JAL and Sumitomo Eye 100 Archer Air-Taxis in $500M Deal

2 weeks ago Editor

Adam Goldstein, CEO of Archer Aviation, comments on the challenges and opportunities in the electric air-taxi industry, as well as the strategic partnership with Soracle and the potential for urban air mobility in Japan.

In a major step toward revolutionizing urban mobility, Archer Aviation announced on November 7 that a joint venture between Japan Airlines (JAL) and Sumitomo Corporation—known as Soracle—has secured the right to place an order for up to 100 of Archer’s electric air-taxis, worth an estimated $500 million.

Archer’s shares rose by 7% following the news, signaling strong market optimism for the air-taxi company. The potential order, if finalized, would include pre-delivery payments tied to the company meeting specific development milestones leading up to the aircraft’s delivery.

The agreement represents a significant bet on the future of urban air mobility, with airlines and corporations investing heavily in the eVTOL (electric vertical takeoff and landing) sector. Soracle plans to develop flight routes across several major Japanese cities, including Tokyo, Osaka, Nagoya, Hokkaido, Setouchi, and Okinawa. However, operations won’t begin until the aircraft receives certification from Japan’s aviation authorities.

Despite strong interest in eVTOL aircraft, challenges remain for the industry, including securing funding, addressing regulatory hurdles, and developing the necessary infrastructure to support air-taxi operations. While several companies, including Archer, are pushing ahead, certification timelines have been delayed, with full-scale passenger service expected no earlier than the second half of the decade.

Archer’s “Midnight” air-taxi, which can carry four passengers and a pilot, is designed for short flights of around 20 miles, making it ideal for urban transport. The aircraft is built to minimize charging time between trips, making it suitable for multiple back-to-back short-distance routes.

The partnership with Soracle follows a broader trend of Japanese companies exploring air mobility solutions. Archer CEO Adam Goldstein acknowledged that while the road ahead for the industry is challenging, the deal with Soracle marks a significant milestone for Archer and its ambitions in the air-taxi market.