In offering electric air taxi services in Japan, Archer Aviation (NYSE:ACHR) has teamed with Soracle Corporation, a joint venture between Japan Airlines and Sumitomo Corporation. Archer's Midnight aircraft is meant to be used by Soracle to offer urban air mobility in high-traffic cities where ground transit is limited because of geography or congestion.
Under the terms of the partnership, Soracle has the option to order up to 100 Midnight aircraft worth $500million. These orders would have pre-delivery costs dependent on milestones. Serving both domestic and foreign passengers, Soracle plans to construct airlines in important Japanese cities like Tokyo, Osaka, Nagoya, Hokkaido, Setouchi, and Okinawa.
This deal sets Soracle in a position to build a creative transportation system providing effective and environmentally friendly travel choices all over Japan's cities and tourist destinations. The deal, according to Archer CEO Adam Goldstein, is a crucial first step towards transforming transportation in highly crowded places, therefore enhancing connection and accessibility.
This article first appeared on GuruFocus.免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。