close
close

Japan Airlines and Sumitomo Corporation's joint venture company, Soracle, announces agreement that includes the proposed purchase of Archer electric aircraft valued at up to $500 million

Posted on by Kennedy
Japan Airlines and Sumitomo Corporation's joint venture company, Soracle, announces agreement that includes the proposed purchase of Archer electric aircraft valued at up to 0 million

Pictured: Andrew Cummins and Nikhil Goel of Archer Aviation (Photo: Business Wire)
Pictured: Andrew Cummins and Nikhil Goel of Archer Aviation (Photo: Business Wire)

SANTA CLARA, Calif., November 7, 2024–(BUSINESS WIRE)–Archer Aviation Inc. (NYSE: ACHR) and Soracle Corporation (Soracle), a newly formed joint venture of Japan Airlines and Sumitomo Corporation, signed agreements focused on providing advanced air mobility (AAM) services to bring Japan.

Soracle plans to launch its AAM operations in Japan using Archer's Midnight aircraft, with the aim of offering electric air taxi flights in cities where existing ground transportation is limited by traffic or geographic barriers.

To this end, Soracle has received the right to place aircraft orders for up to 100 Midnight aircraft totaling approximately $500 million, which would include upfront payments based on certain milestones prior to aircraft delivery.

Soracle will develop a variety of flight routes in attractive areas for residents and domestic and international visitors. Route locations could include places such as Tokyo, Osaka, Nagoya, Hokkaido, Setouchi and Okinawa, with the aim of building a transport network that creates new value through air mobility.

Archer and Soracle will work closely with the Japan Civil Aviation Bureau (JCAB) to obtain the necessary approvals and certifications. Archer and JCAB have already begun discussions and Archer intends to work on certifying our aircraft in Japan.

To commemorate this joint agreement, Soracle and Archer held a signing ceremony in Tokyo on September 26, 2024.

“Japan is widely recognized for its forward-thinking approach to transportation and this investment in advanced air mobility is another example of that,” said Andrew Cummins, senior director of business development at Archer. “We are proud to partner with Soracle to advance this new era of flight. Together we are committed to providing the country with an innovative, sustainable and convenient transport alternative.”

“By operating eVTOL aircraft, Soracle aims to enrich lives and society by creating more accessible air transportation services in Japan. “We will provide passengers with safe and reliable services by making the most of the wealth of knowledge we have accumulated at Japan Airlines and Sumitomo Corporation,” said Yukihiro Ota, Chief Executive Officer at Soracle. “Today’s announcement is a first step toward making the future we envision a reality.”

As a first step toward commercializing AAM services in Japan, Archer and Soracle plan to conduct a public flight demonstration at the World's Fair to generate public support, demonstrate the future of aviation, and accelerate stakeholder engagement. The expo is expected to be one of the most significant global events of the year, attracting around 28 million visitors from Japan, the US and other countries over its six-month run. The Expo will provide numerous touchpoints for potential customers and passengers to experience the parties' vision, which fits perfectly with the Expo's theme of “Future Society Showcase”.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *