Airtel closing under Controversy
Airtel Grounds LAWA: Hotel Closure Leaves Airport Authority in Turbulence
SoCalNewswire - October 4, 2025
Los Angeles, CA — In a surprising move, the Airtel Plaza Hotel and Conference Center has announced it will permanently close its doors on October 12, 2025—a decision that reportedly blindsided Los Angeles World Airports (LAWA) on Friday. According to sources, LAWA first learned of the closure through a public invitation issued by the Valley Industry & Commerce Association (VICA) for a "Happy Hour" farewell at the Airtel on Tuesday, October 7.
The closure marks the end of a 40-year legacy for the Airtel Plaza, a cornerstone of the San Fernando Valley’s hospitality and business community that draws locals, the aviation community, and tourists alike. LAWA’s apparent alienation of its tenant could explain why it was caught off guard Friday, potentially leaving the agency scrambling to address questions about its recent actions. Actions that Councilmember Imelda Padilla, who represents the district where Van Nuys Airport (VNY) is located, previously referred to as a “whisper campaign” aimed at undermining the Airtel.
During a June 3, 2025 public meeting of the Van Nuys Airport Citizens Advisory Council (VNY CAC)—a body responsible for advising decision makers on the community impact of VNY airport operations, Councilmember Padilla suggested that negotiations between LAWA and the Airtel were not proceeding productively. She cited reports from the Airtel, which claimed they hadn’t received responses from LAWA in over two months, and that they felt pressured to the brink of failure, potentially paving the way for a land swap. “They feel like they are being pushed…so that they fail, and then something like the land swap could potentially happen,” Padilla stated.
LAWA’s controversial push to rezone the Airtel’s land for aeronautical use commenced without the necessary studies to assess feasibility or environmental impact; prompting significant stakeholder pushback. Additionally, no alternatives with lesser impacts are listed on the department’s website —a CEQA requirement—raising further concerns. Community Advocates contradicted LAWA’s claims about the project in their own materials, accusing the city department of deliberately misleading officials and the public. This unvetted plan, critics argue, would eliminate the significant socioeconomic benefits provided by the Airtel, as highlighted in LAWA's own 2022 "Best Use" report.
“The report was suppressed by LAWA,” said Suzanne Gutierrez, co-founder of Fumefighters United VNY and a vocal airport neighbor. “LAWA’s land-use ambitions are both misguided and speculative. It appears Mayor Bass supports them — along with the denial of immediate mitigation protections for my community — despite concerns raised by our Councilmember, environmental justice advocates, and those worried about Clean Air Act and CEQA violations in VNY land use decisions.”
The alleged 'whisper campaign' surrounding the rezoning may also involve violations of the Ralph M. Brown Act, which governs public meetings and transparency. SoCalNewswire confirmed that a formal complaint for Brown Act violations was filed against LAWA in August 2025, but the District Attorney’s office would not comment on the current status of an investigation or whether it is moving forward promptly.
The complaint outlines several potential violations tied to summer meetings of the VNY CAC, with a particular focus on the CAC’s June 3, 2025 agenda. This item is being compared to a 2019 violation involving the Inglewood City Council, in which the District Attorney found that a development project had been obscured by vague and insufficient agenda language. Given this parallel, local residents are demanding that D.A. Nathan Hochman treat this investigation with the same urgency and accountability, ensuring that even if delayed, a full public accounting of any wrongdoing is provided in the interest of transparency.
The complaint alleges that LAWA failed to provide meeting materials within the legally required timeframe—or in some cases, at all—and that the CAC’s agenda was worded in a way that made it impossible for the public to understand or anticipate the scope of the discussion. This lack of transparency, the complaint argues, prevented meaningful public participation and left the Airtel unaware of LAWA's presentation and potential plans for the property.
The Airtel’s closure is expected to impact the City’s budget and tourism preparations for the 2028 Olympics. Transient Occupancy Tax (TOT) revenue from the hotel’s holiday bookings may now go to another city, such as Monterey Park. The closure also affects Council District Six, which loses a key banquet venue; Airtel is in the process of canceling and referring current bookings to other council districts, including Mayor Karen Bass’ November Breakfast, which was expected to host approximately 300 attendees.
Unlike the Airtel, a Fixed Base Operator (FBO) would not generate as many jobs, hotel tax revenue or serve as a public event space; its fuel sales may contribute only modest gas tax revenue by comparison—highlighting the loss of civic and economic utility.
Airtel’s Facebook page says it best:
“Since opening, our mission has been to provide a welcoming space for business, leisure, and community gatherings. From weddings, celebrations, and conferences to family milestones and professional achievements, it has been our honor to share in so many meaningful moments with you. This closing represents the end of a chapter that has touched countless lives…”
As the Airtel Plaza Hotel prepares for its final descent, the San Fernando Valley bids farewell to a landmark that once soared as a hub for aviation enthusiasts, civic leaders, and community celebrations. Its closure not only marks the end of a valued District six local hospitality opportunity, but also raises pressing questions about the airport’s land use, transparency, and procedural integrity. The public is invited to join the Airtel team at 7277 Valjean Avenue, Van Nuys, CA 91406 on Tuesday, October 7 —starting at 5:00pm— for a celebration of decades of memories, partnerships and community.
10/11/2025 UPDATE: Following the permanent closure of Airtel Plaza Hotel, its official Facebook page has been disabled. We apologize for any inconvenience—please note that the previously shared link is no longer active.
