NM Officials Had Warned Deal Is "Risky"

In spite of warnings from New Mexico economic officials, the Navajo Nation will go ahead with plans to invest $34 million in return for a 25-percent stake in Utilicraft Aerospace.

As ANN reported last month, two New Mexico agencies -- the state's Finance Authority and the Department of Economic Development -- have warned the tribe about the investment, calling it "risky." They cited the fact that Utilicraft is a startup, suggested the company's list of launch customers is shaky and were extremely critical of the golden parachute in CEO John Dupont.

Yet, the proposal "still represents an excellent opportunity," said George Hardeen, spokesman for Navajo Nation President Joe Shirley Jr. Hardeen was quoted by local reporters in New Mexico.

Utilicraft, based in North Georgia, is developing a new freighter called the FF-1080. If the deal with the Navajos goes through, the aircraft will be built at the Double Eagle II Airport near Albuquerque. While Utilicraft is banking on the $34 million agreement to help launch the production of the FF-1080, President Shirley (shown with Dupont, below) is banking on the deal producing hundreds of jobs for a Native American nation plagued by high unemployment.

No money has yet changed hands, according to local reports. Navajo leaders say they're aware of the warnings from state officials and plan to proceed slowly and carefully. But, they say, proceed they will.

FMI: www.navajo.org, www.utilicraft.com