Archer Aviation, a California-based eVTOL company, has signed a Memorandum of Understanding (MOU) with Air Chateau International, a premier private aviation operator in the UAE.

As part of this agreement, Air Chateau agreed to purchase up to 100 of Archer’s Midnight eVTOL aircraft valued at USD 500 million in total. The company would also provide an initial non-refundable, pre-delivery payment of USD 1 million by December 31, 2023.

Following this, Air Chateau intends to operate the Midnight aircraft in the UAE. Both companies also plan to collaborate on necessary infrastructure investment. Furthermore, Archer's aims to establish an engineering Center of Excellence aims to bolster the advanced air mobility industry in the UAE and across the Middle East.

Analyst QuickTake: The agreement reinforces Archer's recent plans in October 2023 to initiate air taxi operations in Abu Dhabi and Dubai in 2026. Similarly, in November 2023 , the company also signed a MOU with InterGlobe Enterprises to establish an urban air taxi service in India.