Archer Aviation announced a partnership with Saudi Arabia’s Public Investment Fund‑backed Helicopter Company (THC) and Red Sea Global (RSG) to launch its Midnight electric vertical‑takeoff and landing aircraft in the Kingdom. The deal, unveiled at the Dubai Airshow, will see a small initial fleet of Midnight aircraft operate under a structured sandbox environment that allows test flights and early revenue generation before the company secures U.S. FAA type certification.
The partnership marks Archer’s first commercial operation in the Middle East and extends its Launch Edition program, which has already secured customers in the United Arab Emirates and Ethiopia. The agreement is expected to begin service in 2026, with the initial operations focused on Red Sea resort destinations and broader Saudi air‑mobility corridors. The sandbox arrangement gives Archer and its partners a controlled setting to validate aircraft performance, safety protocols, and regulatory compliance while building operational experience.
Strategically, the move positions Archer ahead of competitors such as Joby Aviation that are also targeting the region. By partnering with a sovereign‑backed operator and a major tourism developer, Archer gains access to established infrastructure, a supportive regulatory framework, and a high‑growth market aligned with Saudi Arabia’s Vision 2030 goals for advanced air mobility.
Regulatory context remains a key factor. Archer has obtained FAA Part 141, Part 135, and Part 145 certificates, but its Midnight aircraft is still pursuing type certification. The GACA sandbox leverages FAA standards to streamline approval, but the company will still need to meet U.S. certification requirements before it can operate globally.
Financially, Archer reported a $130 million net loss in its third quarter of 2025, a decline from the prior quarter, and a revenue forecast of $2.81 million. The company’s recent $126 million acquisition of Hawthorne Airport in Los Angeles signals a strategic push to secure operational hubs, though investor sentiment remains cautious amid ongoing losses.
CEO Adam Goldstein emphasized the partnership’s importance, stating that “the collaboration with THC and RSG demonstrates Saudi Arabia’s commitment to urban air mobility and provides a real‑world test bed for the Midnight platform.” THC CEO Arnaud Martinez added that “eVTOL is the future of passenger transportation, and Saudi Arabia is poised to lead the transformation.”
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