Is a folding wing option available?

No, the Midget Mustang has the same outer wing as the Mustang II but the landing gear is mounted in the wing.  This does not allow it to have a folding wing.  There are still only 3 bolts holding each wing on making it a quick and easy process to remove the wings if necessary.

The wing span is only 18'6" so fitting the airplane into a hangar with another plane is typically not a problem because of its small size.

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