Archer's Defense Division: Opportunities and Future Aircraft

Archer's new defense division leverages its aircraft platform for affordable, autonomous defense solutions.

### Archer's Expansion into Defense and Urban Air Mobility
* ✈ Archer is not just about air taxis and urban mobility; it is also seizing the opportunity to **expand into the defense sector**, leveraging its **advanced aircraft technology**.
* 🔧 The company is in the late stages of developing its commercial aircraft, which presents a perfect opportunity to **diversify into defense applications**, especially through a partnership with a **leading defense tech company**.
* 🚁 Archer's new hybrid electric vertical takeoff and landing aircraft will maintain similar capabilities to its commercial models, focusing on **low cost** and **reduced acoustic and thermal signatures** for defense use.
* 📉 The trend towards **affordable autonomous aircraft** aligns with the U.S. Department of Defense's needs, allowing Archer to introduce **new capabilities** while **lowering operational costs**.
* 👥 With a team of around a thousand, Archer is well-positioned to build variants of its aircraft to meet diverse applications, especially as the regulatory landscape becomes **more favorable under the new administration**.
* 🌍 The vertical takeoff and landing design of Archer's aircraft means they require **minimal infrastructure**, allowing for **versatile deployment across various military applications** without the need for runways.
* 📅 Archer aims to have its aircraft **commercially available by the end of next year**, starting in the UAE, with the potential for entry into the U.S. market soon after, particularly targeting **major cities like Los Angeles and New York**.
* 🚦 The company is focused on ensuring **safety and compliance with regulatory standards**, which will ultimately determine the **timeline for launching its air taxis** in the U.S. market.

Adam, I think a lot of people, when they envision Archer, when they hear Archer, they think of air taxis; they think of urban mobility. What is the opportunity in defense for Archer?

Yeah, well, I think it's quite common for aircraft manufacturers to participate in both the commercial aspects of the industry as well as the defense aspects. The commercial side of Archer's business has become very mature, and the aircraft is in the late stages of its development and certification program.

And so it was a great opportunity for us to really extend and expand our capabilities and move into the defense side. And of course, partnering with [company name] is an amazing opportunity as they're the premier defense tech company in the world.

So what does that product look like when it's all said and done in partnership with [company name]?

So we're building a hybrid electric vertical takeoff and landing aircraft. It will have a lot of the same capabilities that you've seen on the commercial side. So these are vehicles that can be produced at much lower cost. They're vehicles that have low acoustic,

low thermal signatures. And so applications that will be very helpful towards defense vehicles. I think it's also really important to the U.S. Department of Defense that we add new capabilities. There's this whole new trend in affordable autonomous aircraft that can help bring new capabilities, but also at

Is this about a new administration?
Yeah. So Archer has a team of around a thousand people, and we've been working for a long time on building out the capabilities of our aircraft. As the aircraft matured, it allows us to take that platform and build variants of

You've been working with the Department of Defense for a few years, going back to 2021, but now you're just creating this separate defense division. Why are you doing it now? And what's different about defense tech going into 2025?

it that can be useful across different applications. You combine that with the new administration and you have an incredible opportunity for us to dramatically expand our business. So, on the commercial side, it can be certainly very big, but it also is for

some people hard to define.
On the defense side, it's very clear that there are new needs that the Defense Department is looking for, and we can certainly fill those as well. So the opportunity here really is pretty impressive.

What's the type of infrastructure that has to be in place for the Defense Department at bases here and at outposts around the world in order for this product to succeed?
Well, the beauty is that they're vertical takeoff and landing aircraft, which means we don't need runways.

And so that's one of the big benefits—that you can have these aircraft that can be utilized across many different applications. So you can think about all the things that helicopters do. And then there are certainly things that you can envision that go even beyond

those use cases.
So when you don't need runways, you need limited infrastructure.
I look up at the sky in New York City and I see airplanes from Boeing, Airbus, and others. I still don't see our taxis.
When will I see our taxis?

Well, the air taxes will come to the US as soon as the regulatory pathways clear. And one of the benefits of the new administration is that they are projecting that there will be an easier time to get through some of the regulatory pathways.

That being said, it is still up to Archer to make sure that we produce a safe aircraft. And that's what we really focus on. And I think you'll start to see things sooner than you might expect. What sooner than you might expect? What does that mean in terms of years, counting on one hand?

Oh, yeah, absolutely. Our goal is to have aircraft commercially available in the marketplace by the end of next year. And where would that be? Well, the starting point is in the UAE. So the UAE has created a framework for

us to get to market by the fourth quarter of next year. And so we've been working very closely with the regulators there. But I do think you'll start to see an increasing amount of excitement coming from the FAA as these products get a lot of hours under them in flight testing.

And they're really advanced in the certification programs. And so my guess is it'll be a short time after that that you'll see these aircraft come to market in the US. And if they do come, or when they do come to market in the US, give us a year that you think it would happen.

If all goes according to plan from a regulatory perspective, and where we'll see it in the U.S., what city, what state will this happen first? Yeah, so we've announced several key markets that are important to us.

L.A. is a fantastic market. There are over 5 million daily trips that take greater than an hour by car, going less than 20 miles. So when you start to think about that, just the city of L.A. alone could be bigger than the entire

aviation industry globally. And then you start to think about the other big markets in the U.S. that we concentrate on: New York, Miami. And so there's an amazing opportunity here. It's our job to build a safe aircraft. And once the regulators deem it safe,

that's when we'll ultimately get to market.

How Archer Takes Defense Tech To New Heights

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

Archer's Expansion into the Defense Sector

Archer's transition from commercial to defense applications, leveraging its mature commercial aircraft development.

Partnership with a leading defense technology company to expand capabilities.

Development of a hybrid electric VTOL aircraft for defense purposes.

Focus on low-cost production, low acoustic and thermal signatures for defense applications.

Emphasis on providing new, affordable, autonomous aircraft capabilities to the U.S. Department of Defense.

Reasons for Creating a Separate Defense Division and Current Market Conditions

Explanation of the timing of creating a separate defense division, linked to aircraft maturity and the new administration.

Clearer market needs in the defense sector compared to the less defined commercial market.

Discussion of required infrastructure, highlighting the advantage of VTOL capabilities and minimal runway needs.

Commercial Air Taxi Availability and Market Projections

Air taxi availability dependent on regulatory approvals, expedited by the new administration.

Target launch date for commercial air taxis: end of next year, starting in the UAE.

Collaboration with UAE regulators for market entry in Q4 of next year.

Projected US launch cities: Los Angeles, New York, and Miami, focusing on high-demand travel routes.