FLYING Magazine
Otto Aerospace in about two years plans to break ground on a manufacturing facility for its fuel-efficient, super-midsize Phantom 3500 business jet, according to an official with the Jacksonville Airport Authority (JAA) in Florida.
The Jacksonville Daily Record reported that Tony Cugno, JAA’s chief operating officer, last week told a Jacksonville City Council committee that Otto will begin construction at Cecil Airport (KVQQ) in 2028. In 2025, Otto announced the relocation of its headquarters from Texas to Jacksonville and said it planned to base Phantom 3500 production there.
FLYING has reached out to Otto to verify the construction timeline.
“Their plan is to start manufacturing aircraft out of that facility around 2030,” Cugno said, according to the Daily Record.
That is the year Otto hopes to certify and begin delivering the nine-passenger jet—which it says is designed to cut drag by about 35 percent and fuel burn by about 60 percent—to customers. Former CEO Paul Touw said at the 2025 Paris Air Show that the manufacturer aims to produce about 1,600 aircraft over the following decade.
The Daily Record in August reported that Jacksonville issued a permit for the $12.1 million renovation of a hangar at Cecil Airport that was once occupied by Boeing. The plan is to convert more than 59,000 square feet of maintenance, repair, and overhaul facilities into a research-and-development hub for Otto’s flight test vehicles. The company aims to begin flight testing in 2027 using four production-conforming aircraft.
Otto in 2025 said it would build more than 600,000 square feet of manufacturing and office space in Jacksonville by 2032. Florida Governor Ron DeSantis said at the Paris Air Show that Otto would receive $430 million in tax credits and grants, which it plans to invest in the Cecil Airport facility, to incentivize the move. It also received a separate $35 million incentive package and $20 million grant.
Otto and the FAA in June agreed upon a Part 23 certification basis for the Phantom, which completed preliminary design review in May.
Touw estimated the program would cost $1 billion, with half going toward aircraft development and the rest supporting construction of a final assembly line. Per online news outlet FlightGlobal, Scott Drennan, who replaced Touw as CEO this year, estimated the Phantom will cost $1.5 billion to bring to market, with about $1 billion earmarked for certification.
Building the Phantom
Otto has tested the Phantom’s fuel-saving capabilities using a few early prototypes, but it has yet to build or fly the real deal.
Manufacturing the flagship model could be complex. The aircraft’s defining feature is a laminar-flow airframe that Otto says has been tested and proven to reduce drag and fuel burn compared to existing super-midsize models. Smoothing out the airframe to eliminate turbulence will require the company to eliminate rivets, gaps, and microscopic defects that could disrupt the delicate laminar flow.
The aircraft will cruise at around 51,000 feet to avoid turbulence from inclement weather. It will also swap porthole-style cabin windows for high-definition displays that use cameras to give passengers a real-time external view. Removing the windows further smooths out the airframe.
Otto has tested laminar flow using its Celera 500 demonstrator and in May completed a flight campaign with an uncrewed demonstrator that it said incorporated the same capability. Next up is Phantom prototype testing scheduled for next year.
“Advanced manufacturing capabilities have improved significantly, allowing for extremely precise, high-tolerance production methods,” Touw said.
The Phantom will be powered by a pair of gas- or SAF-powered Williams International FJ44 engines. Touw at the Paris Air Show said it could achieve carbon neutrality by 2030, decades ahead of international aviation targets, without using electric or hybrid propulsion.
“Electric energy storage systems are vastly too heavy to effectively fly anything beyond approximately 200 nm,” he said. “Turbofan aircraft can fly 8,000 to 9,000 nm—something electric aircraft will likely never achieve.”
The Phantom will be designed to reach transonic speeds beyond 260 knots, which combined with low fuel burn is intended to offer hourly operating costs that are about 43 percent lower than a super-midsize burning Jet A. Its maximum takeoff weight (MTOW) of about 19,000 pounds would be at the top of the FAA’s range for Part 23 models, but its planned range of 3,500 nm would be longer than many normal category aircraft.
Flexjet, which ordered 300 Phantom 3500s plus options for more in September, is the model’s intended launch customer, but Otto is also pursuing opportunities in defense.