Archer Aviation, a US electric vertical take-off and landing (eVTOL) startup, announced yesterday that it has signed a partnership agreement with Korean Air to jointly promote the commercialization of air taxis in the South Korean market. This positive news sent Archer Aviation's stock price up approximately 6% in US pre-market trading, reflecting positive market expectations for the partnership.
According to the agreement, both parties will focus on promoting Archer's Midnight eVTOL aircraft in the South Korean market. Designed for short-haul urban air travel, this aircraft enables rapid connections within 10-20 minutes and completed a series of performance test flights last month. Korean Air, South Korea's largest airline, will provide significant aviation operational experience and market channel support for this technology.
Short-haul urban air travel and airport connections are emerging as a growing sector in the global aviation industry. Archer Aviation, a joint venture between Boeing and Stellantis, is currently producing six aircraft at two US factories and has secured orders from United Airlines and India's IndiGo. However, the company has yet to achieve profitability. Last week, it acquired 300 patents from competitor Lilium for €18 million, bringing its total patent portfolio to over 1,000.
Industry analysts point out that while eVTOL technology holds great promise, it still faces challenges such as airworthiness certification, infrastructure development, and profitability models. This partnership with Korean Air marks a key step for Archer in the Asian market and provides a new model for the industrialization of urban air mobility (UAM) globally.
