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The Canadian Competition Bureau has concluded that a proposed coordination arrangement between Air Canada and United Airlines would likely harm competition on 10 transborder routes.
Joby Aviation and Archer Aviation are turning to Pentagon defense contracts as a critical revenue bridge while awaiting FAA certification and commercial eVTOL service launches. Joby has a $163 million Air Force contract and acquired Resonant Sciences for $500 million for defense operations, while Archer has a $142 million Air Force contract. Defense revenue provides early, reliable cash flow as both companies face years of cash outflows before commercial viability, though commercial adoption faces headwinds including congested airspace concerns.
Despite analyst price targets suggesting upside potential, Archer Aviation faces significant headwinds including FAA certification delays for its Midnight eVTOL aircraft, ongoing patent litigation with Vertical Aerospace, substantial cash burn ($284.2M loss in Q2), and intense competition from well-funded rivals like Joby Aviation and international competitors. The company remains pre-revenue on its core business while experiencing significant share dilution.
Airline shares are rallying Thursday after Southwest Airlines Co. (NYSE: LUV) beat Wall Street's third-quarter estimates.