UAE heliport operator Air Chateau International is acquiring 100 electric air taxis for around $500 million.

The company has signed a memorandum of understanding (MoU) covering a “planned purchase” of up to 100 electric vertical takeoff and landing (eVTOL) aircraft from Archer Aviation.

Air Chateau plans to own and operate the aircraft in the region, the company said in a statement, without sharing further details.

The agreement with Archer includes a pre-delivery payment of $1 million, which will be made by Air Chateau by year-end.

“The two companies will now work to formalise the definitive agreements covering the planned purchase over the coming months, with $4 million of additional pre-delivery payments contemplated to be paid following signing,” the statement said.

Air Chateau operates a heliport VIP lounge terminal at the land side of Dubai World Central (DWC).

(Writing by Cleofe Maceda; editing by Seban Scaria)