Orbital Corporation Launches New Engine Service Model
The new contract allows drone fleet operators to lower upfront costs by paying for engine propulsion by the hour.
Updated on Oct. 23, 2026 in Electric Vehicles
Live Poll
Do you believe companies should shift from one-time product sales to recurring service subscriptions?
Orbital Corporation has entered a long-term service agreement with American Aerospace Technologies Inc. to provide engine maintenance and propulsion support for its fleet of AiRanger aircraft. This Power by the Hour contract shifts the company toward a service-based model for drone operations through the end of 2027.
Why it matters
By adopting a service-payment structure, operators can reduce the heavy upfront costs associated with propulsion equipment. This model generates consistent service revenue for the manufacturer while ensuring ongoing performance support and maintenance for the active aircraft fleet.
The agreement covers maintenance and support for AiRanger aircraft, with the operator committing to a minimum of 200 engine hours per unit monthly. The contract is valued at US$2.6 million and runs through December 2027.
The players
Orbital Corporation
A developer of propulsion and power management technologies that manages recurring service contracts for drone fleets.
American Aerospace Technologies Inc.
An operator of unmanned aerial vehicles that manages fleet-scale assets in the United States.
The details
Under this agreement, Orbital Corporation retains ownership of the engines while receiving hourly payments for service. This setup replaces traditional up-front equipment sales with a model covering all engine maintenance, overhauls, replacements, and performance monitoring. The manufacturer also separately supplied five Gen II Power Management Systems as part of the operational rollout.
Timeline
May 2027 marks the projected expansion of the AiRanger fleet to 10 units.
31 December 2027 serves as the final day of the current contract term.
The Home Front
This agreement reflects a broader shift toward service-based propulsion models within the specialized drone and aviation sector. By offloading ownership and maintenance to the manufacturer, operators are increasingly moving away from high-capital hardware purchases.
Readers tracking commercial drone utility should note that this service-payment model is likely to become more common as fleet operators look for ways to lower entry costs. Watch for similar service-based shifts in high-maintenance technology sectors as companies aim to improve long-term hardware reliability.
The takeaway
The move to a service-payment model aims to lower upfront financial barriers for specialized drone operations. Operators can track the adoption of this model to see if it makes high-performance propulsion technology more accessible for their business use cases.
Further reading
For more on evolving propulsion and battery technology, visit the Electric Vehicles section.
Live Poll
Do you believe companies should shift from one-time product sales to recurring service subscriptions?
