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United will purchase 15 ultrafast airplanes from start-up Growth Supersonic

United Airlines plans to transform the friendly sky into ultra-fast sky with supersonic jets.

The airline announced Thursday that it is buying 15 aircraft from Boom Supersonic with the option to buy 35 more at some point.

Boom’s first commercial supersonic jet, the Overture, has not yet been built or certified. It aims to launch passenger service in 2029 with an aircraft that could fly at Mach 1.7 and cut some flight times in half. This means that a flight from New York to London, which normally takes seven hours, would only take 3½ hours.

A rendering of a United Supersonic Jet

Source: United Airlines

“Boom’s vision for the future of commercial aviation, combined with the world’s strongest network in the industry, will give business and leisure travelers access to a great flying experience,” said Scott Kirby, United CEO, in a press release announcing the deal.

Although the terms of sale were not disclosed, the companies anticipate that the transaction will bring immediate benefits.

Since its inception in 2014, Denver-based Boom Supersonic has raised $ 270 million in capital and grown to 150 employees. For founder and CEO Blake Scholl, winning a firm contract with an old airline confirms his vision of bringing back supersonic flights.

The supersonic Concorde flew commercial flights from 1976 to October 2003.

“The world’s first purchase agreement for carbon-free supersonic aircraft is an important step towards our mission to create a more accessible world,” said Scholl in a statement.

For United, ordering boom supersonic jets fits in with the strategy Kirby has outlined since he took office a year ago.

United Airlines CEO Scott Kirby

Chip Somodevilla | Getty Images

Kirby is aggressively trying to develop opportunities for the airline. Earlier this year, United acquired a stake in eVTOL start-up Archer Aviation and worked with Mesa Airlines to order 200 short-haul electric aircraft. It did so after United announced a multi-million dollar investment in a carbon capture startup and pledged to be carbon neutral by 2050.

Part of what made buying supersonic jets attractive to United is Boom’s plan to power the planes with engines that run on sustainable aviation fuel.

A rendering of a United Supersonic Jet

Source: United Airlines

However, it remains to be seen whether Boom’s plan to bring back supersonic airliners will get underway.

The company plans to make its maiden flight with a demonstrator jet called the XB-1 later this year. If things go as planned, Boom will start producing the overture in 2023 and make its maiden flight in 2026. The ultimate hurdle will be certification from regulatory agencies, including the Federal Aviation Administration.

In this case, United expects to target long-haul international flights between major cities around the world such as San Francisco to Tokyo and New York to Paris.

Mike Leskinen, United’s vice president of corporate development, said the overture could dramatically change some of the airline’s busiest international routes. “If we can cut the time it takes to fly from the US east coast to certain cities in Europe and do it with lower emissions, we think it will be very attractive,” he said.

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United Airways Desires to Carry Again Supersonic Air Journey

The era of supersonic commercial flights came to an end when the Concorde completed its last trip between New York and London in 2003, but the allure of ultrafast air travel never quite died out.

President Biden mused about supersonic flights when discussing his infrastructure plan in April. And on Thursday, United Airlines said it was ordering 15 jets that can travel faster than the speed of sound from Boom Supersonic, a start-up in Denver. The airline said it had an option to increase its order by up to 35 planes.

Boom, which has raised $270 million from venture capital firms and other investors, said it planned to introduce aircraft in 2025 and start flight tests in 2026. It expects the plane, which it calls the Overture, to carry passengers before the end of the decade.

But the start-up’s plans have already slipped at least once, and it will have to overcome many obstacles, including securing approval from the Federal Aviation Administration and regulators in other countries. Even established manufacturers have stumbled when introducing new or redesigned planes. Boeing’s 737 Max was grounded for nearly two years after two crashes.

The deal is United’s latest attempt to position itself as a risk taker shaking up an industry that is just getting back on its feet after a devastating pandemic. The airline announced a $20 million investment in an electric air taxi start-up, Archer, in February, and it is working on a “steady drumbeat” of more such bets, said Michael Leskinen, who heads corporate development at United.

“We are really confident in the future,” Mr. Leskinen said. “Aerospace takes a long time to innovate. And so if you don’t start setting these opportunities out now, you will have missed them.”

