Archer Aviation Inc. (NYSE:ACHR) shares are trading higher in the on Friday.
The company entered a groundbreaking multiparty collaboration agreement with key UAE and Abu Dhabi entities to advance electric vertical takeoff and landing (eVTOL) air taxi operations in Abu Dhabi.
What Happened: The partnership, which involves prominent aviation industry leaders such as the Abu Dhabi Investment Office (ADIO), Etihad Airways, and the General Civil Aviation Authority (GCAA), aims to prepare for the first commercial eVTOL flight in the first quarter of 2026.
Archer Aviation will become the first eVTOL manufacturer in the Middle East and North Africa (MENA) region as part of the agreement.
The company will also establish local manufacturing capabilities for its aircraft, marking a major milestone in the development of flying taxi services. The collaboration further positions Abu Dhabi as a global leader in smart and autonomous transportation solutions.
The partnership will also see the formation of a robust ecosystem for eVTOL development, with other key participants including Abu Dhabi Airports, Falcon Aviation Services, Etihad Aviation Training and the Integrated Transport Centre (Abu Dhabi Mobility). Archer's "Midnight" aircraft will be the initiative’s centerpiece, with commercial operations scheduled to begin by 2026.
Why It Matters: Archer's Chief Commercial Officer Nikhil Goel emphasized the UAE's pivotal role in the company's future. The collaboration sets the stage for a revolutionary shift in air mobility.
The GCAA has already been working with Archer to establish the necessary regulatory framework for a successful launch of these air taxis.
According to Benzinga Pro, ACHR stock has gained over 23% in the past year. Investors can gain exposure to the stock via Adaptiv Select ETF (NYSE:ADPV).
ACHR Price Action: ACHR shares are trading higher by 3.13% to $7.85 at publication Friday.
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Photo: Courtesy of Archer Aviation
