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Archer Aviation Inc (NYSE:ACHR) has received a $10 million pre-delivery payment from United Airlines (NASDAQ:UAL) for 100 of the company’s initial production eVTOL aircraft, the company announced Wednesday.
United made the deposit on 100 of Archer’s production aircraft following its purchase agreement in 2021.
Michael Leskinen, President of United Airlines Ventures, commented: “United Airlines Ventures has invested in a diverse roster of companies working in support of our goal to reach carbon neutrality by 2050, without the use of traditional carbon offsets. We believe eVTOLs have the potential to both help achieve carbon-neutral travel and serve as an innovative new tool to change how United customers experience comfort, convenience, and efficiency during their commutes within cities across the globe.”
Archer said it recently completed its production aircraft’s Preliminary Design Review and is now moving to the next stage of development and commercialization.
“I am incredibly proud of the entire Archer team as we reach this milestone in our partnership with United Airlines. To receive a cash deposit is validation of Archer’s achievements to date, not only with flight testing and product development, but also a great signal of confidence in our roadmap to commercialization,” said Adam Goldstein, Archer’s CEO.
Archer shares are unmoved Wednesday, trading at $4.37. On the other hand, United Airlines is up almost 4%.
