United Just Paid $3B for Supersonic Jets

Issue 75

United placed a $3 billion order for 15 supersonic jets from Boom Supersonic last week with room to expand the deal for another 35.  The company also has similar deals being tenured. The new jet age has arrived.  United is the first big money in, if Boom is able to pass safety inspections, the company may find itself owning the largest commercial aviation of the 21st century.

Boom expects to have its planes departing airports by 2029.  Boom may likely see a Tesla effect.  With other aviation behemoths abandoning the prospect of supersonic travel due to previous safety concerns and unit economics two decades ago, the refounding of the industry may make the market viable in today’s world – leaving legacy companies in a scramble to catch up later.

What’s more, the company claims that the jet will be completely carbon net-zero, further solidifying the case that the new class of supersonic jets may indeed dominate the market as governments are eyeing some of the most aggressive carbon policies to date.

Source: The Verge