Supernal—the air taxi unit of Hyundai that was reported to have paused its flight testing efforts in September and laid off most of its staff in March—is returning to the table with plans for a “next-generation” aircraft, a spokesperson told FLYING.
Hyundai on Sunday announced it signed a memorandum of understanding (MOU) outlining a strategic partnership with Korea Aerospace Industries (KAI) to jointly develop an advanced air mobility (AAM) aircraft. But rather than move forward with Supernal’s S-A2—the model that began flight testing last year—the partners intend to pursue a new AAM concept, with Supernal taking the lead on design and engineering.
The spokesperson said the S-A2, an electric vertical takeoff and landing (eVTOL) model, will be “used to refine our proprietary design guides and technical foundation as we move toward our next-generation aircraft.” They said the partnership with KAI will help Supernal “realize our vision more effectively” and that the Hyundai subsidiary “will continue to lead the aircraft’s vision and requirements.” It remains committed to an eVTOL design.
Per the partners, initial aircraft development efforts will focus on the creation of a “comprehensive requirements definition” that would enable certification globally. Supernal in 2024 announced partnerships with FBOs Signature Aviation and Clay Lacy Aviation to study S-A2 operations and routes in U.S. markets such as Miami and Los Angeles.
Supernal and KAI said they will combine the former’s expertise in powertrain technology and the latter’s mass manufacturing capability, with “broad cooperation across supply chains, certification processes, and global customer networks.”
Separately, Hyundai will work with KAI toward the “commercialization” of electric aviation powertrains, as the latter looks to expand to civil aviation. KAI produces KT-1 trainer aircraft and RQ-101 uncrewed aerial vehicles (UAVs) for the South Korean government.
“By combining our team’s capabilities with KAI’s extensive aerospace experience, we are strengthening the foundation for our next chapter of development,” Farhan Gandhi, chief technical officer of Supernal, said in a statement. “This partnership reflects our commitment to build a robust, partner-integrated foundation to bring a commercially viable aircraft to market.”
Gandhi joined the company earlier this month after aviation news service The Air Current reported in March that it laid off nearly 300 employees, leaving it with a “skeleton staff” of 70 to 80 people. At the time, a Supernal spokesperson described the move as a “strategic pivot” to “ensure our staffing and cost structures are optimized for the long-term delivery of our market-aligned aircraft design.”
“Supernal currently operates with a core team of experts in Irvine[, California,] focused on our next-generation aircraft concept,” a spokesperson told FLYING this week. “We are transitioning into a high-impact organization designed to be the strategic and intellectual engine behind our product, leveraging a global ecosystem of strategic partners for development scale.”
Supernal Back in Action
Though it will take some time for Supernal to move from development to flight testing with its next-generation aircraft, the KAI partnership is a welcoming update for the company after a period of relative quiet.
Supernal unveiled the S-A2 in 2025, targeting a 2028 commercial launch. The model was designed for a pilot and up to four passengers, flying 25-40-mile trips at about 120 mph and 1,500 feet. A distributed electric propulsion system powered its eight propellers—four on the front wing that tilted upward, and four on the rear that tilted down. It also featured a distinctive V-tail.
The manufacturer last year said it began tethered flight testing with an S-A2 demonstrator, marking an early stage of testing. But the Orange County Register in September reported it would pause that work before advancing to untethered flights or testing with production-ready models.
Supernal laid off more than 50 people that summer and later in 2025 saw multiple leadership changes, including the departure of former CEO Jaiwon Shin. David Rottblatt, the company’s senior director of business development, is leading it as interim chief operating officer until a permanent successor is found.
Supernal in September attributed these moves to “external challenges—including regulatory frameworks, infrastructure development, and ecosystem maturity.” However, Hyundai in April 2025 invested $6 billion in its U.S. business, a portion of which went toward Supernal’s research and development, signaling continued interest in the project.
“I think they have to decide if the future of their AAM efforts reside in the U.S., or if they will pull them back home to [South] Korea,” Sergio Cecutta, who curates SMG Consulting’s AAM Reality Index, told FLYING in March. “The jury is still out on when Supernal 2.0 will emerge. But I think with the no-rush, long-term thinking of Hyundai, it might take some time.”