Boeing to Sell Its Air Taxi and Drone Business to Archer Aviation

Aircraft manufacturer Boeing will sell its divisions related to the development of air taxis, drones, and air traffic control systems to Archer Aviation. As part of the deal, Boeing will acquire a stake in Archer and retain access to key autonomous flight control technology.

On August 10, Boeing announced the sale of three of its divisions—Wisk, SkyGrid, and Insitu—to air taxi developer Archer Aviation. Wisk specializes in autonomous flight technologies and the development of electric vertical takeoff and landing (eVTOL) aircraft; SkyGrid focuses on air traffic management systems; and Insitu develops and manufactures unmanned aerial vehicles.

The transaction is expected to close by the end of 2026. The full terms of the deal were not disclosed in the announcement. As part of the deal, Boeing will acquire nearly 20% of Archer’s shares and warrants for shares in the company, which has a market capitalization of $4.7 billion, according to The Wall Street Journal. The companies will also enter into a technology-sharing agreement. Under the agreement, the aircraft manufacturer will retain access to Wisk’s key autonomous flight control technology for use in its current and future commercial and defense aircraft, notes Bloomberg.

Archer's stock jumped 23% during trading on August 10. Boeing's stock rose 0.4%.

The deal reflects Boeing’s desire to focus on its core businesses—commercial aviation and defense—following several years of quality and production issues that led to a change in leadership, Bloomberg notes. Last year, Boeing sold some of its digital aviation services assets, including flight planning service provider Jeppesen, for $10 billion.Wisk was founded in 2019 as a joint venture between Boeing and Kitty Hawk, a company co-founded by Google co-founder Larry Page, but the technology behind it had been in development for more than a decade. According to the company, Wisk has already conducted test flights on six generations of eVTOLs, or electric vertical takeoff and landing aircraft.

In 2022, Boeing invested $450 million in the company to accelerate the development of a fully automated air taxi designed for short trips, the WSJ notes. In 2023, Boeing became the sole owner of Wisk. The company is now scaling back its direct involvement in the development of cutting-edge autonomous aircraft technologies, while maintaining access to key developments in this field, according to Bloomberg.

Archer remains one of the few companies still developing eVTOLs after a number of startups in this sector went public following the pandemic and spent billions of dollars on research and development, according to Bloomberg.

U.S. policy is also contributing to the industry’s growth. The Donald Trump administration announced that eVTOL testing would be a priority under the 2025 executive order on “American Leadership in Drones.” Earlier this year, the U.S. Federal Aviation Administration (FAA) launched a pilot program for eVTOL integration, which includes testing next-generation aircraft.

Bloomberg notes that Boeing's competitor, Airbus, suspended its plans to develop its own flying taxis last year.

This article was AI-translated and verified by a human editor