SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB


            X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 2003

                                       OR

            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934


                        Commission File Number: 0-24795

                         AVIATION GENERAL, INCORPORATED
             (Exact name of registrant as specified in its charter)


          Delaware                                              73-1547645
(State  of  Incorporation)                                    (IRS  Employer
                                                            Identification  No.)

                              7200 NW 63rd Street
                          Hangar 8, Wiley Post Airport
                            Bethany, Oklahoma 73008
              (Address of principal executive offices) (Zip Code)

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

     Indicate  by  check  mark  whether the registrant (1) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or  for  such shorter period that the
registrant  was required to file such reports), and (2) has been subject to such
filing  requirement  for  the  past  90  days.

     Yes  X          No
        -----          -----

        There  were  8,120,397  Shares  of  Common  Stock  Outstanding
        as  of  March  31,  2003


<PAGE>

                                TABLE OF CONTENTS


PART  I.  FINANCIAL  INFORMATION

     Item  1.  Financial  Statements

          Consolidated Condensed Balance Sheet - March 31, 2003

          Consolidated Condensed Statements of Operations  - For
            the Three Months Ended  March  31,  2003  and  2002

          Consolidated  Condensed  Statements  of  Shareholders'
            Equity  -  For the Three Months  Ended March  31,
            2003  and  2002

          Consolidated  Condensed  Statements  of Cash Flows -
            For the Three Months Ended March  31,  2003  and  2002

          Notes  to  Consolidated  Condensed  Financial  Statements

     Item  2.  Management's  Discussion  and  Analysis

     Item  3.  Controls  and  Procedures

PART  II.  OTHER  INFORMATION

     Item  2.  Changes  in  Securities  and  Use  of  Proceeds

     Item  5.  Other

     Item  6.  Exhibits  and  Reports  on  Form  8K







<PAGE>


PART  I.  FINANCIAL  INFORMATION

ITEM  I.  FINANCIAL  STATEMENTS

                  AVIATION GENERAL, INCORPORATED & SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEET
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                     March 31,
                                     ASSETS                            2003
                                                                    -----------
CURRENT  ASSETS:
<S>                                                                 <C>
  Cash  and  cash  equivalents                                      $     4,449
  Accounts  receivable                                                   12,403
  Inventories                                                         2,924,868
  Prepaid expenses  and  other  assets                                    3,591
                                                                    -----------
          Total  current  assets                                      2,945,311
                                                                    -----------

PROPERTY  AND  EQUIPMENT:
  Office  equipment  and  furniture                                     365,373
  Vehicles  and  aircraft                                                95,115
  Manufacturing  equipment                                              384,979
  Tooling                                                               676,747
  Leasehold  improvements                                               112,748
                                                                    -----------
                                                                      1,634,962

  Less  accumulated  depreciation                                    (1,171,785)
                                                                    -----------

                                                                        463,177
                                                                    -----------

                                                                    $ 3,408,488
                                                                    ===========
</TABLE>



                See accompanying Summary of Accounting Policies
                       and Notes to Financial Statements.


<PAGE>

                  AVIATION GENERAL, INCORPORATED & SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                     March 31,
                      LIABILITIES AND STOCKHOLDERS' EQUITY             2003
                                                                    -----------
CURRENT  LIABILITIES:
<S>                                                                 <C>
  LIABILITIES  NOT  SUBJECT  TO  COMPROMISE -
    Accounts  payable                                               $   161,445
    Notes  payable                                                    1,500,509
                                                                    -----------
    Total current liabilities not subject to compromise               1,661,954
                                                                    -----------


  LIABILITIES  SUBJECT  TO  COMPROMISE -
    Accounts  payable                                                 1,986,684
    Accrued  expenses                                                 1,333,942
    Refundable  deposits                                                166,500
                                                                    -----------
    Total  liabilities  subject  to  compromise                       3,487,126
                                                                    -----------

    Total  current  liabilities                                       5,149,080
                                                                    -----------

  NONCURRENT  LIABILITIES:
    Notes  payable                                                    1,034,795
                                                                    -----------

  REEDEEMABLE  COMMON  STOCK  -  $.50  par  value;
    issued  150,000  shares  in  2001;  stated  at
    redemption  value                                                   150,000
                                                                    -----------


STOCKHOLDERS'  EQUITY  (DEFICIT):
  Preferred  stock,  $.01  par  value,  5,000,000
    shares  authorized;  no  shares  outstanding                              -
  Common  stock,  $.50  par  value,  20,000,000
    shares authorized; 8,120,397 shares issued                        4,060,198
    at March 31, 2003
  Additional  paid-in  capital                                       37,254,305
  Less:  Treasury  stock  at  cost,  1,009,551
    shares  at  March  31,  2003                                     (1,709,638)
  Accumulated  (deficit)                                            (42,530,252)
  Accumulated  other  comprehensive  income  (loss)                           -
                                                                    -----------

    Total  stockholders'  equity  (deficit)                          (2,925,387)
                                                                    -----------

                                                                    $ 3,408,488
                                                                    ===========
</TABLE>


                See accompanying Summary of Accounting Policies
                       and Notes to Financial Statements.


