Otto Aerospace intends to begin taking customer deposits for its in-development Phantom 3500 later this decade following the super-midsize jet's maiden sortie.
"We will start selling deposits in 2027 to customers and consumers as soon as we have flown the aircraft," says Otto Aerospace chief executive Paul Touw, speaking to FlightGlobal at the NBAA-BACE show.
To date, the Fort Worth, Texas-based start-up has revealed only fractional operator Flexjet as its launch customer, booking a 300-unit firm order in the run-up to the NBAA show.
That agreement includes 300 options and is backed by a deposit, says Touw, describing the deal as a "very standard industry contract".
Neither company has disclosed the total value of the agreement if all options are exercise, but it is likely to be north of $10 billion.
While declining to reveal the size of the deposit paid, Mike Silvestro, Flexjet president, says it is a "real deposit" rather than a token figure.
Nonetheless, the agreement is a significant commitment to an aircraft that has yet to fly.
While acknowledging that such projects are inherently "risky" and that Otto Aerospace has "some hurdles to clear over the next four or five years" Silvestro remains optimistic: "Based on what we have seen, they give us great confidence they will be able to do so."
"They have come a long way in a very short period of time," he said, speaking at a separate NBAA-BACE event. Deliveries are likely to begin around 2030.
The pair have yet to agree a production or delivery schedule for the Phantom 3500, but Touw says Flexjet "will want as many as they can take", given the significant fuel-burn savings promised by the ultra-low-drag Phantom 3500.
Otto Aerospace claims the Phantom 3500 will offer 60% lower fuel-burn than a comparable super-midsize jet.
Powered by a pair of Williams International FJ44 engines, the twinjet will cruise at 51,000ft and be capable of carrying four passengers on routes of up to 3,200nm (5,930km), while maximum range is pegged at 3,500nm.
Otto Aerospace in early October closed a Series B funding round, taking the total raised so far to $250 million. A Series C round seeking $300 million is now under way, says Touw.
The company is a last-minute addition to the NBAA-BACE show: as recently as two weeks ago, Otto Aerospace was not planning to attend, but a chance meeting between ouw and NBAA boss Ed Bolen at the recent UP.Summit event caused a change of plans.
"He said he'd move heaven and earth to have the mock-up here," says Touw. "But we'd already packed up and the trucks were on the way back to Texas - we just called the drivers up and told them to keep going to Vegas."