New Subsidiary Launched To Expand Advanced Aerial Solutions

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Volatus Aerospace Corp. (VOL:TSX;  VLTTF:OTCQB) has announced the launch of its fully owned subsidiary, Volatus Aerospace Europe AS, based in Norway. This strategic move aims to strengthen Volatus' position in the European and African markets, enhancing its ability to offer advanced aerial solutions in these regions. The subsidiary will be led by Bruno Boucher, a seasoned aviation expert, who will guide the company in navigating the regulatory landscape and operational challenges specific to these markets.

Boucher brings considerable expertise to the role, being a member of the Ordre des Ingenieurs du Quebec and the Norway Civil Aviation Authority representative at the International Civil Aviation Authority's RPAS Panel in Montreal.

Volatus Aerospace Europe AS has already secured a consulting agreement with a leading manufacturer of advanced eVTOLs, underscoring the subsidiary's commitment to providing expertise in regulatory matters and operational readiness for high-capacity cargo operations beyond visual line of sight (BVLOS).

Looking Into Aerospace and Defense

The aerospace and defense sector has been marked by significant growth and technological advancements in recent years, reflecting the industry's resilience and adaptation to evolving global demands. In 2023, the sector achieved record revenue of US$829 billion, signaling a strong recovery from the pandemic, with civil aviation companies like Boeing Commercial Airplanes leading the way with a 30% revenue increase, as highlighted in PwC’s 2024 Global Aerospace and Defense Industry Report. Tier 1 suppliers, including GE Aerospace, Rolls-Royce, and Safran, also experienced notable revenue growth, exceeding 20%.

According to Yahoo! Finance, on August 30, the global aerospace and defense industry was expected to experience significant growth between 2024 and 2030, driven by increasing defense spending and rising geopolitical tensions. The sector's future will likely be shaped by modernization and the integration of artificial intelligence into defense strategies, which are anticipated to accelerate the industry's growth. The complexity and technological demands of military and aerospace operations have underscored the growing need for real-time data monitoring and communication, driving expansion in the aerospace and defense telemetry market.

As Whatech reported on September 4, the aerospace materials market has also seen significant expansion, underpinned by a growing emphasis on fuel efficiency, performance, and sustainability. Advanced materials, such as carbon fiber composites, titanium alloys, and high-strength aluminum, have become critical in manufacturing aircraft components due to their superior strength-to-weight ratios, corrosion resistance, and durability. The demand for lighter, more efficient aircraft, driven by both commercial and defense sectors, has poised the aerospace materials market for continued growth.

The space sector, in particular, has emerged as a critical area of growth within the aerospace and defense industry. PwC’s report noted that the sector is experiencing surging demand, with small satellite networks proliferating and contributing to the development of a space-based economy. Mergers and acquisitions in the aerospace and defense industry are likely to continue, focusing on the space sector, green aviation, and niche technologies, further driving the sector's expansion.

In this dynamic environment, companies like Volatus Aerospace have positioned themselves strategically to capitalize on these trends. The launch of Volatus Aerospace Europe AS in Norway represents a significant move to expand its operations globally, particularly in Europe and Africa. According to PwC’s report, the defense sector is poised for continued growth, driven by escalating global conflicts and increasing defense spending. Volatus’s strategic expansion aligns with the industry's focus on innovation and modernization, particularly in integrating advanced technologies into defense operations.

Volatus's Catalysts

The launch of Volatus Aerospace Europe AS represents a significant step forward in Volatus Aerospace's global expansion strategy, particularly in the commercialization of advanced drone technologies.

By establishing a presence in Norway, Volatus positions itself to capitalize on the growing demand for remote RPAS operations and logistics services in Europe and Africa. The subsidiary's ability to operate beyond the visual line of sight globally, as highlighted by CEO Glen Lynch, is expected to accelerate the commercialization of remote operations capabilities developed through the company's merger with Drone Delivery Canada.

Furthermore, the experience gained from operating in North America's challenging environments, coupled with the company's advanced remote operations ecosystem, will likely contribute to cost reductions and risk mitigation for clients. As the European Union and EASA (European Union Aviation Safety Agency) continue to develop and implement new regulations, Volatus Aerospace Europe AS is poised to increase its operational privileges, thereby expanding its market reach and solidifying its position as a leader in advanced drone operations.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 61.65% of the company. According to Reuters, Director and Chairman Ian Alexander McDougall owns 31.04% of the company with 39.02 million shares, and President and CEO Glen Lynch owns 30.6% of the company with 38.06 million shares.

Reuters reports that institutional investors in the form of Palos Management Inc. owns 0.10% of the company with 0.13 million shares.

According to Reuters, there are 82.92 million shares outstanding with 31.8 million free float traded shares, while it has a market cap of CA$29.23 million.

Market Watch notes that the company trades in the 52-week period between CA$0.11 and CA$0.45.