Commander Aircraft has filed a voluntary bankruptcy petition under Chapter 11 of the US Bankruptcy Code. This will allow the company to operate under court protection while it reorganises and restructures its finances and business.

The company says it has a relatively low cost structure, which has helped it remain viable during the economic and industry conditions of the past two years. After seeming to rebound in the first half of 2002, it has seen orders for new and pre-owned aircraft soften significantly during the third quarter.

The Chapter 11 filing became necessary as a result of several expected aircraft orders failing to be consummated, producing an immediate cash flow shortage.

Commander believes that a number of factors have contributed to this action, namely the economic recession that began in he second half of 2000; the significant decline in asset values in US

security market; the September 11 attacks; continued anxiety over possible terrorist activities; weakness in the economy and the drumbeat of possible war with Iraq.

The company plans to continue its operations during the reorganisation and says that it is committed to supporting the fleet of existing Commander aircraft with service, parts and refurbishment services, as well as limited production of new aircraft built to order.