BELGRADE, Serbia — Archer Aviation (NYSE: ACHR) has officially solidified its position as the undisputed frontrunner in the global race for electric vertical takeoff and landing (eVTOL) supremacy. In a high-profile signing ceremony at the 2026 World Economic Forum in Davos, Archer and the Government of the Republic of Serbia announced a comprehensive Memorandum of Understanding (MoU) to build a robust advanced air mobility (AAM) ecosystem in the Balkan nation. This partnership, which positions Archer as the "Official Air Taxi Partner" for the upcoming EXPO 2027 in Belgrade, marks the company’s first major industrial and operational foothold in Europe, coming at a time when its domestic competitors on the continent have largely faltered or consolidated.

The deal is more than just a symbolic gesture for the future of flight; it is a calculated industrial play. Beyond providing the "Midnight" aircraft for passenger transport during the EXPO, Archer will work with Serbian authorities to develop a network of vertiports connecting Belgrade Nikola Tesla Airport to the EXPO 2027 district and the luxury Belgrade Waterfront. With an option for the Serbian government to purchase up to 25 Midnight aircraft, Archer is effectively leveraging Eastern Europe as a strategic launchpad for its broader European expansion, bypassing the regulatory and financial gridlock that has stalled rival projects in Western Europe over the last two years.

Building the Balkan Skyway: EXPO 2027 and Beyond

The partnership between Archer and Serbia follows a multi-year effort by the Serbian government to modernize its infrastructure ahead of the "Play for Humanity" EXPO 2027. Under the terms of the MoU, Archer will begin trial flights and pilot training programs in late 2025, with full-scale commercial operations targeted to coincide with the opening of the EXPO. The Serbian government has prioritized the creation of a dedicated regulatory framework for eVTOLs, aiming to have it finalized by mid-2026. This fast-track approach mirrors the strategies seen in the United Arab Emirates, where Archer has already established a significant presence.

The timeline leading to this moment has been rapid. In early 2025, Archer successfully completed its first piloted transition flights, proving the viability of its Midnight aircraft in real-world conditions. While the company is currently in Stage 4 of the FAA type certification process in the United States, its "Global Push" strategy has focused on securing secondary markets where government support is high and infrastructure can be built with minimal friction. Key stakeholders in the Serbian deal include the Abu Dhabi Investment Office (ADIO), which has collaborated with Archer on its Middle Eastern expansion, and several Serbian industrial partners who are exploring the mining and processing of rare earth magnets and critical battery minerals within Serbia to support Archer’s manufacturing supply chain.

The eVTOL Shakeout: Winners and Losers

As of January 2026, the competitive landscape of the air taxi industry has fundamentally shifted, leaving Archer Aviation (NYSE: ACHR) in a commanding position. The clear winner in this scenario is Archer’s primary manufacturing partner, Stellantis NV (NYSE: STLA). The automotive giant has successfully scaled production at Archer’s high-volume manufacturing facility in Covington, Georgia, which is now on track to produce two aircraft per month. This industrial muscle has allowed Archer to absorb the intellectual property of its once-formidable rival, Lilium, which declared bankruptcy in late 2024. By acquiring Lilium’s patent portfolio in October 2025, Archer effectively neutralized its primary European competitor while gaining access to advanced ducted-fan and battery technologies.

On the losing side of this transition are the remnants of the European eVTOL pioneers. Volocopter, once the darling of German engineering, was saved from liquidation by China’s Wanfeng Group in early 2025 but has struggled to regain its momentum, still trailing Archer in the race for EASA certification. Furthermore, traditional short-haul regional airlines and luxury ground transport services in highly congested cities like Belgrade, Dubai, and Mumbai are facing an existential threat. As Archer prepares to launch its 7-minute "airport-to-city" shuttle in Delhi later this year through its partnership with InterGlobe Enterprises (the parent of IndiGo), the value proposition of traditional taxi services is rapidly eroding.

An Industrial Strategy Disguised as Transport

The significance of the Serbia deal extends far beyond air taxis. It represents a broader industry trend where eVTOL companies are moving away from being mere "operators" and toward becoming vertically integrated industrial powerhouses. Archer’s focus on Serbia’s mineral wealth—specifically for battery production—suggests that the company is securing its supply chain against future geopolitical shocks. This move reflects a sophisticated understanding of the "green economy," where control over the raw materials for electrification is just as important as the aircraft themselves.

Furthermore, this event highlights a growing regulatory divergence. While the FAA in the United States remains the "gold standard" for certification, Archer is successfully utilizing a "gateway strategy" by partnering with nations like Serbia and the UAE that are willing to fast-track local certifications. This creates a ripple effect, pressuring more conservative regulators in Western Europe to accelerate their own frameworks or risk losing out on the economic benefits of the AAM revolution. Historically, this mirrors the early days of the aviation industry, where nations that embraced infrastructure early, such as the U.S. and the UK, became the dominant global players for decades.

The Final Ascent: What Comes Next

In the short term, investors will be watching for the formal delivery of the first three Midnight aircraft to Belgrade for pilot training, expected by the third quarter of 2026. Long-term, the success of the Serbian partnership will serve as a blueprint for Archer’s expansion into other non-EU European markets and eventually the broader Eurozone. The primary challenge remains the final hurdle of FAA and EASA type certification; however, with its Part 135 Air Carrier Certificate already in hand, Archer is essentially a "plug-and-play" airline waiting for its hardware to be finalized.

Strategic pivots are already underway as Archer shifts its focus from "can we fly?" to "how many can we build?" The scalability of the Covington facility, backed by Stellantis (NYSE: STLA) expertise, will be the true test of Archer’s valuation in the coming year. As the company eyes a production target of 650 aircraft annually by 2030, the market will likely see increased volatility as Archer moves from a speculative growth stock to a capital-intensive industrial manufacturer.

Market Wrap-Up and Outlook

The partnership with Serbia cements Archer Aviation’s status as a global leader that is successfully navigating the "trough of disillusionment" that claimed many of its peers. By securing sovereign partnerships, industrial supply chains, and a massive order backlog from the likes of United Airlines (NASDAQ: UAL) and InterGlobe, Archer has built a "moat" that is becoming increasingly difficult for competitors to cross.

Moving forward, the market should look for two key indicators: the progress of "for-credit" testing with the FAA and the announcement of similar infrastructure deals in Japan and South Korea. Archer’s ability to turn the Belgrade EXPO 2027 into a flawless operational showcase will likely determine the pace of eVTOL adoption globally. For now, the "Midnight" over Belgrade is no longer a dream of the future—it is a cornerstone of a new global transport reality.

This content is intended for informational purposes only and is not financial advice.