The state enterprise was transformed to a joint-stock company after the fall of the Communist regime. It continued in production of the Z-42 and Z-43 series but the sales were rapidly falling and the sales network became disorganized as the company organization did not adapt to the market changes from centrally organized eastern markets to the free competition. Also the aircraft design was outdated (mainly engines) and the company could not find customers for its specific advantages (reliability and simple maintenance). The company suffered financial problems in 2002, it was renamed Moravan-Aeroplanes a.s. and it continued production of upgraded variants of Z-242L and Z-143L with improved wing design and Lycoming engines. It also prepared the Z-143Lsi variant with fuel injection engine. However, the financial situation became even worse and the company declared bankruptcy in 2005. In December 2006, the company was taken over by CzechAircraft, s. r. o. owned by Irish QucomHaps Holding Ltd. represented by Billy Harkin and renamed Moravan Aviation s.r.o.