Archer Aviation Inc. – the new aircraft developer now building a manufacturing site in Georgia – has a complex business deal in development involving a high-volume order for its electric vertical take-off and landing (eVTOL) air taxis, plus a partnership with the buyer to establish air-mobility services globally.
“This new agreement both grows our prospective order book to nearly $6 billion and opens up Archer’s global reach to premium international markets,” stated Andrew Cummins, director of Business Development.
Future Flight Global and Archer have a memo of understanding for that start-up to purchase up to 116 Archer Midnight aircraft, which could be worth up to $580 million to the supplier. The buyer has made an initial deposit on the purchase, and Archer and FFG are finalizing a definitive aircraft purchase agreement.
FFG is a company formed by executives at Titan Aviation (a business-jet operator), with which FFG has a joint venture to operate “advanced air mobility assets globally.”
The plan is for FFG to operate selected routes within Archer’s planned air-taxi service, and to provide service in other high-demand locations, including Southeast Asia, Europe, and the Middle East. Also, FFG would deploy Midnight eVTOLs to provide on-demand transit to high-value clients (e.g., businesses, governments, or individuals.)
Together, Archer and FFG would collaborate in other areas to mature the eVTOL commercial market, such as ecosystem development, infrastructure, regulatory engagement, and demand generation.
According to FFG founder and CEO Karan Singh: “We’re partnering with Archer to provide tailored, flexible aviation services to our top clients in some of the world’s most exciting destinations. Midnight’s versatility makes it well-suited to diverse routes and mission profiles, while also providing a world-class experience and operational efficiency that's attractive to our corporate clients.”
Archer is one of several companies planning to produce electric-powered aircraft able to hover, take-off, and land vertically. The Archer Midnight eVTOL is to be powered by lithium-ion battery packs, providing 142 KWh of energy and a maximum power of 1,300 KW, to carry four passengers and/or cargo over a range of 100 100 miles. Commercial-scale production is expected to start soon at a new plant in Covington, Ga.
Recently, Stellantis, one Archer’s major investors, agreed to finance about $370 million of the manufacturing labor costs a production ramps up to 650 aircraft per year. This will be provided in exchange for a quarterly distribution of Archer shares based on the labor costs incurred. Stellantis will also pitch in up to $20 million for initial manufacturing costs.
