The purpose of this paper to show that a VTOL aircraft propelled by three shrouded propeller unite can be made statically stable and controllable by proper design of the shroud inlet configurations. To achieve this purpose, the aircraft longitudinal and lateral equilibrium equations for hovering and forward flight conditions are developed as a function of the specific shrouded propeller geometry and placement selected. A method of approximating the influence of a shrouded propeller on downwash is proposed and values of downwash angle estimated. The aircraft hovering and forward flight performance and controllability calculated using shrouded propeller wind tunnel test data.