NASA's Stratospheric Observatory For Infrared Astronomy (SOFIA.) will enable unprecedented infrared acuity at wavelengths obscured from the ground. To help open this new chapter in the exploration of the infrared universe, we are developing the Airborne Infra-Red Echelle Spectrometer (AIRES) as a facility science instrument. Full funding was awarded for a four year development in October, 1997. The instrument is scheduled to come on-line with the observatory in the fall of 2001. It will be used to investigate a broad range of phenomena that occur in the interstellar medium. AIRES will use a 1200 mm long, 76 degrees blaze angle (R4) echelle to combine high resolution spectroscopy (lambda/delta lambda similar to 70000 - 5000) with diffraction-limited imaging in the cross-dispersion direction. Its three two-dimensional detector arrays (Si:Sb Blocked Impurity Band, Ge:Sb photoconductor, and stressed Ge:Ga photoconductor) will provide good sensitivity over a decade in wavelength (17 - 210 mu m). An additional array (Si:As Blocked Impurity Band) will be used as a slit viewer for lambda less than or equal to 28 mu m to image source morphology and to verify telescope pointing. Our scientific motivation, preliminary optical design and packaging, focal plane configuration, echelle prototyping, and cryostat layout are described.