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Southwest Airlines Co. (NYSE:LUV) and Archer Aviation (NYSE:ACHR) announced on Friday that they have signed a memorandum of understanding. The MOU is to develop operational plans for electric air taxi networks utilizing Archer’s (ACHR) eVTOL aircraft at California airports where Southwest (LUV) operates flights.
Southwest Airlines (LUV) said it was eager to explore the convenience Archer’s (ACHR) air taxis could provide customers flying Southwest at airports in busy urban areas.
The Archer Midnight aircraft is designed to transform urban travel, replacing 60-to-90-minute commutes by car with estimated 10-to-20-minute electric air taxi flights. The goal of Archer’s (ACHR) aircraft is to offer a safe, low-noise, cost-competitive transportation option with no direct emissions.
Looking ahead, Southwest Airlines (LUV) and Archer Aviation (ACHR) intend to collaborate on a concept of operations that lays the foundation for integrated electric air taxi networks that would support California airports and the surrounding communities that Southwest serves. The collaboration will include partnering with Southwest (LUV) employees and respective unions, including SWAPA, to maintain and improve efficient operations.
“Archer and Southwest plan to collaborate over the next few years as eVTOLs take flight. Combining Archer’s aircraft and planned urban air mobility network with Southwest flights could offer an enhanced experience for the first and last miles of the customer travel journey.”
Shares of Archer Aviation (ACHR) moved up 2.45% in premarket trading. The eVTOL stock is up more than 40% over the last six weeks.