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Archer vs. Joby: Race to Launch Commercial Air Taxi Services by 2025

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commercial air taxi services FAA certification process Archer Aviation Midnight Joby Aviation Delta partnership urban air mobility pricing

During recent earnings calls, Archer Aviation and Joby Aviation reported their progress toward launching commercial air taxi services by 2025. Joby, led by CEO JoeBen Bevirt, has completed significant FAA certification stages and has conducted over 1,500 pre-production flights. Archer, under CEO Adam Goldstein, is building six aircraft for FAA certification, with the first in final assembly. Both companies plan to operate in New York City and Los Angeles, with additional deals in Dubai and Abu Dhabi. Archer aims to perform 400 flights with its production aircraft, Midnight, this year. The air taxi service pricing, as described by Archer, is estimated at $3.30 per seat-mile, significantly higher than traditional ride-sharing services. Despite the ambitious goals, experts like Adam Cohen from Berkeley Transportation Sustainability Research Center question the affordability of air taxis for the general public. Both companies are preparing to navigate challenging urban infrastructures and anticipate high demand in crowded cities. Archer’s business model also includes selling aircraft to third parties, while Joby continues to analyze route economics and demand.

Rich Newbold on X: "Air taxi developers report progress toward achieving  FAA certification https://t.co/MIMXHGUDZ2 via @smartcitiesdive" / X

FAA Certification and Urban Air Mobility: Archer and Joby Aviation’s Race to Launch Commercial Air Taxi Services

Which air taxi company will be the first to fly with paying passengers, and where will those flights take place?

Archer, which has partnered with United Airlines, announced plans in 2022 to fly from Manhattan to Newark Liberty International Airport. Joby, in partnership with Delta Air Lines, said it plans to serve New York City and Los Angeles. Both Joby and Archer have signed deals in the United Arab Emirates this year: both in Dubai and Abu Dhabi. No launch dates have been set for any of these planned operations.

These businesses have a clear objective in mind when they finally obtain the necessary FAA certifications, a demanding process that will enable them to fly their aircraft economically. This month, Joby said in a press release it had completed 1,500 flights over 33,000 miles in its pre-production aircraft, including 100 flights with a pilot on board. Archer set a goal of performing 400 flights this year with its production aircraft, dubbed Midnight, and said it would begin piloted flights after this year.

Urban Air Mobility Pricing: Archer’s Vision for Affordable Air Taxi Services Amid FAA Certification and Market Competition

The two businesses intend to build their own aircraft and start a ride-sharing service that will transport passengers from downtown to main airports or different locations. Additionally, Archer’s business model calls for the sale of aircraft to third parties.

In its Q1 presentation, Archer described possible pricing for its air taxi service. For an average 25-mile journey from a suburb to a city, Archer estimated that an air taxi flight would take 12 minutes and cost$ 3.30 per seat-mile. In contrast, the costs were compared to ground-based ride-sharing services like Uber and Lyft, which suggested the same ride would take an hour on the ground at $1.50 per seat-mile.

Insights from Joby Aviation and Archer’s Executives on the Future of Air Taxi Services

According to Adam Cohen, a survey researcher at the Berkeley Transportation Sustainability Research Center, it is doubtful whether air taxis will actually be affordable for everyone. Cohen is author of a recently released report on planning for advanced air mobility from the American Planning Association

On its call, Joby Aviation Executive Chairman Paul Sciarra stated that” we do n’t have any updates to our broad thinking around economics.” Cities like Los Angeles, New York City, and Dubai have “very difficult infrastructure to navigate on the ground,” he noted. We’re evidently very much involved in the analysis of routes to understand price elasticity and understand demand across them.

Prior to this announcement, Joby Aviation had made plans for operations in New York and Los Angeles in collaboration with Delta Air Lines, as well as in Dubai, where four original cargo ports are planned.

World leaders have taken note of the potential impact our industry can have on their cities, according to Archer’s Goldstein, and the world’s cities are becoming more crowded. Alternative transportation options are still challenging to develop and implement.

Joby says its air taxi is 84% through FAA Stage Three certification

Race to the Skies: Archer and Joby Aviation Update Progress on Air Taxi Service Launches during Earnings Calls

  • During earnings calls next week, Archer Aviation and Joby Aviation both reported their progress on launching an air taxi service with paying customers. They, along with different air taxi developers, are in a race to begin for commercial flights as soon as 2025.
  • On the company’s May 7 conference call, founder and CEO JoeBen Bevirt stated that Joby, which has previously piloted test flights, “was the second air taxi company to complete the first, second, and third stages of the FAA type certification process.”
  • On a May 9 earnings call, Archer CEO Adam Goldstein stated that the company is working on building six aircraft for the Federal Aviation Administration certification program. He stated on the call that” the first of those is in final assembly right now and on track to start piloting flights later this year.”

Leo Portal

Leo is an expert in the field of smart city research and an overall tech-enthusiast with an emphasis on smart energy, IOT, smart homes and governance. After a master degree in international administration at the University of Gothenburg in Sweden, and a master in public management at Fudan University in China, he pursued research studies in the field of smart cities at the European University Institute. This led him to publish multiple articles on smart cities. Among them “Using Smart People to Build Smarter: How Smart Cities Attract and Retain Highly Skilled Workers to Drive Innovation (Belgium, Denmark, the Netherlands, Poland)” published in the Smart Cities and Regional Development Journal (SCRD) and “Establishing Participative Smart Cities: Theory and Practice”, also published in the SCRD Journal. He regularly audits and advises municipalities and regional governments on their smart city strategies. He is currently writing a chapter for Springer on smart mobility in French smart cities.

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