Archer Aviation & Jetex: A Strategic Vertiport Alliance to Dominate eVTOL Mobility

The electric vertical takeoff and landing (eVTOL) sector is entering a critical phase of infrastructure development, with partnerships like that between Archer Aviation (AAVA) and Jetex signaling a pivotal shift toward operational scalability. Announced on June 19, 2025, this alliance merges Archer's cutting-edge eVTOL technology with Jetex's global terminal network, positioning the duo as frontrunners in a market projected to reach $35 billion by 2035 (Morgan Stanley estimates). Let's dissect why this partnership matters and what it means for investors.

The Infrastructure Imperative in eVTOL

The eVTOL market's success hinges on solving a core challenge: vertiport infrastructure. Unlike traditional aviation, eVTOL aircraft require distributed landing pads integrated into urban and suburban ecosystems. Vertiports must accommodate charging, passenger flow, and air traffic control—all at a fraction of the cost and space of traditional airports.

Archer's Midnight eVTOL aircraft, with its 16-rotor design and 60+ nautical mile range, is already certified in the UAE. However, without a robust vertiport network, its operational potential remains untapped. Enter Jetex, which operates 40 private terminals in over 30 countries, including key hubs in the UAE, Europe, and Asia. By repurposing these terminals into hybrid vertiports, Archer can leapfrog competitors still building infrastructure from scratch.

Why the UAE is Ground Zero

The partnership's initial focus on the UAE is no accident. The region's $20 billion aviation infrastructure budget (World Bank, 2023) and regulatory agility—Abu Dhabi recently greenlit the world's first hybrid heliport—position it as a testing ground for urban air mobility (UAM). Jetex's existing terminals in Dubai and Abu Dhabi can be retrofitted with vertiport infrastructure at a fraction of greenfield costs, enabling Archer to:
- Scale rapidly: Deploy charging stations and passenger services using Jetex's logistical expertise.
- Leverage luxury branding: Jetex's clientele includes high-net-worth individuals, aligning with Archer's premium pricing strategy.
- Access regional corridors: The UAE's central location in the Middle East facilitates expansion into Saudi Arabia, Qatar, and India.

Market Leadership Through Vertical Integration

The partnership creates a vertiport-as-a-service (VaaS) model that competitors like Joby Aviation (JOBY) and Lilium (LILM) have yet to replicate. By tying infrastructure to operations, Archer reduces reliance on third-party vertiport developers—a major risk in nascent markets. Key advantages include:
1. Lower capital costs: Jetex's terminals reduce Archer's need to invest in land acquisition and construction.
2. Regulatory alignment: Jetex's experience in aviation compliance accelerates approvals for vertiport designs.
3. Network effects: Each new vertiport expands the service area, attracting more passengers and investors.

Risks and Investment Considerations

While promising, the partnership is conditional on final agreements and regulatory sign-offs. Investors should monitor:
- Execution timelines: Jetex's ability to retrofit terminals without disrupting existing services.
- Regulatory hurdles: FAA and EASA certification for vertiports remains uncertain.
- Competitor moves: Boeing and Airbus are investing in UAM; Archer must stay ahead in infrastructure partnerships.

For investors, AAVA's valuation offers an entry point. The stock trades at a price-to-sales (P/S) ratio of 2.5x, lower than peers like JOBY (3.8x) and LILM (4.1x), despite its stronger vertiport strategy. If the UAE rollout succeeds, AAVA could see a 20-30% premium as it becomes the default infrastructure partner for eVTOL operators.

Final Take: Buy Archer Aviation (AAVA) with a Long-Term Lens

The Jetex partnership is a strategic masterstroke that addresses the eVTOL sector's biggest bottleneck: infrastructure. With a clear path to vertiport scalability and a luxury market niche, Archer is well-positioned to dominate early UAM adoption. Investors should consider a buy-and-hold strategy, particularly if AAVA can secure definitive agreements by year-end. Monitor the stock's EV/Revenue multiple and vertiport milestones for clues on scalability. For the risk-tolerant, this is a chance to own a piece of the future of urban mobility.

In the race to the skies, those who control the landing pads win. Archer just took the runway.