JetZero breaks ground on North Carolina manufacturing site
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Tom O'Leary, JetZero's CEO, stands in front of a rendering of its blended-wing plane. Photo: Patrick T. Fallon/AFP via Getty Images
JetZero, the experimental aircraft manufacturer that North Carolina recruited to the state, has broken ground on its planned headquarters and manufacturing facility in Greensboro.
Why it matters: When JetZero agreed to an incentives deal with the state last year, it was the biggest jobs announcement on paper in North Carolina history, with JetZero pledging up to 14,500 jobs.
- If it were to meet that lofty goal, JetZero could earn state incentives around $1 billion.
Yes, but: JetZero has an uphill climb to challenge the heavyweight plane makers of Boeing and Airbus.
Between the lines: North Carolina has now made major bets on two aerospace startups — JetZero and supersonic aircraft maker Boom — neither of which has produced a commercial airplane.
- The state has put its backing behind several startups in recent years, including VinFast, an EV maker it is now suing to get control back of land where it had planned to build a manufacturing plant.
- The state only pays out incentives if companies meet hiring and investment goals, though it has made some investments in improving sites for companies.
- For instance, $450 million of state money is expected to go toward site preparation and road improvements at the JetZero site, whenever the state budget is passed.
Zoom in: JetZero is betting that its blended-wing airplane design —which look like manta rays, with the fuselage and wings morphed into one fluid shape — will become attractive due to the potential fuel savings.
- Some airlines have already shown interest, with Alaska and United both investing in the company and signing purchasing agreements.
Driving the news: The company expects its prototype aircraft to fly next year and plans to manufacture its first commercial aircraft later this decade.
- Those planes will be made at an 8-million-square-foot facility spanning more than 600 acres near Piedmont Triad International Airport in Greensboro.
- The company's HQ will move from Long Beach, California, to Greensboro when the facility is finished.
What they're saying: Company CEO Tom O'Leary told CNBC Monday morning that airlines are highly interested in JetZero because of the huge fuel savings it is promising.
- "Fuel prices are the number one consideration for the airlines," he said on television. "So, when you can reduce fuel burn by 30 to 50%, then you've got something that the airlines, of course, are interested in."
- He noted that the company has a working group of 16 airlines. "They're helping us design the plane, so they're super excited about what JetZero can do for their business," he added.
