Boston Startup Interviews: Dan Sloat on Air Mobility & Innovation

Marcelo Ascárate
Marcelo Ascárate
September 20, 2024
Boston
Interview
Boston Startup Interviews: Dan Sloat on Air Mobility & Innovation

In today’s interview, we sit down with Dan Sloat, Founder and President of the Advanced Air Mobility (AAM) Institute, to dive deep into the future of air mobility and the critical role it can play in public safety and beyond. With a diverse background that spans from orchestrating large drone fleets in the U.S. Air Force to building a forward-thinking nonprofit focused on air mobility innovation, Dan brings a unique perspective on how this technology can transform both transportation and disaster response. He shares the motivations behind the creation of the AAM Institute and the potential of advanced air mobility (AAM) to benefit underserved communities, while addressing key challenges such as public perception and privacy concerns.

Let’s start with the basics - Can you tell us about the Advanced Air Mobility Institute and the motivation behind its creation?

We launched the AAM Institute and began recruiting for the board in 2022. At that time, there was a lot of investment and media attention, mainly focusing on high-net-worth individuals—air taxis or airport shuttles as a way for wealthy people to avoid traffic.

But I’ve been interested in advanced air mobility since 2010. As a Captain in the Air Force, I orchestrated large fleets of drones during Operation Enduring Freedom—13,000 drones, to be exact. I saw then that, if adapted for civilian use, particularly by well-trained first responders, these drones could greatly benefit public safety. That’s what kickstarted this effort.

I also drew from my time in law school, where we studied multi-stakeholder initiatives. In human rights law, companies often escape responsibility by saying, “We’re not breaking local laws,” even if they violate human rights. Advanced air mobility is a nascent industry with little public awareness, and we know that first impressions matter. So, we wanted to make sure the industry’s first impression is one of positive impact.

The hope behind launching the AAM Institute, a 501c3 international nonprofit research center, is to reach everyday citizens and advocate for them—because we don’t have a profit motive. When we talk about the benefits of this technology, it’s easier for people to be open-minded since we aren’t trying to sell them anything.

Initially, we play a "cheerleader" role, promoting the potential of these technologies. Later, as operations evolve, we’ll shift to more of a watchdog role, advocating for underserved communities to benefit as well. There’s incredible potential in areas that don’t have extensive highway systems, whether it's for transporting emergency medicine, vaccines, or disaster relief supplies.

Take the U.S. as an example: after hurricanes, when roads are flooded and trees block bridges, these tools could be crucial in recovery efforts. So, our goal is to highlight the potential of these technologies beyond just air taxis. Not that air taxis don’t have a place—there are plenty of people willing to pay extra to avoid traffic. But if the general public only associates advanced air mobility with luxury, they won’t care about it. They’ll vote against it.

For the air taxi industry to succeed, we need to lead with life-saving use cases. Take medevac services. I’ve never met someone who’s anti-medevac—it’s a clear public good. Traditional helicopters, however, are incredibly loud, have high carbon emissions, and are expensive to operate. I’m a private pilot, and I can tell you, it takes many hours to become qualified on helicopters, and the vehicles themselves are costly.

But eVTOLs (electric vertical takeoff and landing aircraft) offer a quieter, more cost-effective option. They’re up to 100 times quieter than helicopters, emit zero operational emissions, and could cost six times less than traditional helicopters. Maintenance costs are estimated to be 10 times cheaper. So, for the same budget, you could multiply your fleet. When the economics make sense, the environmental benefits follow.

Some security companies are experimenting with drones for home surveillance instead of sending cars. But there are concerns about privacy. People don’t want drones flying over their homes, recording everything. How do you address these concerns?

Privacy is a serious concern, and there’s always a trade-off with security. Many cities already use public cameras with facial recognition technology, often without your knowledge or permission. While that’s not a comforting answer, it’s the reality.

That said, there are some proposed policies to mitigate these concerns. For example, what if the drones are designed to capture only low-resolution imagery, making personal identification impossible? If the purpose is to assess building safety—whether a building is on fire, a waterline is broken, or there are downed power lines—people are generally more accepting of that. It’s not about tracking individuals but ensuring public safety.

Some companies over here propose that customers who sign up for security services give permission for drones to record around their property. But they don’t start recording until they reach the house, which avoids privacy concerns.

As long as you have the property owner's permission, that approach would likely work in most countries.

Could you tell us a bit more about your background and what led you to where you are now?

I grew up in Kansas, specifically Wichita, which is known as the "Air Capital" because of its history in aerospace manufacturing. Almost everyone I knew had a parent working at Boeing, and I always wanted to be a pilot. I earned an Air Force ROTC scholarship to Indiana University, where I studied business.

