Archer Aviation has acquired its very own airport in Los Angeles
It’s hard not to group Archer Aviation (ACHR) and Joby Aviation (JOBY) together at this point.
Both are on nearly identical paths, developing electric vertical takeoff and landing (eVTOL) aircraft with the goal of launching commercial air taxi services.
And those parallel paths have become more pronounced over the past year.
Both companies have made entries into the defense sector, they’re both seeking to enter the Trump administration’s VTOL pilot program and Archer and Joby are each making strides to expand their US-based businesses into the Middle East.
Since the two companies are competing for market share in the emerging air taxi space, their announcements often seem to come in quick succession.
Last week, Joby Aviation announced plans to launch a pilot air taxi commuter program between Manhattan and Westchester County, New York.
The service will operate through its newly acquired subsidiary, Blade Urban Air Mobility.It wasn’t surprising, then, that Archer responded with an announcement of its own.
What was perhaps a bit unexpected was the business update that Archer released.
The company said that it has acquired its own airport in Los Angeles for $126 million in cash that will serve as the hub of operations for its planned VTOL fleet and taxi network.
Hawthorne Airport, which is about three miles from Los Angeles International Airport (LAX), is located in central Los Angeles.
Archer disclosed a $650 million stock offering for 81.25 shares in an SEC filing that it said it used to support its acquisition of Hawthorne.
The company said in its filing that it would use approximately $171 million from the offering for its purchase of the airport and for its planned redevelopment.
The news sent its stock plunging nearly 8% on Friday on fears that it will dilute the value of the stock for existing shareholders.
The acquisition was also supported by United Airlines Ventures, the investment arm of United Airlines Holdings (UAL).
“Archer’s trajectory validates our conviction that eVTOLs are part of the next generation of air traffic technology that will fundamentally reshape aviation,” Michael Leskinen, chief financial officer for United Airlines, said in a statement.
“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.”
The acquisition of Hathorne Airport, which the company notes is located within close proximity of L.A.-area sports venues, likely makes strategic sense for Archer since it was named in May as the official air taxi provider for the 2028 Olympics in Los Angeles.
Archer posted a $129.9 million net loss in its Q3 earnings last week, which beat analyst expectations of a $178.6 million loss, according to data from Fact Set.
The company said it has over $2 billion in total liquidity.