JAL-Sumitomo JV Secures Right to Order Up to 100 Archer Air-Taxis
Japan Airlines and Sumitomo Corp's joint venture, Soracle, secures the right to order up to 100 Archer air-taxis for US$500 million. Challenges such as funding, technology, and regulatory hurdles delay the deployment of air-taxis for urban travel.Archer Aviation's 'Midnight' air-taxi, supported by Stellantis, is designed for short-distance trips with minimal charging time.
The joint venture, Soracle, would make pre-delivery payments based on Archer achieving specific milestones before aircraft delivery, as stated by the companies.
Shares of Archer Aviation saw a 7% increase in morning trading following this news. Several airlines have shown interest in air-taxis, also known as electric vertical take-off and landing (eVTOL) aircraft, anticipating a surge in urban travel demand.
Despite the growing interest, the industry encounters challenges such as funding, technology, infrastructure, and regulatory obstacles before these aircraft can transport passengers within cities. Certification timelines have been delayed to the second half of this decade due to ongoing developments in regulations for air-taxis in the Western regions.
Recently, German air-taxi manufacturer Lilium, which went public in 2021 through a US$3.3 billion reverse merger, announced plans to file for insolvency after facing financial difficulties. Archer CEO Adam Goldstein acknowledged the industry's challenges, stating, "I think it reinforces that what we are doing is very hard."
Archer, supported by automaker Stellantis, is working on its air-taxi named 'Midnight,' designed to accommodate four passengers and a pilot. The aircraft is optimised for short-distance trips of around 20 miles, with minimal charging time in between flights.
Soracle, the joint venture, revealed plans to establish various flight routes covering cities like Tokyo, Osaka, Nagoya, Hokkaido, Setouchi, and Okinawa. Operations will commence once the necessary certifications are obtained from Japanese authorities. While there is no set deadline for Soracle to confirm the order, the company has made a significant pre-delivery payment.
Archer's shares have experienced a 47.7% decline this year, reflecting the challenges and uncertainties faced by the air-taxi industry.
Japan Airlines and Sumitomo Corp's joint venture, Soracle, secures the right to order up to 100 Archer air-taxis for US$500 million.
Challenges such as funding, technology, and regulatory hurdles delay the deployment of air-taxis for urban travel.
Archer Aviation's 'Midnight' air-taxi, supported by Stellantis, is designed for short-distance trips with minimal charging time.
Source: REUTERS