<PAGE>
                  AVIATION GENERAL, INCORPORATED & SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                    Three Months Ended March 31,
                                                    ----------------------------
                                                          2003          2002
                                                      -----------   -----------
NET  SALES:
<S>                                                   <C>           <C>
  Aircraft                                            $   140,000   $ 1,378,250
  Service                                                 172,361       126,571
                                                      -----------   -----------
                                                          312,361     1,504,821
                                                      -----------   -----------

COST  OF  SALES:
  Aircraft                                                128,534     1,165,886
  Service                                                 123,571        66,703
                                                      -----------   -----------
                                                          252,105     1,232,589
                                                      -----------   -----------


  Gross  profit                                            60,256       272,232
                                                      -----------   -----------


OTHER  OPERATING  EXPENSES:
  Product  development  and  engineering  costs               896        31,955
  Selling, general and administrative expenses            376,226       461,328
                                                      -----------   -----------
    Total  other  operating  expenses                     377,122       493,283
                                                      -----------   -----------


    Operating  (loss)                                    (316,866)     (221,051)
                                                      -----------   -----------


OTHER  INCOME  (EXPENSES)
  Other  income                                            54,910         1,636
  Interest expense                                        (39,856)      (68,442)
  Other  expense                                                -        (2,328)
                                                      -----------   -----------
                                                           15,054       (69,134)
                                                      -----------   -----------


(LOSS)  BEFORE INCOME TAXES                              (301,812)     (290,185)

PROVISION  FOR  INCOME  TAXES                                   -             -
                                                      -----------   -----------

NET  (LOSS)                                           $  (301,812)  $  (290,185)
                                                      ===========   ===========

NET  (LOSS)  PER  SHARE
  Weighted  average common shares outstanding;
    basic                                               7,110,846     6,859,330
                                                      ===========   ===========


  Net  (loss)  per  share;  basic                     $     (0.04)  $     (0.04)
                                                      ===========   ===========

  Weighted  average  common  shares
    outstanding;  diluted                               7,110,846     6,859,330
                                                      ===========   ===========

  Net  (loss)  per  share;  diluted                   $     (0.04)  $     (0.04)
                                                      ===========   ===========
</TABLE>


                See accompanying Summary of Accounting Policies
                       and Notes to Financial Statements.


<PAGE>
                  AVIATION GENERAL, INCORPORATED & SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                                                                      Accumulated
                                              Additional                                                 Other          Total
                           Common Stock         Paid-in          Treasury Stock       Accumulated     Comprehensive   Stockholders'
                       Shares       Amount      Capital       Shares        Amount      Deficit       Income (Loss)     Equity
                     ---------   ----------   -----------   ---------   ------------  ------------   --------------   -------------
Balance  at
<S>                   <C>         <C>          <C>           <C>         <C>           <C>             <C>             <C>
  January  1,  2002   7,631,519   $3,815,759   $37,000,299     772,189   $(1,294,193)  $(37,943,330)   $        -      $ 1,578,535

Comprehensive income
  Net earnings                -            -             -           -             -       (290,185)            -         (290,185)
  Other comprehensive
  income
    Change  in
    unrealized
    investment
    gain,  net                -            -             -           -             -              -      (285,723)        (285,723)
                      ---------   ----------   -----------   ---------   ------------  ------------   -------------    -----------
      Comprehensive
      income                  -            -             -           -             -              -             -         (575,908)
                      ---------   ----------   -----------   ---------   ------------  ------------   -------------    -----------

Balance  at
  March 31, 2002      7,631,519   $3,815,759   $37,000,299     772,189   $(1,294,193)  $(38,233,514)   $ (285,723)     $ 1,002,628
                      =========   ==========   ===========   =========   ============  ============   =============    ===========

