Aerion Supersonic, a US-headquartered high-speed jet developer backed by aerospace manufacturer Boeing, is closing down, it told CNBC on Friday.
Founded in 2002, Aerion had been working on a supersonic jet called the AS2, which was designed to travel 150% faster than conventional business jets and which would have been powered by engineered synthetic hydrocarbon fuels.
Boeing disclosed in February 2019 it had made a ‘significant’ investment in Aerion without detailing its size. Securities filings show it closed $15.2m in funding in 2008, adding $28.1m in series A funding in 2010 from a single investor likely to be founder Ron Bass and a $1m convertible note in 2011.
The company had projected some $4bn in development costs for the AS2, which were expected to retail at $120m each. It had also planned to build a $375m production facility and its partners included General Electric and NetJets as well as Boeing.
The news was initially reported by Florida Today, and Aerion said in a statement issued to CNBC: “In the current financial environment, it has proven hugely challenging to close on the scheduled and necessary large new capital requirements.
“Aerion Corporation is now taking the appropriate steps in consideration of this ongoing financial environment.”
