A compound Vertical TakeOff and Landing (VTOL) aircraft. In a specific embodiment, the VTOL aircraft includes a gas-powered tip-jet driven rotary-wing and a fixed-wing that is capable of providing necessary lift to the aircraft during certain forward-flight regimes so that lift from the rotary-wing is not required. This enables slowing of the rotor, thereby reducing drag during forward flight and enabling flight above and below mu-1. Valves and accompanying ducting are employed to control compressed gas flow to the rotary-wing. Various reaction jets are employed for attitude control during VTOL and transition operations. The aircraft further includes a jet exhaust nozzle to provide forward thrust to facilitate forward flight.