American Airlines plans to enter the new supersonic era with an order for 20 Overture jets from Boom Supersonic. The world's largest air carrier is convinced there will be a market for a new generation of sleek, supersonic aircraft that can cut transatlantic travel times in half.
American Airlines officials were careful to say that a "non-refundable deposit" was paid for the first 20 planes, but the specific terms will depend on a purchase agreement, which includes future milestones the companies have not yet finalized.
"Looking forward, supersonic travel will be an important part of our portfolio of passenger services," said American Airlines Chief Financial Officer Derek Kerr. "We're excited about how Boom will shape the future of travel."
The supersonic jets won't carry passengers until at least the end of the decade, aiming to fill a void left when Concorde stopped flying in 2003.
Building on previous commitments from United Airlines and Japan Airlines, the American Airlines deal expands the supersonic startup's backlog to 35 orders and 130 pre-orders and options. The planes sell for $200 million each, according to the manufacturing company.
"What we're really seeing is that supersonic is back and back in a mainstream way," said Blake Scholl, founder and CEO of Boom Technology.
Boom is designing the Overture to carry 65 to 80 passengers at speeds of Mach 1,7, double that of current jets. Boom's new supersonic aircraft will have a range of 7.871 km. Passengers will be able to fly from Los Angeles to Honolulu in three hours, or from Miami to London in just under five hours.
The new Overture targets a larger customer base than the Concorde, which catered to celebrities and the wealthy. A ticket on a Concorde flight cost up to four times the price of a regular first class fare at the time.
Concorde recorded orders for 14 supersonic aircraft. Boom sales have already doubled that number, and Scholl says a new partnership for a militarized version with Northrop Grumman could generate hundreds of orders.
The Denver-based manufacturer plans to prepare future aircraft to be 100% SAF powered. However, little is said about who will produce the engines that will power the Overture aircraft. There are rumors in the market that Rolls-Royce has pulled out of the project.
"We don't do anything speculative for anybody. We don't spend our money on developing new engines," said Rolls-Royce CEO Warren East. “Our new engine developments relate to our jet engines for commercial and business aviation. That's it."
While there is no supersonic engine available or under development for commercial aircraft, Scholl says “we will make a significant announcement in the next few months. And it's not just about engine technology. There are many opportunities for innovation in this sector.”