On October 1, 2008, Alabama Aircraft Industries, Inc. issued a press release announcing that it has won its case filed on June 26, 2008 in the U.S. Court of Federal Claims against the United States Air Force and The Boeing Company which challenged the United States Air Force's selection of Boeing for a $1.1 billion contract to perform PDM services on KC-135 aircraft. A copy of the press release is attached hereto as Exhibit 99.1. The information contained in Item 7.01 of this Current Report, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of Alabama Aircraft Industries, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.

(d) Exhibits.

Exhibit
Number    Description
99.1      Press release issued by Alabama Aircraft Industries, Inc., dated October
          1, 2008