Boeing Invests Into Supersonic Jet Maker Aerion

Boeing announced this week that it has invested a big amount of money into supersonic jet developer Aerion.

Aerion is an American aircraft manufacturer based in Reno, Nevada. Projects include the 8-12 passenger AS2 supersonic business jet, with key engineering support provided by Lockheed Martin.

The company said on Tuesday that it had made a “significant investment” in the company in an effort to look into high-end aircrafts that can shorten travel times.

Shares hit a record high after the news and opened for the first time over the $400 mark.

Boeing said it will provide engineering, manufacturing and flight testing services for Aerion’s $120 million supersonic business jet. The first flight is expected to happen in 2023.

Aerion’s Aerion AS2 jet can fly as fast as Mach 1.4, or 1,000 miles an hour. This is 70% faster than conventional business jets.

“Boeing is leading a mobility transformation that will safely and efficiently connect the world faster than ever before,” said Boeing NeXt vice president Steve Nordlund. “This is a strategic and disciplined leading-edge investment in further maturing supersonic technology. Through this partnership that combines Aerion’s supersonic expertise with Boeing’s global industrial scale and commercial aviation experience, we have the right team to build the future of sustainable supersonic flight.”

No financial terms of the deal were disclosed.

Disclaimer: We have no position in Boeing Co. (NYSE: BA) and have not been compensated for this article.