[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.

[35][36][37][38] Carter views the lack of a PAV flight simulator as a mistake, and attempts to build one.

[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.