Archer Air
Source: Archer Air
According to Wall Street investment banker Ken Moelis, the current stock market has sparked concerns about speculation with too many offerings and unproven technologies, but without flying taxis.
Flying taxis – formally referred to as electric planes and the urban air mobility market – are coming in the near future and they could replace helicopters, Moelis and Company CEO and founder Ken Moelis told CNBC earlier this week.
“These vehicles will be 100 times quieter, they will be significantly safer, they will be significantly cleaner and significantly cheaper,” Moelis told CNBC’s Squawk Alley Thursday.
On Wednesday, electric aircraft startup Archer announced the merger of a special acquisition company (SPAC) with Moelis-backed Atlas Crest Investment Corp., a deal worth $ 3.8 billion. The start-up aims to release its first aircraft sometime around 2024; the deal was valued at 2026 figures.
Moelis said Archer is in the early stages of development, but the business plan is fully funded and the market opportunities are significant. “There is no speculation,” he said.
While skeptics “act like vertical takeoff and landing” is something new and unproven, “it used to be called a helicopter,” said Moelis. “We’ll add the word electrical … The technology exists. There’s nothing to figure out.”
A 12-rotor design also makes the flight method safer than helicopters, Moelis said.
Archer Air
Source: Archer Air
The US civilian helicopter market is currently estimated to number between 10,000 and 15,000 aircraft. Moelis thinks the market could double in size to as much as 30,000 as a result of the electric aircraft replacement cycle, and as batteries evolve and extend its range to as much as 100 miles.
“Just replacing electronic take-off and landing vehicles with helicopters is a huge market,” said Moelis. ‘There are now 15,000 helicopters. Can you imagine a world in which you can achieve that? ‘
Whether Archer’s electric vertical take-off and landing aircraft (eVTOL) – which can travel up to 60 miles, reach speeds of 240 km / h and produce minimal noise – can enter the market in 2024 depends, among other things, on the certification of the Federal Aviation Administration.
United is already placing an order for 200 eVTOL Archer aircraft, a deal worth $ 1 billion. The Chicago-based aviation giant has invested in multiple strategies in recent months to reduce its carbon footprint, including an investment in a carbon capture business from oil and gas company Occidental Petroleum. The urban air mobility vehicles are likely to be used initially to transport passengers to and from airports. Stellantis, the new combination of Fiat Chrysler and PSA Peugeot, is also among a growing list of Archer investors.
Major players in the automotive and aviation industry, including Uber, Toyota and Airbus, are following the flying taxi market. Uber sold its flying taxi business late last year to Archer rival Joby, in which it is already an investor.
Data from Deloitte suggests that about 200 companies are working on similar passenger or cargo aircraft, and the market is expected to explore $ 4 billion by 2025 and $ 57 billion by 2035. Another study by Frost & Sullivan projects air taxis to take to the skies . as early as 2022 in Dubai.