LONG BEACH, Calif., Jan. 31, 2000 (PRIMEZONE) -- Advanced Aerodynamics & Structures, Inc. (Nasdaq:AASI) today announced that it is expanding the marketing focus for its JETCRUZER 500TM to capture additional sales in the rapidly growing fractional aircraft ownership market.
The company expects to establish a network of aircraft operators that will purchase the JETCRUZER from AASI and in turn sell fractional ownership in the propjet.
According to the National Business Aviation Association, the number of corporate flight departments has grown by more than 25 percent to 8,236 nationwide. Additionally, industry analysts note that the number of business jets and turboprops in use worldwide has grown by 21 percent over the last five years to nearly 20,000. Sources note that this rapid growth is being fueled, in part, by the attractive economics of fractional ownership, which include low entry price and convenience of ownership.
Dr. Carl L. Chen, chairman and chief executive officer of AASI, said, "We believe the JETCRUZER 500 is an ideal solution for those who desire a high-performance corporate jet at a reasonable cost. With the availability of fractional ownership, customers have an even further economic incentive to enter private aviation."
As stated in a January 23, 2000 article in the "Money and Business" section of the New York Times which featured AASI, the JETCRUZER 500 "is intended to appeal to younger executives and entrepreneurs whose success in the Internet economy puts them into the target market for a business jet with a $1.5 million price tag."
AASI's expanded marketing strategy follows an announcement in August regarding the company's intention to offer a certification option, designated as single engine part 135 certification by the Federal Aviation Administration (FAA), for its new JETCRUZER 500 aircraft. The inexpensive add-on certification is expected to appeal to a larger market by allowing a broader commercial utilization of the aircraft.
The company is in the process of preparing for Jetcruzer 500 graphite composite fuselage pressurization tests and of flying maximum cruise speed tests. Completion of these tests is scheduled in the first quarter of 2000. The pressurization feature is the primary difference between the JETCRUZER 500 and JETCRUZER 450TM that was FAA certified in June of 1994 as a non-pressurized aircraft. The company expects to obtain its Type Certification (TC) amendment and deliver the first JETCRUZER 500s in the latter part of 2000.
The company currently has 182 JETCRUZER 500 aircraft orders, representing a backlog of $220 million.
The JETCRUZER 500 is a high-speed single engine, corporate propjet aircraft that can accommodate first class seating for six people, including the pilot. Powered by a Pratt & Whitney propjet engine, the JETCRUZER 500 will fly at 360 miles per hour from Los Angeles to New York at altitudes up to 30,000 feet, with only one stop.
Advanced Aerodynamics & Structures, Inc. is a development-stage company organized to design, develop, have certified by the FAA, manufacture and market propjet and jet aircraft for the world business, commercial and government markets.
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Certain statements contained in this news release, including statements concerning the Company's ability to expand sales to the fractional owners' market, the Company's ability to continue to obtain market acceptance of the JETCRUZER 500 aircraft, the Company's ability to obtain regulatory approval of the JETCRUZER 500, the competitive market for sales of small business aircraft, and other statements contained herein regarding matters that are not historical facts, are forward looking statements; actual results may differ materially from those set forth in the forward looking statements, which statements involve risks and uncertainties, including without limitation those risks and uncertainties set forth in the Company's Registration Statement on Form SB-2 under the heading "Risk Factors", and the Company's Form 10-KSB and Form 10-QSB on file with the SEC.