United Airlines is doubling the number of electric air taxis with a new $15 million investment in Embraer-backed startup Eve Air Mobility.
The airline has agreed to purchase 200 electric four-seat aircraft with options for another 200. First deliveries are expected as early as 2026.
|UAL||UNITED AIRLINES HOLDINGS INC.||38.87||+0.27||+0.69%|
|EVEX||EVE HOLDING INC||7.43||+1.27||+20.62%|
“Our agreement with Eve underscores our confidence in the urban air mobility market and serves as another key measure of our goal of net-zero carbon emissions by 2050 – without using traditional offsets,” said Michael Leskinen, president of United Airlines Ventures, in a statement. “Together, we believe that our suite of clean energy technologies will revolutionize aviation as we know it and serve as a catalyst for the aviation industry to move towards a sustainable future.”
UNITED AIRLINES MAY END JFK SERVICE WITHOUT MORE FLIGHTS
Eve’s electric vertical take-off and landing aircraft (eVTOL) have a range of 60 miles, use conventional fixed wings, rotors and pushers and can reduce noise levels by 90% compared to current conventional aircraft. Eve also has access to Embraer’s service centers, parts warehouses and field technicians.
“While it’s too early to speculate on exact pricing, Eve expects that as the market grows, a typical journey will be similar to that of a rideshare,” a United spokesperson told FOX Business.
Shares of Eve Air Mobility rose nearly 9% in premarket trading on Thursday following the announcement.
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United’s latest investment comes after the company made a $10 million down payment for 100 of Archer Aviation’s electric air taxis.
Last year, United agreed to order up to 200 of Archer’s flying taxis to transport travelers quickly, safely and ideally to the airport with minimal environmental impact. The deal is valued at approximately $1 billion, with an option to purchase an additional $500 million worth of aircraft.
Archer recently completed a preliminary design review for its production aircraft, which it plans to launch as early as 2024. Once operational, Archer’s aircraft is expected to carry up to four United customers at a time for up to 60 miles at speeds of up to 250 mph.
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