The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Sebastian Pellejero
NEW YORK, August 12 (Reuters Breakingviews) - Boeing BA.N has found a way to fly taxis without leaving solid ground. The aerospace giant is offloading three of its subsidiaries including electric aircraft manufacturer Wisk Aero after spending millions on the possibility of cabs in the sky. Such transportation methods are years away from widespread use and the sector is bleeding money. The 747 maker's latest maneuver is sign that takeoff is nowhere in sight.
Boeing agreed on Monday to sell the trio, which also includes a drone unit and airspace software division, to Archer Aviation for a roughly 20% stake. The company led by Kelly Ortberg sank $450 million into Wisk in 2022 before buying it outright a year later. Archer, meanwhile, lost $618 million in profit last year as it invests in test flights, factories and certification paperwork. It is worth about $5 billion, or roughly half of where it was trading a year ago after it went public through a merger with a blank check company in 2021.
Furthermore, the industry is far from getting the green light to operate from regulators. The Federal Aviation Administration has not granted certification to any electric taxi for passenger service. Europe is stuck in a similar holding pattern.
So far, the overall industry has burned through $12 billion globally, Jefferies analysts reckon. German startup Lilium also went public through a special-purpose acquisition company five years ago and went bankrupt twice. Another German company, Volocopter, was worth some $1.7 billion before it was bought out of insolvency by a subsidiary of China's Wanfeng. Hyundai paused its Supernal air-taxi venture last September after investing at least $1 billion.
Survivors are looking for money-making alternatives. Archer's main rival Joby Aviation bought Blade Air Mobility's passenger business in August 2025 for up to $125 million in a cash-and-stock deal. The helicopter-focused operation currently supplies nearly all of its revenue. Vermont-based BETA Technologies is testing electric aircraft for cargo and medical logistics, including a recent FAA-backed flight carrying an animal organ.
Meanwhile, the United States government is quickly becoming a top customer. Archer will inherit a profitable drone manufacturer earning over $200 million in annual revenue. Joby went further Tuesday, agreeing to pay $500 million for Resonant Sciences, a defense electronics firm whose sales grew 40% last year to $100 million in the last 12 months.
Still, investors with conviction in a Jetsons-like future of passenger air travel should budget for a long taxi to the runway.
CONTEXT NEWS
Boeing said on August 10 it agreed to sell three subsidiaries, including electric aircraft maker Wisk Aero, to Archer Aviation in exchange for a 20% stake in the flying taxi company.
JPMorgan is serving as a financial advisor to Boeing while Moelis advised Archer.
(Editing by Jennifer Saba; Production by Maya Nandhini)
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