Archer Aviation Inc. (NYSE: ACHR) stock appears to be garnering attention on the US stock market today. As per the latest update, ACHR stock has surged by 4.53% to $4.15 during the pre-market session. This uptick in ACHR stock value follows a notable collaborative endeavor.
Archer Aviation (ACHR) has disclosed the formalization of a framework agreement in Abu Dhabi during the DRIFTx mobility event. Modern urban transportation solutions were on display at the Yas Marina Circuit event, which encouraged collaborations, ideas, and conversation in the industry.
The partnership includes significant expenditures totaling hundreds of millions of dollars with the goal of accelerating Archer Aviation's intended commercial air taxi operations in the United Arab Emirates. These operations are slated to commence as early as next year and encompass in-country manufacturing, operational activities, and training initiatives across the region.
This extensive agreement positions Abu Dhabi at the forefront of promoting urban air mobility globally, with plans to initiate air taxi services utilizing ACHR's Midnight aircraft by next year. Crucial aspects of Archer Aviation's collaboration with the Abu Dhabi Investment Office (ADIO) include the construction of vertiports, facilitation of operational logistics for air taxi services in the UAE, and local production of Midnight aircraft.
Additionally, ADIO will spearhead programs for the development of local talent among Emiratis and assist in establishing Archer Aviation's international headquarters and Center of Excellence in Abu Dhabi. This important agreement with Abu Dhabi represents a turning point in Archer's commercialization efforts throughout the Emirates, serving as a spur to accelerate the introduction of electric air taxi services by late 2025.
It emphasizes Abu Dhabi's steadfast dedication to ACHR and its goal of become a major international center for urban aviation. With Abu Dhabi's support, Archer Aviation is well-positioned to continue leading the way in the Emirate and globally in the revolution of urban mobility.
In accordance with the conditions of this agreement, ADIO will support vertiport development and collaborate with Archer Aviation and other air taxi providers to provide the infrastructure required for extending operations throughout Abu Dhabi.