Archer partners with SpaceX's Starlink for its eVTOLs
Archer Aviation (ACHR) said that it is partnering with SpaceX to install Starlink's low-Earth orbit (LEO) internet systems into its Midnight electric vertical take-off and landing (eVTOL) aircraft.
According to Archer, Starlink's LEO system is designed to provide high-speed, low-latency, connectivity during Midnight's air taxi operations. Under the agreement, Archer will install Starlink and conduct testing in its aircraft.
Starlink will be serving a dual purpose for Archer, beginning with providing its passengers with internet access during their trips on the VTOL. Midnight is designed to hold up to four passengers.
It will also be utilized by Archer to enable communication between Midnight's pilots and engineering teams on the ground, which Archer said will help support its air taxi connectivity infrastructure. Archer and Starlink are also planning to collaborate on the development of a connectivity solution that will help power Archer's future development of autonomous aircraft.
Financial details of the agreement were not disclosed.
Archer's shares jumped 5.8% on Monday.
The company said that Starlink is "uniquely suited to next-generation aviation platforms" because its LEO constellation is engineered to provide consistent, high-bandwidth coverage even at low-flight altitudes and dense urban areas where cellular coverage can often be unreliable. Starlink does not rely on ground towers or geostationary satellites like traditional aircraft connectivity solutions.
Air taxis like Midnight will normally be operating above urban cities at altitudes of approximately 1,500 feet.
“Connectivity is a must have feature for Midnight,” Archer founder and CEO Adam Goldstein said in a statement. “Starlink is uniquely built to deliver it. This industry-first collaboration will enable seamless, high-speed connectivity and essential amenities for our passengers and pilots.”
Archer is aiming to have its Midnight air taxi take passengers across cities in 5 to 15 minutes, providing for much quicker trips than can be achieved via automobile.
However, questions have been raised about when Midnight will be available for service.
Short seller Culper Research said last month that it was shorting Archer, alleging that the company "continues to mislead investors" about when its development of Midnight will be completed.
Culper pointed to an interview with Fox Business that Goldstein gave lin February where he said that "starting this year, you’ll be able to see some of these aircraft flying in and around some of the biggest cities in America."
But Culper claims to "have heard that in closed-door meetings, $ACHR CEO Goldstein has told certain institutional investors that $ACHR now expects FAA certification in 2028, at best, as Midnight requires substantial re-designs."
“Archer has claimed for at least the past 9 months that the Company has multiple aircraft in ‘final assembly,’” the firm said in its post. “The Company has produced zero aircraft. Where are they?"
This is the second time that Culper has shorted Archer.
It previously alleged "that over the past 12 months, Archer has systematically misled, deceived, or outright lied to investors about virtually every supposed milestone related to its development and testing of its eVTOL aircraft, Midnight."
Archer has not responded to Culper's short report.