The aviation sector in North Carolina is set to receive billions. U.S.-based aircraft startup JetZero, which has secured investments from United Airlines and Alaska Airlines, will invest $4.7 billion over a decade on a production facility and headquarters in North Carolina, the state said on Thursday.
The deal reportedly contains more than $1.1 billion in state performance incentives that would be paid over nearly 40 years and are contingent on JetZero creating over 14,000 jobs between 2027 and 2036, a state representative said.
JetZero is a California-based aerospace startup founded in 2021, aiming to revolutionize aviation through its innovative blended wing body (BWB) aircraft design. The company’s flagship model, the Z4, is a 250-seat aircraft designed to reduce fuel consumption by up to 50% compared to conventional aircraft. This radical design merges the wings and fuselage into a single aerodynamic body, significantly cutting drag and improving fuel efficiency.
Major airlines like United and Alaska Airlines have shown support with United considering an order of up to 200 jets. JetZero also plans to build a $5 billion manufacturing plant in Greensboro, North Carolina, expected to generate over 14,000 jobs by 2036.
READ: Indian American woman killed in Long Island plane crash (March 7, 2023)
In the defense sector, JetZero has secured a $235 million contract from the U.S. Air Force to develop a full-scale BWB prototype, targeting a first flight by 2027. The military version is intended to enhance operational range and efficiency for refueling and transport missions. The company is collaborating with key aerospace partners like Northrop Grumman and Pratt & Whitney. By integrating commercial and military interests, JetZero is positioning itself as a key player in shaping the future of sustainable, high-performance aviation.
The state of North Carolina stands to benefit a lot from this investment. North Carolina’s aviation and aerospace industry is a vital part of the state’s economy, generating $88 billion annually and supporting over 427,000 jobs. With 72 public airports—including 10 commercial service and 62 general aviation facilities—the state offers a robust infrastructure for both civilian and military aviation. In 2023, passenger demand surged to 74.3 million, up 20% from pre-pandemic levels, highlighting rapid growth.
Raleigh-Durham International Airport alone handled a record 15.5 million passengers in 2024. The aerospace sector benefits from a highly skilled workforce including over 47,000 engineers, and a business-friendly environment featuring low taxes and competitive labor costs. More than 200 aerospace companies operate in the state including major players like Pratt & Whitney, Collins Aerospace, and Honda Aircraft Company.
Strategic initiatives such as the North Carolina Aerospace Corridor further strengthen the state’s position as an emerging global hub for advanced aviation and aerospace innovation.
The company will reportedly manufacture its 250-seater Z4 blended wing bodied aircraft at an airport site in Greensboro, the state and company said in statements.
By establishing a major manufacturing facility, JetZero hopes to advance its mission to develop fuel-efficient, innovative aircraft that could transform commercial aviation. For North Carolina, this investment brings significant economic growth through job creation and increased industrial activity, further establishing the state as a competitive hub for aerospace and clean technology.
The partnership fosters a strong ecosystem for innovation, supports workforce development, and positions both JetZero and North Carolina for sustained success in the rapidly evolving aviation sector.