Company Clears Barrier To Building In Albuquerque

New Mexico may have another personal jet manufacturer setting up shop in-the-not-too-distant future. Englewood (CO)- based Aviation Technology Group (ATG) got preliminary approval last week for $15.25 million in funding from New Mexico's State Investment Council's Direct Investment Program.

The council's Private Equity Advisory Committee unanimously gave the go-ahead to consider investing $6.25 million in the manufacturer, which plans to build a manufacturing plant in Albuquerque if the funding is approved. The full council voted Tuesday on whether or not to proceed with the funding but results of the meeting were not available by ANN's deadline.

ATG is asking the state to provide half of a $12.5 million round of funding to be used to develop a prototype of its Javelin jet aircraft. The balance of the investment already has been committed by other investors, Bye told the committee. The firm eventually will seek a larger round of financing to cover the cost of FAA certification.

ATG is developing a lightweight, two-engine, two-seat jet, which appears to mix the lines of the F-18 and T-38. Described as the Porsche of personal jets by company president George Bye, the Javelin would cost an estimated $2.5 million.

A military trainer version, aimed at replacing decades-old fleets of F/A-18s, would cost around $6 million. Civilian markets include air taxi services, organ transport and sport flying, Bye said.

ATG is shopping for incentives from several states, including New Mexico and Alabama, as the company plans to build its manufacturing plant next year. If it receives New Mexico incentives, including the funding recommended by the State Investment Council's advisory committee, Bye said the firm will build its plant at a planned 300-acre Aerospace Technology Park on Albuquerque's Westside. That park is proposed as a home for Eclipse and an array of aircraft manufacturing suppliers.

Deirdre Firth, a senior economic developer for the city of Albuquerque, said the city has been working with ATG to help ease its possible transition into the state.

"The mayor has instructed our staff to help put together packages to build the aviation industry structure in New Mexico," she told the committee.

FMI:  www.avtechgroup.com