Southwest Air, Archer Aviation work on plans to fly air taxis in California

Southwest Airlines (LUV.N) and Archer Aviation (ACHR.N) announced on Friday a collaboration to develop operational plans for electric air taxi networks at California airports served by Southwest. The memorandum of understanding outlines their joint efforts to establish integrated electric air taxi networks linking airports with nearby communities.

Southwest Airlines saw a 2% increase in its shares, while Archer Aviation’s shares surged by 10.5%.

Electric vertical takeoff and landing aircraft (eVTOL) are increasingly seen as pivotal to the future of urban air mobility. Archer is advancing its Midnight eVTOL aircraft design.

Airlines are exploring battery-powered aircraft for transportation services, enabling vertical takeoff and landing capabilities. This innovation promises to streamline travel to airports and facilitate short trips between cities, bypassing ground traffic congestion.

“Southwest is excited about exploring Archer’s air taxi services to enhance convenience for our customers at busy urban airports,” said Paul Cullen, Southwest’s Vice President of Real Estate, operating across 14 California airports.

In May, U.S. Congress passed legislation aimed at accelerating the approval and deployment of eVTOL aircraft.

Archer anticipates that the partnership could significantly reduce travel times in California, substituting 60-to-90-minute car journeys with estimated 10-to-20-minute air taxi flights—a safe, low-noise, cost-competitive option with zero direct emissions. Nikhil Goel, Archer’s Chief Commercial Officer, expressed hopes that the partnership could enable door-to-door trips within California in under three hours, such as from Santa Monica to Napa, using air taxis for both segments.

Goel highlighted the potential for “meaningful time savings,” allowing passengers to bypass rush-hour traffic to airports. Archer aims to integrate air taxi bookings with Southwest plane tickets in the future.

United Airlines (UAL.O) is also a financial backer of Archer Aviation.

In 2022, Delta Air Lines (DAL.N) announced a $60 million investment in air taxi startup Joby Aviation (JOBY.N), acquiring a 2% equity stake. This partnership aims to introduce air taxi services for travelers commuting between airports in New York and Los Angeles. Delta and Joby Aviation plan to integrate Joby’s air taxi service into Delta’s customer interface, offering efficient short-range airport transport options.