Balance at
  January 1, 2003     8,120,397   $4,060,198   $37,254,305   1,009,551   $(1,709,638)  $(42,228,440)   $          -    $(2,623,575)
Comprehensive income
  Net  earnings               -            -             -           -             -       (301,812)              -       (301,812)
  Other comprehensive
  income
    Change in
    unrealized
    investment
    gain,  net                -            -             -           -             -              -               -              -
                      ---------   ----------   -----------   ---------   ------------  ------------   -------------   ------------
    Comprehensive
      income                  -            -             -           -             -       (301,812)              -       (301,812)
                      ---------   ----------   -----------   ---------   ------------  ------------   -------------   ------------

Balance at
  March 31, 2003      8,120,397   $4,060,198   $37,254,305   1,009,551   $(1,709,638)  $(42,530,252)   $           -   $(2,925,387)
                     ==========   ==========   ===========   =========   ============  ============    =============   ===========
</TABLE>













                See accompanying Summary of Accounting Policies
                       and Notes to Financial Statements.

<PAGE>

                  AVIATION GENERAL, INCORPORATED & SUBSIDIARIES

                 CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                    Three Months Ended March 31,
                                                    ----------------------------
                                                          2003          2002
                                                      -----------   -----------
CASH FLOWS FROM OPERATING ACTIVITES:
<S>                                                   <C>           <C>
  Net  (loss)                                         $  (301,812)  $  (290,185)
  Adjustments  to  reconcile  net (loss)  to
    net  cash provided  by  (used  in)
    operating  activities -
      Depreciation  and  amortization                      27,230        33,442
      Receipts  on  aircraft  notes  receivable                 -        31,975
      Loss  (gain)  on  retirement  of  property
        and  equipment                                       (138)            -
      Changes  in  assets  and  liabilities:
        (Increase)  decrease  in -
          Accounts  receivable                             (2,972)      (98,553)
          Inventories                                     286,663      (207,752)
          Prepaid  expenses  and  other  assets:                -          (708)
        Increase  (decrease)  in -
          Accounts  payable                                 1,908       196,959
          Accrued  expenses                                34,825      (195,611)
          Refundable  deposits                             20,000       633,669
                                                      -----------   -----------
          Net  cash  provided  by  (used in)
            operating activities                           65,704       103,236
                                                      -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds  on sales of property and equipment                200             -
                                                      -----------   -----------
          Net  cash  provided  by  (used in)
            investing activities                              200             -
                                                      -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds  from  borrowings                               50,000       340,000
  (Payments  on)  borrowings                             (109,310)     (648,873)
                                                      -----------   -----------

          Net  cash  (used in)
            financing activities                          (59,310)     (308,873)
                                                      -----------   -----------

NET  INCREASE  (DECREASE)  IN  CASH
  AND CASH EQUIVALENTS                                      6,594      (205,637)

CASH AND CASH EQUIVALENTS (OVERDRAFTS)
  AT BEGINNING OF PERIOD                                   (2,145)      211,356
                                                      -----------   -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD            $     4,449   $     5,719
                                                      ===========   ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Cash  paid  during  the  period  for:
    Interest                                          $    39,856    $   68,442
    Income  taxes                                     $         -    $        -
</TABLE>


                See accompanying Summary of Accounting Policies
                       and Notes to Financial Statements.


<PAGE>
                  AVIATION GENERAL, INCORPORATED & SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 2003



     These  consolidated  condensed  financial  statements have been prepared by
     Aviation  General,  Incorporated  (the Company)  without audit, pursuant to
     the  rules  and  regulations of the Securities and Exchange Commission, and
     reflect  all adjustments which are, in the opinion of management, necessary
     for  a  fair  statement  of the results for the interim periods, on a basis
     consistent  with  the  annual  audited  financial  statements.    All  such
     adjustments  are  of  a  normal  recurring  nature.   Certain  information,
     accounting  policies,  and  footnote   disclosures   normally  included  in
     financial  statements  prepared   in  accordance  with  generally  accepted
     accounting  principles  have  been  omitted  pursuant  to  such  rules  and
     regulations,  although  the  Company  believes  that  the  disclosures  are
     adequate  to  make  the  financial statements and information presented not
     misleading.  These  financial statements should be read in conjunction with
     the financial statements and the summary of significant accounting policies
     and  notes  thereto  included in the Company's most recent annual report on
     Form  10-KSB.

