ACHR - Archer Aviation stock accelerates on new air taxi agreement

2023-03-23 08:09:29 ET

United Airlines ( NASDAQ: UAL ) and Archer Aviation ( NYSE: ACHR ) announced that they will work together to connect O’Hare International Airport to Vertiport Chicago via Archer’s eCTOL technology.

The two plan to “integrate eVTOL aircraft operations into the City’s transportation ecosystem in 2025,” according to the press release. The new route is expected to take about 10 minutes, reducing the over 1 hour transport estimate via car between the Vertiport and O’Hare. Once the viability of “trunk routes” like that between the Vertiport and airport is established, further “branch routes” to surrounding communities are anticipated.

"Both Archer and United are committed to decarbonizing air travel and leveraging innovative technologies to deliver on the promise of the electrification of the aviation industry,” said Michael Leskinen, President of United Airlines Ventures. “Once operational, we’re excited to offer our customers a more sustainable, convenient and cost-effective mode of transportation during their commutes to the airport.”

Chicago mayor Lori Lightfoot and Illinois governor JB Pritzker also voiced support for the initiative.

“I can’t think of a better team than Archer and United to partner with as we work to ensure our existing aviation infrastructure can support this new and exciting form of transportation,” Pritzker said. “This partnership is just another way that we will achieve our goal of transitioning to 100% clean energy by 2050—all while saving Illinoisans money and creating thousands of good paying jobs in the process.”

The two companies expect more states beyond Illinois to explore use of the technology after observing the buildout in Chicago.

Shares of Archer Aviation ( ACHR ) rose 4.79% and United Airlines ( UAL ) stock gained 1.29% shortly after the announcement .

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