Flexjet to buy super-efficient business jets from startup Otto
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Otto Aerospace's sleek Phantom 3500 achieves breakthrough fuel efficiency.
An aviation startup called Otto Aerospace says it has designed an ultra-efficient business jet and has already attracted its first fleet customer.
Why it matters: Aviation is one of the biggest contributors to greenhouse gas emissions, and the industry will need innovative aircraft and fuels to achieve its net-zero goals by 2050.
Driving the news: Fort Worth, Texas,-based Otto said the first fleet customer for its Phantom 3500 business jets will be Flexjet, the fractional jet ownership company.
- Flexjet plans to buy 300 of the sleek jets over a six- to eight-year period, with the first deliveries expected in 2030, the companies said.
- The Phantom 3500 promises to burn 60% less fuel than similar business jets — or up to 90% less if operating on sustainable aviation fuel.
- Otto plans to build the plane at a new high-tech factory it intends to build in Jacksonville, Florida, supported by a $515 million incentive package from the state of Florida.
Reality check: It's taken nearly two decades for Otto to perfect the design of the clean-sheet aircraft, which features super-efficient, laminar-flow aerodynamics and precision carbon-fiber composites.
- But its first flight won't occur until 2027 and it still needs FAA certification.
The big picture: Otto is one of dozens of ambitious mobility companies participating in at the UP.Summit, an invite-only gathering of 350 entrepreneurs and investors in Bentonville, Arkansas.
- The event is a mix of dreamers, scientists and financiers with a shared mission to make transportation cleaner, faster, safer and cheaper — whether it's on the ground, in the air, at sea or in space.
- Now in its eighth year, the private event is hosted by investment firm UP.Partners, Walmart scions Steuart and Tom Walton, and businessman Ross Perot Jr.
What to watch: Aviation is on the cusp of the biggest transformation since the introduction of the jet engine, which revolutionized air travel.
- Breakthroughs in aerodynamics, manufacturing, energy and AI have opened the door to flying taxis, supersonic jets and private space travel.
The bottom line: While each of these technologies is promising, they still need to be proven and certified for flight.
