Merlin and IAI Sign Agreement to Advance AI-Powered Autonomy for Commercial Cargo Aircraft

The agreement establishes a framework for joint development, integration and certification of advanced autonomous flight technology for Part 25 freight aircraft

BOSTON, Mass., June 2026 – Merlin, Inc. (NASDAQ: MRLN), an aerospace and defense technology company building the operating system of record for autonomous flight, today announced it has signed a memorandum of understanding (MoU) with Israel Aerospace Industries (IAI), a world-class aerospace and defense leader, to advance the development, integration, and certification of AI-powered autonomy for commercial cargo aircraft. The agreement initiates a phased engagement, including joint market exploration, engineering collaboration, regulatory preparation, and initial platform selection to lay the groundwork for a definitive commercial agreement and a structured path toward civil certification.

IAI Chairman of the Board Boaz Levy: “Throughout its history, IAI has consistently been at the forefront of aerospace innovation, developing technologies that shape the future of aviation. Our collaboration with Merlin reflects a shared commitment to advancing next-generation capabilities that can enhance safety, efficiency, and operational flexibility across the aviation industry. We believe autonomy will play an increasingly important role in the years ahead, and we are proud to partner with innovative companies that are helping define that future.”

The collaboration with IAI is part of Condor, Merlin’s new product family for large, multi-crew aircraft. As a leading aerospace and defense OEM, IAI brings deep expertise in aircraft design and certification, advanced avionics, and MRO. The company is also a global leader in passenger-to-freighter aircraft conversions, with extensive and established relationships with leading freighter operators and lessors worldwide. By combining Merlin’s autonomy expertise with IAI’s engineering depth, certification experience, advanced avionics capabilities, and leadership in passenger-to-freighter conversions, the companies aim to advance autonomous flight technologies for Part 25 aircraft that underpin global air cargo operations.

“IAI sits at the center of the global cargo aviation ecosystem, and its deep expertise in aircraft certification, advanced avionics, and freighter conversions makes it a critical partner as we advance the Condor program”, said Matt George, CEO and founder of Merlin. “Merlin’s collaborations with IAI and World Star Aviation reflect growing industry recognition that AI-powered autonomy can enhance safety, improve operational efficiency, and help operators scale existing fleets to meet increasing demand. Together, we’re laying the groundwork to bring certifiable autonomy to the aircraft that power global cargo networks.”

The agreement between Merlin and IAI builds on growing industry interest in advancing AI-powered autonomy across commercial aviation. Together with Merlin’s recently announced relationship with cargo aircraft lessor World Star Aviation, we believe the collaboration reflects increasing momentum behind the development of certifiable autonomous capabilities for cargo aircraft and the broader aviation ecosystem. Through partnerships that combine operational, engineering, certification, and fleet expertise, the industry is taking important steps toward the future integration of autonomous technologies into existing aircraft platforms.

Yaacov Berkovitz, EVP and GM of IAI Aviation Group: “Autonomous technologies have the potential to become a significant part of the future aviation ecosystem, but their adoption will require far more than software innovation alone. Success will depend on the ability to integrate new capabilities into certified aircraft platforms while meeting the industry’s rigorous safety and regulatory standards. By combining Merlin’s autonomy expertise with IAI’s decades of experience in aircraft engineering, certification, avionics, and freighter conversions, we aim to help advance practical and certifiable solutions for the commercial cargo market.”

 

AIRCRAFT - IAI’s Converted Passenger-to-Freighter Boeing 777-300ERSF Fleet Surpasses 20,000 Flight Hours

In less than just a year, IAI’s converted B777-300ERSF aircraft have accumulated more than 20,000 flight hours, another significant milestone for the world’s first and only B777 passenger-to-freighter conversion program

Israel Aerospace Industries (IAI), a world leader in passenger-to-freighter conversions, announced today that its Boeing 777-300ERSF known as “The Big Twin” has surpassed 20,000 cumulative flight hours since the first converted aircraft entered commercial service in September 2025.

To date, 11 Boeing 777-300ERSF aircraft have been successfully converted by IAI and are in operational use by customers across Europe, North America and Asia. Surpassing 20,000 flight hours in less than nine months reflects the program’s rapid transition from certification to commercial service and demonstrates the operational maturity and reliability of the world’s first and only Boeing 777 passenger-to-freighter conversion program.

With an average of more than 350 flight hours per aircraft each month, the converted fleet has demonstrated high operational utilization since entering service, supporting demanding cargo operations on international routes.

Since receiving the world’s first Supplemental Type Certificate (STC) for the Boeing 777-300ERSF conversion, the program has continued to expand. Additional Boeing 777-300ERSF aircraft are currently undergoing conversion, with more aircraft scheduled to enter the conversion process in the near and long term. In parallel, IAI continues to expand its global conversion network through additional conversion sites, increasing production capacity to support customers worldwide.

