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Alright, degenerates, prepare yourselves for some magic, because today I am talking about Merlin Aerospace Labs ($MRLN).
First off, what a name for an innovative company that is essentially poised to finally make the leap to autonomous flying.
Let me begin by saying I have worked in the field of Aircraft maintenance for 5 years now. I have seen firsthand what goes into maintaining an aircraft fleet and how pilots operate when flying large cargo aircraft. I will preface this by saying I am not a fan of modern pilots and their current culture. For the longest time, pilots in general have known that there is a pilot shortage for what has now been at least a decade. We know this, and they know this, meaning they have leveraged this to their advantage, demanding more from the military and civilian sectors. Merlin is hopefully going to change this whole dynamic. Merlin's goal is to reduce the number of aircrew needed by developing a pilot in a box, essentially. The typical practice of an air crew is to have at least two pilots on any given flight. By having two pilots, this reduces a lot of risk based on several human factors. Merlin even advertises using military data that the number one cause of aircraft in-flight mishaps is due to human error. Merlin is trying to replace one of them in the cockpit by developing a computer box that inherently knows the aircraft and its systems.
What's interesting about this idea is that Merlin isn’t trying to sell a new aircraft for their tech; they are trying to develop the technology so it can be integrated into already operational fleets. THIS IS HUGE. This means that an entity like the USAF doesn’t have to commit to budgeting for a brand-new fleet and can utilize current aircraft until the end of their lifecycle.
Merlin also won a contract of 104M in 2024 to continue to develop this technology, beating the huge player of Lockheed Martin out of the contract. They have already found success in single-prop engine planes and are now working to expand to essentially large cargo planes.
My assumption is that once this new technology is ironed out, utilizing military funding, they will roll out this tech, starting with massive cargo fleets like FedEx and Amazon.
I know for a fact the military is ready to go full throttle on this tech. Currently, it takes 1 million dollars to train ONE pilot for large aircraft and 13.1 million to train ONE pilot for Gen 6 fighter jets. This wouldn’t be a problem except for the fact that these pilots typically get out of the service as fast as possible in order to make triple their salary flying for the commercial industry. The military is hesitant to increase the service commitment requirement from 10 years, since it will only impact recruitment further. Essentially, it is a bad deal no matter what the military does. This is why it is pursuing this technology so much. Even if it reduces the need by a single aircrew member, it will dramatically increase funding. Not only that, but with this tech, efficiency is greatly increased since a Pilot in a Box doesn’t require crew rest or downtime. In theory, an aircraft could arrive at a location, drop off its cargo, and go right back up.
I have already purchased 200 shares in hopes that Merlin continues to achieve its milestones. Even if this company doesn’t become the main producer of this technology, it is laying the groundwork. The days of Top Gun pilot culture are coming to an end. I personally believe we are closer to autonomous flying than to going back to WW2-style dogfights.
No charts, as I work a day job and do not have the time for that. I look forward to reviewing the unavoidable criticism of this DD.
This is not financial advice; it is highlighting a company actually utilizing AI to reach a tangible benefit for overall society.
TLDR: Merlin Labs is in the process of fixing the pilot shortage by utilizing AI on current airframes to develop a pilot in a box. They have the backing of the military and major aviation industry partners.
Pics of positions since my original post was removed by mods