Boeing Sells Air Taxi Startups to Archer Aviation

Boeing is offloading three of its electric vertical takeoff and landing (eVTOL) subsidiaries to Archer Aviation, while also acquiring an undisclosed stake in the San Jose-based firm. The subsidiaries being sold include Wisk Aero, known for its work on autonomous electric aircraft; SkyGrid, which is developing air traffic management systems for urban air taxis; and Insitu, a manufacturer of high-altitude drones utilized by the US Navy. As part of this agreement, Boeing and Archer will collaborate on technology, with Boeing retaining access to Wisk’s autonomous flight systems for its ongoing and future commercial and defense initiatives.

This move likely allows Boeing to concentrate on its financial health regarding its primary commercial airplane business, while simultaneously strengthening Archer’s position in the competitive race to launch electric air taxis for commercial use. Boeing is currently grappling with a staggering $715 billion backlog, which includes over 6,200 aircraft that customers have ordered but that the aerospace giant has yet to produce. Additionally, the company is under significant regulatory scrutiny following several high-profile safety incidents, including a Boeing 737 Max that experienced a fuselage failure mid-flight in 2024.

On the other hand, Archer is gearing up to initiate pilot air taxi services in various markets, including New York, Texas, and Florida, by the end of the year. The company is also aiming to establish itself as a military supplier, having recently introduced a new eVTOL aircraft developed in collaboration with Palmer Luckey’s defense tech firm, Anduril.

“This transaction is a win-win for Boeing and Archer,” stated Brian Yutko, Boeing’s vice president of Commercial Airplanes Product Development. “It enables Wisk, SkyGrid, and Insitu to speed up capability development and market entry while ensuring Boeing benefits from its investments in these technologies over the last two decades through ongoing development in our core businesses.”

Archer CEO Adam Goldstein described the deal as “a watershed moment” that signifies a major leap forward for Archer in becoming a diversified platform, rapidly expanding its revenue base and scaling its operations.

Wisk was established in 2019 as a joint venture between Boeing and Kitty Hawk, the flying taxi startup funded by Google co-founder Larry Page. Wisk has designed, built, and flown six generations of its eVTOL aircraft, completing over 1,700 flight tests. Notably, Wisk filed a lawsuit against Archer in 2021, alleging theft of trade secrets and patent infringement. The two parties reached a settlement in 2023, with Wisk agreeing to be the exclusive provider of autonomous flying technology to Archer.