United Airlines believes that one day you can take a small electric plane to get to the airport.
The airline joins other investors supporting Archer, a company that develops electric vertical takeoff and landing jets. If Archer can get his eVTOL certification through the Federal Aviation Administration, he expects to deliver the first aircraft in 2024.
“It’s amazing to think how big this market can be,” said Adam Goldstein, co-founder and co-CEO of Archer. “The partnership with United really gives us the chance to get on the market first and helps us accelerate our timeline.”
Founded three years ago, Palcher Alto, California’s Archer, will launch its first full-scale eVTOL aircraft later this year. The company also plans to manufacture and manufacture the battery pack that will power the aircraft. Archer said the managed eVTOL is designed to carry as many as four passengers up to 60 km with speeds that can reach 150 km / h.
Scott Kirby, CEO of United Airlines
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Going from concept to certified aircraft, Archer raises $ 1.1 billion through a SPAC merger with Atlas Crest Investment Corp. The merger is valued at $ 3.8 billion. Among those who support the deal, two companies stand out: Stellantis and United Airlines.
Stellantis, the new name for the newly merged companies of PSA Peugeot and Fiat Chrysler, is working with Archer to manufacture the carbon fiber fuselage of the eVTOL aircraft. United placed a $ 1 billion order for 200 Archer eVTOL aircraft, with the option to buy another $ 100 million for $ 500 million.
“By working with Archer, United is showing the aviation industry that now is the time to embrace cleaner, more efficient means of transport,” United CEO Scott Kirby said in a release announcing the Archer SPAC. Investing in clean initiatives has become part of Kirby’s strategy to reduce United’s carbon footprint. In December, the airline made a $ 1 million investment in a joint venture to capture carbon.
United estimates that passengers traveling on the 13-mile journey from Hollywood to Los Angeles International Airport on an Archer eVTOL aircraft could reduce CO2 emissions by 50%.
“Archer’s eVTOL design, manufacturing model and engineering expertise have the clear potential to change the way people commute in major metropolitan cities around the world,” Kirby said.
The eVTOL market has exploded in recent years, with Deloitte estimating 200 companies developing aircraft worldwide. Much is for cargo operations and others focus on passenger travel, which according to Deloitte is expected to be in 2025 and $ 20 billion by 2035 by 2035.
In December, Joby, California, bought Uber Elevate with plans to deploy eVTOL aircraft as early as 2024.
Morgan Stanley analyst Rajeev Lalwani said in a research note last month that the urban aerospace market is likely to start as a niche service, but ‘later’ could turn into a cost-effective, time-efficient method of short to medium travel distances and eventually part of car and airline businesses. ‘
Arett, co-founder and co-CEO, Brett Adcock, believes his company’s eVTOL will disrupt the stock market. “We want it to be a very affordable solution for transporting mass markets,” Adcock said. “Our entry point is about $ 3 per passenger mile in these markets, which is roughly equivalent to maybe a company sharing today.”
While the cost may one day be attractive to United passengers looking for a fast and cheap way to the airport, the airline is far from delivering an Archer eVTOL or determining how it will fit into its network. It remains to be seen whether United pilots will fly the electrically powered aircraft or whether they will be operated by Mesa Airlines, which operates United regional services to much smaller markets.
—ChanBC’s Meghan Reeder contributed to this report.