Archer Aviation Joins Federal Trial Program as White House Pushes Electric Air Taxi Flights Toward 2026 Launch
Electric Air Taxis Edge Closer to Reality as Archer Joins Federal Trial Program
Company stock jumps after White House initiative signals shift from development to deployment
Archer Aviation’s stock gained 1.5% on Friday, currently traded at $8.63, after the company confirmed it will take part in the federal government’s new eVTOL Integration Pilot Program. The initiative, which brings together major airlines, American cities, and emerging manufacturers, marks the first nationwide effort designed specifically to accelerate electric air taxi operations in the United States.
The program traces back to President Trump’s June 2025 executive order, “Unleashing Drone Dominance,” which directed the Department of Transportation and the Federal Aviation Administration to create pre-certification operating environments for electric vertical takeoff and landing (eVTOL) aircraft. On Friday, the DOT and FAA unveiled the program’s next phase—a pathway for U.S. cities to host supervised trial operations. If successful, these trials could pave the way for passenger flights as early as next year.
A regulatory sandbox is a controlled environment, often established by regulators like the FAA, designed to allow businesses to test innovative products, services, or business models with relaxed regulatory requirements. Its primary purpose is to foster innovation and competition while still ensuring consumer protection and market stability.
Archer will work closely with U.S. airlines, including longtime partner United Airlines, as well as interested municipalities, to design and carry out test flights of its Midnight aircraft. The company says the trials will demonstrate three essential factors needed for public acceptance: safety, quiet operation, and scalability. By allowing companies to gather operational data and build community trust before completing the full certification process, the program offers a faster track toward commercial viability.
White House Opens Aviation’s Fast Lane
The White House framed the initiative as a breakthrough for next-generation aviation. The executive order established the eVTOL Integration Pilot Program, or eIPP, to help promising technologies transition from prototypes to real-world operations. The new framework invites U.S. cities to collaborate with manufacturers like Archer in pre-certification environments designed for supervised flight testing.
“This creates a regulatory sandbox that didn’t exist before,” said one aerospace analyst familiar with FAA processes. “Companies can now demonstrate real-world operations under supervision rather than waiting years for full type certification.”
The timing reflects mounting competitive pressure. China’s EHang has already secured type certification and is flying paying passengers, while European firms are advancing through EASA approval. U.S. regulators, long criticized for moving too slowly, now appear intent on catching up.
Global eVTOL Certification and Market Progress by Region (USA, China, Europe)
| Region | Certification framework/status | Market entry status | Leading OEMs/milestones | Infrastructure/ecosystem | Outlook to 2026 |
|---|---|---|---|---|---|
| United States (FAA) | Final powered-lift pilot/ops rule (SFAR); certificated under 14 CFR 21.17(b) “special class”; shift from Part 23 with special conditions; rule sets 10-yr ops framework but no TCs. | No type certificates yet; late-stage testing, pending TC and operator approvals. | Joby and Archer lead: Joby at late FAA milestones/TIA; Archer has Part 135/145/141 approvals but trails on TC. | Aligning carrier, maintenance, and training approvals under new powered-lift framework. | Piloted services possible post-TC/ops approvals, OEM targets 2025–2026. |
| Europe (EASA) | SC-VTOL provides airworthiness basis; means of compliance under update through 2025; strong U-space/UAM policy. | No certified piloted services; Paris 2024 launch scrapped due to delays. | Volocopter and Lilium continue certification/demos; delays impact timelines. | Demos and planning continue, though some AAM infra programs slowing. | Near-term limited to demos/EMS pilots; commercial service awaits OEM TC/national approvals. |
| China (CAAC) | First autonomous passenger eVTOL certifications: EH216-S received TC (2023) and operator certificates (2025), enabling commercial ops at designated sites. | Limited pilotless services underway (tourism/short hops), expanding under site approvals. | EHang leads with EH216-S; advancing VT35 TC application. | Strong “low-altitude economy” policy, municipal partnerships, and site deployments. | Expansion of pilotless services and sites; pursuing broader validation. |
Market Leaders Race for Premium Routes
Archer is not alone in the race. Joby Aviation, its closest U.S. rival, also announced participation in the eIPP. Both companies are vying for the same high-value routes—short transfers between congested city centers and airports, where air taxis could slash travel times from hours to minutes.
The business model focuses on premium passengers willing to spend $140 to $200 per seat to bypass traffic. United Airlines, which has partnered with Archer since 2021 and committed $1 billion to the company, views electric air taxis as a natural extension of its premium services.
