Boeing Sells Air Taxi Startups to Archer Aviation in Major Deal

Aerospace giant Boeing is selling three of its key aviation subsidiaries to San Jose-based Archer Aviation in a major consolidation of the electric flight sector. Under the newly announced agreement, Archer acquires drone manufacturer Insitu, air traffic software developer SkyGrid, and self-flying air taxi pioneer Wisk Aero for an undisclosed sum. In tandem with the acquisition, Boeing is securing a financial stake in Archer, cementing a strategic partnership that reshapes the competitive landscape of next-generation aviation.

The transaction includes a comprehensive technology-sharing agreement where both companies exchange proprietary innovations. Archer gains immediate control over Insitu's military-grade high-altitude drones, SkyGrid's urban airspace management systems, and Wisk's autonomous flight software. Meanwhile, Boeing retains vital access to Wisk’s autonomous systems to support its own commercial and defense initiatives. This multi-layered deal allows the two companies to pool their research and development resources, accelerating the timeline to bring pilotless electric vertical takeoff and landing aircraft to the commercial market.

This massive restructuring comes as Boeing navigates severe financial and regulatory headwinds. The manufacturing giant currently grapples with a staggering $715 billion backlog of over 6,200 unbuilt aircraft alongside intense federal oversight following safety failures, including a high-profile mid-flight fuselage blowout on a 737 Max aircraft. Offloading these subsidiaries allows Boeing to refocus capital on its core commercial airliner business. The deal also represents the resolution of a turbulent history between the firms; Wisk previously sued Archer in 2021 for patent infringement and trade secret theft, a dispute that ended in a 2023 settlement designating Wisk as Archer's exclusive autonomous technology provider.

Industry analysts view this consolidation as a watershed moment that rapidly scales Archer's business model and diversifies its revenue streams. By absorbing established defense and traffic management divisions, Archer transitions from a singular air taxi developer into a multifaceted aerospace platform. Simultaneously, the arrangement allows Boeing to monetize two decades of experimental technology investments while offloading the heavy operational costs of startup development. This strategic alignment ensures that both entities share the rewards of autonomous flight technology without duplicating expensive research efforts.

The acquisition drastically alters the race to commercialize electric vertical takeoff and landing aircraft. By absorbing Wisk’s extensive flight history, which includes over 1,700 successful test flights across six generations of aircraft, Archer gains an invaluable database of real-world flight telemetry. Furthermore, acquiring Insitu immediately establishes Archer as a viable defense contractor. This military capability is already expanding through Archer's recent collaboration with defense technology firm Anduril to co-develop specialized military aircraft, positioning the company as a dual-use aerospace leader in both civilian and defense markets.

Looking ahead, Archer is poised to launch its first pilot air taxi services in major metropolitan hubs across New York, Texas, and Florida before the end of the year. The integration of SkyGrid’s traffic management systems will be crucial as these urban flight networks expand from limited trials into fully operational transit systems. As Boeing works to clear its commercial backlog and restore public trust, Archer will spearhead the deployment of autonomous, zero-emission aerial ridesharing, transforming how people and cargo move through congested city skies in the coming decade.

Originally reported by The Verge