Archer Aviation (NYSE: ACHR) stock rose more than 2% during regular trading on Thursday after the air-taxi maker unveiled plans for a proposed air-taxi network in New York City.
The electric vertical takeoff and landing (eVTOL) aircraft maker has partnered with United Airlines (NASDAQ: UAL) to bring a new transportation option to the busy Manhattan-to-airport commute.
The company plans to connect Manhattan to nearby airports using its Midnight aircraft, a four-passenger eVTOL designed to significantly reduce travel time. While typical drives between the city and airports can take one to two hours, the Midnight aircraft would reduce the journey to just 5-15 minutes.
This announcement comes amid a growing push by air-taxi startups to commercialize eVTOL aircraft, betting on the demand for faster, more sustainable transportation solutions in urban areas. These startups, backed by major airlines and defense contractors, aim to alleviate congestion in crowded cities by providing short-haul flights between urban centers and airports.
Archer, backed by companies like Stellantis (NYSE: STLA) and United Airlines, plans to leverage the NYC existing aviation infrastructure, building vertiports at airports and helipads for its air-taxi service.
“With its existing helicopter infrastructure, regulatory support, and strong demand, New York could be one of the first markets for air taxis in the United States,” Archer CEO Adam Goldstein said.
However, the Midnight aircraft awaits “Type Certification” from the Federal Aviation Administration (FAA) to confirm it meets design and safety standards. Once certified, Archer can integrate it into service.
United Airlines (NASDAQ: UAL) has already placed an order for a fleet of Midnight aircraft. Andrew Chang, head of United Airlines Ventures, emphasized that the collaboration would focus on building and optimizing the necessary infrastructure for air taxis, including airspace management, safety protocols, and real estate development.
Archer said under its plans, passengers would book its flights as a complement to traditional airline travel.
As of press time, Archer Aviation (NYSE: ACHR) stock trades at $7.23. The shares have gained more than 87% over the past year.
