Southwest Airlines and Archer strike a deal for an electric air taxi network

Today, Southwest Airlines became the latest major carrier to join forces with a so-called urban air mobility startup. The Dallas-based airline signed a memorandum of understanding with Archer Aviation to draw up plans for an air taxi service.

The service will operate using Archer’s battery-powered, four-passenger, tilt-rotor Midnight aircraft, which are designed to take off and land vertically from a landing strip like a helicopter. As part of the deal, the aircraft will get access to 14 California airports where Southwest operates.

This is the latest deal between a major airline and an eVTOL (electric vertical takeoff and landing) startup, signaling a growing confidence in the ability of these small companies to make their dreams of intercity air travel a reality. Archer claims that trips that normally take 60–90 minutes by car can be done in 10–20 minutes in the company’s air taxis.

Archer came out of stealth in spring 2020 after having poached key talent from Wisk and Airbus’ Vahana project. (That fact spurred a lawsuit from Wisk for alleged trade secret theft, which was finally settled last year.) The company has a $1 billion order from United Airlines for its eVTOL aircraft and a deal to mass-produce its eVTOL craft with global automaker Stellantis.

Archer recently received a Part 135 air carrier certification from the Federal Aviation Administration, which the company will need to operate an on-demand air taxi service. Archer has said it plans on launching before the end of 2025.

Alongside Archer, other electric vertical takeoff and landing companies hope to eventually win full FAA approval, but that process is slow-going. It may be a few more years before the FAA grants full certification to an eVTOL company — which it has yet to do. Changes to the certification process have created uncertainty about commercialization after the FAA recategorized eVTOL as a “power lift” aircraft rather than an airplane.

As part of the deal, Archer will work with Southwest and its partners on the development of an air taxi network across California. That includes the unions of Southwest employees, like the Southwest Airlines Pilots Association.

“Southwest is eager to explore the convenience Archer’s air taxis could provide customers flying Southwest at airports in busy urban areas,” said Paul Cullen, vice president of real estate at Southwest Airlines.