Archer Aviation, Air Chateau sign MOU for purchase of up to 100 Archer Midnight eVTOL worth up to $500M
Archer Aviation, a developer of electric vertical takeoff and landing (eVTOL) aircraft, and Air Chateau International DWC LLC, one of the leading private aviation operators in the UAE, signed an MOU covering a planned purchase by Air Chateau of up to 100 of Archer’s Midnight eVTOL aircraft with an approximate value of $500 million and providing for an initial non-refundable, pre-delivery payment of $1 million by 31 December 2023.
Air Chateau plans to own and operate the Midnight aircraft in the region. The two companies will now work to formalize the definitive agreements covering the planned purchase over the coming months, with $4 million of additional pre-delivery payments contemplated to be paid following signing.
Air Chateau was the first private heliport operator company in the UAE to have its heliport and lounge terminal at the land side of Dubai World Central Al Maktoum International Airport, Dubai Helipark and with multiple touch points across the UAE. Air Chateau’s operations offer last mile services targeted at ultra-high net worth individuals, including connectivity between airports, cities and strategic points and key attractions.
The relationship is intended to further strengthen Archer’s recently announced plans to commence air taxi operations in both Abu Dhabi and Dubai in 2026. (Earlier post.) The parties intend to explore opportunities to collaborate on bringing in the infrastructure investment necessary for these cities to be ready for these planned operations.
In October, as part of Archer’s announcement of its plans to commence air taxi operations in the UAE in 2026, Archer also laid out its intent to build an engineering Center of Excellence to support the growing advanced air mobility industry in the UAE and across the Middle East and to collaborate with local manufacturing companies and Maintenance, Repair, and Overhaul providers in Abu Dhabi to spearhead the production of eVTOL aircraft, furthering Abu Dhabi’s efforts to grow its Smart and Autonomous Vehicle Industry cluster.