Air taxi pioneer Archer Aviation has been acquired via a blank-cheque partnership with United Airlines and backed by investment banker Ken Moelis, marking the first time a project to commercialise air taxis has received public listing.
The merger hopes to commercialise air taxis in a move towards complete decarbonisation of the aviation sector. Credit: Archer Aviation
The parties hope to commercialise air taxis as a service within the next five years as well as work towards complete decarbonisation of the aviation and travel sectors using Archer's eVTOL aircraft technology.
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The companies announced their partnership in a joint statement last Wednesday in the hopes to invest $20 million (€16.4 million) in Archer and may eventually buy 200 of their electric-motor powered crafts.
Under the terms of the agreement, United will contribute its expertise in airspace management to assist Archer with the development of battery-powered, short-haul aircraft.
Archer agreed to merge with a Moelis-backed project in a $3.8 billion (€3.12 billion) transaction expected to generate roughly $1.1 billion in gross proceeds.
If finalised, the aircraft would have a market value of $1 billion (€822 million), Archer claims.
United also laid forth options to acquire another $500 million (€411 million) worth of air taxis.
Archer is due to commence production of the aircraft in 2023, with consumer flights commencing in 2024.
EVTOL aircraft is an up-and-coming technology in which a number of aviation players are getting involved in a bid to reduce their overall carbon footprint.
Last year, United confirmed its dedication to becoming completely green by 2050, with an aim to reduce greenhouse emissions by 100% without relying on traditional carbon offsets. The airliner also recently partnered with Oxy Low Carbon Ventures and Rusheen Capital to deliver on carbon capture technology.
It was also the first major airliner to set itself climate goals in 2018 with an original goal of 50% reduced emissions, based on 2005 levels.
United CEO Scott Kirby said: "Archer's eVTOL design, manufacturing model and engineering expertise has the clear potential to change how people commute within major metropolitan cities all over the world."
With current technology, Archer's aircraft are able to make trips of around 96 km (60 miles) at speeds of up to 240 km/h (150 mph). However, future models are expected to exceed this.
Archer also estimates this form of travel could reduce travel emissions by as much as 47% with its endgame being to increase the viability and advance the benefits of clean air travel on a large scale.
Brett Adcock, CEO and co-founder of Archer, said: "This deal represents so much more than just a commercial agreement for our aircraft, but rather the start of a relationship that we believe will accelerate our timeline to market as a result of United's strategic guidance around FAA certification, operations and maintenance."
Archer's other CEO, Adam Goldstein, added: "We're working closely with their test pilots and environmental teams to make sustainable urban air mobility a reality far sooner than people could ever imagine."
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Green air travel can supposedly be accomplished through a variety of means.
Airbus is currently working on jets powered via green hydrogen, which stand to completely remove carbon emissions if produced on a mass-scale.
The model, which is still in the concept stage, also completely overhauls the shape of aircraft to allow for a more streamlined body.
Rolls-Royce also began working on an air taxi concept in 2018, of which development continues to this day.
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