Southwest Airlines Co. and Archer Aviation Inc., have signed a memorandum of understanding (MOU) to develop operational plans for electric air taxi networks utilizing Archer’s eVTOL aircraft at California airports where Southwest® operates. Archer Aviation is a leading manufacturer of electric vertical takeoff and landing (eVTOL) aircraft.
Southwest is the Golden State’s largest air carrier, operating at 14 airports across the state. Archer Midnight aircraft is designed to transform urban travel, replacing 60-to-90-minute commutes by car with estimated 10-to-20-minute electric air taxi flights. The goal of Archer’s aircraft is to offer a safe, low-noise, cost-competitive transportation option with no direct emissions.
Southwest and Archer intend to collaborate on a concept of operations that lays the foundation for integrated electric air taxi networks that would support California airports and the surrounding communities that Southwest serves. This collaboration will include partnering with Southwest Employees and respective unions, including SWAPA, to maintain and improve efficient operations. This is a key step toward potentially offering Southwest Customers an airport transport service that saves time by streamlining the door-to-door passenger journey.
“Southwest is eager to explore the convenience Archer’s air taxis could provide Customers flying Southwest at airports in busy urban areas,” said Paul Cullen, Vice President Real Estate at Southwest Airlines. “We’ve proudly served as California’s largest carrier for nearly 25 years, and integrating Archer’s electric aircraft into the travel journey potentially gives us an innovative opportunity to enhance the experience of flying Southwest. We look forward to collaborating with Archer as we assess future commercial activities in California and other Southwest locations.”
“Archer’s collaboration with Southwest to introduce air taxis in California showcases our state’s dedication to climate innovation and advanced technology,” said Dee Dee Myers, Senior Advisor to Governor Gavin Newsom and Director of the Governor’s Office of Business and Economic Development. “This initiative is designed to help revolutionize clean transportation with zero-direct emission and affordable options, enhancing the passenger experience, and supporting California’s climate action goals.”
“With Archer’s Midnight aircraft, passengers will be able to fly above traffic to get to the airport faster,” said Nikhil Goel, Chief Commercial Officer at Archer. “By putting together Southwest’s impressive network of airports in California and their frequent intrastate flights with our planned network, Southwest Customers could someday complete door-to-door trips like Santa Monica to Napa in less than three hours.”
Archer and Southwest plan to collaborate over the next few years as eVTOLs take flight. Combining Archer’s aircraft and planned urban air mobility network with Southwest flights could offer an enhanced experience for the first and last miles of the Customer travel journey.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to the Company’s goals, plans, and expectations with respect to electronic air taxi networks and Archer aircraft, including its plans for collaboration with Archer, Southwest Employees, and respective unions, and with respect to maintaining and improving efficient operations. These forward-looking statements are based on the Company’s current estimates, intentions, beliefs, expectations, goals, strategies, and projections for the future and are not guarantees of future performance. Forward-looking statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the impact of fears or actual outbreaks of diseases, extreme or severe weather and natural disasters, actions of competitors, consumer perception, economic conditions, banking conditions, fears or actual acts of terrorism or war, sociodemographic trends, and other factors beyond the Company’s control, on consumer behavior and the Company’s results of operations and business decisions, plans, strategies, and results; (ii) the Company’s ability to timely and effectively implement, transition, operate, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (iii) the cost and effects of the actions of activist shareholders; (iv) the Company’s ability to obtain and maintain adequate infrastructure and equipment to support its operations and initiatives; (v) the impact of fuel price changes, fuel price volatility, volatility of commodities used by the Company for hedging jet fuel, and any changes to the Company’s fuel hedging strategies and positions, on the Company’s business plans and results of operations; (vi) the Company’s dependence on third parties, in particular with respect to its electronic air taxi networks and the eVTOL aircraft, and the impact on the Company’s operations and results of operations of any third party delays or non-performance; (vii) the Company’s ability to timely and effectively prioritize its initiatives and focus areas and related expenditures; (viii) the impact of labor matters on the Company’s business decisions, plans, strategies, and results; (ix) the impact of governmental regulations and other governmental actions on the Company’s business plans, results, and operations; (x) the Company’s dependence on its workforce, including its ability to employ and retain sufficient numbers of qualified Employees with appropriate skills and expertise to effectively and efficiently maintain its operations and execute the Company’s plans, strategies, and initiatives; and (xiii) other factors, as described in the Company’s filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10- K for the fiscal year ended December 31, 2023.