Atlantic Aviation and Archer Aviation Align to Pursue Development of Electric Aircraft Infrastructure Across LA, Northern California, South Florida, and NYC Regions

Rhea-AI Summary

Archer Aviation Inc. and Atlantic Aviation have signed a memorandum of understanding to establish sites for electric aircraft operations in LA, New York City, Northern California, and South Florida. They plan to electrify existing aviation assets to support future electric aircraft operations and leverage relationships with BETA Technologies to install interoperable rapid recharging systems. The parties aim to launch services across these initial locations in 2025 and expand services to other locations as availability of Archer’s aircraft scales. Archer’s goal is to transform urban travel, replacing car commutes with electric air taxi flights that are safe, sustainable, low noise, and cost-competitive with ground transportation.

Positive

• Archer and Atlantic Aviation have established a strategic partnership to prepare sites for electric aircraft operations.
• They plan to electrify existing aviation assets and install interoperable rapid recharging systems to support future electric aircraft operations.
• The parties aim to launch services across initial locations in 2025 and expand services to other locations as availability of Archer’s aircraft scales.
• Archer’s goal is to transform urban travel, replacing car commutes with electric air taxi flights that are safe, sustainable, low noise, and cost-competitive with ground transportation.

Negative

• None.

Insights

Market Research Analyst

The memorandum of understanding between Archer Aviation and Atlantic Aviation represents a significant step in the commercialization of eVTOL technology. This partnership is poised to create a substantial footprint in the urban air mobility (UAM) market, particularly in densely populated areas where traffic congestion is a perennial issue. The choice of key metropolitan areas for initial launch sites is strategic, as it targets the markets with the highest potential demand for quick and efficient transportation alternatives.

From a market research perspective, the collaboration leverages existing infrastructure and relationships, which could speed up the implementation process and reduce initial capital expenditures. The involvement of BETA Technologies for the installation of rapid recharging systems suggests a focus on minimizing aircraft downtime, which is crucial for the economic viability of the service. The endorsement by GAMA of the CCS charging standard also indicates industry support for interoperability, which could become a competitive advantage by simplifying the charging process for various eVTOL models.

However, the projected launch in 2025 suggests that there is still a significant development period ahead, during which the partnership will need to navigate regulatory approvals and public acceptance challenges. The success of this initiative will likely influence investor sentiment towards both Archer and the broader eVTOL industry, with potential implications for stock valuations and the allocation of investment capital within the sector.

Financial Analyst

Archer Aviation's MOU with Atlantic Aviation signifies an investment into landing and infrastructure that could potentially enhance Archer's revenue streams and market position. The financial implications for stakeholders include the potential for increased asset utilization for Atlantic Aviation and the opening of new markets for Archer's Midnight air taxi. The focus on key urban areas could lead to early adoption and proof of concept, which is critical for securing future investments and partnerships.

While the financial details of the MOU are not disclosed, the partnership is likely to involve significant capital outlay for infrastructure development. Investors should consider the risks associated with such long-term capital-intensive projects, including the possibility of delays and higher than anticipated costs. Moreover, the scalability of Archer's aircraft production will be a key factor in determining the pace at which the service can expand beyond the initial locations.

It is also important to note that the UAM market is still in its nascent stages and Archer is among several competitors aiming to capitalize on this emerging opportunity. The ability to secure strategic partnerships and comply with evolving regulatory frameworks will be critical in achieving a first-mover advantage and justifying the current market valuations of companies like Archer.

Environmental Analyst

The initiative between Archer and Atlantic underscores a growing trend in the aviation industry towards sustainable and environmentally friendly transportation solutions. The shift to electric aircraft is expected to reduce carbon emissions and noise pollution, aligning with broader environmental goals and potentially influencing consumer preferences.

Environmental impact assessments will be crucial in gauging the long-term viability and societal acceptance of eVTOL operations. The promise of quiet and sustainable urban air travel could garner support from environmental groups and city planners, especially in areas with aggressive carbon neutrality goals. However, the environmental benefits hinge on the use of renewable energy sources for the rapid recharging systems, an aspect that will be closely scrutinized by stakeholders.

As the industry evolves, regulatory bodies will likely develop new standards for environmental impact, which could affect the operational parameters for companies like Archer. The environmental performance of Archer's Midnight aircraft and Atlantic Aviation's infrastructure will be of high interest to investors who are increasingly incorporating sustainability criteria into their investment decisions.

