In offering electric air taxi services in Japan, Archer Aviation (NYSE:ACHR) is partnering with Soracle Corporation, a joint venture between Japan Airlines and Sumitomo Corporation. Archer’s Midnight aircraft is intended to be used by Soracle to provide urban air mobility in high-traffic cities, where land transportation is limited due to geography or congestion.
Under the terms of the partnership, Soracle has the option to order up to 100 Midnight aircraft worth $500 million. Pre-delivery costs apply to these orders, depending on the milestones. Soracle plans to serve both domestic and foreign passengers and plans to build airlines in key Japanese cities such as Tokyo, Osaka, Nagoya, Hokkaido, Setouchi and Okinawa.
This deal positions Soracle to build a creative transportation system that provides effective and environmentally friendly travel choices across all Japanese cities and tourist destinations. The deal is a critical first step toward transforming transportation in highly congested places, improving connectivity and accessibility, according to Archer CEO Adam Goldstein.
This article first appeared on GuruFocus.
