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JetZero's triangle-shaped jet on track to fly by 2027
JetZero's triangle-shaped jet on track to fly by 2027

Toronto Sun

time06-05-2025

  • Business
  • Toronto Sun

JetZero's triangle-shaped jet on track to fly by 2027

Published May 06, 2025 • 2 minute read A rendering of JetZero's blended-wing jet. Photo by Bloomberg Daybreak / JetZero JetZero Inc., the start-up aiming to take on planemakers Airbus SE and Boeing Co., is on track to fly the first full-scale model of its manta ray-shaped jetliner by late 2027, executives said Friday. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The company is about halfway through the key milestones in its development process for the so-called 'demonstrator aircraft,' and is already laying plans to manufacture and certify the first commercial versions, Florentina Viscotchi, JetZero's head of engineering, told reporters at its Long Beach, California, headquarters. Executives 'feel very confident' they're on the path to first flight by the end of 2027, as the company initially projected, she said. 'Yes, we are very serious about this aircraft and it's on the path to being really built.' The next three years will be critical for JetZero. The company is weeks away from unveiling a 1,000-acre site for its main factory — comparable in size to Boeing's complex north of Seattle or four golf courses, said Tom O'Leary, a Tesla veteran who is the fledgling company's chief executive officer. He's also lining up industrial partners and funding, counting on a boost as the plane concept gets closer to reality. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. O'Leary described his vision for 2028: To have a plane in the air and a factory taking shape on the ground. 'These are things that are going to happen,' he said in an interview. The company has won early commitments from Delta Air Lines Inc., United Airlines Holdings Inc. — and a $235 million grant from the US Air Force — for a concept aimed at replacing the traditional tube-and-wing design that's dominated air travel for decades. The goal is to fast-track the effort at a time when Boeing and Airbus are working through record order backlogs and aren't planning to introduce any all-new designs until the mid- to late-2030s. But bringing its radical design to market is a daunting task given the billions required to stand up manufacturing and a supply chain, and the delays that long-established jet families from Boeing and Gulfstream face in gaining certification from the Federal Aviation Administration. This advertisement has not loaded yet, but your article continues below. Aviation is littered with companies that have tried to take on the planemaker duopoly, most recently Bombardier Inc.'s C-Series aircraft. The effort nearly bankrupted the Canadian manufacturer, which unloaded a controlling stake to Airbus SE for a token $1 sum. JetZero has hired an engineering team and advisors who helped steer the Bombardier jet through certification. Still, it has encountered hiccups, including losing a jet model at 12.5% of the final version's scale to a battery fire after an initial test, executives said. JetZero team members, using concepts honed during their time at Boeing and McDonnell Douglas, are creating an aircraft that would seat about 250 people in a triangular-shaped jet cabin that's wider than conventional jets and boasts a shorter fuselage that contributes lift and fuel-savings. Gone is the tail, with two engines piggybacked onto the rear in its place to provide both power and stability. 'We're not saying it's a cake walk, but we have people who've done this before,' said Bethany Davis, a former Gulfstream executive who is JetZero's head of systems and certification. 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Trump is already slowing global trade as companies pause orders
Trump is already slowing global trade as companies pause orders

