Boeing offloads eVTOL assets to Archer Aviation in strategic pivot
Archer Aviation acquires subsidiaries for undisclosed sum, taking Boeing stake while securing exclusive autonomous flight technology rights
Boeing has agreed to sell three of its electric vertical takeoff and landing (eVTOL) subsidiaries to Archer Aviation for an undisclosed sum. The entities being acquired include Wisk Aero, SkyGrid and Insitu. As part of the transaction, Boeing will take an equity stake in the San Jose-based Archer and retain access to Wisk’s autonomous flight systems for its core commercial and defence projects.
The divestment allows Boeing to concentrate resources on its significant aircraft backlog, which currently stands at $715 billion representing more than 6,200 planes. The company is also navigating intense regulatory scrutiny following safety incidents, including a 2024 event where a Boeing 737 Max lost a section of fuselage mid-flight.
Archer Aviation aims to accelerate its commercial air taxi services using the acquired assets. The company plans to launch pilot services in New York, Texas and Florida before the end of the year. Archer is also positioning itself as a military supplier, having recently unveiled an eVTOL aircraft co-developed with Anduril, the defence technology firm founded by Palmer Luckey.
Wisk Aero, originally established in 2019 as a joint venture between Boeing and Kitty Hawk, has conducted over 1,700 flight tests across six generations of eVTOL aircraft. SkyGrid is developing air traffic management systems for urban air taxis, while Insitu manufactures high-altitude drones used by the US Navy.
The transaction resolves a previous legal dispute between the companies. Wisk sued Archer in 2021 over alleged trade secret theft, and the parties settled in 2023 with Wisk agreeing to be Archer’s exclusive provider of autonomous flying technology.
Brian Yutko, Boeing’s vice president of Commercial Airplanes Product Development, described the deal as a win-win that allows the acquired entities to accelerate capability development. He noted the move ensures Boeing capitalises on its investments over the past two decades through continued development in its core businesses.
Archer CEO Adam Goldstein called the acquisition a watershed moment for the company. He stated it represents the next big step in becoming a diversified platform, rapidly growing its revenue base and bringing scale to its business.
