United Airlines has given $10 million to Archer Aviation ahead of the delivery of 100 electric air taxis with vertical takeoff and landing capability.
In the last year, United agreed to order up to 200 of Archer's flying taxis to transport travelers to the airport quickly, safely, and ideally with minimal environmental impact. The deal is worth around $1 billion, with the option to purchase additional $500 million worth of aircraft.
A cash deposit is a validation of Archer's achievements to date, not only with flight testing and product development, but also a great signal of confidence in our roadmap to commercialization, according to Adam Goldstein, Archer CEO. We are thankful to United for their continued partnership as we enter this new era of air travel. Archer has completed a preliminary design review for its production aircraft, which it is aiming to launch as early as 2024.
Archer s aircraft will be expected to carry up to four United customers at a time as far as 60 miles at speeds as fast as 150 miles per hour once up and running.
United estimates that Archer's eVTOL aircraft could reduce CO 2 emissions by 47% per passenger on a trip between Hollywood and Los Angeles International Airport LAX, one of the first cities where Archer plans to launch its fleet.
eVTOLs have the potential to change how United customers experience comfort, convenience, and efficiency during their commutes across cities across the globe, according to Michael Leskin, United Airlines Ventures president.
Leskin told The Wall Street Journal that prices for the eVTOL service will be comparable to Uber Black service, but could come down over time.
The United States has a goal to reach carbon neutrality by the year 2050, and the investment in Archer's aircraft comes at a time when they have set a goal to achieve that.
In addition to the aircraft order, United has formed a joint eVTOL advisory committee with Archer to collaborate on eVTOL maintenance and operational matters.
The United States isn't the only one looking to take advantage of eVTOL aircraft.
In July, American Airlines reserved delivery slots for Vertical Aerospace's first 50 VX 4 aircraft after placing a conditional pre-order of up to 250 aircraft. The option for additional 100 aircraft is included in the $1 billion deal. The VX 4 electric aircraft will fly four passengers with zero emissions, minimal noise and distances of over 100 miles.
American plans to invest $25 million in Vertical through a private investment in the public equity PIPE transaction at the time of the initial order.