Soracle, Joint Venture by Japan Airlines and Sumitomo, to Purchase Up to $500M in Archer Electric Aircraft

Archer Aviation Inc. (NYSE: ACHR) and Soracle Corporation—a newly established joint venture between Japan Airlines and Sumitomo Corporation—have signed agreements to introduce advanced air mobility (AAM) services in Japan. Soracle intends to deploy Archer’s Midnight electric aircraft for air taxi services in densely populated areas where traditional ground transportation is hindered by traffic or geographic constraints.

Under the agreement, Soracle has secured the option to order up to 100 Midnight aircraft from Archer, an investment estimated at $500 million. This arrangement includes pre-delivery payments tied to specific milestones ahead of final delivery.

Soracle is set to develop a network of flight routes appealing to both local residents and international visitors. Potential route locations include key destinations such as Tokyo, Osaka, Nagoya, Hokkaido, Setouchi, and Okinawa, with the aim of creating a new, convenient air transportation network.

In collaboration with the Japanese Civil Aviation Bureau (JCAB), Archer and Soracle will pursue the necessary certifications to operate AAM services in Japan. Archer has already engaged in discussions with JCAB, working toward aircraft certification in the country.

On September 26, 2024, a signing ceremony was held in Tokyo to formalize the partnership. “Japan is widely respected for its forward-thinking approach to transportation, and this investment in advanced air mobility is another example,” said Andrew Cummins, Senior Director of Business Development at Archer. “Together with Soracle, we are committed to delivering an innovative, sustainable transportation alternative to Japan.”

Yukihiro Ota, Chief Executive Officer at Soracle, added, “Our goal is to enhance accessibility and enrich lives in Japan through eVTOL aircraft operations. With the extensive expertise of Japan Airlines and Sumitomo Corporation, we will ensure safe and reliable service.”

As an initial step towards commercializing AAM in Japan, Archer and Soracle plan a public flight demonstration at the upcoming World Expo. This high-profile event, anticipated to draw around 28 million attendees from Japan, the U.S., and beyond, offers a unique opportunity to introduce the public to their vision for the future of aviation. The Expo’s theme, “Future Society Showcase,” aligns perfectly with this milestone in advanced air mobility.

Archer’s Midnight aircraft is engineered to provide a quiet, sustainable alternative to ground transportation:

  • Capable of reaching speeds up to 150 mph, transforming hour-long commutes into minutes
  • Optimized for frequent, short flights of 20-50 miles with minimal recharging time
  • 100 times quieter than helicopters at cruising altitudes
  • Designed with redundant systems for safety comparable to commercial airliners
  • Piloted aircraft with seating for four passengers and carry-on luggage

Together, Archer and Soracle are charting a new path for urban transportation in Japan, with the goal of making safe, accessible, and eco-friendly air mobility a reality.

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