United places order for $1bn of Archer’s eVTOL aircraft

US carrier United Airlines has placed a $1bn order for Archer’s electric vertical take-off and landing (eVTOL) aircraft.

The companies have entered a partnership agreement, under which United has agreed to invest in Archer.

Archer specialises in developing eVTOL aircraft that leverages electric motors and can be used as an ‘air taxi’ in the future.

Subject to United’s business and operating requirements, the order has an option for an additional $500m worth of aircraft.

United has partnered with regional carrier Mesa Airlines to efficiently transport passengers to airports within its major hubs by 2024.

The fully electric aircraft is designed to travel distances of up to 60 miles at 150mph.

United CEO Scott Kirby said: “Part of how United will combat global warming is by embracing emerging technologies that decarbonise air travel. 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 who 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 has the clear potential to change how people commute within major metropolitan cities all over the world.”

In a separate development, Archer has entered a definitive agreement to merge with special purpose acquisition company Atlas Crest.

The integration will make Archer a publicly listed company, which will be listed on the NYSE with ticker symbol ‘ACHR’.