Archer, Ethiopian Airlines partner for $30M air taxi deal

ADDIS ABABA – Archer Aviation Inc. (NYSE: ACHR), a $4.4 billion market cap company whose stock has surged over 164% in the past six months, has entered into an agreement with Ethiopian Airlines to deploy a fleet of its all-electric Midnight aircraft for air taxi services in Ethiopia. This partnership, announced today, is part of Archer’s Launch Edition program, which aims to advance urban air mobility in early adopter markets. The deal, valued at up to $30 million, signifies a major step in introducing electric vertical takeoff and landing (eVTOL) technology to the African continent. According to InvestingPro analysis, Archer maintains a strong liquidity position with more cash than debt on its balance sheet.

Ethiopian Airlines, the largest carrier in Africa and a member of Star Alliance, will collaborate with Archer to establish an air taxi network in the region, marking a significant move towards sustainable aviation. The agreement includes the provision of a support team from Archer, comprising pilots, technicians, and engineers, to assist with the initial deployment of the Midnight aircraft in Ethiopia. Additionally, the partnership will explore applications of the eVTOL technology in eco-tourism. With a current ratio of 12.07, InvestingPro data shows Archer’s liquid assets substantially exceed its short-term obligations, providing financial flexibility for such expansions.

The Midnight aircraft, designed for rapid, back-to-back trips with minimal charging time between flights, is a piloted, four-passenger vehicle. It is expected to offer a more efficient and eco-friendly alternative to traditional ground transportation, potentially reducing typical 60-90 minute car commutes to approximately 10-20 minute flights.

Archer and Ethiopian Airlines formalized their partnership during a signing ceremony this week in Addis Ababa. The two companies will continue to engage with the Ethiopian Civil Aviation Authority to ensure the safe and efficient operation of the Midnight aircraft.

Mesfin Tasew, Group CEO of Ethiopian Airlines, expressed the airline’s commitment to pioneering advanced air mobility solutions in Africa, while Archer’s Founder and CEO Adam Goldstein highlighted the untapped potential for eVTOL technology in the region.

The partnership also received acknowledgment from the U.S. Embassy in Addis Ababa, with Commercial Attaché Nathan Stickney noting the demonstration of American quality and innovation through Archer’s engagement in Africa.

Archer’s goal is to revolutionize urban travel through eVTOL aircraft, aiming to make short-distance air travel a safe, sustainable, and cost-competitive option. This collaboration with Ethiopian Airlines is poised to set a new standard for regional travel and eco-friendly transportation solutions.

The information reported is based on a press release statement from Archer Aviation.

In other recent news, Archer Aviation has announced a partnership with Palantir Technologies to develop AI for advanced aviation technologies. This collaboration aims to enhance aircraft manufacturing and create software for critical aviation systems, such as air traffic and route planning. In addition to these developments, several analyst firms have shown confidence in Archer Aviation’s prospects. Cantor Fitzgerald maintained an Overweight rating with a $13 target, highlighting strategic partnerships and a significant order book exceeding $6 billion. Benchmark reiterated a Buy rating with a $12 target, noting progress in the FAA certification process for Archer’s Midnight eVTOL aircraft. Needham raised its price target to $13, citing Archer’s strong business momentum and ability to fulfill its substantial order book. Canaccord Genuity also increased its price target to $13.50, emphasizing Archer’s position in the urban air mobility market and its robust financial standing. These recent developments reflect growing confidence in Archer Aviation’s strategic initiatives and market potential.

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