Archer to acquire airport in Los Angeles

Archer Aviation Inc. signed a series of definitive agreements to acquire control of a one-of-a-kind Los Angeles asset, Hawthorne Airport for $126 million in cash. The price includes acquisition of the master lease of the Hawthorne Airport, as well as certain subleases held by the seller parties with tenants at the airport. The acquisition price does not include Archer’s rights to purchase a controlling stake in the fixed base operator at the airport, develop additional hangar space at the airport, the potential performance-based earnout to certain seller parties, or certain bank debt to be assumed as part of the acquisition. The acquisition remains subject to the satisfaction of certain agreed-upon closing conditions.

The historic Hawthorne Airport is located in the heart of L.A., sits on an 80-acre site, and includes approximately 190,000 square feet of terminal, office and hangar facilities. The airport was built in the 1920s and once helped shape Southern California's aerospace legacy and is also known as Jack Northrop Field. It is strategically located less than three miles from LAX, and is the closest airport to some of the city’s biggest attractions – SoFi Stadium, The Forum, Intuit Dome, and Downtown L.A.

Archer plans for the airport to serve as its operational hub for its planned L.A. air taxi network operations, including serving a key role in the LA28 Olympics Games. Archer also plans to use the airport as an innovation testbed for the next-generation artificial intelligence (AI)-powered aviation technologies it’s developing and planning to deploy with its airline and technology partners. This includes AI-powered air traffic and ground operations management, in addition to other key technologies.

United Airlines’ Chief Financial Officer, Michael Leskinen, remarked, “Archer’s trajectory validates our conviction that eVTOLs are part of the next generation of air traffic technology that will fundamentally reshape aviation. Their vision for an AI-enabled operations platform isn't just about eVTOLs, it's also about leveraging cutting-edge technology to better enable moving people safely and efficiently in our most congested airspaces. Through United’s investment arm, United Airlines Ventures, we're investing in companies like Archer that pioneer technologies that will define and support aviation infrastructure for decades to come.”

Presenting financial results for the third quarter, Archer revealed it raised $650 million of additional equity capital, taking its total liquidity to over $2 billion.