eVTOL manufacturing, 787 order, Ryanair ups profit forecast - Jan 5
Stellantis to manufacture Archer Aviation's eVTOL air taxi
Auto maker Stellantis ($STLA) announced Wednesday that it will help build Archer Aviation's ($ACHR) electric "Midnight" air taxi. Stellantis also announced it is increasing its stake in Archer through stock purchases in the open market.
Archer Aviation plans to launch an electric vertical takeoff and landing (eVTOL) aircraft that it will market as an air taxi for shuttling passengers to airports or between nearby cities. The company's initial aircraft is designed for back-to-back trips of around 20 miles, with 10 minutes of charging time in between trips.
The two companies hope Stellantis' involvement as Archer's exclusive contract manufacturer will enable mass production of the eVTOL aircraft. Stellantis was formed upon the merger of Fiat Chrysler and Peugeot, and will also provide up to $150 million of equity capital for Archer to draw at its discretion between 2023 and 2024, subject to hitting specific milestones laid out in the deal.
Boeing receives Hawaiian Airlines order for two 787 Dreamliners
Hawaiian Airlines ($HA) filed a declaration with the US Securities and Exchange Commission yesterday for the purchase of two new 787-9 Dreamliners from Boeing ($BA). The airline is also deferring delivery of ten other 787s already on order, according to the filing.
Current plans have Boeing delivering one 787 to Hawaiian in 2023, three in 2024, and the remainder by 2027. This projection includes some delays from the original delivery schedule for the first ten aircraft, and likely is a reflection of supply chain constraints.
Travel demand since the pandemic has recovered for Hawaiian, and now even exceeds pre-COVID demand for several Hawaiian destinations.
Czech government may increase defense spending to 2% GDP
The Czech government approved a draft law raising defense spending to 2% of GDP beginning in 2024, Prime Minister Petr Fiala announced Wednesday. This defense spending target would reflect the current NATO alliance spending pledge. If the draft law is ratified, the Czech Republic will increase spending by $951.54 million USD. The Czech Republic is already in negotiations with the United states to purchase 24 Lockheed Martin ($LMT) fighter jets.
Ryanair increases FY2023 profit forecast
Irish low-cost-carrier Ryanair announced it expects to report higher than planned third quarter profits and is raising its FY2023 profit guidance from an initial range of €1.00 billion - €1.20 billion up to a new range of €1.325 billion - €1.425 billion. This increase is an 18.8% jump and reflects strong performance last quarter.
Kenya Airways shares trading suspended again
Kenya Airways continues to face financial woes, leading the Nairobi Securities Exchange to suspend trading of Kenya Airways shares until Jan 5, 2024. The suspension, according to the Nairobi Securities Exchange, is to allow for an "operational and corporate restructure process."