JetZero CEO Tom O’Leary gave Triad business leaders a bullish outlook for the startup’s plans to build a $4.7 billion manufacturing plant in Greensboro that he expects to create more than 14,500 jobs over the next decade.
The company recently met its “critical design review” milestone set forth in an agreement with the U.S Air Force, which in 2023 pledged to invest $235 million in JetZero. Since then United Airlines and other carriers have made commitments, bolstering confidence in the startup as it attempts to take on giant rivals Boeing and Airbus in making large commercial airplanes.
“We hit that milestone within the time schedule and under budget,” he said. “Those words aren’t heard very often at the Pentagon.”
O’Leary spoke before 300-plus business and civic leaders at the annual Wyndham Champions Breakfast, which kicks off the annual PGA golf tournament in Greensboro.
In a question-and-answer session with High Point University CEO Nido Qubein and a later interview, O’Leary said JetZero is progressing well on its plan to conduct the first successful flight of its jet in 2027. Research and development is occurring in Long Beach, California, reflecting southern California’s leadership in the aviation industry.
But California isn’t hospitable to manufacturing, he told the crowd, and the company plans to have its headquarters in Greensboro so engineers can be close to the manufacturing process.
In turn, he said, JetZero has been thrilled with the support from North Carolina and the Triad. That support includes about $450 million in upfront investment, which mainly entails infrastructure improvements at its site adjacent to Piedmont Triad International Airport. That’s part of a $1.6 billion incentives package offered by the state.
North Carolina typically hasn’t made such massive incentive offers, instead permitting payouts only after job and investment targets are hit. But state lawmakers this week approved the $450 million outlay over the next two years because of leaders’ confidence that the investment can transform the Triad economy, much like the Toyota Motor expansion in Randolph County. The automaker now employs more than 2,000 people at its N.C. site, Mike Fox, CEO of the Triad Regional Partnership, said today.
“Some states make it easier to do business,” O’Leary said in an interview. “It’s tax policy, it’s incentives, and you need to have the assurance that you’re not going to get hung up. We have our mind on doing great things for the community and for the environment, and we feel this is the right place.”
In his interview with Qubein, O’Leary explained some of his personal history and how he’s building JetZero to be an innovative, sustainable, people-oriented business. His biggest worry is fulfilling the promises made to JetZero’s 200 employees, he said. But he expressed little apprehension about competing against Boeing and Airbus, the global giants that O’Leary said are the only manufacturers producing jets with 200 or more seats.
Boeing’s much-publicized problems have prompted its market share to decline from 65% to less than 40%, O’Leary said. Meanwhile, Airbus has a 10-year, 8,000-jet, $1 trillion backlog of orders from airlines that is likely the greatest backlog in the history of global commerce, he added.
The result is that the two giant jet makers are more focused on meeting existing demand and less focused on innovation, providing an opportunity for JetZero to make a major impact, he said.
JetZero’s name reflects its goal to produce zero emissions, which was a popular selling point when the Air Force made its investment decision in 2023, O’Leary said. Now, the Trump Administration has dialed back former President Joe Biden’s emphasis on clean energy, which O’Leary says isn’t affecting the company’s plans as many clean-technology investors have become more realistic about how rapidly improvements can occur.
“I’d say that we have something that appeals to everybody. So I wouldn’t say [the policy change] helps or hurts,” he said.
During his talk, O’Leary said he was drawn to attending Furman University in Greenville, South Carolina, as an undergraduate partly because he wanted to play a lot of golf there, he said. He attributed some of his business success to lessons learned as a caddy at his father’s country club, where he learned from a variety of successful leaders.
He played golf Wednesday in a foursome with Greensboro investor Bobby Long, who has been the key civic force behind the Wyndham tournament for many years, and N.C. native Webb Simpson, a longtime PGA Tour star.
Among O’Leary’s career stops was a two-year stint at Tesla, where he was part of Elon Musk’s design team for the company’s first cars. While heavily influenced by Musk, O’Leary says JetZero has a much different challenge because jet manufacturing is a much more methodical, long-term process.
David Mildenberg is editor of Business North Carolina. Reach him at dmildenberg@businessnc.com.