Utilicraft Aerospace Industries

Utilicraft Aerospace Industries, Inc. was formed to implement a system solution to the current problem of declining capacity in the short haul (or feeder) route segments of the air cargo and overnight express companies. The FF-1080-300ER Freight Feeder aircraft is a new air vehicle which is the result of Utilicraft’s extensive research and development. The FF-1080-300ER is revolutionary because of it's capability to carry standard industry air containers on short-to-medium range/medium density routes combined with the aircraft's integrated air cargo information system for the freight feed market. The FF-1080-300ER, an all aluminum twin-engine, high-wing, un-pressurized, fixed gear, single pilot capable, turboprop aircraft, specifically designed as a utility air freight transport system. The aircraft satisfies an industry recognized need to cost-effectively feed containerized air cargo to the major hubs of the scheduled passenger carriers and the overnight express airlines.
The aircraft is also designed for short take-off and landing (STOL) capability. This feature makes the FF-1080-300ER the only short-haul, heavy-lift containerized feeder aircraft capable of cost-effectively transporting ten revenue tons over two thousand nautical miles from airfields with less than 3,500 feet of runway, expanding air cargo capacity to many smaller cities and airports worldwide.
Business Plan Utilicraft Aerospace Industries latest filings with the United States Securities and Exchange Commission. Click Here The current business plan is to focus on commencing and completing the certification and initial production of the FF-1080-300ER. The Company anticipates that the development of the FF-1080-300ER prototype Performance Flight Test Aircraft (PFTA) will cost approximately $13,500,000. The estimated Phase I FAA certification will cost approximately $34,000,000, and the estimated Phase II FAA certification will cost approximately $42,000,000 (Phase I and II to be completed over a period of 24 months). The Company has secured an international financing agreement which is expected to cover these developmental costs.
To implement the foregoing time schedule, Utilicraft expects to complete the detailed engineering of the FF-1080-300ER PFTA aircraft and to construct that aircraft during the first 12 months of the plan. The FF-1080-300ER PFTA will be a pre-certified, non-production aircraft, with a conforming outer-mold-line (OML) that will be built under the FAA regulations for experimental aircraft. Upon completion of the detailed computer aided design (CAD) engineering of the FF-1080-300ER PFTA, Utilicraft will initiate the FAA type certification (Part 25) program, which is anticipated to be completed over a 24 month period. As of September 2006, the Company completed approximately 80% of the detailed CAD engineering. Utilicraft plans to execute FAA Part 25 Certification in two phases: Phase I is expected to commence 6 months after commencement of the PFTA development and will be completed in 12 months. Phase I will include the development of the certification plan, filing of the certification application, certification of the detailed production engineering, construction of the static test articles and the conformity aircraft subassemblies, and initial flight tests using the PFTA aircraft. Phase II, which will begin 6 months after commencement of Phase I and is expected to take 18 months, will include final assembly of the conformity aircraft, initiation of limited production of the aircraft (Production Lot I [36 aircraft]), certification flight-testing and receipt of final Part 25 Aircraft Type Certification. Upon receipt of the Part 25 Type Certification, the business plan calls for completion of the initial 36 aircraft for delivery. The current marketing and customer-development program is aimed at securing orders for the FF-1080-300ER aircraft. The Company’s current focus is on the international market.
The Market According to the world air cargo forecast, the world air freight market will grow 6.4% per year through 2017 while the world economy pushes ahead at the annual rate of 2.9%. It’s also forecasted that international express freight will grow 18% per year between 1999 and 2017. Forrester Research predicts online retail sales, which drive air cargo shipments, will grow from an estimated $172 billion in 2005, to $329 billion in 2010. In light of this continuous growth in world air freight demand, the worldwide market for an improved freight feeder has been estimated at a total of approximately 5,000 aircraft over the next ten years. Utilicraft’s business plan projects capturing 12% of that market with the potential to manufacture 500 aircraft in the first six years of production, with total sales approximating $6.75 billion.