United, together with its regional airline partner Mesa Airlines, has entered into an agreement for the purchase of up to 200 electric vertical takeoff and landing (eVTOL) aircraft from the air mobility company Archer.
United envisions that the $1 billion order, which includes an option for an additional $500 million in aircraft, will give its customers a quick, economical and low-carbon way to commute to its hub airports through large urban areas within the next five years.
Palo Alto, Calif.-based Archer is working toward development of a battery-powered eVTOL aircraft that would travel up to 60 miles at a speed of up to 150 mph.
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The Wednesday announcement is part of United's broader commitment to eliminating its carbon footprint by 2050. The carrier also recently became the first airline to announce a commitment to investing in direct air capture technology, which sequesters carbon from the atmosphere and buries it underground.
The commitment by United and Mesa to purchase Archer aircraft coincided with an announcement that Archer would combine with the special purpose acquisition company (SPAC) Atlas Crest Investment to be traded on the New York Stock Exchange. SPACs are shell corporations that partner with companies to go public without going through the traditional IPO process.
Archer plans to unveil its first full-scale eVTOL aircraft this year.
United said it will contribute its expertise in airspace management to assist Archer with the development of the aircraft.
Once the aircraft is up and flying, United and Mesa anticipate contracting with another partner for operations.