By David Shepardson
Southwest Airlines Co. and Archer Aviation Inc. said Friday they have agreed to develop operational plans for electric air taxi networks that Archer is building at California airports where Texas-based Southwest operates.
The companies said they have signed a memorandum of understanding to collaborate on a concept of operations that will form the basis for integrated electric air taxi networks connecting California airports and surrounding communities.
Southwest shares rose 2%, while Archer shares rose 10.5%.
Electric vertical take-off and landing (eVTOL) aircraft have been touted as the future of urban air mobility. Archer is developing its Midnight eVTOL aircraft.
Airlines are looking to develop transportation services using battery-powered aircraft that can take off and land vertically to carry passengers to airports or on short trips between cities, allowing them to beat traffic.
“Southwest is eager to explore the convenience that Archer’s air taxis can provide to customers flying with Southwest at airports in congested urban areas,” said Paul Cullen, vice president of real estate for Southwest, which operates at 14 California airports.
In May, the U.S. Congress passed legislation aimed at helping speed up the approval and deployment of eVTOL aircraft.
Archer believes the partnership could help save significant travel time in California, replacing 60- to 90-minute car rides with 10- to 20-minute air taxi rides through a “safe, low-noise, cost-competitive transportation option with zero direct emissions.”
The partnership hopes to offer door-to-door flights anywhere in California in three hours or less, such as from Santa Monica to Napa using air taxis on both ends, said Nikhil Goel, Archer’s chief commercial officer.
“Real time savings” are possible, as passengers avoid rush-hour traffic to get to airports, Joel said. Archer hopes customers will eventually be able to book an Archer air taxi ticket at the same time they buy a Southwest flight ticket.
United Airlines is also an investor in Archer Aviation.
In 2022, Delta Air Lines (NYSE:) said it invested $60 million in an air taxi startup. Joby Aviation Emirates (NYSE:) announced it has acquired a 2% stake in Airbus, with the aim of initially offering air taxi passenger service to and from airports in New York and Los Angeles.
The companies plan to integrate the Joby-operated service into Delta’s customer-facing channels to provide short-haul airport transfer services.
