Boeing has sold its electric air taxi business
What's the story
Boeing has announced the sale of three of its electric vertical takeoff and landing (eVTOL) subsidiaries to Archer Aviation. The companies involved in the deal are Wisk Aero, SkyGrid, and Insitu. The financial details of the transaction remain undisclosed. As part of this agreement, Boeing will also acquire a stake in Archer Aviation.
Tech transfer
Subsidiaries being transferred to Archer
The subsidiaries being transferred to Archer include Wisk Aero, which is working on an autonomous electric aircraft; SkyGrid, a company developing air traffic management systems for urban air taxis; and Insitu, a manufacturer of high-altitude drones for the US Navy.
The deal also involves technology sharing between Boeing and Archer, with Boeing keeping access to Wisk's autonomous flight systems for its current and future commercial/defense programs.
Business focus
Deal comes as Boeing faces $715B backlog
The deal comes as Boeing faces a massive $715 billion backlog of over 6,200 planes ordered by customers but yet to be built.
The company is also under regulatory scrutiny after several high-profile safety incidents.
The divestment allows Boeing to refocus its finances on core commercial airplanes while strengthening Archer's position in the race to launch electric air taxis commercially.
Future prospects
Archer aims to launch air taxi services by year end
Archer plans to launch pilot air taxi services in New York, Texas, and Florida before the year ends.
The company is also positioning itself as a military supplier with a new eVTOL aircraft developed in partnership with Palmer Luckey's defense tech firm Anduril.
"This transaction is a win-win for Boeing and Archer," said Brian Yutko, Boeing VP of Commercial Airplanes Product Development.