“When United invested in Archer back in 2021, it was because we believed electric flying taxis could redefine how we move our passengers in and around the cities they are departing and arriving at every day,” said Mike Leskinen, United Airlines’ Executive Vice President and Chief Financial Officer.
Industry projections suggest that a well-utilized aircraft could generate $3.9 million annually by running 20 to 30 flights per day at roughly 70% capacity. Those numbers, however, depend on seamless integration with existing transportation systems and reliable passenger demand.
Projected Annual Revenue per eVTOL Aircraft and Market Growth for Urban Air Mobility (UAM).
| Year | Projected Annual Revenue per eVTOL Aircraft | Urban Air Mobility Market Size |
|---|---|---|
| 2024 | ~$2.07 million | $4.6 billion |
| 2030 | N/A | $23.5 billion |
| 2035 | ~$3.28 million | $41.5 billion |
Technical Hurdles and Community Concerns
For Archer, the Midnight aircraft represents a potential solution to urban aviation’s two most pressing challenges: safety and noise. The company aims to operate at just 45 decibels during flight—quieter than highway traffic—making neighborhood acceptance more likely. The eIPP will put those claims to the test, with community feedback playing a decisive role in shaping long-term adoption.
eVTOL noise reduction technologies are crucial for the widespread adoption of electric vertical takeoff and landing aircraft, focusing on minimizing their acoustic footprint. This involves integrating various quiet eVTOL technologies and advanced acoustic design principles to achieve quieter operations, especially in urban environments.
Infrastructure remains another hurdle. Building or converting “vertiports” and installing fast-charging stations will require significant investment and local approvals. Early deployment is expected to concentrate in cities that already have aviation infrastructure and a favorable regulatory climate.
The technology itself is advancing quickly. Archer recently completed a piloted 55-mile flight, proving the aircraft’s range is sufficient for airport connections. Still, autonomous operations—considered vital for long-term economics—are years away and dependent on future regulatory approvals.
Markets Reward Policy Momentum
Investors appear confident in Archer’s prospects. The company raised $850 million in June, shortly after the executive order was signed, bringing its liquidity reserves to about $2 billion. That financial cushion provides room to navigate certification delays and low initial utilization rates.
Participation in the eIPP also offers a strategic advantage. Because the program limits the number of operators, early entrants like Archer may secure exclusive access to routes and markets once commercial operations expand.
Trading volume surged to more than 8.8 million shares on Friday as investors weighed the implications. The stock’s rise suggests markets see Archer’s inclusion in the program as a validation of its commercial roadmap rather than a speculative gamble.
Industry Transformation Picks Up Speed
The eIPP is part of a much larger shift in aviation toward electrification and urban mobility. Legacy aerospace companies are investing heavily in electric aircraft, while startups race to bring their prototypes into service.
Beta Technologies is focusing on cargo and utility operations, which may reach revenue generation sooner than passenger services. Lilium is pursuing European certification, while Hyundai’s Supernal recently paused efforts amid leadership changes, underscoring the risks in the sector.
Overview of Major eVTOL Players: Focus, Status, and Regional Presence
| Company | Focus | Status | Regional Presence |
|---|---|---|---|
| Joby Aviation | Urban Air Mobility (Air Taxis) | Pioneer in the eVTOL space, advanced FAA certification process, and over 1,000 test flights completed. The company is targeting commercial operations in the USA by 2025. | USA (California), expanding into Europe & Asia |
| Archer Aviation | Urban Air Mobility (Air Taxis) | Developing a four-passenger eVTOL aircraft for short trips. Plans to begin commercial operations in 2025 in collaboration with United Airlines, targeting urban markets like New York City and Los Angeles. | USA (California) |
| Lilium GmbH | Regional Air Mobility (Intercity Travel) | Developing the Lilium Jet, a seven-passenger, all-electric jet aircraft designed for high-speed, long-range travel. Aims to introduce commercial services by 2025 and build regional networks connecting multiple cities. | Germany (Munich) |
| Volocopter GmbH | Inner-City Air Mobility (Air Taxis, Cargo) | Specializes in fully electric air taxis like the VoloCity for short urban commutes and the VoloDrone for logistics. On track to launch commercial services in multiple cities by 2025, with successful test flights in Dubai and Singapore. | Germany (Baden-Württemberg), operations in Europe, Asia (Dubai, Singapore) |
| Beta Technologies | eVTOL Aircraft Development (Passenger/Cargo) | Achieved the first piloted transition flights with its ALIA 250 eVTOL aircraft prototype in April 2024. Collaborates with companies like UPS for cargo delivery. | USA |
| Eve Air Mobility | Affordable & Large-Scale Urban Air Mobility | Focuses on developing simple, lightweight, and efficient eVTOL aircraft. Plans to integrate air taxis into city ridesharing networks, aiming for affordable pricing. | Global (part of Embraer) |
Successful U.S. trial operations could draw additional investment and policy support. But setbacks—whether safety incidents or public resistance—could just as quickly derail momentum, highlighting the fragile balance the industry faces.
