US-based aircraft manufacturer Aerion Supersonic has reportedly confirmed that it is shutting down operations due to financial challenges.
The company, which planned to develop quiet and fast business jets, said it was unable to raise the required capital to build its AS2 supersonic jet.
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In a statement to Florida Today, Aerion said: “The AS2 supersonic business jet programme meets all market, technical, regulatory and sustainability requirements, and the market for a new supersonic segment of general aviation has been validated with $11.2bn in sales backlog for the AS2.
“However, in the current financial environment, it has proven hugely challenging to close on the scheduled and necessary large new capital requirements to finalise the transition of the AS2 into production. Given these conditions, the Aerion Corporation is now taking the appropriate steps in consideration of this ongoing financial environment.”
In January 2020, Aerion revealed that it planned the first AS2 jet flight to take place by 2024 and start commercial operations in 2026. The jet was slated to cost $120m a unit.
The aircraft development was estimated to cost approximately $4bn for the company, CNBC reported citing Aerion CEO Tom Vice in January 2020.
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By GlobalDataThe company already spent $1bn to develop the AS2’s engine at that time.
Last year, Aerion relocated its headquarters from Reno, Nevada, to Melbourne, Florida.
NetJets placed a purchase order for 20 AS2 jets earlier this year.
