Safire Aircraft Company has temporarily suspended most operations while it secures funding for its twin-turbofan-powered Safire Jet. The company says it is actively pursuing a promising financing opportunity.

“Based on the progress and agreements previously reached with a group of investors, we had expected to have new funding fully in place by the end of May 2004. Unfortunately, we encountered some unforeseen setbacks that have caused us to shift our negotiations and slightly delay the closing,” said president and ceo Camilo Salomon.

Safire says it expects this to be only a temporary setback. Salomon said: “There is no doubt that there will be some impact to the project. We will know more and be in a better position to assess that impact when we secure the new round of financing.

“Our job is to minimise the impact and preserve the project for the new investors.

“There are a few operations at key suppliers that we will prudently continue to the point that makes the most economic sense given the status of the operation.”

Safire will utilise a small team focused on closing this round of financing and, once secured, will then reinstate the project. “We expect, since this is temporary, that when we do restart, the majority of the workforce will return and we will make a smooth transition back to operations,” said Salomon.

Priced at $1.395 million, the Safire Jet is scheduled to make its first flight this year, with deliveries beginning in 2006.