The Adam Aircraft A700 very light jet is back on track to certification. AAI Acquisition Inc is scheduled to be explaining its business model at AirVenture today after its Russian parent company, Industrial Investors, received US Department of State approval to buy the bankrupt Adam Aircraft Industries. Its $10 million bid won court approval on April 10 for the assets of the Denver-area start-up.
“Our primary focus is to get the A700 certified and into production,” says vice-president of sales and marketing Jan D’Angelo. “We really haven’t finalized what we’ll do with the A500.”
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That piston twin may enter production, but cannot distract from the A700, which will drop its creator’s name. “Any reference to Adam will be gone,” states D’Angelo. “We are working on a re-branding, coming out with what we’re going to look like, what we’re going to feel like.”
The bankruptcy that left about $40 million in creditor claims unpaid also cleared the 322 orders, worth $800 million.
“The reality is that, today, the new company does not have any order backlog,” says D’Angelo. The company is not taking orders yet either. “The elements of pricing, equipment, features, all has to be re-done with the new firm,” he says.
AAI Acquisitions isn’t predicting dates for certification, or production, or a price of the twin jet. But, last week in Moscow, Industrial Investors president Sergei Generalov said the A700 price will fall between $2.5 and $2.9 million.
The Denver operation is overseen by Industrial Investors and investment firm Kaskol’s subsidiary, Avia Management Group, alongside its Dexter air taxi operation and charter firm Velvet Skylines. AMG Board chairman Evgeny Andrachinov says the company is injecting $150 million into AAI Acquisition and hoping for certification in 2009.
Source: Flight International
