ACHR - Archer Aviation secures a key FAA certification

2024-06-05 11:12:55 ET

Archer Aviation Inc (NYSE: ACHR) is in the green at writing after announcing to have received a key certification from the Federal Aviation Administration.

What is it a positive for Archer Aviation stock?

The federal agency issued Part 135 certificate in favour of Archer Air on Wednesday.

is now a step closer to flying travellers in its air taxis as the approval enables it commence commercial operations. Adam Goldstein – the chief executive of Archer Aviation said in a press release today:

This milestone reflects our unwavering dedication to safety and operational excellence as we stand up one of the world’s first electric air taxi services for communities across the U.S. with a safe, sustainable and low noise transportation solution.

Earlier this year, the eVTOL company based out of San Jose, California signed a Space Act Agreement with NASA as Invezz reported here.

Wall Street currently has a consensus “buy” rating on Archer Aviation stock that’s down some 70% versus the start of 2024.

United Airlines backs Archer Aviation

Air carriers have already backed electric vertical takeoff and landing aircraft as they could help lower carbon emissions. Archer Aviation, in fact, even won orders from United Airlines in 2021. Mike Leskinen – the chief financial officer of said today:

The pace of progress and innovation that Archer has achieved over the last few years is nothing short of impressive. Together, we look forward to shaping the future of air transportation and delivering unparalleled flying experiences.

chief executive Adam Goldstein confirmed this morning that eVTOL firm is now committed to securing approval for its four-passenger “Midnight” aircraft as well. All in all, he’s convinced the air taxis will be in service by early next year.

Note that Archer Aviation that touted the simplicity of its commercial jets today teamed up with Stellantis this year as well to produce hundreds of air taxis.

The Nasdaq listed firm has maintained its liquidity at over $520 million over the past four quarters while making investments into aircraft development. Charles Schwab grew its stake in Archer Aviation stock by nearly 20% in the fourth quarter. The firm now owns close to 1.4 million shares of the eVTOL company.

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