Honda to Build Jet in Greensboro

Feb. 10 -- Honda announced Friday it will manufacture its new $3.7 million HondaJet in Greensboro.

The Japanese car manufacturer is entering the aviation market with a distinctive "very light jet" whose engines are mounted on top of the wings. The plane will seat up to eight people, including two pilots, and will be marketed to businesses that don't need or can't afford a traditional, bigger jet.

Honda also hopes wealthy private pilots will upgrade to their plane, which can fly up to 41,000 feet and go 450 mph.

Honda has been working at Piedmont-Triad International Airport for five years designing and building the jet, which took its first test flight in December 2003. It announced last summer it would locate the world headquarters of Honda Aircraft Co. in Greensboro.

"We've been conducting R and D here very quietly," said Jeffrey Smith, American Honda Motor Co. assistant vice president. "For a few years hardly anyone knew we were here."

Honda will build a $60 million, 215,000-square-foot headquarters and hangar at the airport. The facility should open in November. It will then construct a facility to manufacture the jet next door.

Honda estimates the headquarters and factory will create 300 jobs. Average salary: $75,000.

Honda expects to deliver its first HondaJet in 2010.

Steve Brown, senior vice president of operations for the National Business Aviation Association, doesn't believe the HondaJet will attract new pilots. Instead, some pilots and businesses will upgrade.

"The typical situation will be people who are flying piston airplanes, or maybe turboprops, will step up into these things," Brown said.

He said the planes will be especially appealing for small businesses in rural areas, where commercial air service is poor.

Brown said the nation's air traffic control system can handle an influx of new jets, in part because they would likely avoid the busiest airports.

"The only time you end up with capacity issues are in places like New York-LaGuardia, Chicago, and sometimes Los Angeles," Brown said. "There is plenty of capacity in Ames, Iowa, and Allentown (Pennsylvania)."

Honda said it has booked more than 100 orders for the plane since it was formally launched in October. It expects to sell about 70 a year.

Smith said Honda chose Greensboro five years ago because of its good weather and educated work force.

Honda wanted roughly $1.2 million in economic incentives from local governments, according to the Greensboro News & Record. The state approved a Job Development Investment Grant for the project, which could be worth $6.68 million over a 12-year period if Honda creates all of its promised jobs.

Smith said Honda "doesn't make the choice based on who is the highest bidder. We look at what is the best choice."

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