• Archer and Atlantic recently signed a memorandum of understanding (MOU) focused on opportunities to operationalize sites for electric aircraft in LA and New York City metropolitan areas, along with Northern California and South Florida
• Archer and Atlantic plan to install interoperable rapid charging system recently endorsed by General Aviation Manufacturers Association (GAMA)
• Archer and Atlantic Aviation will continue to explore eVTOL aircraft operations at additional Atlantic locations
• The MOU anticipates that the parties will develop a strategic partnership based on Archer's commitments for landing and infrastructure investments, aiming to prepare its sites for eVTOL operations

SANTA CLARA, Calif.--(BUSINESS WIRE)-- Archer Aviation Inc. (NYSE: ACHR), a leader in electric vertical takeoff and landing (eVTOL) aircraft, and Atlantic Aviation, a leading fixed-base operator (FBO) network and aviation services provider, today announced the recent signing of an MOU focused on establishing sites for electric aircraft operations in the LA and New York City metropolitan areas, along with Northern California and South Florida.

Representative Atlantic FBOs including development intended to serve future eVTOL operations via agreement with Archer. Pictured above: LA (Graphic: Business Wire)

Archer and Atlantic Aviation plan to electrify several of Atlantic Aviation’s existing aviation assets to support future electric aircraft operations, including Archer’s Midnight air taxi, at Atlantic Aviation locations across four key launch markets.

The companies plan to leverage the parties’ existing relationships with BETA Technologies to install BETA’s interoperable rapid recharging systems. BETA’s chargers utilize the Combined Charging System (CCS) that was recently endorsed by the General Aviation Manufacturers Association (GAMA) and is being utilized by several top original equipment manufacturers (OEMs) across the industry.

Atlantic and Archer anticipate launch of service across these initial locations in 2025 and subsequent expansion of services to other locations across Atlantic Aviation’s significant portfolio as availability of Archer’s aircraft scales. Together, Archer and Atlantic Aviation will be leaders in defining the infrastructure experience for the electric aircraft industry, offering premium experiences for customers.

“We are excited to work with Atlantic to help electrify their vast portfolio of high-value aviation assets in America’s most congested cities including the New York, Los Angeles, Miami, and San Francisco markets,” said Nikhil Goel, Archer’s Chief Commercial Officer. “These initial eVTOL vertiport locations will provide a launching pad for future expansion across Atlantic’s portfolio and ensure that our Midnight aircraft has safe, centrally located landing facilities for our future passengers.”

John Redcay, Atlantic Aviation Chief Commercial and Sustainability Officer, said: “We are impressed with Archer’s technology and suite of world-class partners including United Airlines; we are excited to work together to electrify our aviation assets to enable quiet and sustainable urban air travel in cities across the U.S.”

Archer’s goal is to transform urban travel, replacing 60- to 90-minute commutes by car with estimated 10- to 20-minute electric air taxi flights that are safe, sustainable, low noise, and cost-competitive with ground transportation. Archer’s Midnight is a piloted, four-passenger aircraft designed to perform rapid back-to-back flights with minimal charge time in between flights.

About Archer

Archer is designing and developing electric vertical takeoff and landing aircraft for use in urban air mobility networks. Archer’s mission is to unlock the skies, freeing everyone to reimagine how they move and spend time. Archer’s team is based in Santa Clara, CA.

To learn more, visit www.archer.com.

About Atlantic Aviation

Atlantic Aviation offers customers more than 100 Fixed Base Operations (FBO) locations across North America – and includes locations in Hawaii and the Caribbean. Atlantic Aviation’s facilities each provide a full suite of critical services to the business aviation sector covering a wide range of aircraft ground handling and corporate flight support, including fueling and line services, ground transportation, catering, hangar, deicing, and ramp space. To learn more, and for a complete list of locations, please visit https://www.atlanticaviation.com/.

Archer Forward Looking Statements

This press release contains forward looking statements regarding Archer’s future business plans, including statements regarding the timing of Archer’s development, commercialization, and certification of its eVTOL aircraft. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in Archer’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, available at www.sec.gov. In addition, please note that any forward-looking statements contained herein are based on assumptions that Archer believes to be reasonable as of the date of this press release. Archer undertakes no obligation to update these statements as a result of new information or future events.

Source: Archer
Text: ArcherIR

View source version on businesswire.com: https://www.businesswire.com/news/home/20240117077925/en/

Archer Media Contacts

The Brand Amp - Archer@TheBrandAmp.com

Atlantic Aviation Media Contacts

Ivy Cueto – Ivy.Cueto@AtlanticAviation.com

Source: Archer Aviation

FAQ

What is the memorandum of understanding signed by Archer and Atlantic Aviation about?

Archer and Atlantic Aviation have signed a memorandum of understanding to establish sites for electric aircraft operations in LA, New York City, Northern California, and South Florida.

What is Archer's goal in transforming urban travel?

Archer's goal is to transform urban travel, replacing car commutes with electric air taxi flights that are safe, sustainable, low noise, and cost-competitive with ground transportation.

What are the plans for Archer and Atlantic Aviation in terms of electric aircraft operations?

They plan to electrify existing aviation assets to support future electric aircraft operations and leverage relationships with BETA Technologies to install interoperable rapid recharging systems.

When do the parties aim to launch services across initial locations?

The parties aim to launch services across initial locations in 2025 and expand services to other locations as availability of Archer’s aircraft scales.