Archer Air
Source: Archer Air
The current bullish stock market has fueled concerns about mass speculation and unproven technologies, but they don’t include flying taxis, according to Wall Street investment banker Ken Moelis.
Flying taxis, formally known as electric planes and the urban air mobility market, will arrive in the near future and may replace helicopters, Ken Moelis, CEO and founder of Moelis and Company, told CNBC.
“These vehicles will be 100 times quieter, they will be significantly safer, they will be significantly cleaner and significantly cheaper,” Moelis told CNBC’s Squawk Alley on Thursday.
On Wednesday, the launch of Archer electric aircraft announced the merger of a special purpose acquisition company (SPAC) with Atlas Crest Investment Corp, backed by Moelis, a $ 3.8 billion deal. The start-up aims to launch its first aircraft by 2024; the deal was valued in 2026 numbers.
Moelis said Archer is in an early stage of development, but its business plan is fully funded and the market opportunity is significant. “There is no speculation,” he said.
While skeptics “act like vertical takeoff and landing” are something new and unproven, “which used to be called a helicopter,” Moelis said. “We add the word electricity … Technology exists. There is nothing to invent.”
A design that includes 12 rotors also makes the flight method safer than helicopters, Moelis said.
Archer Air
Source: Archer Air
The US civilian helicopter market is currently estimated to have between 10,000 and 15,000 aircraft. Moelis believes the market could double in size by up to 30,000 as a result of the electric aircraft replacement cycle, and as batteries evolve and expand their range to 100 miles.
“Just replacing helicopters for electronic takeoff and landing is a massive market,” Moelis said. “There are now 15,000 helicopters. Can you imagine a world where you can get it?”
Whether Archer’s electric vertical take-off and landing aircraft (eVTOL), which can travel up to 60 miles, reach speeds of 150 mph and create minimal noise, can enter the market in 2024 depends, among other factors, on the certification from the Federal Aviation Administration.
United is already placing an order for 200 eVTOL Archer aircraft, a deal valued at $ 1 billion. The Chicago-based aviation giant has been investing in multiple strategies to reduce its carbon footprint in recent months, including an investment in a carbon capture company by oil and gas company Occidental Petroleum. Urban air mobility vehicles are likely to be used initially to transfer passengers to and from airports. Stellantis, the newly combined Fiat Chrysler and PSA Peugeot, is also among a growing list of Archer investors.
Major players in the automotive and aviation industry, including Uber, Toyota and Airbus, are chasing the flying taxi market. Uber sold its flying taxi business to rival Archer Joby late last year, in which it is already an investor.
Deloitte data suggests that approximately 200 companies are working on similar aircraft to use them for passengers or cargo, and the market is expected to investigate $ 4 billion in 2025 and $ 57 billion in 2035. Another study of Frost & Sullivan projects air taxis to take to the skies. already in 2022 in Dubai.