1.   INVENTORIES

     Inventories consist primarily of finished goods, work in process, and parts
     for  manufacturing  and  servicing of aircraft. Inventory costs include all
     direct  manufacturing  costs and applied overhead. These inventories, other
     than  pre-owned  aircraft,  are  stated at the lower of cost or market, and
     cost  is  determined  by  the  average-cost  method. Pre-owned aircraft are
     valued  on  a specific-identification basis at the lower of cost or current
     estimated  realizable wholesale price. Inventory components were as follows
     at  March  31,  2003:

<TABLE>
<CAPTION>
<S>                                                               <C>
     Raw  materials                                               $  1,158,188
     Work  in  process                                                 510,848
     New  and  pre-owned  aircraft                                   1,236,582
     Other                                                              19,250
                                                                  ------------

                                                                  $  2,924,868
                                                                  ============
</TABLE>

2.   PETITION FOR RELIEF UNDER CHAPTER 11

     On  December  27,  2002  the  Company's  wholly owned subsidiary, Commander
     Aircraft Company (the "Debtor") filed petitions for relief under Chapter 11
     of  the  federal  bankruptcy laws in the United States Bankruptcy Court for
     the  District  of  Delaware.  Under  Chapter 11, certain claims against the
     Debtor  in  existence prior to the filing of the petitions for relief under
     the  federal bankruptcy laws are stayed while the Debtor continues business
     operations as Debtor-in-possession. These claims are reflected in the March
     31,  2003  balance  sheet  as  "liabilities  subject to compromise." Claims
     secured  against  the  Debtor's  assets ("secured claims") also are stayed,
     although  the  holders  of such claims have the right to move the court for
     relief  from the stay. Secured claims are secured primarily by liens on the
     Debtor's  property, plant and equipment. Refer to the Company's most recent
     annual  report  on  Form  10-KSB.

     The Debtor received approval from the  Bankruptcy Court to pay or otherwise
     honor certain of its pre-petition obligations, including employee wages and
     product  warranties  totaling  $75,000.

     The  Company  has  obtained  the  approval  of  the  Bankruptcy  court  for
     Debtor-in-Possession,  (DIP),  financing up to a limit of $150,000. The DIP
     financing  bears  interest  at  the rate of 10% (simple interest), which is
     payable at the effective date of the Chapter 11 Plan of Reorganization. The
     Company  took  a  $50,000  draw  on  the  DIP Financing on January 7, 2003.


<PAGE>

3.   GOING CONERN

     During the years ended December 31, 2001 and 2002, the Company incurred net
     (losses)  of  ($5,519,592) and ($4,285,111), respectively. During the three
     months  ended March 31, 2003, the Company lost an additional ($370,306). As
     of  March  31, 2003,  the  Company  had  a   negative  working  capital  of
     ($2,003,769) and a deficit net worth of ($2,925,387). On December 27, 2002,
     the  Company's  wholly  owned subsidiary, Commander Aircraft Company, filed
     petitions for relief under Chapter 11 of the federal bankruptcy code. These
     factors  raise substantial doubt about the Company's ability to continue as
     a  going  concern.

     The ability of the Company to continue as a going concern is dependent upon
     the  Company's  ability  to  successfully   reorganize  Commander  Aircraft
     Company, to  attain  a  satisfactory  level of profitability, and to obtain
     suitable  and  adequate  financing.  There  can  be no assurance that these
     objectives  can  be  achieved.  The financial statements do not include any
     adjustments  that  might result from the outcome of this uncertainty nor do
     they  take  into  effect  any adjustments that might occur as a result of a
     successful  plan  to  reorganize  Commander  Aircraft  Company.

4.   LEASES

     The  Company  leases  office  space,  hangar  space,  its manufacturing and
     service  facility, and certain office equipment under agreements classified
     as  operating  leases  that  expire  at  various dates through 2004. Rental
     expense  under these leases was approximately $287,000 and $287,000 for the
     years  ended  December  31,  2002,  and  2001,  respectively.

     The  Company's  lease for office space, hangar space, and its manufacturing
     and  service  facility  was  a  revocable permit to lease the facility. The
     permit  required monthly rentals in the same amounts as the original lease.
     The  permit  further  required  the  Company  to pay outstanding delinquent
     amounts  plus  penalties  as  defined in the permit. On April 23, 2003, the
     Company  transferred  its  lease to a third party. The Company negotiated a
     3.5  year  sub-lease  with  this  third  party  for  50,011  square feet of
     manufacturing,  service and office space, guaranteed renewable at six month
     intervals.  The Company also agreed to pay $94,359 in past due rent to this
     third  party.

