Southwest Airlines unveils electric air taxi venture

NEW YORK

U.S. carrier Southwest Airlines plans to jointly develop a fleet of electric air taxis to serve the California market with transportation startup Archer Aviation, the companies have announced.

The two companies signed a memorandum of understanding envisioning Southwest making use of Archer's "Midnight" aircraft throughout the nation's largest state, offering short trips from California's 14 airports.

Begun as an aviation venture in 2018, Archer has been working to gain Federal Aviation Administration certification of its electric vertical takeoff and landing (eVTOL) aircraft.

The company's Midnight eVTOL can carry four passengers in addition to a pilot.

The 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," said a joint press release.

The Southwest venture follows a joint announcement from Stellantis and Archer earlier this month in which the automaker agreed to an additional $55 million investment in the startup.

Southwest is the fourth-biggest U.S. carrier after American, United and Delta.

In June, Archer received an FAA certificate to begin commercial operations to refine and improve its systems ahead of launching for Southwest and United Airlines, which also has collaborated with the company. Archer could receive FAA certification as soon as 2025, an Archer spokeswoman said.

Last week, French officials gave the go-ahead for construction of a floating landing pad on the River Seine for flying taxis set to be shown off during the Paris Olympics.