Archer Aviation and Southwest Airlines have joined forces to explore the possibilities of establishing a comprehensive network of electric air taxis at various airports in California. Southwest Airlines values its customer data as a crucial asset.
On Friday, the two companies signed a memorandum of understanding, laying the groundwork for Archer to access Southwest’s customer base. In addition, Archer gains access to valuable customer data that can be used to make informed decisions regarding the strategic placement of vertiports and local eVTOL stations.
Archer has expanded its partnerships to include a second U.S.-based airline, following its collaboration with United Airlines. This move indicates that the eVTOL company is focused on providing support for regional routes. 
Southwest operates at 14 airports throughout California, while Archer’s Midnight aircraft offers a convenient solution to long urban commutes. With flight times ranging from just 10 to 20 minutes, it aims to significantly reduce travel time compared to traditional car journeys. Transporting passengers to airports can be a costly and time-consuming affair, especially with the hassle of traffic. This is where eVTOL networks come into play, offering a convenient solution. Joby Aviation, a major competitor of Archer, has also established a partnership with Delta Airlines.
“We are considering aspects such as commercial integration,” stated Nikhil Goel, Archer’s chief commercial officer, in an interview with Eltrys. When purchasing a Southwest ticket, it is possible to include your Archer either before or after your flight during the booking process.
Archer is considering alternative options, such as implementing direct integration at airports where Southwest and United operate.
“For instance, consider the convenience of landing directly at Terminal 2, behind security, when flying to SFO. You can bypass the hassle of sitting through TSA and seamlessly board your Southwest flight,” mentioned Goel. It is worth mentioning that Archer has been actively engaging with TSA to streamline security screening at its vertiports. There are additional advantages that you may enjoy, such as the possibility of receiving preferred or discounted pricing if you are a frequent flyer. One option is to earn Rapid Rewards points on Archer flights, or vice versa.
Archer’s recent agreement with Southwest is a testament to their ongoing efforts to secure the necessary capital for their upcoming commercial launch in 2025. This partnership follows two other notable financial transactions that Archer has recently undertaken. Archer made the decision last month to access the remaining $55 million from its forward purchasing agreement with automaker Stellantis, which was signed in 2023. As a component of the agreement, Stellantis has committed to assisting in the expansion of Archer’s manufacturing facility in Georgia, where the production of the Midnight aircraft is taking place.
According to Goel, the company is currently constructing six conforming aircraft in its small production facility in California. The company aims to significantly increase production at the upcoming Georgia facility, with plans to manufacture approximately 650 aircraft annually, beginning in the fourth quarter of 2024.
In addition, it has recently made available warrants for the purchase of up to 57,050 shares of Class A common stock at a price of $0.01 per share. The company will not receive the proceeds from the issuance of the warrants, according to the startup’s prospectus. Instead, they will be utilized to fulfill the payments of a service provider, totaling $300,000. It appears that the company is utilizing the warrants as a clever strategy to fulfill its obligations without using cash, effectively preserving its funds while still providing compensation to partners.
Regardless of the circumstances, the company must secure the funds promptly in order to adhere to the timeline and successfully introduce an eVTOL air taxi service by 2025. The company had previously announced its plans to expand its operations to Miami and San Francisco, in collaboration with United Airlines and fixed-based operator Atlantic, in the upcoming year. Goel mentioned that they have a wide network of over 200 locations across the nation thanks to their agreements with Atlantic and private terminal operator Signature, and they are thinking about expanding to Los Angeles and New York.
In addition to the urgent task of producing sufficient Midnight aircraft for commercial operations, we must also complete the necessary rounds of certifications from the Federal Aviation Administration (FAA). Archer recently obtained its Part 135 Air Carrier & Operator Certificate, allowing the company to begin commercial aircraft operations. This certification will enable Archer to fine-tune its systems and procedures before the official launch of Midnight. Archer is currently in the process of obtaining its type certification and production certification. One aspect involves verifying the eVTOL’s design to ensure it meets all necessary safety standards. Another aspect focuses on ensuring that Archer’s production processes are reliable in producing aircraft that adhere to the approved design and are safe for operation.
In addition to its domestic ventures, Archer has recently forged a partnership with Kakao Mobility, a prominent ride-hailing company in South Korea. This collaboration aims to introduce electric air taxi flights to the country by 2026. Additionally, Archer has plans to expand its reach to India and Abu Dhabi in the same year.
