Founded in the 1960s by aeronautical engineer Chris Falconar, the company created a new aircraft fabric process called Hipec. The company also acquired a large list of aircraft designs that were either orphaned, like the Fauvel AV.36 glider or long out of production and added their own designs to the line. The company provides plans and kits for all their designs as well as parts and modification kits for other aircraft, including the Ercoupe.
In 1963 Falconar partnered with designer Marcel Jurca to produce the Jurca Gnatsum. By 1967, Falconar recommended a large number of changes to the design, which resulted in Jurca leaving the project. The modified aircraft was developed as the Falconar SAL Mustang, first flown in 1971 after significant cost overruns. Falconar Aircraft Ltd was sold to George F. Chivers and other investors and operated as Sturgeon Air Ltd with Falconar as an employee until 1973.
In 1985 Falconar established a new Falconar Aviation Ltd. with the assets of A & B Sales and the rights to many Jurca plans. Falconar also carried on operations as president of Hirth engines during this time. In 1994 the company was dissolved following legal disputes and was reestablished in its current form as Falconar Avia Inc. in 1995.