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United Airlines believes that one day you will take a small electric plane to get to the airport.
The airline joins other investors supporting Archer, a start-up developing electric vertical take-off and landing planes. If Archer can get his eVTOL certified by the Federal Aviation Administration, he plans to deliver the first aircraft in 2024.
“It’s pretty amazing to think about the size of this market,” said Adam Goldstein, co-founder and co-CEO of Archer. “The partnership with United really gives us a chance to get to market first and really helps us speed up our schedule.”
Archer, based in Palo Alto, Calif., Which was founded three years ago, will unveil its first full-scale eVTOL aircraft later this year. The company also plans to develop and manufacture the battery pack that will power the aircraft. Archer said his piloted eVTOL is designed to carry up to four passengers up to 60 miles at speeds of up to 150 mph.
Scott Kirby, CEO of United Airlines
Chip Somodevilla | Getty Images
To move from concept to certified aircraft, Archer is raising $ 1.1 billion through SPAC merger with Atlas Crest Investment Corp. The merger is valued at $ 3.8 billion. Among those who support the agreement, two companies stand out: Stellantis and United Airlines.
Stellantis, the new name for the recently merged companies of PSA Peugeot and Fiat Chrysler, is working with Archer to manufacture the carbon fiber fuselage for the eVTOL aircraft. United has placed a billion dollar order for 200 Archer eVTOL jets, with an option to buy another 100 for $ 500 million.
“By working with Archer, United is showing the aviation industry that now is the time to embrace cleaner and more efficient modes of transportation,” United CEO Scott Kirby said in a statement announcing the Archer SPAC. Investing in clean initiatives is now part of Kirby’s strategy to reduce United’s carbon footprint. In December, the airline announced a multi-million dollar investment in a carbon capture joint venture.
United estimates that passengers making the 13-mile trip 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 move in major metropolitan cities around the world,” Kirby said.
The eVTOL market has exploded in recent years, with Deloitte estimating that 200 companies worldwide are developing aircraft. Many are aimed at freight operations and others focus on passenger travel, which is expected to represent a market of $ 4 billion by 2025 and $ 57 billion by 2035, according to Deloitte.
In December, California-based Joby bought Uber Elevate with the intention of putting eVTOL planes into service as early as 2024.
In a research note last month, Morgan Stanley analyst Rajeev Lalwani said the urban air mobility market would likely start out as a niche service but “could later turn into a cost effective and fast method for traveling on short to medium distances from auto companies and airlines. “
Archer co-founder and co-CEO Brett Adcock believes his company’s eVTOL will disrupt the ridesharing market. “We want this to be a truly affordable mass transit solution,” Adcock said. “Our point of entry is around $ 3 per passenger mile in these markets, which maybe equates to a rideshare business today.”
While the cost may someday be attractive to United passengers looking for a quick and inexpensive way to get to the airport, the airline is far from taking delivery of an Archer eVTOL or determining how it will. would integrate into its network. It remains to be seen whether United’s pilots will fly the electric-powered plane or whether they will be operated by Mesa Airlines, which provides United’s regional service to many small markets.
– CNBC’s Meghan Reeder contributed to this report.
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