United Airlines believes that one day you will be able to catch a small electric plane to get to the airport.
The airline joins other investors supporting Archer, a start-up that develops electric vertical takeoff and landing planes. If Archer can get its eVTOL certified by the Federal Aviation Administration, it expects to deliver the first aircraft by 2024.
“It’s pretty amazing to think how far this market can be,” said Adam Goldstein, co-founder and cof CEO of Archer. “The partnership with United really gives us a chance to reach the market first and really helps us speed up our timeline.”
Archer, based in Palo Alto, California, founded three years ago, will present its first large-scale eVTOL aircraft later this year. The company also plans to develop and manufacture the battery that will power the aircraft. Archer said his piloted eVTOL is designed to carry up to four passengers up to 60 miles at speeds that could reach 150 mph.
United Airlines CEO Scott Kirby
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To move 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 supporting the deal are two companies: Stellantis and United Airlines.
Stellantis, the new name for the recently merged companies PSA Peugeot and Fiat Chrysler, is working with Archer to manufacture the carbon fiber fuselage for the eVTOL aircraft. United has placed an order for $ 1 billion for 200 Archer eVTOL aircraft, with the option to buy 100 more for $ 500 million.
“By working with Archer, United demonstrates to the aviation industry that now is the time to adopt cleaner and more efficient modes of transportation,” United CEO Scott Kirby said in a statement announcing Archer SPAC . Investing in clean initiatives has become part of Kirby’s strategy to reduce United’s carbon footprint. In December, the airline announced a multimillion-dollar investment in a carbon capture joint venture.
United estimates that passengers making the 13-mile journey from Hollywood to Los Angeles International Airport with an Archer eVTOL aircraft could reduce CO2 emissions by 50%.
“Archer’s eVTOL experience in design, manufacturing model and engineering has clear potential to change the way people move to major metropolitan cities around the world,” Kirby said.
The eVTOL market has exploded in recent years, and Deloitte estimates that 200 companies around the world are developing aircraft. Many are destined for cargo operations and others focus on passenger travel, which is expected to be a $ 4 billion market in 2025 and $ 57 billion in 2035, according to Deloitte.
In December, California-based Joby bought Uber Elevate with plans to enter eVTOL aircraft service as early as 2024.
In a research note last month, Morgan Stanley analyst Rajeev Lalwani said the urban air mobility market will likely start as a niche service, but that it could later be transformed into a cost-effective and efficient method in the time to travel short to medium distances, ending up taking car and airline shares. “
Archer co-founder and co-CEO Brett Adcock believes his company’s eVTOL will disrupt the equity market. “We want this to be a really affordable market transportation solution,” Adcock said. “Our entry point is about $ 3 per mile for passengers in these markets, which is roughly equivalent to a company that can share travel today.”
While one day the cost may be appealing to United passengers looking for a quick and economical way to the airport, the airline is a long way from getting the delivery of an Archer eVTOL or determining how they would fit in. your network. It remains to be determined whether United pilots would fly the electric-powered aircraft or whether they would be operated by Mesa Airlines, which manages United’s regional service in many smaller markets.
—CNBC’s Meghan Reeder contributed to this report.