Press Release Source: Mooney Aerospace Group
PMR and Associates Updates Mooney Aerospace International Aviation Development Alliances
Monday August 4, 9:22 am ET
European Aviation Firms BAE Systems and Construcciones Aeronauticas De Galicia along with Russian Aerospace Leader the KASKOL Group and Financial Backer Foxton Investments Team up with Mooney
SAN DIEGO--(BUSINESS WIRE)--Aug. 4, 2003-- Mooney Airplane Company of Kerrville, Texas, a wholly owned subsidiary of Mooney Aerospace Group Ltd., (OTCBB:MASG - News) announced last week two alliances with an international group of aviation leaders, designed to take the company to the next level of aircraft development.
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During the annual meeting of the Experimental Aircraft Association (EAA) in July 2003, Mooney signed an agreement to establish an international partnership with BAE Systems, the KASKOL Group, Foxton Investments LTD and Venture Industries in London at the BAE Systems headquarters. The purpose of the new alliance is to cause the introduction, development and commercialization of a diverse and innovative range of new generation aircraft under the Mooney banner.
Initially the new consortium will enter into two futuristic areas of aviation production: the manufacture of an innovative sport plane, and the development of an affordable surveillance aircraft for global homeland security efforts. The groundbreaking partnership represents the first time that an international alliance has been forged for the production of general aviation aircraft.
The second alliance is a strategic relationship with Construcciones Aeronauticas De Galicia, manufacturer of the Toxo light sport aircraft in Spain, to manufacture, design, assemble and market the two-seater plane. The aircraft will be renamed the Mooney Toxo, and Mooney will undertake all Toxo-related activities from its plant in Kerrville, Texas. Please refer to the July 29th and August 1, 2003 press and www.mooney.com for more details on these developments and Mooney Aerospace Group.
About Mooney Aerospace Group
Mooney Aerospace Group (OTCBB:MASG - News) 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 company operates out of a 350,000 square foot facility near San Antonio, Texas and employs over 170 people. In the last six months Mooney Aerospace has reached 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 which 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 2500 total aircraft sold in 2002. Single engine piston aircraft lead the way in 2002 with over 1440 aircraft sold worldwide. Industry leaders include Boeing Business Jets (NYSE:BA - News), Bombardier (Toronto Exchange: BBDa.TO - News), Cessna (a division of Textron Inc. NYSE:TXT), Cirrus Designs, Dassault, Mooney Aerospace Group (OTCBB:MASG - News), Gulfstream (a General Dynamics Company NYSE:GD), Maule Air, Piaggio, Pilatus, Beechcraft (a Division of Raytheon Company (NYSE:RTN - News), 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).
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the Company's products, general acceptance of the Company's products and technologies, competitive factors, timing and other risks described in the Company's SEC reports and filings.
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PMR and Associates, llc
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