Mystery Surrounding CEO's Quitting From World's 1st Electric Plane Startup

Eviation, the company behind what is supposed to be the world's first all-electric passenger airplane, has undergone an unexpected change in leadership just before the plane's projected first flight and the company and the now-former CEO are offering different takes on the situation, Jennifer Korn reported for CNN Business.

Photo Insert: Eviation leadership (Left to Right) Executive Chairman Roei Ganzarski, CEO Omer Bar-Yohay, and President Gregory Davis

Eviation, an Israel-based company, has said it plans three versions of its all-electric plane: a "commuter" variant holding nine passengers and two pilots, an executive version holding six passengers, and one specialized for cargo.

The company has said the nine-passenger version, which it calls "Alice," will be able to fly for one hour and about 440 nautical miles after 30 minutes of charging. Eviation initially aimed for the Alice to take flight before 2022. Last month then-CEO Omer Bar-Yohay told CNN Business that its first flight was "just weeks away."

On Monday, Feb. 14, 2022, Bar-Yohay, who was also a co-founder of Eviation, left the company after seven years, and he was replaced by interim CEO and current Eviation president Gregory Davis.

The company says the change is part of a "planned succession process" as Eviation shifts from planning to production of the Alice, according to a statement. An executive search process is underway to fill the CEO position long-term, it said. But Bar-Yohay said that while it is time for a new direction, his departure is the result of a dispute within the company.

"This is definitely part of a natural progression. It is time for the company to turn a corner and really transition from proving our prototype to manufacturing," Bar-Yohay told CNN Business.

"That said, there is a long-standing disagreement about how and what exactly does the company need to do going forward, and that created some friction between myself and the main shareholder of the company." Bar-Yohay declined to answer questions as to the nature of the disagreement.

While Bar-Yohay said the change is not a big shock, he had not been aware of how and when it would be announced. Eviation's main shareholder is Richard Chandler, the New Zealand-born billionaire owner of the Clermont Group.

The Singapore-based Clermont Group includes MagniX, Eviation's sister company and propulsion provider. Just last month, Eviation executive chairman and MagniX CEO Roei Ganzarski stepped down from both roles. "I do believe some of the underlying reasons [for our departures] are similar," Bar-Yohay said. "There was no way to make this go any differently."

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