Global
The U.S. Department of Defense (the Pentagon) has announced the award of a $46 million contract to Elroy Air for the development of an autonomous, hybrid-electric, vertical takeoff and landing (VTOL) cargo aircraft. This contract covers Phase III of the Small Business Innovation Research program, which aims to develop a Group 4 unmanned aircraft system. The Pentagon classifies Group 4 as larger drones weighing over 600 kilograms. Elroy Air is scheduled to execute this project at its headquarters in South San Francisco, California, with completion anticipated by February 18, 2029. The U.S. Army had allocated approximately $5.1 million in research and development funds for fiscal year 2026 upon contract signing. Elroy Air is currently developing the Chaparral aircraft, a hybrid-electric model characterized by its ability to take off and land vertically using eight lift propellers, and to transition to forward flight using four separate propellers. According to company data, the aircraft can carry over 227 kilograms of payload in detachable pods, with an operational range of up to 724 kilometers. Earlier this year, the U.S. Army independently collaborated with Elroy Air to develop three automated delivery modes for the Chaparral aircraft. These modes include precise aerial delivery from a hover, precise aerial delivery during forward flight, and autonomous ground delivery after landing. A demonstration held on July 15 at Elroy Air's test facility in Byron, California, witnessed the aircraft successfully completing two cargo drops in a single flight, releasing a 31-kilogram payload from a low hover position, and another 32-kilogram payload while hovering at 20 meters. The U.S. Army stated that the pre-programmed delivery system allows the aircraft to efficiently complete resupply operations, even in conditions where jamming or communication disruptions might prevent operators from issuing commands. In this context, Mark Rodrigo, Head of Federal Business Development at Elroy Air, stated that "contested logistics are among the most difficult problems facing the joint force, from naval resupply to supporting forces distributed far from main operating bases." Rodrigo added: "A single Chaparral aircraft can now resupply multiple locations in one sortie, without exposing a pilot to danger and without requiring personnel at the drop point, which multiplies the power of units operating on the tactical front lines." Kratos Defense and Security Solutions is exclusively undertaking the manufacturing of the Chaparral aircraft, under a partnership announced with Elroy Air on July 20. Kratos intends to deliver the first aircraft by the end of this year. Elroy Air has also previously collaborated with the U.S. Air Force through the Agility Prime program, and received approval to demonstrate a Chaparral prototype for the U.S. Navy and Marine Corps' Medium Air Supply Vehicle program as part of the Expeditionary Logistics Supply program.
