused on small group travel since being founded 34 years ago. The Time citation says the carbon-neutral company was the first global tour operator to establish verified, science-based carbon-reduction targets.
People want to travel more responsibly—both environmentally and socially—and business is booming for the certified B Corp, which saw record-breaking booking days after launching a flight-free programme (and more than 100 Indigenous-led tours) last year.
“This honour is a testament to the power of travel; not only does exploring the world provide thought-provoking, incredible, fun experiences – it also has the power to transform our world and create more resilient communities,” said James Thornton, chief executive of Intrepid Travel.
“This proves that our style of locally led, small-group adventures is no longer a ‘niche’. Our way of travelling is actually helping to shape the future of travel. As an industry, we can support more responsible travel habits and make a substantial difference.”
To assemble the list, Time solicited nominations from its global network of contributors and correspondents as well as from outside experts. Then editors evaluated each on key factors, including impact, innovation, ambition, and success.
Grant Bradley has worked at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.
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