Archer, an urban air mobility (UAM) company and developer of eVTOL aircraft, and Atlas Crest Investment, a special purpose acquisition company, have entered into a definitive agreement for a business combination that would result in Archer becoming a publicly listed company. It is anticipated that the post-closing company, Archer, will be listed on the NYSE with ticker symbol ‘ACHR’.
Based in Palo Alto and led by co-founders and co-CEOs Brett Adcock and Adam Goldstein, Archer's mission is to advance the benefits of sustainable air mobility and become a leader in the new era of UAM, a $1 trillion plus market according to industry research. Archer is developing what it hopes will be the world's first commercially viable all-electric UAM platform that will move people throughout the world's cities in a fast, safe, sustainable and cost-effective manner. The fully electric vertical takeoff and landing aircraft is expected to be capable of travelling distances of up to 60 miles at 150 mph, using technology that is available today, and will transform how people approach everyday life, work and adventure, while benefiting the environment and a future zero emissions world. This is particularly important as urban density continues to grow.
In further news, scheduled carrier United Airlines has entered into an agreement to invest in Archer as part of the airline's broader effort to partner with leading technology companies that will decarbonise air travel. Under the terms of the agreement, United has placed an order, subject to United's business and operating requirements, for $1 billion of Archer's aircraft, with an option for an additional $500 million of aircraft. United, in partnership with Mesa Airlines, could give customers a quick, economic and low-emission way to get to airports within its major hubs by 2024.
“Part of how we will combat global warming is embracing emerging technologies that decarbonise air travel,” comments United CEO Scott Kirby. “By working with Archer, United is showing the aviation industry that now is the time to embrace cleaner, more efficient modes of transportation. With the right technology, we can curb the impact aircraft have on the planet, but we have to identify the next generation of companies that will make this a reality early and find ways to help them get off the ground. Archer's eVTOL design, manufacturing model and engineering expertise have the clear potential to change how people commute within major metropolitan cities all over the world.”
The collaboration agreement provides for close coordination between United Airlines and Archer in a commercialisation approach that emphasises existing technology and elegant design to facilitate regulatory approvals and efficient manufacturing, culminating in a luxury experience at a scaled, low delivered cost point. United estimates that using one of Archer's eVTOL aircraft could reduce CO2 emissions by up to 50 per cent per passenger on a trip between Hollywood and Los Angeles International Airport (LAX), which is one of the initial cities Archer where plans to launch its fleet and one of United's largest hubs.
Archer's team of top engineering and design talent, with a collective eVTOL experience of more than 200 years, are driving this next transportation revolution. The full scale eVTOL aircraft is expected to be unveiled in 2021.
Archer originally launched with an initial investment from serial entrepreneur Marc Lore. Lore has remained a trusted advisor to the team and has played a pivotal role leading up to today's announcement. “Brett and Adam's big vision for changing the future of transportation coupled with their passion, tenacity and optimism, made my decision to invest in Archer an easy one,” said Lore. “Today is a testament to the pair's endless drive, and I'm excited to be on this journey with them and our newly expanded team. Together, we'll provide the capital needed to continue leading the urban air mobility space.”
Brett Adcock, Archer's co-founder and co-CEO commented, “We're thrilled to partner with Atlas Crest to help accelerate our goals of ushering in the next age of sustainable air mobility and enable human micro-exploration. By merging efforts with an industry innovator like Atlas Crest and one of the most successful entrepreneurs in finance, Ken Moelis, we're confident Archer will transform consumer travel and everyday life.”
“We founded Archer to address the environmental and societal issues caused by road transportation and urban overloading,” adds Archer co-founder and co-CEO Adam Goldstein. “Through our all-electric aircraft, we are striving to curb carbon emissions, decrease traffic and create the transportation networks of the future. Having started with a handshake deal from our lead investor and advisor Marc Lore, Archer's latest funding and acquisition news brings this vision to life in a big way, enabling us to accelerate the future of sustainable travel at scale.”