U.S. regulators finalized regulations for “power-lift” vehicles on Tuesday, opening the door to commercial air taxis.

The rules apply to planes that “have the characteristics of both airplanes and helicopters,” the Federal Aviation Administration said in a statement, and come as several companies explore lower-cost electric air travel.

The new regulations were necessary because existing rules did not address these new types of planes, which can take off vertically – like helicopters – before flying horizontally like an airplane, the FAA said.

These rules would establish the first new category of civil aircraft since helicopters entered the market in the 1940s, the regulator added.

Although motorized transport operations include air taxis, the rules – which define pilot qualifications and minimum safe altitudes – also pave the way for new methods of delivering cargo.

“This rule is the final piece of the puzzle for the safe introduction of these aircraft in the near term,” the regulator said, adding that “the opportunities for the use of motor transport operations are considerable.”

Startups in the booming “electric vertical takeoff and landing” (eVTOL) sector could benefit, hoping to soon deploy air taxis, particularly for passengers wanting to avoid traffic jams.

Supernal, a subsidiary of South Korean auto giant Hyundai, hopes to launch its own air taxi services by 2028, including in car-saturated Los Angeles.

In Europe, German startup Volocopter hoped to participate in the Paris Olympics this summer, but was unable to obtain certification in time. She hopes to be ready to get certified by the end of the year.

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