United and Boom would not disclose financial details, including the cost of each plane, but Mr. Leskinen said the economics should be about the same as a new Boeing 787, a wide-body plane that airlines typically use on international routes. United has committed to buying the planes if Boom manages to produce them, secure regulatory approvals and hit other targets, like meeting its sustainability requirements.

Boom also plans to make planes for Japan Airlines, an investor in the company.

What is not clear is whether Boom has solved the problems that forced British Airways and Air France to stop using the Concorde on trans-Atlantic flights — high costs, safety concerns and flagging demand.

“There was no airline interest,” Henry Harteveldt, a travel industry analyst and consultant, said about why supersonic flights languished. “And a big part of the lack of airline interest was there were no engines that were commercially available that would allow a supersonic jet to be economically viable.”

Two decades later, some start-up companies, including Boom and Spike Aerospace, are pushing ahead with new designs and plans.

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Updated 

June 2, 2021, 4:35 p.m. ET

Boom, which is working with Rolls-Royce, the British jet engine maker, said its plane would be more efficient than the Concorde; United estimates it will be 75 percent more efficient. Boom’s planes will not be as noisy as the Concorde because their engines will create a sonic boom only when flying over water “when there’s no one to hear it,” said Boom’s chief executive, Blake Scholl, who previously worked at Amazon and Groupon.

In recent years, many people have also grown increasingly concerned about air travel’s contribution to climate change. Supersonic jets are expected to use more fuel than regular jets per passenger per mile, according to experts.

Mr. Scholl said the engines on Boom’s planes would rely entirely on sustainable aviation fuel, which can be made from waste, plants and other organic matter. Experts say such fuel could reduce emissions, but its supply is limited, it is expensive and its use does not eliminate greenhouse gas emissions.

United said it was too early to know how much it would charge for the flights, which it would run out of its hubs in Newark and San Francisco to start. But another big question mark about the plane is how many people will be willing to spend the thousands of dollars that each ticket on a supersonic flight is likely to cost.

United has long focused on business travelers, including by adding flights to Israel, China and other destinations popular with executives and by offering more business class seats on its planes. Mr. Leskinen called the idea of supersonic travel a “really powerful tool for business.”

“You can have a business meeting and still be home to have dinner with your family,” he said.

But corporate and international travel is expected to rebound slowly from the pandemic, and some experts say it might not recover fully for years because companies have realized that they can be effective without as many in-person meetings.

“The key to the success of supersonic transportation is the overlooked, underappreciated corporate travel manager, who is probably relegated to one of the worst offices in his or her company — and his primary task is to minimize corporate spending on business travel,” said Mr. Harteveldt.

If flights save a third of the travel time but also cost a third more, travel managers may end up saying, “I don’t know if we can justify that,” he said.

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Business

Aerion Supersonic shuts down, ending plans for silent enterprise jets

Artist’s drawing of a supersonic jet designed for speeds up to Mach 1.4, or approximately 1,000 miles per hour.

Aerion Corporation

Aerion Supersonic, the Nevada-based company that wanted to build business jets that can silently fly almost twice as fast as commercial aircraft, is being shut down, CNBC confirmed on Friday.

“In the current financial environment, it has proven extremely difficult to meet the planned and necessary large new capital requirements,” the company said in a statement to begin production of its AS2 supersonic jet.

“Aerion Corporation is now taking the appropriate steps to accommodate this ongoing financial environment,” the company said.

Florida Today first reported on the company’s abrupt shutdown.

Aerion wanted to fly its first AS2 jet by 2024, with the goal of entering commercial service by 2026. The company developed a patented technology called “Boomless Cruise” that would allow AS2 to fly without generating a sonic boom – a problem that plagued supersonic Concorde jets of the past.

The AS2 was priced at $ 120 million per jet. Aerion CEO Tom Vice said at a UBS conference in January 2020 that he expected AS2 development to cost the company approximately $ 4 billion, with $ 1 billion to develop an engine at this point had been issued.

The company had entered into several partnerships along the way – including with NetJets from Boeing, General Electric and Berkshire Hathaway – and achieved sales of $ 11.2 billion for its AS2 jets. Earlier this year, Aerion announced in a press conference with Florida Governor Ron DeSantis that a $ 375 million manufacturing facility would be built at Orlando Melbourne International Airport.

An Aerion spokesperson did not respond to requests for comment on what will happen to Aerion’s assets.

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