Hopes are sky-high in the air travel industry after a new startup unveiled plans for a short-haul passenger plane that runs entirely on electric power.

Massachusetts-based Wright Electric has become the talk of Silicon Valley, following a presentation last month on its proposed 150-seat electric plane at Y Combinator's Demo Day for startups. The electric plane would be used for short-haul flights of up to 480 kilometres, between such cities as New York and Boston or London and Paris.

Wright Electric says its concept is still at least a decade away from actually taking off, but the fledgling startup has already secured a backer in easyJet, a U.K.-based short-haul carrier.

"They've offered to support us with design and operations guidance," Wright Electric said in a last month.

The 150-seat plane concept would be far cheaper than a fuel-powered aircraft, based on Wright Electric predictions on the future cost of electricity.

Wright Electric wants its electric plane to be up to 10 times more cost-efficient than current planes, so that it will make good business sense while also being good for the environment.

But Wright Electric wasn't the only company to electrify the aviation industry this week. A startup called Zunum Aero inked an with Boeing and JetBlue on Wednesday, to help it develop designs for a hybrid short-haul jet. The jet would carry up to 50 passengers, with a range of up to 480 kilometres.

Boeing called the deal an investment in "alternative propulsion aircraft, with potential for performance and efficiency improvements in a range of aerospace applications."