I’ll never forget my commander calling me in to say, “Cadet Sloat, I want to be the first to congratulate you on being selected as a pilot in the U.S. Air Force.” But before I signed, I read the contract carefully. The terms basically said I wouldn’t have control over my career or location until I was 35. At the time, I was 19, so that felt like a lifetime.

I made the tough decision to decline the pilot slot. The Air Force generously allows those selected for pilot slots to choose another career field, so I opted for air battle management, which had the shortest service commitment. I figured, maybe I’d love it and want a full career, but I also wanted the option to pursue a civilian career. It turned out to be a great decision. I gained a lot of experience in what’s now called UAS (Unmanned Aircraft Systems) Traffic Management, and the Air Force’s leadership training is world-class.

During my service, I also earned a Master’s in Economics. That background is evident in the work we do at the AAM Institute—much of my coursework focused on behavioral economics and the socioeconomic impacts of public policies. I see advanced air mobility as a way to allocate resources to communities that need them most.

After completing my service, I went to law school. I knew that emerging aviation technologies were going to become a major industry, so I founded the Aviation Law Society. Our goal was to encourage future attorneys to proactively understand new technologies before they hit the market. Too often, the legal community waits until someone gets hurt or rights are infringed before taking action. I believe we can be more proactive—understand the technology, anticipate its misuse, and build safeguards from the start.

Partway through law school, I realized I didn’t have a passion for being an attorney, though I valued the education. I added an MBA to my studies, which aligned more with my interests in innovation and business. The law degree has still been helpful, especially in understanding the regulatory guardrails businesses need to operate within.

From there, I was recruited into AT&T's Leadership Development Program. It was an amazing experience—I worked on everything from corporate strategy to supply chain logistics, started an IoT project for smart pallets, and did customer insights and cybersecurity analysis. Most recently, I moved to Boston to support public safety communications, working with police and fire chiefs to understand their technology needs. That’s when I got my drone pilot's license and started conducting critical infrastructure inspections, which reignited my interest in aviation. Around that time, I became CEO of a vertiport company for almost a year.

Unfortunately, I made the tough decision to resign as a former of whistleblowing due to financial misconduct by the founder and COO.

What are some positive aspects or unique characteristics of the Boston startup ecosystem that you've noticed as a CEO?

Boston has a fantastic history of encouraging innovation, especially with Harvard and MIT attracting brilliant people. You meet people with different expertise—one might be great with finance, another with pharmaceuticals—and that synergy can kickstart new companies. There’s also a wealth of talent in the city because many students choose to stay here after school, and the healthcare system is world-class.

My wife is a burn trauma nurse, and I joke that if you're going to be in a terrible accident, Boston is the place to be for the best chance of survival. The city also has important national transportation decision-makers, like the Volpe National Center for Transportation in Cambridge.

What advice would you give to other leaders or entrepreneurs looking to make a positive impact?

My biggest advice is to stay true to what you’re passionate about. You might start with a clear mission, but as your business grows, investors or other opportunities might tempt you to pivot. It’s important not to lose sight of your original goals. If you start catering to a group you don’t share passion for, it can lead to failure, even if things seem successful on paper.

There will be tough times, and your passion is what will carry you through those dry spells. People can tell when the founder's heart isn’t in the new direction, and that can hurt the business in the long run.

What are your plans for growth and innovation at the AAM Institute?

We’ve published several reports, including the Global AAM Forum Summer Report, which analyzes public sentiment on Advanced Air Mobility technology worldwide. We currently represent 60 countries and aim to grow that number to 100.

In terms of innovation, the challenge decision-makers face in this space is that they usually have two options. One, they can hire a major consulting firm like McKinsey or Deloitte. These firms call experts—like those at the AAM Institute—for insights, package it into a fancy report, and charge millions. While the reports look polished, the real insights come from people like us.

The second option is working with an OEM (Original Equipment Manufacturer), which often pushes their products, even if a competitor’s solution is better. They’re for-profit businesses, so they’re always going to promote their own offerings.

This leaves decision-makers in a tough spot. You can’t always trust the recommendations of OEMs, and consulting firms might not have the full grasp of the industry. We want to position the AAM Institute as a neutral think tank—someone decision-makers can trust to give an unbiased understanding of what’s needed, who’s best in class, and what to expect, without a profit motive. Our goal is to help the industry succeed as a whole, not any specific vendor.

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Dan Sloat’s insights offer a compelling look at how advanced air mobility can reshape industries beyond luxury air taxis, particularly in public safety and emergency response. His deep expertise and dedication to ensuring that AAM technology benefits everyone shed light on the transformative power of innovation. As the AAM Institute continues to grow, we can expect this technology to become an integral part of disaster recovery and everyday life.

Are you a CEO or founder in the Boston area? We’d love to hear your story. Reach out to be featured in our series and share your insights with the community.

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