JAKARTA - Archer Aviation announced on Wednesday June 5, that the United States Federal Aviation Administration (FAA) has awarded the company a certificate to start commercial operations. This makes it the second electric air taxi maker to reach this important milestone. The shares of the company based in Santa Clara, California rose 3% in morning trade after receiving approval known as Part 135 certification.
The company's flagship aircraft, "Midnight," which is an electric vertical take-off and landing aircraft (eVTOL), still has to get Type Certification from US aviation regulators. The certification shows that the aircraft meets FAA design and safety standards.
Archer, backed by companies such as Stellantis, Boeing, and United Airlines, plans to use conventional aircraft to perfect its "system and procedure." Fellow company, Joby Aviation, received Part 135 Certification from the FAA in 2022.
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Archer is one of several eVTOL makers who are trying to revolutionize urban travel in dense cities by offering short-distance air travel. However, the industry faces regulatory and technological challenges, such as battery density, which affects the share price of eVTOL makers.
Archer shares fell 47% this year, while Joby Aviation fell 26.7%. However, this doesn't stop big companies from betting on eVTOL makers. Earlier this year, automaker Stellantis increased its holdings in Archer by about 8.3 million shares, making it the company's largest shareholder, according to LSEG data.
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