Mooney Aerospace Group Representatives Visit Spanish Aviation Manufacturer, Designers of Mooney Speedster
KERRVILLE, Texas--(BUSINESS WIRE)--Sept. 10, 2003--Mooney Aerospace Group Ltd. (OTCBB:MASG) President J. Nelson Happy and Mooney Airplane Co. Director of Production Robert Collier recently completed manufacturing facility site inspection of CAG (Construcciones Aeronauticas de Galicia) in Ribadeo (Lugo) Spain. The Mooney team was accompanied by members of an international aerospace consortium including David Broadbent of BAE Systems and Christian Nielsen of Foxton Investments Ltd.
During this visit, the group inspected manufacturing equipment and procedures. They also performed demanding test flights of the Toxo II, the company's sport plane soon to be sold by Mooney in North America renamed the Speedster.
Collier and Nielsen, both former US Navy jet pilots, incorporate an in-depth knowledge of aviation to the Speedster project. According to Collier, "This airplane flew like a jet. I enjoyed every minute. The Toxo II cruises at 180 mph and has a maximum speed of 230 mph. This is awesome performance for an airplane equipped with a 120 hp engine."
After a test flight, Happy commented, "Getting in and out of the Toxo was easy, and I was particularly impressed by the plane's superior quality of workmanship and materials. The extensive testing program performed by CAG translates into an outstanding performer."
Mooney Aerospace Group expects to offer this plane to the North American market as a "home build" kit, as well as a "factory-assisted" version, with the factory assembling something less than 49 percent of the work.
According to Nielsen, this represents a price spread of about $35,000.00 for the "home build" kit to $69,000.00 for the "assisted" version.
Collier will return to Spain later this month to personally assemble a kit.
"We at Mooney are excited to enter the increasingly popular sport airplane market. Offering these two versions of the Speedster at under $75,000 will open the door for many new pilots seeking the Mooney flying experience. Celebrating our 50th year in general aviation, with well over 8,000 Mooneys flying worldwide -- renowned for speed, design and safety -- constitutes a strong foundation for launching the Speedster," added Happy.
For more information on CAG and the TOXO II, visit www.cag-sl.com.
About Mooney Aerospace Group
Mooney Aerospace Group (OTCBB: MASG) is a re-emerging player in the $41 billion general aviation industry. The company designs, manufactures and distributes its own line of single engine aircraft sold to the general aviation market. The original Mooney company was established in 1947 by Al Mooney and has sold over 10,000 aircraft over the last 50 years. 8,000 planes are still in operation in the U.S. alone. Mooney is known in the industry as a highly reliable high- performance single engine plane that maintains its value in the aircraft aftermarket. In 2002, a new management team took over and Mooney Aerospace Group received Federal Aviation Administration (FAA) production and repair certificates for its facility in Texas. The company began producing and shipping aircraft in late 2002, generating revenues in excess of $5 million for the year representing both the sales of new aircraft and parts and service revenues. The first six months of 2003 the company reported revenues in excess of $4.5 million. The company operates out of a 350,000-square-foot facility near San Antonio, Texas and employs over 170 people. Since its re-emergence, Mooney Aerospace has achieved several new milestones and is well positioned to capitalize on the successful completion of a recent financial restructuring and the infusion of $7.5 million in new capital. Since acquiring the assets of the prior Mooney Aircraft Corporation in 2002, the milestones reached include: Creation of a new executive management team; Consolidation of all operations at the Kerrville, Texas manufacturing plant; Introduction of a new plane, the Ovation2 DX; and formation of a sales and marketing division that combines a direct and indirect domestic sales force and reintroduces international sales.
Industry overview
Globally, general aviation is a $41 billion industry that is clearly an integral part of our nation's transportation system and economy. The industry generated over $11 billion in new aircraft sales in 2002. US sales figures exceeded $7.8 billion in 2002. Although the sales figures were down from 2001, prior years have set new revenue records. 2002 sales exceeded 1999 figures and the industry has grown three fold from 1996.
Numerous steps are being taken by the industry to stimulate sales, including: changes in the tax code that allows accelerated depreciation, promotion of innovative new products, financing incentives, innovative ownership strategies (fractional ownership) and continued support from the state and federal government to provide an atmosphere conducive to growth.
The industry is broken down into four aircraft categories: single engine piston (Mooney's category); multi-engine piston; turboprops and business jets representing over 2,500 total aircraft sold in 2002. Single engine piston aircraft led the way in 2002 with over 1,440 aircraft sold worldwide. Industry leaders include Boeing Business Jets (NYSE:BA), Bombardier (Toronto Exchange: BBDa.TO), Cessna (a division of Textron Inc. (NYSE:TXT)), Cirrus Designs, Dassault, Mooney Aerospace Group (OTCBB:MASG), Gulfstream (a General Dynamics Company (NYSE:GD)), Maule Air, Piaggio, Pilatus, Beechcraft (a Division of Raytheon Company (NYSE:RTN)), Socata and Piper Aircraft (American Capital Strategies (Nasdaq:ACAS)). Over 214,000 general aviation airplanes are currently flying in the U.S., ranging from two-seat training aircraft to business jets. Industry trade organizations include General Aviation Manufacturers Association (www.gama.aero), Aircraft Pilots Owners Associations (www.apoa.org) and National Business Aviation Association (www.nbaa.com) (Source: General Aviation Manufacturers Association 2003 Annual Industry Overview).
CONTACT:
Mooney Aerospace, Kerrville
Terry Freeman, 830-792-2935
tfreeman@mooney.com
www.mooney.com
or
PMR and Associates LLC
Patrick M. Rost, 858-350-0409
pmrandco@aol.com
www.pmrandco.com
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