Investment Outlook
For Archer, the announcement places it among a select group of manufacturers positioned to earn revenue sooner rather than later. The 2028 Los Angeles Olympics could provide a global showcase for its technology, while United’s customer base offers a ready-made channel for early adoption.
Risks remain significant. Certification delays, infrastructure challenges, battery limitations, and pilot shortages could all slow expansion. Analysts caution that investors should look for companies with strong partnerships, robust funding, and practical timelines, as the market shifts from evaluating technology to measuring operational execution.
Commercial eVTOL deployment faces significant challenges on multiple fronts. These include crucial infrastructure hurdles, regulatory complexities for urban air mobility, and broader market commercialization barriers.
The next 18 months will be decisive. Manufacturers that can transition from prototype to paying passengers under the eIPP will shape the future of urban aviation. For Archer, the program offers its clearest path yet to commercialization—though the road ahead will demand flawless execution.
House Investment Thesis
| Category | Details |
|---|---|
| Report Focus | Analysis of Archer Aviation's eVTOL Integration Pilot Program (eIPP) move as part of a broader industry shift, identifying key players, and outlining investment implications. |
| Core Thesis | This is an industry-wide shift catalyzed by U.S. policy (White House eIPP, FAA rules), moving from concepts to supervised pre-certification operations to build moats (route rights, noise data, political buy-in) before full type certification. |
| Stock Data (ACHR) | Company: Archer Aviation Inc. Price: $8.645 USD. Change: +$0.15. Open: $8.55. Volume: 8,832,214. High/Low: $8.8 / $8.5. Last Trade: Fri, Sep 12, 16:19:15 +0200. |
| Stock Data (JOBY) | Company: Joby Aviation Inc. Price: $14.45 USD. Change: +$0.77. Open: $14.67. Volume: 19,063,169. High/Low: $15.18 / $13.79. Last Trade: Fri, Sep 12, 16:18:31 +0200. |
| Company Analysis |
|
| Root Causes | 1. U.S. industrial policy/geopolitics (June EO). 2. Regulatory rules in place (FAA powered-lift SFAR). 3. Capital formation needs near-term proof (e.g., Archer's raise). 4. Event deadlines (LA28 Olympics). |
| What eIPP Is/Isn't | Is: Supervised, limited trial ops for data gathering (safety, noise, acceptability); at least 5 projects expected. Isn't: A blanket commercial launch; involves waivers, curfews, tight envelopes, and data reporting. |
| Investment Views |
|
| Base Case Economics | Model: Airport connector, 20-30mi, 4 seats + pilot. Assumptions: $140-$200/seat; 65-80% Load Factor; 20-30 cycles/day. Output: ~$10.8k/day/aircraft → ~$3.9M/yr/aircraft. 10 aircraft in 2 cities = ~$39M rev run-rate (proof-of-ops, not profit). Profitability: Hinges on utilization, maintenance, battery life, vertiport opex. Airport connectors can be contribution-positive. |
| Key Risks | 1. Certification delay/scope creep. 2. Community acceptance (Noise is king). 3. Infrastructure friction (vertiports, grid, turn-times). 4. Capital markets (need for equity raises). 5. Competitive first-mover securing best routes (network effects). |
| Near-Term Catalysts | 1. City eIPP selections/MOUs (NYC/LA/Bay Area). 2. FAA eIPP-specific guidance. 3. Factory readiness/low-rate builds (Archer/Stellantis). 4. Demonstration flights mimicking eIPP ops. 5. Partnership integrations (United, Uber/Blade). |
| Recommended Positioning | * Core: JOBY + ACHR barbell (quality + coalition). * Trading: EH on China headlines. * Optionality: Infrastructure/charging plays. * Avoid: Programs with uncertainty (e.g., Supernal). |
| Bottom Line | eIPP is a bridge from prototypes to habits. Winners will lock key airport corridors, prove noise, integrate into travel funnels, and show improving unit economics. Archer and Joby are both U.S. leaders executing the same playbook from different strengths. Position: own both, trade catalysts, size like a regulatory call option on 2026-2028. |
Past performance does not guarantee future results. Investors should consult financial advisors before making investment decisions in speculative aviation companies.