Archer Aviation Secures Initial $1 Million Payment Through Air Force Contract

The installment is expected to be the first of many for Archer, which signed contracts with AFWERX Agility Prime worth up to $142 million in July.

Jack Daleo

Wednesday, October 04, 2023 at 05:11 PM ET

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Archer’s Midnight eVTOL air taxi will be shipped to an Air Force base for testing and demonstrations in the coming months. [Courtesy: Archer Aviation]

Key Takeaways:

Archer Aviation has received its initial payment from the U.S. Air Force, marking the start of a $142 million contract for its Midnight eVTOL aircraft and the delivery of a mobile flight simulator for pilot training.
The partnership with AFWERX and Agility Prime aims to assess Archer's Midnight eVTOL for potential military uses, including flight testing and possible development of a military variant.
Archer plans to launch commercial air taxi services with United Airlines in 2025 for short urban routes, competing in a crowded eVTOL market with rivals like Joby Aviation and Volocopter, who are also progressing towards certification and market entry.

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The U.S. Air Force has gotten the ball rolling on its recently announced contracts with electric vertical takeoff and landing (eVTOL) aircraft manufacturer Archer Aviation.

Archer on Wednesday received the Air Force’s initial installment of nearly $1 million, the first of what is expected to be many payments under the agreement valued at up to $142 million. In return, Archer sent the Air Force a mobile flight simulator, specified as a deliverable under the contracts.