Alongside the continued growth of the Boeing 777-300ERSF program, IAI is also advancing its Airbus A330-300 Passenger-to-Freighter conversion program, further expanding its widebody conversion portfolio to address the evolving needs of the global air cargo market.




Boaz Levy, Chairman of Israel Aerospace Industries: “This milestone reflects the confidence our customers place in IAI and in the Boeing 777-300ERSF program. It demonstrates not only our engineering excellence, but also the aircraft’s proven operational reliability in commercial service around the world. As demand for advanced cargo aircraft continues to grow, we remain committed to delivering innovative, high-performance solutions that shape the future of global air cargo.”




Yaacov Berkovitz, EVP and GM of IAI Aviation: “Surpassing 20,000 flight hours in less than a year marks another milestone in the successful transition of the Boeing 777-300ERSF program from certification to full commercial operation. With 11 converted aircraft already flying




for customers across multiple continents, the program continues to demonstrate its reliability and value to cargo operators worldwide. The five additional aircraft currently undergoing conversion, together with additional aircraft scheduled to enter the conversion line, and the continued expansion of our global conversion network, reflect the growing confidence customers place in IAI and in the future of the Boeing 777-300ERSF.”




IAI is the world’s leading passenger-to-freighter conversion house, with more than four decades of experience and hundreds of converted aircraft delivered to customers worldwide. The company continues to expand its global conversion capabilities to support the growing demand for next-generation freighter aircraft.

AIRCRAFT - IAI completes conversion of first Boeing 777-300ERSF freighter

Supplemental Type Certificate received from U.S. FAA & Israeli CAA to convert B777, an aircraft able to carry 100 tons - poised to redefine the future air freighter market

Israel Aerospace Industries (IAI), a global leader in aircraft passenger-to-freighter (P2F) conversions, announced today following rigorous efforts over the past year, a landmark achievement in aviation history with the successful completion of the Boeing B777-300ERSF conversion from a passenger aircraft into a freighter, and the receipt of the industry’s first Supplemental Type Certificate (STC) certificate from both the U.S. Federal Aviation Administration (FAA) and the Civil Aviation Authority of Israel (CAAI). As one of the world's largest cargo aircraft, the newly certified B777-300ERSF will significantly increase global shipping capacity, speed and efficiency. This is a significant breakthrough in aviation and IAI is the first company in the world to convert an aircraft of this magnitude.
The Boeing 777 is poised to redefine the future of air freight with an impressive capacity of 100 tons and the ability to significantly reduce operating costs. This innovation positions the aircraft as a game-changer in the evolving global freighter market.

AerCap is the launch customer of the B777-300ERSF conversion program, while Kalitta will serve as the launch operator.

Boaz Levy, President and CEO of Israel Aerospace Industries: "IAI is a global leader in passenger-to freighter aircraft conversions, standing at the forefront of aeronautical technology and building on its extensive capabilities as Israel's largest aerospace company. The company takes great pride in being the first in the world to convert a Boeing 777 into a freighter. Receiving certification from aviation authorities highlights IAI's technological, engineering and operational expertise and positions the company as a pioneer in this field. This remarkable capability is the result of the company's professionalism and determination, paving the way for a broad expansion of our business activities with leading customers worldwide, and strengthening global e-commerce through advanced freighter aircraft solutions."


Yaacov Berkovitz, Executive VP and General Manager of IAI’s Aviation Group: "After years of dedicated effort, especially during the past year, we are excited to receive the STC certificate for the P2F conversion of Boeing 777 aircraft from both the FAA and CAAI – a breakthrough that reflects our commitment to innovation, engineering excellence and global leadership in aircraft conversions. This milestone sets a new standard in air cargo, delivering a unique combination of high payload capacity, volume and operational efficiency. The Boeing 777 was developed to meet the evolving needs of the cargo industry, and we believe it will become the preferred choice for international operators. I want to thank the aviation authorities and our team at IAI for their unwavering tenacity in bringing this transformative product to market.”
IAI is a world leader in passenger-to-freighter aircraft conversions, trusted by industry leaders such as Amazon, Gulfstream, DHL and others. Following the increasingly growing demand for freighter aircraft globally, the Company is expanding its global footprint of conversion facilities for the Boeing 777 aircraft.


For over 45 years, IAI has been a pioneer in the field of passenger-to-freighter conversions, delivering comprehensive solutions across all segments of the global aviation market. The company is recognized as the world’s leading conversion house, with unmatched expertise spanning a wide range of aircraft models and operations. Its broad portfolio includes passenger-to-cargo aircraft conversions, Maintenance, Repair, and Overhaul (MRO) services, business jet customization, aerostructures, aircraft upgrades and more.

Israel Aerospace Industries (IAI)