Archer Aviation (ACHR) said on its earnings call this week that it will deliver its first electric vertical take-off and landing aircraft (VTOL) to the United Arab Emirates (UAE) this summer as it nears the launch of its first piloted flights in the UAE later this year.
This UAE is serving as the initial locale for its Launch Edition program, which is the first step toward widespread commercialization of its aircraft.
“We are doing something that has not been done in decades, bringing a new type of aircraft to market,” Archer founder and CEO Adam Goldstein said on the earnings call with analysts. “The Launch Program creates a scalable commercialization framework for safely deploying aircraft in early adopter markets.”
He added that in addition to demonstrating the VTOL’s capabilities, the goal of the Launch Edition is to “drive public acceptance, build operational excellence, and generate early revenue.”
Archer’s VTOL, which is called Midnight, is being launched in partnership with Abu Dhabi Aviation, one of the largest helicopter operators in the Middle East.
In addition to Abu Dhabi Aviation, Archer has also secured Ethiopian Airlines as its second Launch Edition customer. It’s not clear when operations will begin in the East African country.
Midnight is designed to carry up to four passengers on distances of up to 100 miles (160 km). It is powered by 12 propellers, spun by 12 electric motors that draw power from six onboard battery packs. The maximum speed the aircraft can reach is 150 mph (241 kph).
Archer partnering with Palantir to build nex-gen aviation systems
In addition to its plans in the UAE and Ethiopia, Archer unveiled its proposed air taxi network in New York City last month in partnership with United Airlines (UAL).
The goal of the air taxi project is to allow customers to travel from Manhattan to nearby airports in 5-15 minutes.
“As a long-time New Yorker, I’m deeply passionate about the impact our Midnight aircraft could have on the commutes for those who live in and visit Manhattan,” Goldstein said on the call.
Archer doesn’t generate any sales yet since it is still getting the Midnight certified for service, but it said that it has $1 billion on its balance sheet. Its operating expenses for Q1 was $144 million.
The company also announced in March that it was partnering with Palantir (PLTR) to develop software for nex-gen aviation systems, including air traffic control, movement control and route planning.
Goldstein said on the call that the partnership with Palantir is an “opportunity to be a key contributor to our country’s ambitious vision, modernizing our aviation ecosystem in record time” that will help “lay the foundation for the scale we plan to achieve with urban air mobility.”
Along with its commercial business, Archer also continues to make headway into the U.S. defense sector, with Goldstein revealing that the company is currently working with defense technology company Anduril on a hybrid electric autonomous VTOL for the military.
Meanwhile, Goldstein said that Archer will soon announce “one of the industry’s most important partnerships,” but did not indicate when that will happen.
The company is building a 400,000-square-foot production facility at the Covington Municipal Airport in Georgia. Archer is expecting its first VTOLs to be produced there by the end of the year, at a rate of two per month, then 54 aircraft per month in the long run.
Archer’s stock surged 22.9% on Tuesday. It is up 13.1% year-to-date.
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