Cash crisis hits Alberta Aerospace

Alberta Aerospace, manufacturer of the Phoenix FanJet turbofan trainer aircraft, has closed down operations.

Citing a lack of cash, the Alberta-based company has dismissed all of its employees, and its six board members, except for chairman Don Jewitt, have resigned.

The closure ends a troubled recent history for the Canadian company which included a protracted court case with former investors in bankrupt Belgian manufacturer Promavia over the rights to the single-engined FanJet, formerly the Promavia Jet Squalus.

Earlier this year, an Asian airline, reported to be Korean Airlines, ordered 15 of the two-seat SigmaJet trainer version of the single-engine aircraft valued at C$45 million ($30 million). The company was due to start deliveries in 2003 but those plans are now on hold.

Source: Flight International