Archer Aviation buys Hawthorne Airport for $126 million air taxi hub

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.

The deal includes the remaining 30 years of the airport's master lease and an exclusive option to take a majority stake in the local fixed-line operator, subject to city approval, according to Archer's latest shareholder letter.

This historic 80-acre site contains approximately 190,000 square feet of terminals, office space and hangars. Its location is close to Los Angeles and major Los Angeles The destinations make it an ideal location for an air taxi network that aims to change the way people get around in crowded cities.

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Why Hawthorne Airport is important for a new air taxi network

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

The airport will also serve as a testing ground for next-generation aircraft systems powered by artificial intelligence. These tools will help Archer develop smarter air traffic management, reduce flight times and improve safety in crowded airspace.

In the letter, Archer lays out a two-step plan. Phase 1 focuses on up to 200,000 square feet of hangar renovations and FBO control, while Phase 2 includes artificial air traffic and ground control, runways with built-in smart sensors, and a more digital and streamlined passenger experience.

United Airlines Chief Financial Officer Michael Leskinen praised the move and said, “Archer's trajectory reinforces our belief that eVTOLs are part of the next generation of air traffic technologies that will fundamentally change aviation. Their vision for an AI-enabled operating platform is not just about eVTOL, but about leveraging advanced technologies to better and more efficiently move people in our most congested airspaces. Through United Airlines' investment arm, United Airlines Ventures, we are investing in companies like Archer that are pioneering 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!”

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Not everyone approves of Archer's plan to turn Hawthorne into a flagship center for artificially intelligent 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 takeover and that no one from the company or town bothered to join before announcing it would build an “artificial intelligence-powered aviation technology test bed” above the homes.

Neighbors who live across the street and a couple of blocks from the runway describe Hawthorne as one of the most densely populated airports in the country, with houses on three sides and years of complaints about the deafening noise of planes and helicopters. The city's 2021 noise study identified more than 160 homes and around 480 people already exposed to unhealthy noise levels, but residents say there has been “zero progress” in reducing noise levels, even though the airport has moved from small private jets to commercial traffic and is now a 24-hour eVTOL hub.

The group is also sounding the alarm about Archer's AI ambitions, pointing to academic research that shows current machine learning systems in aviation still struggle to cope with unusual conditions and lack formal safety guarantees.

They argue that whatever the promises of a cleaner and futuristic air taxisHawthorne is being used as a testing ground without clear safety measures, updated federal noise regulations or any serious plan to compensate families if continuous eVTOL traffic makes their homes too noisy to live in.

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

Along with the airport news, Archer reported significant financial momentum. The company raised an additional $650 million in equity capital, increasing its total liquidity to more than $2 billion. The company's Midnight aircraft also achieved new flight milestones, including flying 55 miles at more than 126 mph and climbing to an altitude of 10,000 feet.

Archer has also expanded its global technology presence. 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 duct fans, high voltage systems, flight controls and other key technologies.

International expansion continues. Archer began test and demonstration flights in the UAE and entered into new partnerships with Korean Air, Japan Airlines and Sumitomo JV in Osaka and Tokyo.

What does this mean for you

Archer's airport deal suggests that Air taxis are coming for everyday use. This shift could mean shorter trips to major cities in a fraction of today's travel times. It can also allow aircraft to operate more quietly over areas than helicopters.

For Los Angeles residents, Hawthorne Airport could become a central location for quick travel from one location to another once certification begins. Visitors flying in for major events such as the Los Angeles 28 Olympics may consider air taxis as a smooth alternative to gridlocked freeways.

Businesses can gain new opportunities for rapid transport across the region. The move also means increased investment and jobs in advanced aviation, automation and clean electric vehicles.

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Kurt's key takeaways

Archer's acquisition of Hawthorne Airport marks a major milestone in the race to create a true air taxi network, providing the company with the aircraft, financing and prime location needed to move the industry forward. The focus on AI-powered operations shows that automated aviation could soon play a much larger role in everyday 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 are concerned about increased noise and safety hazards and being turned into a testing ground for artificially controlled aircraft without any real say. If Archer can get regulators, investors and communities just beyond the fence line on his side, the move could bring the future of urban getaways that much closer, for better or for worse.

If air taxis become a viable option in Los Angeles by 2028, would you try them for your daily commute or stay grounded? Let us know by writing to us at Cyberguy.com.

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