Can a Supersonic Business Jet Find a Market?

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By Paul Ausick Updated Published
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Can a Supersonic Business Jet Find a Market?

© Aerion Corp.

More than a year ago, Airbus announced that it would collaborate with Aerion, a start-up with plans to build a supersonic business jet, the AS2. Airbus’s participation was limited, but important. But every little bit helps, considering development costs are expected to reach $4 billion.

In mid-November, Aerion announced an order of 20 AS2s by private jet lessor Flexjet. The supersonic AS2 is expected to make its first flight in 2021 and enter service in 2023. The 12-passenger AS2 is expected to cost about $120 million, and it will be able to shave about two and a half hours off a transatlantic flight from New York to London.

For comparison, Boeing’s new 787 MAX 8 has a list price of $106.9 million, carries up to 200 passengers and likely will have a sub-sonic cruising speed of around 590 mph. The Airbus A320neo will cost $106.2 million and have a maximum capacity of around 180 and a cruising speed of about 590 mph. The Aerion AS2 will cost more than $100 million, carry a maximum of 12 passengers and have a maximum cruising speed of around 1,150 mph.
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No engine partner has been named yet, but the usual suspects are expected to make a pitch for the business.

The AS2 is more costly to operate than a conventional plane, for the plane’s target market price is usually pretty far down the list of concerns.

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About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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