Quit Amazon to start a $1B airline company: Blake Scholl on building Boom Supersonic

Key Concepts

Supersonic passenger flight, energy abundance vs. conservation mindset, first principles analysis, quantifying assumptions, team building in aviation startups, overcoming fear of failure, sustainable aviation fuel, regulatory hurdles (sonic boom ban), speed as a binary factor (doing vs. not doing), product-market fit, courage in entrepreneurship.

From Amazon to Boom: A Mindset Shift

Blake Scholl discusses his transition from a tech career at Amazon and Groupon to founding Boom Supersonic. He emphasizes the initial struggle with self-doubt, questioning his qualifications to lead a potentially historic venture.

• Inspiration: He drew inspiration from Apple's "Think Different" campaign and Bill Gates' ambitious goal for Microsoft, realizing the importance of declaring big goals to achieve them.
  • "The people who are crazy enough to think they can change the world are the ones who do."
• Risk Assessment: He framed the decision as choosing between being a "dark matter" entrepreneur (failing after trying) versus not trying at all.
• Amazon Experience: At Amazon (engineer #200), he developed the company's first automated ad management system, which at one point accounted for 7% of both Amazon's and Google's revenue.
  • Key learning: Identifying a different approach when everyone is doing something the same way.
  • Example: Automating ad buys for less popular search terms with fewer ads.

Quantifying the Dream: From Spreadsheets to Stanford

Scholl details the initial research and validation process for the supersonic jet concept.

• Initial Spark: Seeing a Concorde in a museum and a desire to design a better airplane.
• Challenging Conventional Wisdom: He questioned the common reasons why supersonic jets were considered impractical (cost, market size, overland flight restrictions).
• Quantifying Assumptions: He built spreadsheets to model the economics and feasibility of supersonic flight, focusing on measurable factors like efficiency improvements.
  • Discovered that a single-digit efficiency improvement could make supersonic flight economically viable.
• Expert Validation: He sought feedback from a Stanford professor who specialized in supersonics research.
  • The professor confirmed that Scholl's assumptions were conservative, encouraging him to pursue the idea.

Building the Team: Overcoming Aviation Startup Challenges

Scholl highlights the unique challenges of building a team for an aviation startup, given the industry's lack of recent innovation.

• Team as the Hardest Thing: He identifies team building as the most difficult aspect of Boom, even more so than engineering and financing.
• Lack of Aviation Entrepreneurial Culture: Unlike the "PayPal mafia" or "Amazon mafia," there's no equivalent network of entrepreneurial-minded people from established aviation companies like Boeing.
• Finding the Right People: He sought individuals from diverse backgrounds or those who had left established companies early in their careers.
• Persuasion Strategy: He addressed the initial skepticism ("Are you crazy?") by demonstrating the viability of the concept.
  • Example: A chief engineer was hired after Scholl showed him the spreadsheet model.

Navigating Industry Criticism and Defining "Ignorance as a Superpower"

Scholl discusses how he deals with criticism from industry experts and refines the concept of "ignorance as a superpower."

• Challenging Industry Experts: He argues that industry experts often repeat conventional wisdom without conducting first principles analysis.
• First Principles Approach: He emphasizes the importance of seeking out first principles and understanding the fundamentals of a domain.
• Learning Through Teaching: He used the interview question "Teach me something" to filter candidates and gain knowledge.
• Redefining "Ignorance as a Superpower": It's not about being ignorant, but about rapidly eliminating ignorance through first principles analysis and a willingness to challenge established beliefs.
• Belief in Problem-Solving: Believing you can solve a problem others have given up on.

Near-Death Experiences and the Importance of Not Giving Up

Scholl shares the challenges and near-death experiences Boom has faced, emphasizing the importance of perseverance.

• Recurring Crises: Boom has faced near-death experiences about once a year, including a situation where they had only seven days of cash left.
• Board Member Departures: Some board members quit due to the company's financial difficulties.
• Down Round and Recapitalization: The company had to undergo a down round and recapitalization to stay afloat.
• Paul Graham's Advice: When Boom had only three weeks of cash, Paul Graham questioned why Scholl wasn't shutting down the company.
• Founder's Resolve: Scholl refused to give up, stating he would take the company through bankruptcy and restart if necessary.
• Defining Success: Companies fail when the founder gives up, not just when they run out of money.

Breaking the Sound Barrier and the Path to Commercialization

Scholl discusses Boom's recent achievements and the timeline for launching commercial supersonic flights.

• Supersonic Flight Achievement: Boom built and flew the first supersonic jet outside of a government or military.
• First Civil Supersonic Jet in America: It's the first civil supersonic jet made in America and the first since Concorde.
• Airliner Technology: The jet is built using proven airliner technology (Boeing 787 level).
• Boomless Supersonic Flight: They have achieved boomless supersonic flight, reducing the impact of sonic booms.
• Commercialization Timeline: The goal is to have the first passenger on board by the end of 2029 (approximately four years).

