Archer inks deal to bring electric air taxis to Japan

Driving the news: Archer said it signed an agreement with Soracle Corp., a joint venture between Japan Airlines and Sumitomo Corp., that could be worth up to $500 million.

• Soracle plans to begin air taxi operations in Japan using Archer's Midnight electric vertical takeoff and landing aircraft.
• The deal includes pre-delivery payments based on certain milestones in advance of aircraft delivery, the companies said.
• Potential routes include Tokyo, Osaka, Nagoya, Hokkaido, Setouchi and Okinawa.

Zoom in: Archer's aircraft, which ascends and descends like a helicopter, can fly up to 150 miles an hour and is designed for flights between 20 and 50 miles with minimal charge time in between.

• The companies plan to introduce the future of aviation with a flight demonstration during the 2025 World Expo in Osaka.

What's next: The Japanese Civil Aviation Bureau still has to sign off on the plan.

• Archer and Soracle said they'll work closely with the agency to obtain the necessary permissions and certifications.