Archer Air
Source: Archer Air
The current bull market has fueled concerns about speculation in too many unproven offerings and technologies, but does not include flying taxis, according to Wall Street investment banker Ken Moelis.
Flying taxis – officially called electric planes and the urban air mobility market – are coming in the near future and may replace helicopters, Moelis CEO Moelis and CNBC founder Ken Moelis told CNBC earlier this week.
“These vehicles will be 100 times quieter, they will be significantly safer, they will be significantly cleaner and significantly cheaper,” Moelis told CNBC’s Squawk Alley on Thursday.
On Wednesday, electric aircraft starter Archer announced the merger of Special Purchasing Company (SPAC) with Atlas Crest Investment Corp, backed by Moelis, a $ 3.8 billion deal. The start-up aims to launch its first aircraft somewhere around 2024; the transaction was valued at 2026 numbers.
Moelis said Archer is in an early stage of development, but his business plan is fully funded and the market opportunity is significant. “There is no speculation involved,” he said.
While skeptics “act like vertical takeoff and landing” is something new and unproven, “called a helicopter,” Moelis said. “We’re adding the word electric … Technology exists. There’s nothing to invent.”
A design that includes 12 rotors also makes the method of flight safer than helicopters, Moelis said.
Archer Air
Source: Archer Air
It is estimated that the US civilian helicopter market currently has between 10,000 and 15,000 aircraft. Moelis believes the market could double in size by up to 30,000 as a result of the electric aircraft replacement cycle and as batteries evolve and extend range to 100 miles.
“Just by replacing helicopters with electronic take-offs and vehicle landings is a massive market,” Moelis said. “There are 15,000 helicopters now. Can you imagine a world where you can do that?”
Whether Archer’s electric and vertical landing aircraft (eVTOL) – which can travel up to 60 miles, reach speeds of 150 mph and create minimal noise – can enter the market in 2024 depends, among other factors, on certification Federal Aviation Administration.
United is already placing an order for 200 eVTOL Archer aircraft, a $ 1 billion deal. The aviation giant in Chicago has invested in multiple strategies to reduce its carbon footprint in recent months, including an investment in a carbon capture company from oil and gas company Occidental Petroleum. Urban air mobility vehicles are likely to be used initially to transfer passengers to and from airports. Stellantis, the new combination of Fiat Chrysler and PSA Peugeot, is also among a growing list of Archer investors.
Major players in the automotive and aviation industries, including Uber, Toyota and Airbus, are watching the flying taxi market. Uber sold its taxi business to rival Archer Joby late last year, in which it is already an investor.
Deloitte data suggests that about 200 companies are working on similar aircraft to be used for passengers or cargo, with the market researching $ 4 billion by 2025 and $ 57 billion by 2035. Another study by Frost & Sullivan plans to transport air taxis to the sky. since 2022 in Dubai.