Ethiopian Airlines and Archer team up to launch air taxis in Africa

Agreement follows Archer's similar deal with Abu Dhabi this week in a growing trend of airlines partnerships

Archer Aviation's Midnight aircraft can hold four passengers. Photo: Archer Aviation

Ethiopian Airlines, Africa’s largest carrier, has signed an agreement with New York-listed Archer Aviation to develop an air taxi network in Africa. This is part of a growing trend of airlines looking to become early adopters in the future market.

The airline plans to operate the company’s initial fleet of Midnight aircraft amid growing potential in the sector. As part of the agreement signed this week in Addis Ababa, the two companies will work together to bring an all-electric air taxi network to the continent, they said in a statement on Thursday.

Archer will provide the airline with a team of pilots, technicians and engineers to support the initial operations of the Midnight aircraft in Ethiopia as part of the deal. The companies are also exploring the use of the aircraft to support other sectors, including eco-tourism.

However, the companies did not provide a timeline for starting of the services.

The Midnight aircraft forms part of Archer’s “launch edition” programme, valued up to $30 million. The aircraft can hold four passengers and is designed to perform back-to-back flights with minimal charge time between trips.

Ethiopian Airlines is the second customer for Archer in the launch edition segment, after it signed an agreement with Abu Dhabi Aviation this week to deploy the first fleet of its Midnight electric vertical take-off and landing (eVTOL) aircraft globally, starting this year.

“Our partnership with Archer Aviation marks an important step in bringing cutting-edge eVTOL technology to Ethiopia,” said Mesfin Tasew, group chief executive of Ethiopian Airlines. “Together, we aim to redefine regional travel and create new opportunities for efficient, eco-friendly transportation."

Mesfin Tasew, group chief executive of Ethiopian Airlines, left, signed the agreement with Archer Aviation. Photo: Ethiopia Airlines

Air taxis to take off

The global electric aircraft market will be worth about $17.8 billion by 2028, according to consultancy McKinsey. The demand for all-electric vehicles is set to grow sixfold by 2030, with about 40 million units sold a year, it added.

There have been other agreements to operate air taxi services in the region. Last year, Dubai’s Roads and Transport Authority signed an agreement with the UK-based Skyports Infrastructure and all-electric aircraft company Joby Aviation to launch passenger air taxi services in the emirate by 2026.

Under the agreement, the authority will oversee the air mobility services, with Joby given the exclusive right to operate air taxis in Dubai for six years.

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Skyports was granted exclusive rights to design, construct and operate a network of vertiports – launch and landing areas for the air taxis.

Last year, Joby also announced a partnership with Mukamalah, a wholly owned subsidiary of Saudi Aramco, the operator of the world’s largest fleet of corporate aircraft, to introduce Joby’s aircraft to Saudi Arabia.

The new announcement follows a joint venture agreement signed this month by Ethiopian Airlines and Abu Dhabi's Etihad Airways to develop routes between the UAE and Ethiopia, tapping into the growing aviation markets in the countries. The partnership, which is subject to a regulatory approval, includes a codeshare arrangement and the launch of new flights between the capitals of the two countries.