Texas-based Otto Aviation announced June 16 it will establish a manufacturing and production facility to build its Phantom 3500 corporate jet at Cecil Airport in West Jacksonville.
The company’s headquarters will also relocate to Jacksonville.
Otto had short-listed Jacksonville as its production site among an undisclosed number of locations.
The Jacksonville facility will serve as the primary site for the final assembly of the Phantom 3500, with production of its flight test vehicles slated to begin in 2026, according to a news release.
“This new facility will become more than a manufacturing site — it’s the launchpad for the future of sustainable aviation,” Paul Touw, CEO of Otto Aviation, said in the release. “Jacksonville stood out as a city that shares our long-term vision: pushing boundaries in aerospace innovation while creating high-quality jobs and meaningful impact. We’re excited to become a part of this dynamic community.”
Gov. Ron DeSantis formally announced the project at the Paris Air Show, a trade fair and air show held in odd-numbered years at Paris-Le Bourget Airport in France.
“I’m pleased to welcome Otto Aviation to Jacksonville. This is a win for Florida and a testament to the kind of innovation we’re attracting,” DeSantis said in the release. “Our infrastructure and talent are primed for the next generation of aerospace manufacturing, and this project is another indicator that Florida will be home to the future of flight.”
Jacksonville Mayor Donna Deegan said Otto's move to Jacksonville would further propel a local aerospace industry that "continues to grow rapidly and be a critical driver of our booming economy."
"We welcome Otto Aviation and thank them for the innovative partnership that will deliver good-paying jobs and new business opportunities," she said in a text-message statement.
On June 10, the Jacksonville City Council approved a $20 million incentive package for the aircraft company. The 18-0 vote constituted final action on a 20-year, 75% Recapture Enhanced Value (REV) Grant for Otto.
A REV grant is a refund on added tax revenue generated by a new development.
On May 19, the Jacksonville Aviation Authority board approved a $34.9 million package of investment and incentives for Otto.
They include $22.5 million for site preparation and design/construction to extend a taxiway to the property where Otto plans to build its facility. Initially, the company plans to operate out of an existing facility, Hangar 825, that was vacated by The Boeing Corp.
Other JAA incentives included abatements on rent and common area maintenance fees on Hangar 825, worth $3.73 million, and rent credits on the hangar, worth $1.5 million.
Additionally, the state of Florida has approved more than $430 million in Corporate Income Tax Credits and High Impact Performance Incentive grants to facilitate the establishment of the manufacturing plant and long-term operations, which will occupy 80 to 100 acres of land at Cecil Airport, according to the release.
Otto has said it would employ a workforce of 1,200 at an average annual compensation of $90,000.
The Phantom 3500 is “a revolutionary twin-engine business jet designed to deliver exceptional fuel efficiency, extended range, and reduced emissions,” the release said. “The aircraft features a full laminar flow design that cuts drag by 35% compared to traditional jets, enabling it to travel farther on less fuel. With a range of 3,500 nautical miles and a cruise altitude of 51,000 feet, the Phantom 3500 is poised to redefine the standards of business aviation.”
Otto plans to begin operations in Hangar 825, originally built by the U.S. Navy for aircraft fleet operations, and will subsequently develop a dedicated manufacturing plant to produce the Phantom 3500.
The company plans to begin flight tests by early 2027, and aims to achieve certification and entry into service in 2030.