Yahoo

time10-04-2025

  • Business
  • Yahoo

Trump is already slowing global trade as companies pause orders

(Bloomberg) — US President Donald Trump may have announced a delay in some of his tariff plans, but the first signs of an economically-damaging slowdown in global trade are already emerging as companies around the world hit their own pause button on orders and he continues to escalate his trade war with China. Trump announced Wednesday that he would increase import duties on Chinese goods to 125% while also announcing a 90-day pause in plans to impose higher tariffs on dozens of other economies, hitting them with a flat 10% tariff instead. China earlier in the day had raised its own new tariffs on imports from the US to 84%. The escalation has taken the world's two largest economies closer to a decoupling as their respective exports to each other now face what many economists consider prohibitive duties. But even as Trump's move was cheered in financial markets, there were already signs of how his tariffs are roiling the global economy and warnings that a virtual halt in US-China trade is starting to have damaging consequences. If anything, Trump is extending the uncertainty that has already begun to drag on business and consumer sentiment. Subscribe to the Bloomberg Daybreak podcast on Apple, Spotify or anywhere you listen.​​​​​​ 'Whipsaw movements in country tariff rates will do nothing to reduce already record levels of trade-policy uncertainty,' Bloomberg Economics economists Rana Sajedi, Maeva Cousin and Tom Orlik wrote after the pause was announced. 'Trump appears to consider uncertainty a positive for negotiations. For businesses and markets, it's a drag.' They noted that even after the temporary reprieve, the average US tariff rate is still rising to 24%, up almost 22 percentage points since Trump started his second term. That means the hit to economic growth and inflation remains similar in 'a shock that will play out over two to three years.' US Tariffs Are Still at Historic High Even After Trump's Pause Online retail giant Amazon (AMZN) began canceling orders from China and other parts of Asia, Bloomberg News reported. Haas Automation, which bills itself as the largest machine tool builder in the western world, said it was reducing production and eliminating overtime for the 1,700 workers at its manufacturing plant north of Los Angeles because of a 'dramatic decrease in demand for our machine tools from both domestic and foreign customers.' Both moves reflected a broader pause in orders now hitting global supply chains as Trump's tariffs take hold. Vizion Inc., a tech company that gathers supply chain data, estimates global container bookings made between April 1 and 8 dropped 49% and US imports fell 64% from the seven-day period immediately before. Bookings from China fell 36% in the same period while global container bookings for all countries fell 48% week over week. 'The 'wait and see' approach is one that is now playing out across millions of shipments scheduled each month,' said Kyle Henderson, Chief Executive Officer of Vizion. Jake Colvin, president of the Washington-based National Foreign Trade Council, said while Trump's pause was welcome, the 10% baseline and massive tariffs on China would continue to pile pressure on trade. 'While this temporary pause may lessen the immediate pain, it doesn't diminish the uncertainty that is paralyzing companies' trade, sourcing, and investment calculations,' Colvin said. David Warrick, who until 2022 oversaw the operation of Microsoft's (MSFT) global supply chains, said the best approach for many companies now was to 'hurry up and wait.' 'Making a strategic decision today just does not seem like a really good thing to do because this is moving very quickly,' said Warrick, who is now at Overhaul, a supply chain risk management company. Shipments between the US and China are likely to drop off significantly in the weeks to come after a surge in demand in air freight in recent weeks to rush products to the US ahead of tariffs. Eventually, the higher costs are likely to hit US demand for Chinese products and vice versa, leading to a slowdown in shipping on the usually busy US-China Pacific route, Warrick said. Robert Koopman, a former World Trade Organization chief economist now at American University, said global trade was likely to slow significantly in the months to come as the tariffs took hold. The first few months of the year 'have been pretty good' for global trade amid a surge in exports to front-run Trump's tariffs. 'But I think for the next four or five months, it's very likely to be much slower,' Koopman said. 'The biggest negative shock' is set to be trade between the US and China with tariffs in both directions prohibitive for anything but products that aren't available anywhere else. The best hope for global trade and the world economy, Koopman said, is that stimulus plans in China and Germany and a big industrial push in the European Union all could mitigate some of the impact of US tariffs and keep trade flowing between the rest of the world as the US puts up an economic wall. A total collapse in trade between the US and China would hurt both those economies, but their almost $700 billion in bilateral goods trade last year represented less than 3% of global commerce, Koopman said. The WTO, which is poised to release new forecasts in the coming days, has warned that spiraling tariffs will trigger an overall contraction of around 1% in global merchandise trade volumes this year – a cut of four percentage points from the WTO's previous projections. In a note titled '90-day tariff pause not as helpful as it sounds' Citigroup Inc. (C) economists cautioned that the average US effective tariff rate is about 21 percentage points higher from its level at the beginning of the year. 'It was already likely that most of trade between the US and China was uneconomical with the 60% increase in tariffs threatened on the campaign trail, much less a hike of more than twice that level,' said Citigroup senior global economist Robert Sockin. For many smaller US importers, the tariffs have become a life-or-death matter. Ben Knepler, who runs Pennsylvania-based True Places, a designer of outdoor chairs that retail for up to $150, asked his Cambodian suppliers to pause shipments while he waited to see what happened to tariffs. 'There is no point completing the product if we are not able to bring our product to the US,' he said. 'There are still massive amounts of uncertainty.' While Knepler is hopeful of resuming production, that decision is dogged by uncertainty. The latest question looming over him: Whether Trump will decide in 90 days to impose the 49% tariff on goods from Cambodia he announced April 2, or continue with the 10% 'baseline' tariff they are subject to during Trump's pause. 'This new round of tariffs is existential for us,' Knepler said in an interview. Companies trying to adapt to Trump's tariffs have started using all sorts of tools to find a way around the duties, including artificial intelligence. Fred Laluyaux, CEO and co-founder of Aera Technology, which works for clients including Unilever (UL), Dell Technologies (DELL) and Kraft Heinz (KHC), says one of the main ways companies are adapting to the higher tariffs is using AI to cut procurement costs. But there's a limit to how much companies can reduce costs, especially if they haven't prepared for a crisis many have long seen coming. 'If you've been to any supply chain conference for the last 15 years, they've been telling you to diversify, to not single source,' Laluyaux said. 'AI can help you reroute things. But if at the end of the day you're being charged 100% tariffs, it's not going to help.' The best hope for companies that depend heavily on the US-China relationship may be that the two reach a deal. Speaking in the Oval Office Wednesday, Trump said he expects to eventually reach agreement with China. 'I think we'll end up making a very good deal for both,' Trump told reporters. 'President Xi is one of the very smart people of the world.' But for now, there isn't an immediate off ramp for the US and China trade war, according to Wendong Zhang, an economist at Cornell University. 'Even though China understands it will pay a much higher economic cost in percentage terms, the international political economy calculations mean that they are likely to stick to their guns,' Zhang said. 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