Aviation Technology Group has halted development of its Javelin two-seat very light jet after failing to raise $ 200 million in financing. The Denver, Colorado-based start-up company plans talks this week with strategic partner Israel Aerospace Industries.
The Denver Post reported on 17 December that ATG had sent home about 40 of its 50 employees while it made a last-ditch effort to raise funding to continue operations, after efforts by Citicorp to arrange financing were unsuccessful.
On 18 December, the company put out the following statement: "ATG, with the help from a Wall Street banking institution, has been seeking funding to continue its Javelin high performance business jet and military trainer for the past 12 months. Due to circumstances beyond ATG´s control, 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. Further action will be decided upon after proper communication with our strategic business partner."
IAI had teamed with ATG to further develop the Javelin VLJ into a basic and advanced jet trainer. ATG had completed flight tests of a proof-of-concept aircraft and was finalising the design of the production business jet.