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Archer Aviation (NYSE:ACHR) announced on Thursday that the eVTOL company signed a memorandum of understanding with Air Chateau International detailing the purchase of 100 Midnight aircraft worth up to $500M. Air Chateau was noted to be one of the leading private aviation operators in the United Arab Emirates.
The deal terms include an initial non-refundable, pre-delivery payment of $1M by December 31.
Air Chateau plans to own and operate the Midnight aircraft in the region. The two companies will now work to formalize the definitive agreements covering the planned purchase over the coming months, with $4M of additional pre-delivery payments contemplated to be paid following signing. The relationship is intended to further strengthen Archer Aviation’s (ACHR) recently announced plans to commence air taxi operations in both Abu Dhabi and Dubai in 2026. The parties intend to explore opportunities to collaborate on bringing in the infrastructure investment necessary for these cities to be ready for these planned operations.
Shares of Archer Aviation (ACHR) fell 2.73% in late afternoon trading on Thursday.