With the development of aviation technology, supersonic jets are gaining more attention recently. Boom Supersonic is a promising company aiming to build commercially viable supersonic jets. As an investor, the Boom supersonic jet project may offer significant returns in the future but also contains potential risks. This article will analyze the market prospects, competitive advantages, major challenges and provide suggestions on how to invest in Boom supersonic jets.
Huge market potential for supersonic travel
The supersonic jet market has huge potential in the future. Many high net worth individuals and business executives are willing to pay premium prices for the enormous time savings. It’s estimated that over 500 routes are suitable for supersonic jets. As technologies advance, tickets could become affordable for business class travelers too. With appropriate airport adjustments, the addressable market could exceed $160 billion by 2040.
Boom’s competitive edges in aircraft design
Boom boasts advanced proprietary technologies in supersonic jet design compared to competitors. It uses lightweight carbon fiber material and has optimized engine placement and wing design. These improvements could help realize better fuel efficiency. Boom’s Overture jet is expected to fly at Mach 1.7 with lower sonic boom, making it acceptable for overland travel. Although certification and regulation remain challenges, Boom’s innovations and operational focuses give it an edge.
Key challenges in production and commercialization
Achieving profitability could be difficult for Boom. Many technical and business hurdles exist from prototype testing to mass production of supersonic jets. Huge upfront investments are required for designing, building and testing aircraft systems at scale. Also, airport infrastructure must be upgraded to support refueling and maintenance of these jets. Most importantly, Boom needs to build airline partnerships for purchasing the aircrafts once operational.
Ways to invest in Boom supersonic jets
Currently, Boom is not a publicly traded company, so direct investment is impossible. The best options are investing in Boom’s early stage VC funds if qualified, or investing in public companies supporting Boom’s supply chain like advanced material producers. For accredited investors, pre-IPO equity investment may be possible through private platforms. While outcomes remain uncertain, Boom’s project represents an ambitious innovation in supersonic travel.
In summary, investing in Boom supersonic jets can generate substantial returns but has technological and business risks. Evaluating market potential, competitive strengths against challenges, and utilizing appropriate investment vehicles are keys to capitalizing on this opportunity.