Otto Secures $500 Million for Bizjet Production Plant

Business jet developer Otto Aviation received a nearly $500 million incentive package from the state of Florida to establish a manufacturing facility and headquarters in Jacksonville as it moves forward on its ambitions to bring its Phantom 3500 business jet to market. Florida Gov. Ron DeSantis announced the plans on Monday while opening the Florida pavilion at the Paris Air Show.

Based at Jacksonville's Cecil Airport, the plant will occupy nearly a 100-acre parcel and serve as the primary site for final assembly of the Phantom twinjet. Otto is relocating from Fort Worth, Texas, to Jacksonville and will begin operations in Hangar 825, which was built by the U.S. Navy for aircraft fleet operations, as it develops the 850,000-sq-ft manufacturing plant. 

In announcing the incentives, the state estimated that the facility would generate 389 high-skilled and high-wage jobs, calling it one of the most significant advanced manufacturing developments in Northeast Florida in recent years.

The package includes more than $430 million in corporate income tax credits and high-impact performance incentive grants, along with a $35 million incentive package approved by the Jacksonville Aviation Authority and a $20 million revenue enhancement value grant from the city of Jacksonville.

The incentive package comes as Otto moves forward with plans to assemble and fly the light jet in 2027, with service entry expected in 2030. Speaking to reporters on Tuesday at the Paris show, Otto Aviation CEO Paul Touw said he anticipates building up to 1,600 Phantom 3500s between 2030 and 2040, with about one-third of production accounted for, including upcoming announcements expected in September.

In addition to the $500 million incentive package, Touw said Otto has raised more than $170 million to date and is expected to close on another round of funding by year-end. “Right now, the aircraft is at a stage where our design is mostly locked down,” he said, noting that the parts for flight-test vehicle one will arrive in Hangar 825 next year in preparation for assembly.

Otto is leveraging laminar-flow aerodynamics and advanced manufacturing techniques to develop an aircraft that will offer about a 50% performance gain versus current light business jets.

On the manufacturing side, Otto is leveraging high-precision manufacturing techniques used for stealth aircraft, including resin transfer molding for the carbon-fiber airframe. “The gross margins on this aircraft are relatively high compared to the competition because it’s cheaper to manufacture,” he said. 

Touw called the Phantom 3500 a “trifecta” because it will also be cheaper to operate and maintain. The aircraft is expected to have a 51,000-foot ceiling, 3,500-nm range, and 3,454-foot balanced field length. Laminar-flow technologies are estimated to cut drag by 35% versus existing light business jets.