     The future annual minimum lease payments under the April 23, 2003 operating
     lease  are  as  follows:

<TABLE>
<CAPTION>
<S>                                                              <C>
     Year  ending  December  31,
          2003                                                   $     75,600
          2004                                                        113,400
          2005                                                        113,400
          2006                                                         94,500
                                                                 ------------

     Total  future  minimum  lease  payments                     $    396,900
                                                                 ============
</TABLE>

5.   COMMITMENTS AND CONTINGENCIES

     The  Company is subject to regulation by the FAA. The Company is subject to
     inspections  by  the  FAA and may be subjected to fines and other penalties
     (including  orders  to  cease  production)  for  noncompliance  with  FAA
     regulations.  The  Company  has a Production Certificate from the FAA which
     delegates  to  the Company the inspection of each aircraft. The sale of the
     Company's  product  internationally  is subject to regulation by comparable
     agencies  in  foreign  countries.


<PAGE>

     The  Company  faces  the  inherent  business  risk  of  exposure to product
     liability  claims.  In  1988,  the  Company  agreed  to  indemnify a former
     manufacturer  of  the  Commander  single  engine  aircraft  against  claims
     asserted  against the manufacturer with respect to aircraft built from 1972
     to 1979. In 1994, Congress enacted the General Aviation Revitalization Act,
     which  established  an  18-year  statute  of  repose  for  general aviation
     aircraft  manufacturers. This legislation prohibits product liability suits
     against  manufacturers  when  the  aircraft involved in an accident is more
     than  18  years  old.  This  action  effectively  eliminated  all potential
     liability  for  the Company with respect to aircraft produced in the 1970s.
     The  Company's  product  liability  insurance  policy  with coverage of $10
     million  per  occurrence  and  $10 million annually in the aggregate with a
     deductible of $200,000 per occurrence and annually in the aggregate expired
     March  1, 1995. Subsequent to March 1, 1995, the Company is not insured for
     product  liability  claims.

     The  Company  is routinely involved in various legal matters arising in the
     normal course of business. Management believes that losses, if any, arising
     from  such actions will not have a material adverse effect on the financial
     position  or  operations  of  the  Company.

     On  September  24, 2002,  the  Company's  common  stock  was  delisted from
     the NASDAQ  Small Cap  Market  and  began trading  on the  Over-the-Counter
     Bulletin  Board,  or  OTCBB,  under the symbol AVGE.OB due to the Company's
     noncompliance with the applicable minimum asset and equity requirements and
     the  minimum  bid  price  requirement


ITEM  2.  MANAGEMENT'S DISCUSSION  AND  ANALYSIS  OF  RESULTS  OF OPERATIONS AND
          FINANCIAL  CONDITION

Forward  Looking  Statements
----------------------------

     This  Form  10-QSB  includes  certain  statements  that may be deemed to be
"forward-looking statements" within the meaning of Section 27A of the Securities
Act.  All statements, other than statements of historical fact, included in this
Form  10-QSB  that addresses activities, events or developments that the Company
expects,  projects,  believes,  or  anticipates will or may occur in the future,
including  matters  having  to  do  with  expected and future aircraft sales and
service  revenues,  the Company's ability to fund its operations and repay debt,
business  strategies, expansion and growth of operations and other such matters,
are  forward-looking  statements.    These  statements  are   based  on  certain
assumptions  and  analyses made by our management in light of its experience and
its  perception  of  historical  trends,  current  conditions,  expected  future
developments,  and  other  factors   it   believes  are   appropriate   in   the
circumstances.  These  statements  are subject to a number of assumptions, risks
and  uncertainties,  including  general  economic  and  business conditions, the
business opportunities (or lack thereof) that may be presented to and pursued by
the  Company, the Company's performance on its current contracts and its success
in  obtaining  new  contracts,  the  Company's  ability  to  attract  and retain
qualified  employees,  and other factors, many of which are beyond the Company's
control.  You  are  cautioned  that  these  forward-looking  statements  are not
guarantees  of  future  performance  and that actual results or developments may
differ  materially  from  those  projected  in  such  statements.

BUSINESS  OVERVIEW

Aviation  General,  Incorporated  (the  "Company" or "AGI") is a publicly traded
holding  company (Pink Sheets: AVGE.PK) incorporated under the laws of the State
of  Delaware.  The Company has two wholly owned subsidiaries: Commander Aircraft
Company  ("CAC")  and  Strategic  Jet Services, Inc. ("SJS"). Commander Aircraft
Company  (www.commanderair.com)  manufactures,  markets,  and  provides  support
services for its line of single engine, high performance Commander aircraft, and
consulting,   brokerage,   and   refurbishment   services  for   all  types   of
piston-powered  aircraft.  Strategic  Jet  Services,  Inc.  provides consulting,
brokerage,  sales,  and  refurbishment  services  for  jet  aircraft.

