Archer Aviation to Launch Air Taxis in Los Angeles

Archer Aviation's Plans for Urban Air Mobility in Los Angeles

Archer Aviation, an electric aircraft innovator, intends to establish a network of its urban air taxis within Los Angeles by the year 2024. This announcement follows a recent agreement for the company to become publicly listed through a merger with a special purpose acquisition company.

Collaboration with Los Angeles City Officials

This initiative builds upon the momentum generated by the Urban Air Mobility Partnership. Formed just two months prior, this partnership represents a year-long collaboration between the office of Los Angeles Mayor Eric Garcetti, the Los Angeles Department of Transportation, and Urban Movement Labs.

The partnership’s core objective is to formulate a comprehensive plan for integrating urban aircraft seamlessly into the existing transportation infrastructure and land use regulations.

The Role of Urban Movement Labs

Urban Movement Labs, initiated in November 2019, functions as a public-private alliance. It focuses on the development, rigorous testing, and subsequent deployment of cutting-edge transportation technologies.

Currently, Urban Movement Labs and the city of Los Angeles are actively engaged in the design and accessibility considerations for vertiports. These facilities will serve as the designated locations for passengers to embark on flights utilizing “urban air mobility” aircraft.

Understanding Urban Air Mobility

Urban air mobility, often referred to as UAM, is the industry term for highly automated aircraft. These aircraft are designed to operate and transport both passengers and cargo at lower altitudes within urban and suburban environments.

Strategic Partnerships and Financial Backing

Archer Aviation has also recently secured a partnership with United Airlines, who will act as both a customer and an investor. This collaboration supports Archer’s transition to a publicly traded company via a merger with a special purpose acquisition company.

In early February, Archer Aviation finalized an agreement to merge with Atlas Crest Investment Corp. This approach represents an increasingly prevalent financial strategy, allowing startups to bypass the traditional Initial Public Offering (IPO) process.

The resulting publicly listed company, trading on the New York Stock Exchange under the ticker symbol “ACHR,” is projected to have an equity valuation of $3.8 billion.

United Airlines' Investment

United Airlines, which maintains a significant operational hub in Los Angeles, participated as an investor in this deal. As part of the agreement, United has placed an initial order valued at $1 billion for Archer’s aircraft.

Furthermore, United holds an option to procure an additional $500 million worth of aircraft.

Michael Leskinen, Vice President of Corporate Development and Investor Relations at United Airlines, stated that Archer’s commitment to launching in a United hub brings customers closer to reducing their carbon footprint.

He expressed confidence that Los Angeles is just the beginning for Archer and anticipates assisting in expanding their network across all United hubs.

Challenges and Timelines

Despite these advancements, Archer Aviation still faces considerable hurdles before commencing passenger transport. The company has not yet initiated mass production of its electric vertical take-off and landing (eVTOL) aircraft.

The aircraft is engineered to achieve a range of up to 60 miles on a single charge, with a cruising speed of 150 miles per hour.

Archer plans to unveil a full-scale eVTOL prototype later this year and aims to begin volume manufacturing in 2023.

Vertiport Development and Infrastructure

Establishing a network of vertiports is a crucial undertaking that must be completed within the next three years. Co-founders and co-CEOs Brett Adcock and Adam Goldstein have indicated a willingness to leverage existing infrastructure.

This includes exploring the use of current helipads and parking garages as potential vertiport locations in the short term.

The “Maker” eVTOL is designed to be compatible with existing infrastructure dimensions, which, if approved by the Urban Air Mobility Partnership, could facilitate Archer in meeting its 2024 launch target.