8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549




                                    FORM 8-K

                                 CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of the
                       Securities and Exchange Act of 1934


                 Date of Report (date of earliest event reported):
                                December 27, 2002


                         Aviation General, Incorporated
        (Exact name of Registrant as specified in its charter)


    Delaware                      0-24795                   73-1547645
   (State of              (Commission File No.)           (IRS Employer
 Incorporation)                                         Identification No.)


                               7200 NW 63rd Street
                          Hanger 8, Wiley Post Airport
                             Bethany, Oklahoma 73008
          (Address of principal executive offices, including zip code)


                                 (405) 440-2255
              (Registrant's telephone number, including area code)







                                      - 2 -

Item 5.  Other Events

Commander Aircraft Company, a wholly owned subsidiary of Aviation General,
Incorporated, filed for Chapter 11 bankruptcy protection on December 27, 2002.
This will allow Commander Aircraft Company to operate under court protection
while it reorganizes and restructures its finances and business. For additional
information, please refer to the press release filed as an exhibit to this
report.

Item 7.  Financial Statements and Exhibits

         (c)      Exhibits

         Exhibit                            Description

         99.01         Press release of the Company dated December 27, 2002.






                                                      SIGNATURE


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        Aviation General, Incorporated



                                        By: /s/ WIRT D. WALKER III
                                           -------------------------------
                                            Wirt D. Walker III
                                              Chairman

Date:  January 10, 2003

EX-99

                            2600 Virginia Avenue, NW
                                    Suite 500
                              Washington, DC 20037

Phone: (202) 965-0777                                       Fax: (202) 965-0886

                         AVIATION GENERAL, INCORPORATED

COMMANDER AIRCRAFT COMPANY                   STRATEGIC JET SERVICES, INC.



PRESS RELEASE                                            December 27, 2002
- -------------


             COMMANDER AIRCRAFT COMPANY FILES CHAPTER 11 BANKRUPTCY


Bethany, Oklahoma - Commander Aircraft Company, a wholly-owned subsidiary of
publicly-traded Aviation General, Incorporated (OTCBB:AVGE), has filed a
voluntary bankruptcy petition under Chapter 11 of the US Bankruptcy Code in
Federal Court, Delaware. This will allow the Company to operate under court
protection while it reorganizes and restructures its finances and business.

The Company has a relatively low cost structure and a unique business model
which have helped the Company remain viable during the depressed economic and
industry conditions of the past two yeas, which have worsened recently. The
Company has been working amiably with its creditors and vendors representing
approximately $3.7 million in total net indebtedness. After seeming to rebound
in the first half of 2002, orders for new and pre-owned aircraft softened
significantly during the third quarter and have virtually hit the wall recently.
Unfortunately, the Chapter 11 filing became necessary primarily as a result of
several expected orders for new and pre-owned aircraft failing to be
consummated, producing an immediate cash flow shortage of approximately
$1million.

The Company plans to continue its operations during the reorganization and its
committed to supporting the fleet of existing Commander aircraft with service,
parts, and refurbishment services, as well as limited production of new aircraft
built to order. The Company is seeking additional DIP financing as well as
qualified investors and/or merger opportunities with parties wishing to be part
of a new corporate ownership structure.

Depending upon contributions from the Company's non-manufacturing activities,
the Company can achieve break-even financial results with the manufacture and
sale of ten to twelve new Commander aircraft per annum and can achieve
significant profitability above these levels. For year 2002 ending December 31,
the Company expects the delivery of only seven new aircraft with softness during
the second half of the year in the Company's other operations. The Company
believes the softness in its business is a result of an economic recession that
began in the second half of year 2000, the significant decline in asset values
in the U.S. security markets, the terrorist attack on September 11, 2001,
continued anxiety over possible terrorist activities, weakness in the economy,
and the drumbeat of possible war with Iraq, as well as weaknesses in
international economies. Additionally, the Company's marketing, sales, and
advertising expenditures have been sharply curtailed over the past two years due
to budget constraints.

The Company is one of the few companies in the world with an FAA Type
Certificate for production of a four-place single engine high performance
aircraft. Commander aircraft are certified to the more recent stringent
standards of FAR 23 through Amendment 7 and have had zero airframe ADs since
recertification in 1992. Commander aircraft have become known as the "Mercedes"
in their class due to attributes that include their superior safety, design,
quality, comfort, resale value, and ramp appeal.






To date, approximately $40 million has been invested to build Commander Aircraft
Company (reflected in the Company's tax loss carry-forward). In an industry
where a $100 million investment is often insufficient to engineer, design and
FAA type certify an aircraft, the Company's achievements are considerable. They
include: the acquisition of Rockwell's single engine high performance Commander
aircraft line, the modification and enhancement of the value of the existing
fleet of Commander aircraft built from 1972 through 1979 by Rockwell
International Corporation, extensively enhancing the aerodynamics, avionics,
systems, interior, and power plant of the original Rockwell Commander design
resulting in a new aircraft FAA type certification designated 114 B and 114 TC,
the introduction of new avionics packages, enhancements and derivative aircraft
models (the current 115 and 115 TC series), the establishment of manufacturing
operations and marketing, aircraft brokerage, refurbishment, and service and
support capabilities.

Wirt D. Walker, III, Chairman, stated, "Commander Aircraft Company, incorporated
in 1988, has established a worldwide reputation for excellence in the
manufacture, marketing, sales, service and support oft is top-of-the-line
aircraft. We look forward to discussions with financially qualified principals
who are interested in refinancing, merging, or acquiring the Company."

Aviation General, Incorporated is a publicly traded holding company with two
wholly owned subsidiaries, Commander Aircraft Company and Strategic Jet
Services, Inc. Commander Aircraft Company (www.commanderair.com) manufacturers,
markets and provides support services for its line of single engine, high
performance Commander aircraft, and consulting, sales, brokerage acquisition,
and refurbishment services for all types of piston aircraft. Strategic Jet
Services, Inc. (www.strategicjet.com) provides consulting sales, brokerage,
acquisition, and refurbishment services for jet aircraft.

The statements in this press release that relate to future plans, events or
performance are forward-looking statements that involve risks and uncertainties.
Actual results, events and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no obligation to
release publicly the result of any revisions to these forward-looking statements
that may be made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.

Readers are encouraged to refer to the risk disclosures described in the
Company's reports on Forms 10-K, 10-Q and 8-K, as applicable.

For more information, contact:

Wirt D. Walker, III
Chairman/CEO
(202) 965-0777