During  the  fourth  quarter  of  2002, SJS discontinued its operations, and CAC
suspended  indefinitely  production  of  new  aircraft.  Other  cost-cutting and
overhead  reductions  were  implemented  due  to  the  weakness in the Company's
business. Management believes this weakness is primarily the result of depressed
economic conditions and anxiety over terrorism and war in Iraq, which have had a
pronounced,  adverse effect on big-ticket, discretionary capital expenditures by
businesses  and  individuals.

On  December  27,  2002,  Commander  Aircraft Company filed a voluntary petition
under  Chapter  11  of  the  United  States  Bankruptcy Code for the District of
Delaware.  Commander  Aircraft Company filed a final reorganization plan on July
5,  2003,  following the execution of a letter agreement on that date with Tiger
Aircraft,  LLC.  ("Tiger")  to  fund  the  plan.  A stock purchase agreement was
entered  into  with Tiger on November 1, 2003, pursuant to which an amended plan
was  filed  on December 10, 2003. The U. S. bankruptcy court confirmed this plan
on  December  10, 2003, with the effective date scheduled for on or before March
31,  2004,  unless  extended  by  the  consent  of CAC, AGI, Tiger, the official
committee  of  unsecured  creditors,  the U. S. Department of Labor, and Nyltiak
Investments,  LLC.

The  agreement  with  Tiger  resulted  from months of negotiations, contact with
other  potential  investors,  and  legal  proceedings pursuant to the bankruptcy
process.  Since  the  bankruptcy  filing,  Tiger has provided CAC with Debtor in
Possession  financing,  which  has  allowed  CAC  to continue its operations and
provide  service  and  support  to  the  fleet  of  Commander  aircraft  owners,
refurbishment  services, parts, and pre-owned aircraft brokerage. CAC expects to
resume  the  production  of  new  aircraft  following  the  consummation  of the
transaction  with  Tiger.


<PAGE>

Pursuant  to  the confirmed bankruptcy plan and agreement with Tiger, Tiger will
invest  approximately  $2.8  million in Aviation General, Incorporated in return
for  an  80% ownership interest in AGI. Approximately $2 million will be used to
settle  with  creditors  in  accordance  with  CAC's  bankruptcy  plan,  and the
remainder  will  be  used  for  working  capital. Pursuant to the agreement with
Tiger,  AGI  must  secure the approval of the agreement from its shareholders as
well  as their authorization to amend the Company's Certificate of Incorporation
to  increase  the  Company's  authorized common shares from 20,000,000 shares to
100,000,000  shares.   The  Company   currently  has  20,000,000  common  shares
authorized  and  approximately 7,000,000 common shares (excluding Treasury stock
which  will  be  retired)  issued and outstanding. The agreement with Tiger will
necessitate  the issuance of approximately 28,000,000 new shares of common stock
to  Tiger,  resulting in a total of approximately 35,000,000 shares to be issued
and  outstanding.

Critical  Accounting  Estimates  and  Accounting  Policies

We must make estimates of the collectability of accounts receivable.  We analyze
historical  write-offs,  changes  in  our  internal credit policies and customer
concentrations  when  evaluating  the  adequacy  of  our  allowance for doubtful
accounts.  Differences  may  result in the amount and timing of expenses for any
period  if  we  make  different  judgments  or  use  difference  estimates.

Inventories  are  valued  at  the lower of cost or market.  We must periodically
evaluate  the  carrying  value  of  our  inventories to determine whether market
conditions  have  impaired  the  carrying  value  of  our  inventories.

Property  and  equipment  are  evaluated  for  impairment whenever indicators of
impairment  exist.  Accounting standards require that if an impairment indicator
is  present, the Company must assess whether the carrying amount of the asset is
unrecoverable  by estimating the sum of the future cash flows expected to result
form  the  asset,  undiscounted  and  without interest charges.  If the carrying
amount  is  less  than  the  recoverable  amount,  an  impairment charge must be
recognized,  based  on  the  fair  value  of  the asset.  Management assumed the
Company  was  a going concern for purposes of evaluating the possible impairment
of  its property and equipment.  Should the Company not be able to continue as a
going concern, there may be significant impairment in the value of the Company's
property  and  equipment.

