Published by Global Banking and Finance Review
Posted on April 30, 2025
OSLO (Reuters) -Hybrid-electric airplane maker Heart Aerospace will relocate its headquarters and operations to Los Angeles from Sweden's Gothenburg, in a bid to boost its product development in the United States, the company said in a statement on Wednesday.
Heart Aerospace is developing a regional electric aircraft capable of carrying 30 passengers, targeting a niche market between smaller battery-powered transport and larger regional turboprops or small jets.
"Heart has decided to close its operations in Sweden to enable a bigger scale up of the U.S.-based team," the company said, dealing a blow to Swedish hopes of leading a transition to electric aircraft for regional travel.
A total of 75 jobs will go in Sweden as a result, the company said.
An experimental prototype known as the X1 is scheduled for its maiden flight this year and will be followed later by the X2, the company said, adding that its customers, partners, and investors were increasingly based in the United States.
"By consolidating our operations in Los Angeles, we can accelerate development, strengthen collaboration, and better position Heart Aerospace for the future," co-founder and CEO Anders Forslund said.
The company raised $107 million in a funding round in 2024 and recently secured an additional $40 million investment, it added.
Former GE Aerospace executive John Slattery, who was appointed Heart's non-executive chairman in 2023, separately said it was the right time for him to step down, although he would remain an investor.
"This pivot from Gothenburg is a shift in strategy and in any startup there will be such moves, but I'm pleased with what we achieved over the last couple of years," he told Reuters.
The hybrid-electric plane, which will be known as ES-30, will have an all-electric range of 200 km (124 miles), a hybrid engine range of 800 km and a 30-minute charge time, with the aim of certifying the model in 2029, according to Heart's website.
Company President Simon Newitt is also stepping down from Heart, a source with knowledge of the matter said.
(Reporting by Terje Solsvik; Editing by Emelia Sithole-Matarise)
Explore more articles in the Headlines category
