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Home  >  News • United Airlines  >  United Airlines Places Deposit On Flying Taxis
NewsUnited Airlines

United Airlines Places Deposit On Flying Taxis

Matthew Klint Posted onAugust 11, 2022 5 Comments

United Airlines just put down a $10 million deposit for 100 electric-powered flying taxis, a technology it hopes will one day serve urban markets. This marks the first cash commitment for an electric aircraft by a commercial airline.

United Airlines Places $10 Million Deposit On Flying Taxis

In February 2021, United Airlines signed a memorandum of intent with California-based Archer to buy up to 200 electric aircraft. These battery-powered turboprops can only accommodate four passengers, but United CEO Scott Kirby emphasized their potential to reduce the effects of climate change:

“Part of how United will combat global warming is by embracing emerging technologies that decarbonize air travel. By working with Archer, United is showing the aviation industry that now is the time to embrace cleaner, more efficient modes of transportation.”

18 months later, United has put down a $10 million deposit, first reported by the Wall Street Journal. Archer has previously said that United will be the launch customers for its four-seat aircraft.

Michael Leskinen, President of United Ventures, hopes to offer pricing similar to Uber Black to use this service and sees operators like Uber and Blade as competitors.

Don’t expect these electric aircraft to be airworthy anytime soon, though. First, the Federal Aviation Administration must sign off on the safety of these aircraft. There’s also a question of how to integrate these aircraft into urban airspaces. Archer CEO Adam Goldstein expects approval to come by the end of 2024, with operations starting in 2025.

There’s a legal twist at play, though, which continues to depress Archer stock and a cast a cloud over the program. Archer has been sued by Wisk Aero LLC, another air taxi company, which claims that Archer stole its trade secrets and the Archer design really belongs to Wisk Aero. That dispute is ongoing, with Archer countersuing for defamation and business interference. A trial is currently scheduled for August 2023.

United is not alone in pursuing electric-powered aircraft. American Airlines has pledged a $25 million invemenst in Vertical Aerospace Limited.

CONCLUSION

United Airlines has placed a $10 million deposit for 100 electric-powered flying taxis, marking the first cash commitment for an electric aircraft by a commercial airline. Still, questions remain about this aircraft concept, including its sustainability, affordability, and Archer’s legal battle with a competitor. Any electric taxi service is not expected before 2025.


> Read More: United Airlines Eyes 200 Electric Aircraft


image: Archer

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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5 Comments

  1. Doug Reply
    August 11, 2022 at 10:40 am

    This $10 million is simply advertising budget money being spent to cast UA as environmentally responsible. There is a less than 1% chance that UA is operating 4-seat electric air taxis in the next decade. Throwing $10 million at a venture such as this earns a great return via mainstream press coverage vs the same amount spent in traditional advertising. The FAA just took more than a year to approve minor inspection changes in 787 deliveries and we are to believe that anyone honestly “expects approval to come by the end of 2024, with operations starting in 2025” for an entire new category of commercial aviation?

    • Troy Reply
      August 11, 2022 at 7:56 pm

      Well said…

  2. Debit Reply
    August 11, 2022 at 10:54 am

    “United CEO Scott Kirby emphasized their potential to reduce the effects of climate change:”

    You know my position. Castrate the losers that pop out more than 2 kids. Exponentially growing population is the biggest contributor to global warming. But the liberals and conservatives are in it for the money. They couldn’t care less about the environment. Scott kirby is also a hypocrite.

  3. 121Pilot Reply
    August 12, 2022 at 8:37 am

    Doug got their first. This is simply advertising money.

    There is a zero chance of these things being in commercial service by 2025. The litany of major roadblocks is long and serious. Range, cost, pilots, airspace etc etc.

    Not to mention that the tilt rotor is still something of an evolving technology. The marines have been flying the MV-22 for years and they are still running into unexpected issues aerodynamically that are causing accidents. This thing as pictured really is a leap into the unknown in a lot of ways. And that sort of problem doesn’t make for quick and easy certification. It makes for very long and very expensive certification programs. The sort that have a habit of killing the company involved.

  4. Goforride Reply
    August 13, 2022 at 10:40 am

    UA did not put “a deposit” on electric planes, because there are no planes on which to put a deposit.

    The money came not from United Airlines, the actual airline, but from United Ventures, a newly created company under the United Airlines Holdings that invests in all sorts of “future” things for a speculative return, not as something the airline would actually use.

    There’s no way on God’s green earth United Airlines would ever fly 100 of of these, even if they could work out all the details with ALPA.

    Can you imagine just the the ATC issues of even 10 of these buzzing around NYC or LAX? Are they going to somehow manage to get them into already operations restricted places like EWR, JFK, LGA, DCA, LHR, NRT?

    Does anyone think communities that have been trying to close down small airports like Santa Clara, CA are going to embrace these planes just because they are “green”?

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