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NEW YORK - Archer Aviation Inc. (NYSE: ACHR), currently valued at $3.82 billion, has announced a partnership with United Airlines to establish an air taxi network in New York City, aiming to offer a new mode of transportation around the region. The network, which will utilize Archer’s electric air taxi, Midnight, is designed to significantly reduce travel times from Manhattan to nearby airports. According to InvestingPro data, the company maintains a strong cash position relative to debt, though its stock has experienced significant volatility with a -27.69% year-to-date return.
Midnight, a piloted electric aircraft capable of carrying four passengers, is touted to produce less noise and emissions than traditional helicopters. The aircraft features 12 engines and propellers, with redundant systems aimed at achieving safety levels comparable to commercial airliners. Archer is in the process of manufacturing Midnight at facilities in San Jose, CA, and Covington, GA.
The company plans to leverage existing aviation infrastructure to create vertiports that will facilitate quick urban travel. Currently, Archer is working with the Federal Aviation Administration (FAA) to obtain Type Certification for Midnight. With the FAA Part 135 Air Carrier and Operator Certificate already secured in June 2024, Archer and its partners intend to integrate Midnight into service, starting with major New York City airports. Financial metrics from InvestingPro show the company maintains a healthy current ratio of 12.07, indicating strong short-term liquidity to support its expansion plans.
This initiative is expected to enable passengers to complement their airline travel with Archer flights, offering a solution to the city’s congested traffic by reducing door-to-door travel times. United Airlines has already shown commitment to the project by investing in Archer and placing an order for a fleet of Midnight aircraft.
Archer’s collaboration extends to infrastructure partners such as Atlantic Aviation, Signature Aviation, and Skyports/GroupeADP, along with new partners Modern Aviation and Air Pegasus, to develop and electrify aviation assets within the network.
Previously, Archer announced similar air taxi networks in San Francisco and Los Angeles. The company’s CEO, Adam Goldstein, expressed optimism about New York’s potential as one of the first air taxi markets in the United States, citing the region’s existing helicopter infrastructure and regulatory support. Analyst sentiment appears to support this optimism, with price targets ranging from $4.50 to $13.50 per share. For deeper insights into Archer’s financial health and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which include over 30 additional key metrics and exclusive ProTips.
United Airlines and the Port Authority of New York and New Jersey (PANYNJ) have also expressed enthusiasm about the project, emphasizing the importance of innovation and infrastructure development in advancing air mobility. The New York City Economic Development Corporation (NYCEDC) has also shown support for integrating electric vertical takeoff and landing (eVTOL) aircraft into the city’s transportation network.
The information in this article is based on a press release statement from Archer Aviation.
In other recent news, Archer Aviation has made significant strides with a series of notable developments. The company reported a major agreement with Ethiopian Airlines, valued at $30 million, to introduce its Midnight eVTOL aircraft for air taxi services in Ethiopia. This partnership aims to establish an electric air taxi network, marking a pivotal step in expanding Archer’s global presence. In addition, Archer Aviation has announced a collaboration with Palantir Technologies to enhance aviation technologies through artificial intelligence, focusing on areas such as air traffic and route planning.
Cantor Fitzgerald has maintained its Overweight rating on Archer Aviation, reflecting confidence in the company’s strategic partnerships and commercialization efforts. The firm highlighted collaborations with entities like the Department of Defense and United Airlines as crucial to Archer’s market expansion. Archer’s recent hire of Harsh Rungta as Senior Vice President, Finance, and Chief Accounting Officer also marks a significant leadership addition, bringing experience from Tesla and PricewaterhouseCoopers. These developments underscore Archer Aviation’s ongoing efforts to advance urban air mobility and strengthen its market position.
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