Otto Aerospace
- Flexjet ordered 300 "windowless" jets from startup Otto Aerospace for nearly $6 billion.The Phantom 3500 features a teardrop-shaped fuselage and screens instead of traditional windows.Flexjet's fleet operates like a timeshare for flying private, and more young people are using it.
Private aviation giant Flexjet has placed a nearly $6 billion order for 300 'windowless' jets — one of the biggest deals in business aviation history, even by the standards of established planemakers.
US-based startup Otto Aerospace is behind the Jetsons-like plane, called the Phantom 3500. It features a teardrop-shaped fuselage that significantly reduces fuel consumption and increases range, as well as screens in place of traditional windows.
Its first flight is scheduled for 2027, with delivery expected in 2030.
There is one caveat: this is an all-new, clean-sheet aircraft type that has yet to be built and certified. The question of whether it delivers on time remains uncertain, as new concepts often take longer than initially planned.
Flexjet, Otto Aerospace
Still, Flexjet CEO Michael Silvestro told Business Insider that while development hurdles are possible, the company is fully committed to innovation and is seeking manufacturers willing to move the needle in ways the industry has not yet seen.
"Otto impressed us. The technology is incredibly efficient and very capable in terms of size, speed range, comfort, fuel flow, and sustainability, so why not?" he said. "Why not think about continuing to push the envelope on the latest technological advances in aviation?"
The move comes as the private aviation industry continues to boom post-pandemic, with more and more people — particularly young professionals in their 40s — flocking to the luxuries of business aviation.
Yes, there are no windows
Besides the cockpit, the new nine-seater Phantom 3500 will be windowless. Instead, large screens will blanket the passenger cabin walls and ceiling.
Silvestro said these "smart windows" are designed to do several things, such as imitating what's going on outside or creating your own virtual images. He added that the goal is that clients could put anything they want on the screen — including movies or videos.
Flexjet, Otto Aerospace
Getting rid of the windows helps smooth out the fuselage, reducing drag and fuel burn. Silvestro said Otto will have to figure out the logistics of seeing outside the aircraft during emergency events, like an engine fire.
"Now we have cameras everywhere on the airplanes, on the larger ones in particular, so there would have to be a pretty robust video ability to see what's going on outside," he said.
Despite potential deterrents like claustrophobia, Silvestro said he expects the revolutionary design to attract clients in the long term.
However, he said Flexjet's younger and more technically advanced customers, who are more open to change, would be the early adopters.
"It's just like anything else, like Waymo is going everywhere," he said as an example of other futuristic innovations. "I think as you get a little bit more comfortable with technology, that unnerves people, and it will become more of the norm."
The futuristic tech comes as more young people fly private
Flexjet's bet on Otto comes as Silvestro pointed to an increase in young people flying private. This demographic is particularly more inclined to welcome futuristic tech like the Phantom 3500.
"The demographic is trending so much younger than it used to be," he said. "We're capturing a good 10 years' worth of flyers; people in their 40s who can afford this are all in with regard to flying privately, and fractional ownership is the most desirable part."
Flexjet, Otto Aerospace
Once in service, the Phantom 3500 will become part of Flexjet's popular and ever-growing "fractional ownership" program.
This allows high-net-worth clients to enjoy the luxury and privacy of a private jet without owning one outright. Instead, they share one by purchasing flight hours.
It's essentially a timeshare for private flying and has become an increasingly attractive way to travel as billionaires like Jeff Bezos, Elon Musk, and Taylor Swift continue to battle jet trackers.
Data from Aviation Week's aircraft tracking tool indicates that the program is being used more than ever, with fractional ownership increasing by 10% between June and August compared to the same period in 2024, and by 70% compared to the same period in 2019.
What else does Flexjet get for $19.5 million
The Phantom 3500 is being developed as a super-midsized jet, competing with similar-sized planes such as the Bombardier Challenger 350 or the Embraer Praetor 600.
These jets typically have a cabin length of 23 to 28 feet and can seat eight to 10 passengers, depending on the configuration.
However, with a list price of $19.5 million, the Phantom 3500 is less expensive. The Bombardier and Embraer — both of which Flexjet already flies — cost about $27 million and $24 million new, respectively.
Otto's cost savings come from the plane's "laminar-flow" technology, which reduces drag by maintaining smoother airflow across the aircraft's carbon fiber composite surface. Otto said this would result in a 60% lower fuel burn than a comparable jet.
And smaller fuel tanks allow for smaller wings and engines, which also helps save on production and maintenance costs, per Otto.
Furthermore, the Phantom 3500 is designed to cruise at altitudes of up to 51,000 feet. This would allow it to fly above weather and turbulence, further reduce fuel consumption, and offer increased route flexibility. US airlines, by contrast, cruise at altitudes of up to 42,000 feet.
Overall, Otto said the jet would reduce operating costs by 50% and offer an expected range of 3,500 nautical miles (about 4,000 miles). That could connect Los Angeles and Hawaii or New York and London.
Otto already tested the laminar technology on a full-scale, piloted demonstrator jet called the Celera 500 for three years, starting in 2017. The company said the data collected proved the concept and projected savings.
Otto Aerospace
Beyond Otto, Flexjet has already invested billions into manufacturers Embraer and Gulfstream this year as it competes for market share against rivals like NetJets and VistaJet.
