January 31, 2007 Last Day For Orders

Aero-News has learned that Raven Industries subsidiary Aerostar International, Inc, announced this week it will be getting out of the hot-air balloon business, due to what it terms the "steady decline" of the hot air balloon industry. The company states January 31st, 2007 is the last day it will accept orders for hot air balloon systems, or major components.

"The entire General Aviation Industry took a marked decline after 9/11 and the hot air balloon industry has never recovered," said Aerostar President and Chief Engineer Mark West. "This coupled with significant increases in liability insurance costs has made for a business model that is no longer feasible. Unfortunately we cannot afford to stay in a business which is not profitable, even though it is the product line that founded Aerostar."

West added hot-air balloon manufacturing has accounted for less than 4 percent of Aerostar's overall sales. The company will continue to provide support for hot air balloons, and other components manufactured by Aerostar and Raven. The company will also continue to sell repair parts for those aircraft.

Aerostar also plans to remain active within the hot air balloon community, promoting safety through education safety programs and continuous airworthiness seminars. 

The company will also continue to offer complete service information for hot air balloon owners at its website -- available at the FMI link below -- as well as access to all Service Letters, Service Bulletins, Maintenance Bulletins, Airworthiness Directives and ACAI (Aerostar Continued Airworthiness Instructions).

These documents are available to be downloaded, free of charge, by all aircraft owners and repair stations.

Aerostar management emphasized the move will have no impact on its high-altitude research balloon operations -- located in Sulphur Springs, TX -- or other product lines.

FMI: www.aerostar.com