Otto Aviation, which is developing a new business jet, the Phantom 3500, plans to establish a manufacturing and production facility at Cecil Airport (KVQQ) in Jacksonville, Florida.
The Jacksonville Aviation Authority (JAA) has approved a $34.9 million incentive package to support Otto Aviation’s investment in the region, while the city of Jacksonville has approved up to $20 million in a Revenue Enhancement Value grant.
Additionally, the State of Florida has approved more than $430 million in Corporate Income Tax Credits (CITC) and High Impact Performance Incentive (HIPI) grants to facilitate the establishment of the manufacturing plant and long-term operations, which will occupy 80 to 100 acres of land at Cecil Airport, according to company officials.
Otto Aviation’s Phantom 3500 is a twin-engine business jet designed to deliver “exceptional fuel efficiency, extended range, and reduced emissions,” according to company officials.
The aircraft features a full laminar flow design that cuts drag by 35% compared to traditional jets, enabling it to travel farther on less fuel, company officials said, noting it has a range of 3,500 nautical miles and a cruise altitude of 51,000 feet.
The Jacksonville facility will serve as the primary site for the final assembly of the Phantom 3500, with production of its flight test vehicles slated to commence in 2026.
The company plans to begin flight tests by early 2027, and aims to achieve certification and entry into service in 2030, officials added.
Otto plans to begin operations in Hangar 825, originally built by the U.S. Navy for aircraft fleet operations, and will develop a dedicated manufacturing plant to produce the Phantom 3500. The company’s headquarters will also relocate to Jacksonville from Fort Worth, Texas.
For more information: OttoAviation.com
Florida isn’t handing these guys half a billion dollars in a (big) suitcase. Most of the money is actually tax deferments – on something that is generating zero tax right now – to encourage them to locate here. They will wind up developing 80 to 100 acres at Cecil, once developed, this could be a major economic driver for the area.
Basically, they’re giving away currently non-existent tax dollars (which costs them nothing) in the hope of a significant return later.
Will they succeed? Maybe, possibly, hopefully, but the only guaranteed way to fail is not to try in the first place.
Governments do tax exemptions and deferments all the time to attract businesses. They do it because it works. Businesses bring jobs, jobs mean salaries, salaries mean people will spend money in the community. The multiplier for aviation related jobs is six to one. Every dollar spent (or more often deferred) brings back six.
This is also a useful datapoint when the local government decides to close their airport. Look up the economic impact information for your airport (it is a bit hard to find, usually your state economics department has it, sometimes the FAA has it) and present it. That usually ends the discussion right then and there. Also, if the FAA has spent any money on the airport, they have to give that back, too. Suddenly “closing the airport!” doesn’t seem like such a bright idea any more.
Another dream like so many in the past that never made it. Remember the million dollar jets. Only one made it and now it’s 3M. Another tax payers funded debacle. Mankind never learns.