We  must  estimate the future liability related to warranty work on new aircraft
sold.

As  part  of  the process of preparing our consolidated financial statements, we
are required to estimate our income taxes.  This process involves estimating our
current  tax  exposure  together  with assessing temporary differences resulting
from  differing  treatment  of  items  for  tax  and accounting purposes.  These
differences  result in deferred tax assets and liabilities.  We must then assess
the  likelihood  that  our  deferred  tax  assets  will be recovered from future
taxable  income,  and,  to the extent we believe that recovery is not likely, we
must  establish  a  valuation  allowance.  To  the  extent  that  we establish a
valuation  allowance  or  increase this allowance in a period, we must include a
tax provision or reduce our tax benefit in the statements of operations.  We use
our  judgment  to  determine our provision or benefit for income taxes, deferred
tax  assets and liabilities and any valuation allowance recorded against our net
deferred  tax  assets.  We  believe,  based  on  a  number  of factors including
historical  operating  losses, that we will not realize the future benefits of a
significant  portion  of  our  net  deferred  tax assets and we have accordingly
provided  a  full valuation allowance against our deferred tax assets.  However,
various  factors  may  cause  those  assumptions  to  change  in  the near term.



<PAGE>

     We  cannot  predict  what  future laws and regulations might be passed that
could have a material effect on our results of operations.  We assess the impact
of significant changes in laws and regulations on a regular basis and update the
assumptions  and estimates used to prepare our financial statements when we deem
it  necessary.

     We  have  determined  the  significant principles by considering accounting
policies  that  involve the most complex or subjective decisions or assessments.
Our  most  significant   accounting  policies  are  those   related  to  revenue
recognition  and  accounting  for  stock-based  compensation.


RESULTS  FROM  OPERATIONS - COMPARISION OF THREE MONTHS ENDED MARCH 31, 2003 AND
2002.

     Revenues  from  the  sale  of  aircraft decreased by $1,238,250 or 90% from
$1,378,250  to  $140,000  during  the  quarters  ended  March 31, 2002 and 2003,
respectively.  In  the  first  quarter  of 2003, one pre-owned aircraft was sold
compared  with four new and pre-owned aircraft sold in the same period for 2002.

     Service  and  parts  revenues  increased by $45,790 or 36% from $126,571 to
$172,361  during the quarters  ended  March  31, 2002 and 2003, respectively.

          Cost  of aircraft sales decreased by $1,037,352 or 89% from $1,165,866
to  $128,534  during  the  quarters ended March 31, 2003 and 2002, respectively.
This  decrease  was  due  primarily  to the sale of only one aircraft during the
first  three  months  of  2003  compared to the sale of four aircraft during the
comparable  period  in 2002. Gross profit margins from the sale of used aircraft
decreased from 15% in 2002 to 8% in 2003 due to decreases in the market value of
used  aircraft.

     Cost  of  sales  for  service  and  parts  increased by $56,868 or 85% from
$66,703  to  $123,571  during  the  quarters  ended  March  31,  2003  and  2002
respectively.  The  increase  was in part to a 36% increase in service and parts
revenues  and  in  part  to  idle  service  capacity  during  2003.

     Product  development  and  engineering costs decreased by $31,059 or 97% to
$896  for  the  first quarter of 2003, from $31,955 for the comparable period in
2002  due  to  the  significant  reduction  in  support  staff.

Sales, general  and  administrative  expense decreased by $85,102 or 18% for the
three-month  period  ended  March  31,  2003,  to $376,226 from $461,328 for the
comparable  period  ended  March  31,  2002.  This decrease was due primarily to
staff  reductions.

Other income increase by $53,274 for the three month period ended March 31, 2003
to $54,910 from $1,636 for the comparable period in 2002.  This increase was due
primarily  to  various  refunds  received  during  the  first  quarter  of 2003.

Interest expense decreased by $28,586 or 42% to $39,856 for the first quarter of
2003  from $68,442 for the comparable period in 2002.  This decrease was  due to
a  reduction  of  bank  lines of credit on used aircraft and lower daily average
debt  during  the  period.




<PAGE>

LIQUIDITY  AND  CAPITAL  RESOURCES

     Cash flows from operations decreased by $37,532 or 32% from $103,236 during
the  three  months ended March 31, 2002 to $65,704 during the three months ended
March  31,  2003.

     Cash  flow  from  operations were positive for the three months ended March
31,  2003  due  primarily  to  a $286,663 reduction in inventories and a $56,733
increase  in current liabilities which more than offset the loss for the quarter
of  ($370,306).

