United Airlines is buying $1 billion worth of aircraft from a Silicon Valley startup that's developing small electric aerial vehicles that could one day bring "air taxis" to cities.
Palo Alto-based Archer announced Wednesday that United plans to purchase 200 of its Archer eVTOL (electric vertical takeoff and landing) aircraft, valued at $1 billion. The Chicago-based airline said it has the option to purchase an additional $500 million of the aircraft at a later date. United said it will work with Archer on development of the battery-powered aircraft.
Archer's aircraft is designed to travel up to 60 miles at speeds of up to 150 miles per hour. United said an Archer flight from Hollywood to Los Angeles International Airport could reduce CO2 emissions by 47% per passenger. The Archer investment is part of a larger initiative by United to invest in emerging technologies that fight climate change.
Archer plans to unveil its all-electric aircraft later this year and launch consumer flights by 2024. Archer's goal is to bring "air taxis" to urban markets and bring affordable ride-sharing to the skies. Co-CEO Brett Adcock told CNBC the aim is to charge around $3 per passenger mile, which is equivalent to what you'd pay for a ride-sharing trip today.
The aircraft maker also announced Wednesday plans to list on the New York Stock Exchange through a SPAC merger with Atlas Crest Investment Corp. It's raising $1.1 billion through the merger, and values Archer at $3.8 billion. It will be listed on the NYSE under the ticker symbol “ACHR.”
