Archer Aviation Inc., the San Jose-based electric vertical take-off and landing (eVTOL) vehicle company, announced Monday plans to begin air taxi operations in Abu Dhabi in 2026.
The company (NYSE: ACHR) signed a memorandum of understanding with the Abu Dhabi Investment Office (ADIO) and will begin building the infrastructure needed for commercial service with incentives and capital expenditures from the country, the company said in a statement.
"In connection with ADIO's planned investment in electric aviation, Archer plans to place its first international headquarters and manufacturing facilities in the Smart and Autonomous Vehicle Industries (SAVI) Cluster in Abu Dhabi," the statement read.
The announcement follows on the news in July that Archer had extended its relationship with the U.S. Department of Defense by signing new contracts with the Air Force with a total value of up to $142 million. The plan is to help the DoD replace helicopters with a safer, quieter aircraft.
"Our goal is to approve Archer’s air taxi to fly in the UAE as soon as it is certified by the FAA, and we are very excited to collaborate with them to bring electric air taxis to the country," Saif Mohammed Al Suwaidi, the United Arab Emirates' director general of the General Civil Aviation Authority, said in a statement. Abu Dhabi is the capital of UAE.
In May, Archer debuted its first completed Midnight air taxi, an eVTOL aircraft that can carry a pilot and four passengers. Designed to be quieter and less expensive than a helicopter, the Midnight is expected to have a total range of 100 miles with zero emissions. It has been built to run 20-minute trips with a 10-minute charging stop in between.
Archer is one of some three dozen Silicon Valley-based eVTOL companies vying to be the leader in the field, one that would allow vehicles to take off like helicopter but fly more like a small airplane. Archer, along with regional rivals Wisk Aero LLC and Joby Aviation Inc., are largely focused on developing air taxi services.
Working with its global manufacturing partner, the Netherlands-based Stellantis NV, and UAE-based partners, Archer plans to build its Center of Excellence in Abu Dhabi. The center will not only manufacture the aircraft, but develop and implement new aviation technologies, the company said.
"Archer’s goal is to transform urban travel, replacing 60–90-minute commutes by car, with estimated 10-20 minute electric aircraft flights that are safe, sustainable, low noise and cost competitive with ground transportation," the company said.
Archer launched in 2018 and became a public company almost two years ago. While Archer's stock is off 48% from its public market debut in 2021, it's had a strong 2023 — up nearly 166% to trade at $5.13 a share as of Tuesday morning.
