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Dull aspects of ATG

Israel Aerospace Industries looks unlikely to bail out strategic partner Aviation Technology Group (ATG), which last week halted development of the Javelin very light jet after efforts to raise financing failed.

ATG teamed with IAI in 2004 to co-develop the two-seat Javelin as a business jet and a military trainer. At the beginning of 2007 the companies engaged Citigroup to help raise some $ 200 million to finance certification of the Javelin.

After laying off most of its workforce, the Colorado-based company issued a statement on 18 December saying "it is unlikely that adequate funding can be secured in a timely manner. ATG has therefore decided to halt development of the Javelin at this time." ATG planned to hold talks with its business partners in the hope of a bail-out, but a senior IAI source told Flight International: "We don´t have anything to add to the statement made by ATG."

If it fails to find funding to continue operations, ATG will become the latest in a long line of failed general-aviation start-ups.

According to Flightglobal.com

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