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.
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