Regulatory Hurdles and the Sonic Boom Ban

Scholl addresses the regulatory challenges, particularly the sonic boom ban, and the potential for change.

• Initial Assumption: The company initially assumed no new technology and no change in regulations.
• Technical Solution: They discovered a technical solution to reduce sonic booms.
• Political Climate Shift: The current administration is more open to lifting the supersonic ban.
• US and Canada Ban: The US and Canada have an outright supersonic ban, which is stricter than in other parts of the world.
• Regulation's True Purpose: Scholl suggests the ban may have been motivated by protecting Boeing rather than solely addressing noise concerns.
• Proposed Change: He advocates for replacing the speed limit with a noise limit.

Carbon Emissions and the Energy Abundance Mindset

Scholl discusses the environmental impact of supersonic flight and the importance of an energy abundance mindset.

• Energy Intensity: Supersonic flight is more energy-intensive than subsonic flight.
• Sustainable Aviation Fuel: Boom is designing around next-generation sustainable aviation fuel, with the potential for zero carbon emissions using synthetic fuel.
• Shift in Mindset: He argues that humanity shifted from an energy abundance mindset to a conservation mindset in the 1970s.
• Energy Abundance Future: He emphasizes the importance of planning for and creating an energy abundance future.
• Technological Progress: He draws parallels to historical energy advancements, such as the invention of the log cabin and potbellied stove to mitigate the downsides of fire.
• Synthesizing Jet Fuel: He supports efforts to synthesize jet fuel more affordably than extracting it from the ground.

Affordability and the Future of Travel

Scholl discusses the target cost for supersonic flights and the broader impact on travel and human connection.

• Ultimate Goal: To make supersonic flight attainable for anyone.
• Concorde's Limitations: Concorde was a technical marvel but lacked product-market fit due to high ticket prices and limited routes.
• Overture's Target Market: Overture aims to be the "Model S" of supersonic jets, accessible to a broader audience.
• Target Fare: Business class fares (around $5,000 round trip).
• Flight Duration: Three to four hours from New York to London.
• Impact of Speed: Speed is not just about efficiency but enables new possibilities and connections.
• Hawaii Example: The speed of jets transformed tourism to Hawaii.
• Nike Example: Phil Knight's trip to Japan, enabled by jet travel, led to the creation of Nike.
• Global Connections: Faster and more affordable flights can enable people to visit friends and family on other continents for a weekend.

Balancing Work and Family

Scholl shares insights on balancing his demanding work life with raising four children.

• Being Present: He tries to be fully present when he's with his kids.
• Combining Activities: He finds ways to combine work and family activities, such as taking his children on a "road trip in the sky" in his personal airplane.
• No Days Off: He hasn't had a day off in months.
• Passion as Motivation: His passion for the project keeps him going.

Recent Success and Future Outlook

Scholl discusses Boom's recent funding and achievements, and the opportunities ahead.

• Recent Funding: Boom received $150 million in funding from investors like Paul Graham, Sam Altman, and Reid Hoffman.
• Breaking the Sound Barrier: They broke the sound barrier multiple times, including achieving boomless supersonic flight.
• White House Visit: He was invited to the White House shortly after breaking the sound barrier.
• Bipartisan Support: There is bipartisan support for repealing the speed limit and replacing it with a noise limit.
• Opportunity: The world is very open to supersonic flight right now.

Advice for Aspiring Entrepreneurs

Scholl offers advice to those who are hesitant to pursue their entrepreneurial dreams.

• Fear of Failure: Failure is never as bad as you think it's going to be.
• Comfort with Failure: Getting comfortable with the idea of failing makes it easier to try.
• Honest Effort: If you fail, make sure you fail honestly, by giving it everything you have.
• Don't Give Up: Don't give up when it would be reasonable to do so.
• Visualize Failure: Visualize what failure looks like and accept it.

Final Thoughts

Scholl encourages listeners to talk to their loved ones and pursue their passions. He expresses excitement about the future of Boom and the potential to transform travel.

Synthesis/Conclusion

Blake Scholl's journey from Amazon to Boom Supersonic is a testament to the power of challenging conventional wisdom, quantifying assumptions, and building a passionate team. He emphasizes the importance of an energy abundance mindset, the potential for sustainable aviation fuel, and the transformative impact of speed on travel and human connection. His story highlights the value of perseverance, the importance of learning from failure, and the courage to pursue ambitious goals, even in the face of skepticism and regulatory hurdles. The key takeaway is that with a first-principles approach, a relentless pursuit of knowledge, and an unwavering commitment to not giving up, seemingly impossible dreams can become a reality.