Otto Aerospace Closes FAA G-1 Issue Paper for Phantom 3500

Otto Aerospace has finalized the regulatory framework for its Phantom 3500 aircraft, closing the G-1 Issue Paper with the Federal Aviation Administration (FAA) to establish the type Certification basis under 14 CFR Part 23.

The June 8, 2026, announcement marks the transition of the Phantom 3500 program from initial design into the execution phase, paving the way for flight testing and a targeted entry into service in 2030. According to a company press release, the agreement defines the specific airworthiness standards the light jet must meet under Amendment 23-64.

Certification progress and testing plans

Securing the G-1 Issue Paper is a mandatory step in the FAA type certification process. Otto Aerospace became an applicant for type certification in September 2025. The company is now actively engaged with the FAA East Certification Branch to close the G-2 Issue Paper, which will define the specific means of compliance for the program.

“Now that the certification basis is in place, the program moves into a higher gear on execution. We have alignment with the FAA on what we need to demonstrate, and that gives us real momentum as we move toward first flight and entry into service,” said Scott Drennan, President and Chief Executive Officer of Otto Aerospace.

With advanced material testing already underway, Otto Aerospace confirmed that its flight testing campaign will be conducted from a new facility at Cecil Airport in Jacksonville, Florida. The company maintains its headquarters in Fort Worth, Texas.

Kerri Hinton, Director of Test & Certification for Otto Aerospace, noted that the company appreciates the ongoing engagement with the regulator. She stated that the manufacturer looks forward to advancing the Phantom 3500 through the remaining certification phases with an unwavering commitment to safety.

Design freeze and cabin technology

The certification milestone follows a series of technical and design developments for the Phantom 3500. On May 18, 2026, Otto Aerospace completed the Preliminary Design Review (PDR) and officially froze the aircraft design. According to reporting by Aviation International News, the final design incorporated minor adjustments to the stabilizer volume, empennage placement, and aft fuselage length to optimize aerodynamic performance.

Shortly after the design freeze, the manufacturer announced a partnership on May 21, 2026, with Austrian interior specialist F/LIST to develop the aircraft cabin. AviTrader reported that the interior will feature Otto Aerospace proprietary SuperNatural Vision technology. This system replaces traditional passenger windows with ultra-wide digital displays connected to external cameras.

Commercial milestones and production timeline

The Phantom 3500 program is backed by a substantial initial order book. On September 30, 2025, fractional ownership operator Flexjet was announced as the launch customer for the aircraft. The agreement includes a firm order for 300 airframes, valued at $5 billion.

With the design frozen and the certification basis established, Otto Aerospace is targeting 2027 for the first flight of the Phantom 3500. The company projects the aircraft will achieve certification and enter commercial service in 2030.

AirPro News analysis

Closing the G-1 Issue Paper within nine months of formal application indicates a highly structured initial engagement between Otto Aerospace and the FAA. However, the transition to the G-2 Issue Paper phase will likely present complex engineering challenges. The integration of the SuperNatural Vision windowless cabin technology is unprecedented in a Part 23 business jet. We expect the FAA East Certification Branch will require extensive human factors and redundancy demonstrations to establish the means of compliance for replacing physical windows with digital displays. Maintaining the 2027 first flight target will depend heavily on how quickly the regulator and the manufacturer can align on these novel testing requirements.

Sources: Otto Aerospace