Saudi Arabia Woos Electric Flying Taxi Company Archer as Gulf Rivals Compete to be Aviation Hub
Saudi Arabia is courting Archer Aviation, an electric air taxi company, to bolster its position as a leading aviation hub in the Gulf region. The competition between Saudi Arabia and the UAE is driving significant investments in the eVTOL industry. Archer has signed a multi-million dollar agreement with the Abu Dhabi Investment Office to accelerate its operations in the UAE.
This move comes in response to the recent partnership between Archer and the United Arab Emirates (UAE), Saudi Arabia's economic and regional rival.
The competition between these two countries to become the top aviation hub in the region has sparked significant investments, benefiting companies like Archer. Just last month, Archer signed a multi-million dollar agreement with the Abu Dhabi Investment Office to accelerate its commercial air taxi operations in the UAE.
Nikhil Goel, Chief Commercial Officer for Archer, stated that the company's initial announcements in the UAE have generated interest across the region, particularly in Saudi Arabia. As a result, Archer is currently engaged in discussions with Saudi officials regarding potential partnerships in Riyadh, Jeddah, and other major projects in the kingdom, which are valued in the billions of dollars.
Archer Aviation, with backing from industry giants such as Stellantis (parent company of Chrysler), Boeing, and United Airlines, is at the forefront of developing electric vertical takeoff and landing (eVTOL) aircraft. These innovative vehicles are considered the future of urban air mobility.
The Gulf region's abundant resources and financial capabilities make it an attractive frontier for the eVTOL industry. However, the industry must overcome certification challenges to ensure its long-term viability.
Riyadh, in its efforts to diversify its economy away from oil, has allocated substantial funds to develop its aviation sector and establish itself as a regional hub. This includes a recent order for 105 Airbus narrow-body aircraft, the launch of a new airline called Riyadh Air, and plans for a massive six-runway airport in 2022.
Meanwhile, Dubai, a long-standing aviation center, has also made significant orders and aims to increase Dubai International Airport's capacity to 120 million passengers per year by 2026.
The intense competition between these two Gulf nations is fueling an aviation boom that is expected to benefit companies like Archer. However, industry experts caution that only a fraction of the numerous eVTOL startups, estimated to be over 200, will survive the fierce competition.
While Archer received approval from the United States' Federal Aviation Administration (FAA) for flight testing of its demonstrator aircraft 'Maker' in 2021, certification deadlines for eVTOL manufacturers continue to be adjusted. This highlights the challenges that need to be addressed in this nascent sector.
The Gulf region offers a promising opportunity for a swift launch of eVTOL services, with a strong emphasis on safety requirements. NEOM, Saudi Arabia's flagship giga project, has already formed a joint venture with eVTOL company Volocopter in 2021 and invested $175 million in the company in 2022.
Saudi Arabia is courting Archer Aviation, an electric air taxi company, to bolster its position as a leading aviation hub in the Gulf region.
The competition between Saudi Arabia and the UAE is driving significant investments in the eVTOL industry.
Archer has signed a multi-million dollar agreement with the Abu Dhabi Investment Office to accelerate its operations in the UAE.
Source: REUTERS