US-based electric aircraft start-up Archer Aviation has signed a deal worth $1 billion with America’s United Airlines, to supply its 200 all-electric vertical takeoff and landing aircrafts (eVTOL).
Further, Archer said in a statement that it will become a publicly-listed company and will be listed on the New York Stock Exchange after integrating with Atlas Crest Investment Corporation, a special purpose acquisition company (SPAC) led by investment banker Ken Moelis.
SPACs are investment vehicles that raise capital on public markets to acquire or merge with a private company.
Following the agreement, Archer said that it is expected to provide $1.1 billion of gross proceeds, including $600 million in private investment in public equity from investors such as United Airlines, Stellantis, and the venture arm of Exor, Baron Capital Group, the Federated Hermes Kaufmann Funds, Mubadala Capital, Putnam Investments and Access Industries. It has also bagged an additional $30 million from Mr. Moelis and Walmart’s eCommerce chief Marc Lore.
Founded by Brett Adcock and Adam Goldstein, the start-up is developing the world’s first commercially viable all-electric vertical takeoff and landing aircraft. The vehicle, which is expected to travel at a speed of 150 mph at a distance of 60 miles, is intended to resolve a pressing need within the segment of urban mobility and address long traffic snarls.
The US carrier stated that it is hoping to cut its emissions with these air taxis. United estimates that Archer’s aircraft can reduce carbon dioxide emissions by 47 percent per passenger on a trip between Hollywood and Los Angeles International Airport, the route where Archer plans to introduce an air taxi service by 2024.
“By working with Archer, United is showing the aviation industry that now is the time to embrace cleaner, more efficient modes of transportation. With the right technology, we can curb the impact aircraft have on the planet, but we have to identify the next generation of companies who will make this a reality early and find ways to help them get off the ground.”
Furthermore, Archer said it hopes to fast-track the commercialization of its air taxis through its partnership with United. This deal comes after the start-up said it is teaming up with Stellantis, the company established following the merger of Fiat Chrysler and Groupe to produce aircrafts.
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