Merlin Labs, a U.S.-based developer of autonomous flight technology, has signed a memorandum of understanding with Israel Aerospace Industries (IAI) to co-develop, integrate and certify AI-assisted autonomous flight technology for commercial cargo aircraft.

IAI’s expertise gives Merlin a foothold in cargo conversions
The agreement forms part of Merlin’s product family for large, multi-crew aircraft, Condor, which is being developed around the company’s Merlin Pilot autonomy platform. The system is designed to assist the crew by monitoring the operating environment and handling communications, allowing pilots to focus on other key aspects of the flight. Rather than replacing pilots, the system is designed to work alongside them within existing cockpit operations as regulatory certification progresses.
IAI is one of the world’s leading passenger-to-freighter (P2F) conversion specialists, supplying freighter aircraft to operators such as Amazon, DHL and Atlas Air. That positions IAI as a strategic partner for Merlin, whose long-term objective is to integrate autonomous systems into aircraft already operating in the global cargo fleet.
Boaz Levy, chairman of IAI, said the collaboration reflected the company’s long-standing focus on advancing aviation technologies:
“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,”

Cargo conversions offer an early path to market
According to Boeing’s latest cargo forecast, the global freighter fleet is expected to rise from about 2,340 aircraft today to almost 3,900 by 2043, with more than 2,800 new production and P2F conversion deliveries anticipated during that period.
Merlin sees this as an opportunity to integrate its autonomous systems during aircraft modification programmes rather than retrofitting them later. The company also points to continuing pilot shortages and growing demand in global air cargo as factors encouraging operators to explore new technologies.
Matt George, Merlin’s founder and chief executive, said IAI’s position within the cargo aviation sector made it a natural partner for the programme:
“IAI sits at the centre 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.”
He added that the partnership, together with Merlin’s recently announced relationship with cargo aircraft lessor World Star Aviation, reflected growing industry confidence that AI-assisted autonomy could improve safety and operational efficiency while helping operators expand existing fleets.
Have we reached a point where regulators must allow a little more automation in the cockpit? Let us know what you think in the comments below.
