Japan Airlines’ and Sumitomo Corporation’s Joint Venture Company, Soracle, Announces Agreement Including Intended Purchase Of Up To $500M of Electric Aircraft From Archer
November 07, 2024 08:00 AM Eastern Standard Time
SANTA CLARA, Calif.–(BUSINESS WIRE)–Archer Aviation Inc. (NYSE: ACHR) and Soracle Corporation (Soracle), a joint venture newly established by Japan Airlines and Sumitomo Corporation, signed agreements focused on bringing advanced air mobility (AAM) services to Japan.
Soracle plans to launch its AAM operation in Japan using Archer’s Midnight aircraft, with the goal of offering electric air taxi flights in cities where existing ground transportation is constrained by traffic or geographic barriers.
To do so, Soracle has obtained the right to place aircraft orders of up to 100 Midnight aircraft, totaling approximately $500M, which would include pre-delivery payments based on certain milestones in advance of aircraft delivery.
Soracle will develop a variety of flight routes in attractive areas for residents as well as domestic and international visitors. Route locations could include places like Tokyo, Osaka, Nagoya, Hokkaido, Setouchi and Okinawa with the aim of establishing a transportation network that creates new value through mobility in the sky.
Archer and Soracle will work closely with the Japanese Civil Aviation Bureau (JCAB) to obtain the necessary permissions and certifications. Archer and JCAB have already begun discussions and Archer intends to work to certify our aircraft in Japan.
To memorialize this joint agreement, Soracle and Archer held a signing ceremony in Tokyo on September 26, 2024.
“Japan is widely respected for its forward thinking approach to transportation and this investment into advanced air mobility is yet another example of that,” said Andrew Cummins, Senior Director of Business Development at Archer. “We’re proud to stand with Soracle ahead of this new era of flight—together, we are committed to bringing an innovative, sustainable and convenient transportation alternative to the country.”
“Through the operation of eVTOL aircraft, Soracle aims to enrich lives and society by creating more accessible air transportation services in Japan. We will provide safe and reliable services to passengers 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 towards making the future we envision a reality.”
As a first step towards commercializing AAM services in Japan, Archer and Soracle plan to conduct a public flight demonstration at the World Expo to build public support, demonstrate the future of aviation and accelerate stakeholder’s engagement. The Expo is anticipated to be one of the most significant global events of the year, expecting around 28 million visitors from Japan, the US and other countries over its six-months duration. The Expo will provide numerous touchpoints for potential customers and passengers to experience the Parties’ vision, aligning perfectly with the Expo’s theme of “Future Society Showcase.”
Archer’s electric aircraft, Midnight, is designed to offer passengers a safe, sustainable and low-noise alternative to ground transportation:Travels at speeds up to 150 mph, turning hour-long ground commutes into minutes in the air
Designed for back-to-back flights of 20-50 miles with minimal charge time in between
100x quieter than a helicopter at cruising altitudes
Redundant systems across the aircraft designed for similar levels of safety as commercial airliners
Piloted, and designed to carry up to four passengers with carry-on luggage
About Archer
Archer is a leader in the electrification of aviation. We are designing and developing the key enabling technologies and aircraft that are necessary to power the next great transportation revolution. Our goal is for our proprietary technology to deliver unprecedented connectivity across the most congested cities in the world.
To learn more, visit www.archer.com
About Soracle Corporation
Soracle Corporation is a joint venture between Sumitomo Corporation and Japan Airlines headquartered in Tokyo, Japan, established on June 3, 2024. Soracle aims to revolutionize mobility in Japan by providing sustainable and efficient air transportation solutions with eVTOL services. This initiative is part of a broader effort to integrate advanced air mobility solutions into realistic environments, enhancing connectivity and creating new value in air transportation.
To learn more, visit https://www.soraclecorp.com/
Forward-Looking Statements
This press release contains forward looking statements regarding Archer’s future business plans and goals, including statements regarding its aircraft specifications and performance, planned air tax network buildout, commercialization, certification, anticipated contract value and timing and payment of pre-delivery payments. In addition, this press release refers to a signed agreement that is conditioned on the future execution by the parties of binding definitive agreements incorporating the terms outlined in this signed agreement, which may not be completed or may contain different terms than those set forth in this signed agreement. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in Archer’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, available at www.sec.gov. In addition, please note that any forward-looking statements contained herein are based on assumptions that Archer believes to be reasonable as of the date of this press release. Archer undertakes no obligation to update these statements as a result of new information or future events.
Source: Archer
Text: ArcherIR
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