After the market success of the AA-1 Yankee Clipper American Aviation turned their attention to developing a four-seat aircraft.
The American Aviation engineers started with a "clean sheet of paper" and designed a new aircraft.
The prototype, registered "N488AA", was completed in 1970 and test flying was commenced early in that same year.
[1] Aircraft performance during the test flying process fell far short of the design goals so the project was abandoned and the manufacturer eventually disassembled the prototype.
American Aviation made the decision to develop a stretched version of the AA-1 Yankee Clipper instead of pursuing the AA-2.