MT Magazine July/August 2023

FEATURE STORY

JULY/AUGUST 2023

15

Among the technologies that the government plans to prioritize in this space, “with the potential to transform aviation … creating new industries and jobs,” are advanced air mobility (AAM) vehicles, including electric vertical takeoff and landing (eVTOL) aircraft. And if there is something that is going to transform air travel in a way that is analogous to how electric vehicles are going to change the way people go about their daily drives, it is eVTOLs – and they’re going to be making the change sooner, not later. Economic Approach Commercial companies are developing eVTOLs and advancing technologies while taking economic factors into account. They are working on craft that can attain FAA certification to transport people. They are also working to assure money will be made on building and operating these aircraft. In Archer Aviation’s 2022 fourth-quarter earnings call this past March, Archer’s chief financial officer, Mark Mesler, explained that the Archer model has two approaches. One is Archer Direct, which will sell the Midnight eVTOL directly to customers; and the other is Archer Air, which will provide a service with its equipment. He anticipates a 50-50 revenue ratio. Mesler said that an eVTOL flight between Manhattan and Newark Liberty International Airport, which takes approximately 10 minutes, could be priced at $6 per passenger mile – similar pricing to a terrestrial ridesharing vehicle – and assuming that its four seats are occupied on each trip and there

are 25 trips per day, 365 days per year, that would be revenue of $3.2 million per year. This is not simply a theoretical calculation. On Nov. 10, 2022, Archer and United Airlines announced they plan to operate flights between the Downtown Manhattan Heliport and Newark International. Then, on March 23, 2023, the two announced a route between downtown Chicago and O’Hare Airport. Both routes are expected to be operational in 2025. Not a Few, but Many United is committed to eVTOLs: in August 2022, it made a $10 million pre-delivery payment to Archer for 100 aircraft. “Wait a minute,” you think. “100 aircraft? How long is it going to take for that delivery?” Potentially quite a bit less time than you might think. That’s because there is another company that is working with Archer: Stellantis. This global automotive OEM is collaborating with Archer on a factory being developed in Covington, Georgia. This 350,000-square-foot plant, expected to open in 2024, will have a capacity of 650 aircraft a year. There are already plans on paper to build out the plant for a 2,300 unit capacity. Not only is Stellantis providing Archer with high-production expertise, but it is also providing up to $150 million in equity capital. Thomas Paul Muniz, Archer’s chief operating officer, said that they’re looking at achieving high volumes by leveraging automation and using “processes that are more similar to what you see in automotive.”

The carbon fiber fuselage for the Joby Aviation aircraft . Delta announced it plans to use the eVTOLs in Los Angeles and New York. Toyota, an investor, is helping Joby use the Toyota Production System. (Image: Joby Aviation)