United Airlines will team up with US regional carrier Mesa Airlines to buy Archer’s electric vertical take-off and landing (eVTOL) aircraft as part of a $1bn order.
The deal is seen as a stamp of approval for start-up Archer, which said it will launch its shares on the US stock market following the deal.
California-based Archer says the taxis will be capable of flying a distance of 60 miles (95km) at 150 miles an hour (240km/h) and could nearly halve carbon dioxide emissions for passengers travelling to the airport.
“With the right technology, we can curb the impact aircraft have on the planet, but we have to identify the next generation of companies who will make this a reality early and find ways to help them get off the ground,” United Airlines chief executive Scott Kirby said in a statement.
United and Mesa have the option to buy another $500m worth of aircraft under the deal.
During the coronavirus pandemic, airlines have been forced to slash costs as planes have been grounded during the travel slump.
Some economists see the pandemic as an opportunity to use these stimulus funds to develop carbon-neutral air travel.
Another flying taxi firm Volocopter is planning journeys into city centres using its VoloCity electric air taxi.
However, ride-sharing business Uber sold off its flying taxi unit Elevate in December.
-BBC NEWS