U.S. aircraft startup JetZero, which has secured investments from United Airlines and Alaska Airlines, will invest $4.7 billion over a decade on a production facility and headquarters in North Carolina, the state said on Thursday.
The deal contains more than $1.1 billion in state performance incentives that would be paid over nearly 40 years and are contingent on JetZero creating over 14,000 jobs between 2027 and 2036, a state representative said.
The company will manufacture its 250-seater Z4 blended wing bodied aircraft at an airport site in Greensboro, the state and company said in statements. JetZero would also benefit from an additional $450 million in infrastructure improvements to the airport facilities, along with city and county incentives, the representative said.
JetZero, which has a conditional order for up to 100 fuel efficient airplanes from United, and options for another 100, is the latest startup to reach a deal for a factory at Piedmont Triad International Airport, with supersonic jet maker Boom recently opening a facility at the site.
Aerospace companies are growing their footprint in the U.S. south, fueled by strong demand for aircraft and parts and comparatively lower costs than traditional U.S manufacturing hubs, although recruiting experienced labor remains a challenge.
Several startup aviation firms are seeking to revolutionize travel by developing planes that emit fewer emissions to help airlines meet industry net zero targets, along with battery-powered aircraft that can take off and land vertically. But entry barriers remain high in an industry that is capital intensive, with some startups struggling in recent years.
(Allison Lampert in Montreal, Editing by Nick Zieminski)
