Advanced Aerodynamics and Structures Inc (AASI) is appealing against a decision to delist the aircraft manufacturer from the Nasdaq. While AASI has been developing the Jetcruzer programme for more than a decade, it has recently been removed from the Nasdaq for two reasons.

Chief financial officer Dave Turner told EBAN: “Firstly, our stock price remained below $1.00 per share for too long and secondly the company did not maintain a net tangible value of $4,000,000 or more.

“The company is currently traded ‘Over-the-Counter’ on the ‘Bulletin Board’ (OTCBB).”

One of the problems which has dogged the development of AASI’s Jetcruzer is funding. Said Turner: “A lack of funds is not the only factor in prolonging the airplane’s development but certainly it is one factor.

“We have been developing the Jetcruzer programme for over 11 years, without $1 in sales. In spite of that fact, AASI has obtained funding for the project over the entire 11-year period.

“Various fundings have occurred, including initial foreign investment in stock, IPO, preferred convertible stock, equity line and convertible debentures.”

AASI announced in late March that it had secured an additional $7.1 million in funding. Asked how hard is it to fund the development of a modern business aircraft in the US, Turner told us: “It is incredibly difficult for a new company to get enough funding to certify a new aeroplane.

“AASI is likely the only new company to be able to do that in approximately four years.

“The business graveyard is populated with many failed efforts of new companies trying to develop a new plane. I am sure others will join them. The cost and funding of the development of a new airplane represents an enormous barrier to entry into this field.”

Away from matters financial, AASI will be finishing type inspection authorisation (TIA) by the end of this year and will deliver the aircraft next year. All of the major certification elements have been finished with the exception of flight testing. Executive vice president Gene Comfort said: “We still have a lot of flight testing left to do and we’re constantly working on that.

“In other words, we’ve passed the pressurisation testing, the wing-bending tests, everything we have left to do, we’ve already done once before on the model 450. So we know exactly where we’re at.”

AASI has received 188 orders for the Jetcruzer so far, which represents a backlog in excess of $226 million. Of these, a substantial amount are said to be from European customers, and some are from the Middle East. With regard to the Jetcruzer’s suitability to European operation, Comfort said: “The Jetcruzer Propjet has a very low purchase price and low operating costs and an exceptionally high cruise speed at altitudes to 30,000 feet. Short field operations for both take-off and landings are approximately 2,000 feet.

“The overall performance is near some light jets, yet both purchase price and operating costs are just a fraction of their cost. High performance and low cost are two of the prime reasons the Jetcruzer is suited for Europe, not to mention the rest of the world.”

When you talk about the aircraft’s competition, Comfort is not short of compliments although he maintains that price – currently set at $1.495 – sets the company apart. He said: “We are in an exceptionally good niche market for the Jetcruzer.

“Some very good aircraft such as the TBM and PC12 are not in our select market primarily because of our low price. Another good aircraft, the Piper Meridian, has some performance standards that Jetcruzer exceeds, such as speed. Other aircraft we can compare after they are certified.”

In respect of certification schedules, Comfort said: “We have the FAA part 23 certification for the model 450 which we are amending for the model 500. We expect European certification as soon as possible after the FAA certification later this year. A definite date will be set after we receive the FAA TC. However, our testing has been designed to meet European standards also.”

As a single-engine turboprop, the Jetcruzer may have some doubters out there. Said Comfort: “Our clients do not have a problem with single engine operation.

“All of them have been trained in single-engine aircraft, and some are flying a single-engine piston

right now.

“The exceptional high reliability of the Pratt & Whitney propjet engine is legendary. This a very attractive and efficient aircraft to compete with multi-engine aircraft.

“Also, with single-engine Part 135 IFR standards in much of the world and possible in Europe shortly, people are not worried about flying single-engine aircraft such as ours.”