Deal Secures Right To Purchase Up To 100 Midnight Aircraft

Archer Aviation announced it has signed an agreement with Soracle, a joint venture company between Japan Airlines and Sumitomo Corporation, for the right to order up to 100 Midnight air taxi vehicles in a deal that would be worth up to $500 million.

The order would include pre-delivery payments upon Archer attaining certain milestones prior to delivery. There is no expiration date for Soracle to confirm the order, but Archer CEO Adam Goldstein said Soracle has put in a “seven-digit” payment.

Sumitomo plans to bring air taxi service to Japan using the Midnight aircraft in areas where ground transportation is constrained by traffic or geographic obstacles. The company will develop a variety of routes in cities such as Tokyo, Osaka, Nagoya, Hokkaido, Setouchi, and Okinawa.

Archer and Soracle will work with the Japanese Civil Aviation Bureau to obtain the required certifications and permissions and those discussions have already begun.

Andrew Cummins, Senior Director of Business Development at Archer said, "Japan is widely respected for its forward thinking approach to transportation and this investment into advanced air mobility is yet another example of that. We’re proud to stand with Soracle ahead of this new era of flight—together, we are committed to bringing an innovative, sustainable and convenient transportation alternative to the country."

Yukihiro Ota, CEO at Soracle added, "Through the operation of eVTOL aircraft, Soracle aims to enrich lives and society by creating more accessible air transportation services in Japan. We will provide safe and reliable services to passengers by making the most of the wealth of knowledge we have accumulated at Japan Airlines and Sumitomo Corporation. Today’s announcement is a first step towards making the future we envision a reality."

FMI:  www.archer.com/