Joby Aviation (JOBY.N), praised the program, saying, “aircraft in the program can begin operations in select markets ahead of full FAA certification, a critical step in preparing for scaled commercial service.”

Air taxi stocks rose on the program first reported by Reuters. Joby shares were up 5% while Archer Aviation was up 3%.

Air taxi firms are racing to secure approvals and commercialize air taxi aircraft to meet the growing demand for faster and more sustainable urban transportation. They tout eVTOLs that can take off and land vertically to ferry travelers to airports or for short city trips, allowing them to beat traffic.