- The Gulf’s deep pockets make it a promising frontier for the eVTOL industry and the competition between the countries to become the top hub in the region is leading to big spending, benefiting new companies like Archers.
- Saudi Arabia has begun courting the flying taxi startup Archer Aviation on potential partnerships in Riyadh, Jeddah, and some of its multi-billion dollar projects in the kingdom.
- The long-time aviation centre Dhabi last month signed a pact with Archer to speed up planned commercial air taxi operations in the UAE with multi-million dollar investments.
Saudi Arabia has begun courting the flying taxi startup Archer Aviation on potential partnerships in Riyadh, Jeddah, and some of its multi-billion dollar projects in the kingdom, as its Gulf rivals the United Arab Emirates (UAE) vie to be an aviation hub.
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The thriving eVTOL industry in the Gulf
Archer Aviation, backed by the likes of Chrysler-parent Stellantis (STLAM.MI), Boeing (BA.N), and United Airlines (UAL.O), is developing electric vertical takeoff and landing (eVTOL) aircraft that have been touted as the future of urban air mobility.
The oil-rich region’s deep pockets make it a promising frontier for the eVTOL industry and the competition between the countries to become the top hub in the region is leading to big spending, benefiting new companies like Archers.
“Since we made our first several announcements in the UAE that has piqued interest” across the region and especially in Saudi Arabia, said Nikhil Goel, chief commercial officer for Archer.
Last month, Archer signed a pact with the Abu Dhabi Investment Office for multi-million dollar investments to speed up planned commercial air taxi operations in the UAE. The long-time aviation centre has announced its big orders and has plans to boost Dubai International Airport’s capacity to 120 million passengers a year by 2026, up from 100 million today.
As part of its plan to wean itself off oil, Saudi is also pouring billions into its aviation industry to become a regional hub. It announced an order for 105 Airbus narrow-body aircraft on Tuesday and launched a new airline Riyadh Air last year.
Certification deadlines for eVTOL makers keep getting readjusted and the eVTOL industry must also overcome certification hurdles to ensure its future. The Gulf offers the possibility of a quick launch, although Goel said all safety requirements would be rigorously respected.