     Cash  balances increased to $4,449 at March 31, 2003 from a deficit balance
of  $2,145  at  December  31,  2002.

     The  Company  has  entered into debtor in possession financing arrangements
that  management  anticipates  will  provide the Company with sufficient working
capital  to  continue  until  the  plan  or  reorganization  is  funded.

     We  anticipate  that  the confirmed plan of reorganization will provide the
Company  with  sufficient  working  capital  to  commence production activities.

CONTRACTUAL  OBLIGATIONS

       The following table is a summary of the Company's contractual obligations
as  of  March  31,  2003.

<TABLE>
<CAPTION>
                                        Payment Due by Period
                         ----------------------------------------------------
                            Total     Less than One   1-3  Years   Thereafter
                         ----------   -------------   ----------   ----------
<S>                      <C>           <C>            <C>           <C>
Long-Term  Debt          $1,034,795    $        -     $1,034,795    $      -
Current Note Payable      1,500,509     1,500,509              -           -
Operating  Leases           396,900        75,600        226,800      94,500
                         ----------    ----------     ----------    --------

Total                    $2,932,204    $1,576,109     $1,261,595    $ 94,500
                         ==========    ==========     ==========    ========
</TABLE>

Item  3.  Controls  and  Procedures

     As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of
the  filing  date  of  this   report,  we  carried  out  an  evaluation  of  the
effectiveness  of  the  design  and  operation  of  our  disclosure controls and
procedures.  This  evaluation was carried out under the supervision and with the
participation  of  our  principal  executive officer and our principal financial
officer,  who  concluded  that  our   disclosure  controls  and  procedures  are
effective. There have been no significant changes in our internal controls or in
other  factors, which could significantly affect internal controls subsequent to
the  date  we  carried  out  our  evaluation.

     Disclosure  controls  and procedures are controls and other procedures that
are  designed to ensure that information required to be disclosed in our reports
filed  or  submitted  under  the Securities Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange  Commission's  rules  and  forms.  Disclosure  controls  and procedures
include,  without  limitation,  controls  and procedures designed to ensure that
information required to be disclosed in our reports filed under the Exchange Act
is accumulated and communicated to management, including our principal executive
officer  and  our  principal  financial officer, as appropriate, to allow timely
decisions  regarding  required  disclosure.



<PAGE>

PART  II.  OTHER  INFORMATION

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS

     In  July 2002, the Company issued a  $1 million secured convertible note to
a  private  investor,  the  proceeds of which are being used for working capital
purposes.  The transaction was exempt from registration under the Securities Act
of  1933  under  section  4(2)  of  the  Act because it did not involve a public
offering.


ITEM  5.  OTHER

     On  September  24,  2002  the  Company's  common  stock  was  delisted from
the NASDAQ  Small Cap  Market and began trading on the Over-the-Counter Bulletin
Board,  or  OTCBB,  under  the symbol AVGE.OB due to the Company's noncompliance
with  the  applicable  minimum asset and equity requirements and the minimum bid
price  requirement

     The  Company  believes  that the exchange on which the Company's shares are
traded  does  not  affect  the  market value or intrinsic value of the Company's
business  nor  the  trading  liquidity  of  its  shares.



ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)     Exhibits

10.1     Securities  Purchase  Agreement
10.2     Secured  Convertible  Note
10.3     Investor  Rights  Agreement
10.4     Security  Agreement
10.5     Guarantee*
*Incorporated  by  reference  to  the registrant's report on Form 10-QSB for the
period  ended  June  30,  2002

(b)     Reports  on  Form  8-K  -  None.


The  following  exhibits  are  filed  as a part of this quarterly report on form
10-QSB


31.2     Certification  of  Wirt  D.  Walker  III

31.2     Certification  of  Glenn  A.  Jackson

32       Certification  of  Wirt  D  Walker  III  and  Glenn  A.  Jackson







<PAGE>

                                    SIGNATURE


     In accordance with the requirements of the Exchange Act, the registrant has
caused  this report to be signed on its behalf by the undersigned thereunto duly
authorized.



                          AVIATION GENERAL INCORPORATED
                          -----------------------------
                                  (Registrant)




                           By: /s/ Wirt D. Walker III
                               ----------------------
                               Wirt D. Walker III
                       Chairman of the Board of Directors
                          (Chief Executive Officer and
                              Authorized Signatory)



                            By: /s/ Glenn A. Jackson
                                --------------------
                                Glenn A. Jackson
                            (Chief Financial Officer)