Archer Aviation, the Californian electric aircraft startup, has inked a Memorandum of Understanding (MoU) with Air Chateau International, a private aviation operator in the UAE, for the possible purchase of up to 100 Midnight eVTOL aircraft. The deal, valued at approximately $500 million, materialized following an exhibition at the Dubai Air Show 2023.
As part of the agreement, Air Chateau has committed to an initial non-refundable pre-delivery payment of $1 million by December 31, 2023. The purchase is contingent on the successful formalization of definitive agreements, with additional pre-delivery payments of $4 million anticipated following the signing of these agreements.
Archer Founder and CEO, Adam Goldstein, expressed gratitude for the opportunity to showcase the Midnight eVTOL at the Dubai Air Show, noting the significance of Air Chateau's decision to acquire up to 100 aircraft. The deal represents a notable validation of Archer's efforts to introduce innovative aircraft that could reshape urban mobility.
Archer's Midnight eVTOL, a key player in the rapidly evolving advanced air mobility industry, has garnered attention and strategic partnerships throughout the year. The company's plans to commence air taxi operations in the UAE in 2026 align with its broader vision to revolutionize urban transportation.
This agreement follows a series of strategic moves by Archer, including a collaboration with Stellantis in January, kickstarting the production of the Midnight eVTOL. Subsequent developments include a $142 million deal with the U.S. Air Force in August and an investment announcement exceeding $200 million. Archer's recent foray into charging infrastructure was highlighted by a partnership with Beta Technologies.
As the companies work towards finalizing the definitive agreements in the coming months, the potential deal with Air Chateau underscores Archer's positioning in the burgeoning eVTOL market, signaling further growth and adoption of electric vertical takeoff and landing aircraft for urban air mobility.