Archer Aviation (ACHR.N) on Thursday unveiled plans for a proposed air-taxi network in New York City, in partnership with United Airlines (UAL.O), as it seeks to tap into the airport commute market in Manhattan.
Shares of the air-taxi maker were up 7% in morning trading.
Archer plans to link Manhattan with nearby airports using its electric vertical takeoff and landing (eVTOL) aircraft, Midnight — a four-passenger vehicle — designed to slash travel time from one-to-two hour drives to just 5-15 minutes.
Air-taxi startups are racing to commercialize eVTOL aircraft, betting on growing demand for faster, more sustainable urban transportation.
Backed by major airlines and defense contractors, these startups aim to ease congestion in crowded cities by offering short-haul flights between airports and urban centers.
Archer, backed by companies such as Stellantis (STLAM.MI) and United Airlines, aims to leverage existing aviation infrastructure in the NYC region, with plans to establish vertiports at airports and helipads throughout the area.
"With its existing helicopter infrastructure, regulatory support and strong demand, New York could be one of the first markets for air taxis in the United States," Archer CEO Adam Goldstein said.
The company's flagship Midnight aircraft is yet to receive a "Type Certification" from the U.S. aviation regulator.
Type Certification means an aircraft meets the Federal Aviation Administration's design and safety standards. Once Archer receives the certification, it can integrate Midnight into service.
"Our strategic collaboration with Archer will be key to our efforts to build and optimize the infrastructure — such as real estate development, air space management and safety and security protocols — necessary to bring advanced air mobility to our customers," said Andrew Chang, head of United Airlines Ventures.
United had previously placed an order for a fleet of Archer's Midnight aircraft.
Archer said under its plans, passengers would book its flights as a complement to traditional airline travel.
