Development Of A700 Suspended As BoD Eyes Economic Conditions

Confirming earlier reports to ANN, on Tuesday AAI Acquisition (AAIA) President and CEO Jack Braly announced what the company termed a "strategic realignment" of the company's goals and objectives in response to worldwide economic conditions.

Braly said AAIA's development schedule, which had originally projected certification and first delivery of the company's A700 all-composite Very Light Jet (VLJ) program, is being reconfigured in light of recent economic developments around the world.

Members of AAIA's investment team and Board of Directors are currently evaluating economic and market conditions before announcing a new schedule for the A700 twin-engine business jet. Flight test and other development activity have been suspended. AAIA's workforce is being pared to a size necessary to sustain the company while a new schedule and strategic plan are developed.

Originally, AAIA had projected FAA certification and first deliveries of the A700 in 2010. Members of AAIA's workforce were notified of the realignment -- and resulting layoffs, which AAIA declined to give firm numbers on -- at the close of business Monday.

Braly declined to speculate when a new schedule might be announced, noting that worldwide economic conditions are unprecedented and will need to play out somewhat before a proper evaluation and plan can be formulated.

FMI: www.a700jet.com