Stratos Aircraft has unveiled a full-size mock up of its 714 very light jet at AirVenture in Oshkosh as it begins to take deposits for the four-seat aircraft.
Stratos chief executive and co-founder Michael Lemaire says he is confident the first batch of $50,000 deposits for the $2 million personal jet will be received during AirVenture. He says Stratos has been talking to several potential customers since unveiling a small model of the aircraft at last year's AirVenture and interest in the 714 is strong despite the economic downturn and failure of other VLJ start-ups.
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"There's no indication the VLJ is coming to an end," Lemaire says "I think VLJs are already happening and will continue happening. Higher end pistons are going out completely."
To assuage concerns following several high-profile VLJ failures, all Stratos deposits will be held in an escrow account set up by Wells Fargo bank. The funds from the deposits will only be used when Stratos is ready to produce aircraft and will not be used to cover any development.
Stratos is hoping to collect several hundred deposits to prove to potential investors there is a market for a $2 million personal jet that can fly up to 1,500nm at 400kts, which Lemaire says makes it the fastest VLJ in the market. Stratos is now looking for $12 million in funding from individual investors to cover the cost of developing two flying prototypes and one test article in Oregon.
Stratos will eventually also need $100 million from investment firms and/or banks to cover certification. "This early it is unlikely to get investment firms and banks but we don't need that kind of money yet anyway," Lemaire says. "I wouldn't approach an institution today."
Since launching in 2007 Statos has only secured $1 million from one investor. If Stratos is successful at securing new investors, Lemaire says the first 714 could be delivered in about four years, or the second half of 2013.
Over the last year the company has been fine-tuning the design. It also has been using consultants to confirm the design can meet the performance specifications.
"We've made sure we can achieve what we say we can achieve," says Stratos chief aerodynamicist Gordon Robinson. "We're now sure we can meet the specs and that's why we're now ready to take deposits in which we guarantee the performance."
Source: Flight International
