United Airlines will buy as many as 200 electric air taxis to ferry customers to airports.
The airline said Thursday it had agreed a deal with electric aircraft startup Archer Ltd.
According to the California-based startup, United will buy $1 billion of its air taxis. Regional carrier Mesa Air Group, Inc. will join United in the purchase. The two companies have an option to buy an additional $500 million worth of air taxis.
Archer said it would go public through a special-purpose acquisition company. The transaction is expected to be around $3.8 billion.
United and Mesa said they intended to use the vehicles to fly passengers over congested traffic and into hub airports. The vehicles are capable of distances of 60 miles at speeds of up to 150 miles an hour.
Archer plans to begin mass production of its flying taxis in 2023. The company will roll out consumer flights by 2024. Before the vehicles can be used commercially they require regulatory approval and meet national aviation requirements.
The companies said electric flying vehicles might help contribute to the reduction of carbon emissions. United said the taxis would cut emissions by nearly half per passenger traveling from Hollywood to Los Angeles International Airport.
Owing to restrictions on battery technologies - particularly their power capacity and weight - electric aircraft are currently suitable for short trips only.
"With the right technology, we can curb the impact aircraft have on the planet, but we have to identify the next generation of companies who will make this a reality early and find ways to help them get off the ground," United chief executive officer Scott Kirby said in a statement.
United previously committed to becoming a carbon-neutral company by 2050. Last year, the company said it would invest in carbon reduction technology. This includes a carbon-capture project that would suck carbon dioxide out of the air.
