In November 1997, Pilatus flew a modified PC-7 Mk.II in order to test improvements for a prospective next generation turboprop trainer. As a result of these tests, Pilatus elected to fund the development of a new training system in November 1998; development of the new trainer, designated as the "PC-21", formally started in January 1999. The PC-21 would be developed and certified as a completely new training system, aimed at meeting future military customers' specifications in terms of capability and life-cycle costs for the next three decades.