Shares of Archer Aviation (NYSE:ACHR) are in the green after the electric vertical take-off and landing (eVTOL) company announced that it had received its first payment of nearly $1 million from the U.S. Air Force. The Air Force paid the sum in exchange for a mobile flight simulator and as part of contracts valued at up to $142 million.
“U.S. Air Force and Archer will begin training Air Force pilots and personnel on Archer’s eVTOL aircraft capabilities through flight simulation before advancing to piloted flight testing with Archer’s Midnight aircraft,” said Archer.
Archer expects to receive additional payments from Air Force in the future under its AFWERX Agility Prime program.
ACHR Stock: Archer Receives Its First Air Force Payment
The mobile flight simulator will help the Air Force advance training, flight controls, and knowledge of operational capabilities for Archer’s civilian use eVTOL aircraft platform. Archer will also display the simulator at public events in order to increase awareness and engagement.
Additionally, Archer noted that more of its deliverables are already in the process with the Air Force. These include wind tunnel testing reports, project specific certification plans (PSCPs) and Subject Specific Certification Plans (SSCPs). CEO Adam Goldstein said:
“Archer’s eVTOL technology can help maintain the United States’ position as a global leader in aviation. To see our historic contract with the U.S. Air Force move from signature to execution at a rapid pace is a reflection of the strong commitment that the U.S. Department of Defense has made to securing our country’s future by investing in transformational technology.”
Archer’s flagship product is its Midnight aircraft, which was designed for brief trips. It carries a range of up to 100 miles and has a max speed of 150 mph. Furthermore, the aircraft is powered by six battery packs, of which each powers a pair of electric engines.
In August, the company announced that it had received the FAA Special Airworthiness Certificate for the Midnight. This certificate will allow Archer to begin Midnight test flight operations. Archer expects to begin “For credit” testing of the aircraft in early 2024.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
