Alon Inc. was founded by John Allen and Lee O. Higdon, two executives who had retired from aircraft manufacturer Beechcraft to found their own company. They had previously negotiated with Forney Aircraft to purchase production of the Aircoupe so that Beechcraft could use the design as an introductory trainer. The deal was canceled by Olive Ann Beech, who decided to concentrate resources on the Beechcraft Musketeer. This decision caused the executives to leave Beechcraft and establish Alon in McPherson, Kansas, which purchased the type certificate for the Aircoupe from the City of Carlsbad, New Mexico on March 16, 1964.