Southwest Airlines (NYSE:LUV) and Archer Aviation (NYSE:ACHR) announced plans today to develop electric air taxi networks at California airports. Archer Aviation specializes in manufacturing electric vertical takeoff and landing (eVTOL) aircraft, considered the future of aviation. Following the announcement, shares of ACHR soared by more than 10% in trading.
Details of the LUV-ACHR Collaboration
Under the agreement, the two companies will collaborate to develop a concept of operations for these networks, connecting California airports with surrounding communities. Southwest, California’s largest air carrier, operates at 14 airports in the state.
Archer’s Midnight aircraft aims to reduce 60-to-90-minute car commutes to 10-to-20-minute air taxi flights. Both LUV and ACHR will work on integrated electric air taxi networks for airports and surrounding communities as part of this collaboration. The partnership will also involve Southwest employees and unions to ensure efficient operations.
The goal of this initiative is to provide Southwest’s customers with a time-saving, zero-emission airport transport service.
Is LUV a Good Buy Now?
Analysts remain sidelined about LUV stock, with a Hold consensus rating based on four Buys, nine Holds, and two Sells. Over the past year, LUV has declined by more than 20%, and the average LUV price target of $27.77 implies an upside potential of 2.1% from current levels.
