Archer Aviation buys Hawthorne Airport for $126 million

Archer Aviation, a leading developer of electric vertical takeoff and landing (eVTOL) aircraft, has just made one of its boldest moves yet. The company agreed to acquire Hawthorne Airport for $126 million in cash.

According to Archer’s latest shareholder letter, the deal includes the remaining 30 years of the airport’s master lease and an exclusive option to take a majority stake in the on-site fixed base operator, subject to city approval.

This 80-acre historic site includes approximately 190,000 square feet of terminals, offices and hangars. Its location near LAX and major Los Angeles destinations makes it a prime location for an air taxi network that aims to change the way people get around crowded cities.

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Why Hawthorne Airport is important for the new air taxi network

Archer Aviation plans to use the airport as the primary operational hub for its Los Angeles air taxi network. The company also plans to prepare the site to support transportation during the LA28 Olympic and Paralympic Games. This includes managing everything from takeoff planning to ground operations. In its letter to shareholders, Archer touts Hawthorne as a “plug-and-play” anchor platform for its LA28 Olympic plans, saying it plans to accelerate on-site aircraft testing, storage, maintenance and charging as it prepares for commercial service.

The airport will also become a testbed for next-generation AI-powered aviation systems. These tools will help Archer develop smarter air traffic management, faster turnaround times and safer operations in congested airspace.

Archer outlines a two-phase plan in the letter. Phase 1 focuses on the redevelopment of up to 200,000 square feet of hangars and FBO control, while Phase 2 focuses on AI air and ground traffic management, smart runways equipped with integrated sensors and a more digital and streamlined passenger experience.

Michael Leskinen, Chief Financial Officer of United Airlines, welcomed the move and said: “Archer’s trajectory confirms our belief that eVTOLs are part of the next generation of air traffic technology that will fundamentally reshape aviation. Their vision for an AI-powered operational platform isn’t just about eVTOLs, it’s also about leveraging cutting-edge technology to better enable the movement of people safely and efficiently through our most congested airspaces. we invest in companies like Archer that are pioneering the technologies that will define and support aviation infrastructure for decades to come. »

Meanwhile, Hawthorne Mayor Alex Vargas celebrated the deal on social media, writing “WELCOME ARCHER TO THE CITY OF HAWTHORNE!” »

Archer plans to make Hawthorne Airport the primary hub for its Los Angeles air taxi network. (Archer Aviation)

Neighbors outraged by takeover of “AI air taxi”

Not everyone likes Archer’s plan to make Hawthorne a flagship hub for AI-guided flying taxis. A local group called Hawthorne Quiet Skies, made up of residents living around the airport, says it was blindsided by the $126 million buyout and that no one from the company or city bothered to engage it before announcing a “test bed for AI-powered aviation technologies” on homes.

Neighbors who live just across the street and a few blocks from the runway describe Hawthorne as one of the most populated airports in the country, with houses on three sides and years of complaints about deafening noise from planes and helicopters. The city’s own 2021 noise study identified more than 160 homes and about 480 people already exposed to unhealthy noise levels, but residents say there has been “no progress” on mitigation, even though the airport has transitioned from small private planes to commercial traffic and is now a 24-hour eVTOL hub.

The group also sounds the alarm over Archer’s AI ambitions, pointing to academic research that current machine learning systems in aviation still struggle to handle unusual conditions and lack formal safety guarantees.

They argue that regardless of the promises of cleaner, futuristic air taxis, Hawthorne is being used as a live test site without clear safeguards, updated federal noise rules or any serious plans to compensate families if incessant eVTOL traffic makes their homes too noisy to live in.

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How Archer Aviation is financing its growth and expanding its air taxi program

Alongside the airport news, Archer reported significant financial momentum. The company raised an additional $650 million in equity capital, bringing its total liquidity to more than $2 billion. The company’s Midnight aircraft also achieved new flight milestones, including a 55-mile flight at more than 126 mph and a climb to 10,000 feet.

Archer has also expanded its global technology footprint. It completed the acquisition of Lilium’s patent portfolio, bringing Archer’s total intellectual property to more than 1,000 global assets. These patents cover ducted fans, high voltage systems, flight controls and other key technologies.

International expansion is also underway. Archer has started test and demonstration flights in the UAE and has entered into new partnerships with Korean Air as well as Japan Airlines and Sumitomo’s JV in Osaka and Tokyo.

The airport will serve as a testbed for next-generation AI aviation systems designed to more safely manage busy airspace. (Archer Aviation)

What does this mean for you

The Archer airport deal suggests air taxis are moving closer to everyday use. This change could result in shorter journeys through major cities, at a fraction of the current travel time. It could also bring quieter planes over neighborhoods than helicopters.

For Los Angeles residents, Hawthorne Airport could become a central point for quick point-to-point travel once certification moves forward. Visitors arriving by plane for major events like the LA28 Olympics might consider air taxis as a simple alternative to congested highways.

Businesses could benefit from new rapid transportation options across the region. The move also signals more investment and jobs in advanced aviation, automation and clean electric travel.

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Kurt’s Key Takeaways

Archer’s acquisition of Hawthorne Airport marks a major step in the race to build a true air taxi network, giving the company the planes, financing and prime location it needs to move the industry forward. The focus on AI-driven operations shows how automated aviation could soon play a much bigger role in daily life, even as regulators are still working out how to safely integrate these planes into crowded cities. At the same time, the move is already drawing backlash from neighbors who worry about increased noise and safety risks and turning it into a test site for AI-guided planes with no real say. If Archer can convince regulators, investors and communities living just beyond the fence line, this step could make the future of urban flight much closer, for better or worse.

If air taxis became a real option in Los Angeles by 2028, would you try one for your daily commute or stay on the ground? Let us know by writing to us at Cyberguy.com.

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