[1][2] Heavy weights (75 pounds or 34 kilograms each)[3] are placed in the rotor tips to enhance rotational energy and to reduce flapping.

[6][7] On 16 November 2009, the AAI Corporation (a division of Textron) signed a 40-year exclusive license agreement[8][9] with the company concerning all unmanned aircraft systems, one of which was intended to deliver 3,000 pounds (1,400 kg) of cargo similar to the unmanned Kaman K-MAX, but over a future range of 1,300 nautical miles (2,400 km)[8][10][11] compared to the demonstrated 150 nautical miles (280 km) or more of the K-MAX.

The first product in the AAI agreement[10] was to be an autonomous slowed rotor/compound (SR/C) aircraft based on the Carter Personal Air Vehicle.

[13][14][15] "Critical Design Review" (CDR) for AAI Corporation was performed around January 2010 when the prototype was already being built.

[19] The PAV was taxi tested in autumn of 2010[3][20] at Olney Airport after FAA Special Airworthiness Certificate[21] on 27 July 2010, and performed traffic pattern movement on 2 December 2010, piloted by Larry Neal at the controls and co-pilot Robert Luna.

[23][24] The first flight occurred on 5 January 2011 at Olney without wings and lasted 36 minutes, which qualified Carter for a milestone payment.

[25][26][27] Carter stated that the PAV performed its first zero-roll jump take-off on 18 January 2011,[22] to a height of 120 feet (37 m).

[34] Carter received funding from the Wichita Falls Economic Development Corporation in 2010 to complete the PAV.

Carter has applied to the FAA to change the PAVs certificate from research and development to demonstration.

[19] Materials used include glass fiber, aluminum, titanium, and steel, as well as autoclaved carbon/epoxy prepreg with aramid honeycomb core on the PAV-II.

[55] 60 channels of information convey sensor measurements from the aircraft to a ground computer, and 4 video cameras tape the flights.