Where Will Archer Aviation Be in 3 Years?

Archer Aviation is developing electric vertical takeoff and landing (eVTOL) aircraft, aiming to revolutionize urban transportation with its air taxi service. The company's flagship Midnight aircraft, designed for short trips of 20 to 50 miles, has achieved a significant milestone with a 55-mile flight at speeds over 126 miles per hour. Archer is initially focusing on commercial deployment in the United Arab Emirates, partnering with Abu Dhabi Aviation and working with the UAE's General Civil Aviation Authority (GCAA) to establish a regulatory framework. Flight testing is underway in Abu Dhabi to validate the aircraft's capabilities in the region's unique conditions. The UAE's National Aviation Regulator anticipates certification as early as the third quarter of next year, potentially enabling commercial passenger service.

In the U.S., Archer is pursuing certification from the Federal Aviation Administration (FAA) and holds a Part 135 Air Carrier Certificate. The company is approaching the Type Inspection Authorization (TIA) testing phase, expected to begin around the end of 2025. A conditional purchase order with United Airlines, valued at up to $1 billion, hinges on FAA certification. Archer is also preparing its operational hub at Hawthorne Airport in Los Angeles to support its planned air taxi network, including operations during the 2028 Olympic Games.

Despite progress, Archer faces challenges in scaling up production, securing necessary certifications, and establishing infrastructure such as vertiports and pilot training programs. The company's path to generating significant revenue depends on completing the design, development, certification, commercialization, and manufacturing ramp-up. Investors should be aware of the high risks associated with investing in Archer at this early stage of its development.