07 Nov 2025, 01:15 [ UTC - 5; DST ]
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Username Protected
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Post subject: Re: Eclipse jet for $650K Posted: 17 Feb 2010, 19:34 |
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Joined: 12/10/07 Posts: 8220 Post Likes: +7957 Location: New York, NY
Aircraft: Debonair C33A
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Username Protected wrote: On 21 November 2008, the company announced that it had achieved EASA certification for the 500 and then just four days later, on 25 November 2008, filed for Chapter 11 bankruptcy protection.The company was "seeking court approval for debtor-in-possession financing and procedures for the sale of substantially all of its assets under Section 363 of the U.S. Bankruptcy Code." The company also stated that it had found a buyer for the company's assets, EclipseJet Aviation International, an affiliate of ETIRC Aviation, the company with major investments in Eclipse. Bankruptcy documents indicated that a total of USD$702.6 million was owed and the court documents filed indicated that the bankruptcy occurred because the company "continued to lose larger than expected sums of money on each aircraft manufactured and has not reached cash flow positive in its operations." Total company liabilities were estimated at over USD$1 billion. At the time of bankruptcy filing on 25 November 2008 Eclipse had delivered 259 EA500s. On 20 January 2009, Federal Bankruptcy Court Judge Mary Walrath verbally approved the sale of the assets of Eclipse Aviation to EclipseJet Aviation International headed by Eclipse Aviation's chairman, Roel Pieper, under Section 363 of the United States Bankruptcy Code. EclipseJet Aviation International was unable to secure the funding they had anticipated and on 24 February 2009 a group of companies to whom Eclipse owed money applied to the court to force the unfinished Chapter 11 proceedings into Chapter 7, a move supported by the company management. After a lengthy Chapter 7 process running from March to August 2009, there was only one bidder for the assets of the company. Eclipse Aerospace, headed by Mike Press and Mason Holland, offered US$20M in cash and US$20M in new promissory notes, stating that they would locate the new company in the existing Eclipse facilities in Albuquerque. Eclipse Aerospace plans to provide upgrades to the current Eclipse fleet and will assess whether production can be restarted at some future point. Eclipse Aerospace was confirmed as the new owner of the assets of the former Eclipse Aviation on 20 August 2009 and opened for business on 1 September 2009
And how exactly does that prove that there is no business case for a jet that burns 30% less fuel than the next competitor and costs between .8 and 2mil less.? 
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Username Protected
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Post subject: Re: Eclipse jet for $650K Posted: 17 Feb 2010, 20:18 |
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Joined: 01/30/08 Posts: 1257 Post Likes: +1155 Location: San Diego CA.
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Username Protected wrote: Yves, I don't think so - they regularly fly out of my 2,600' strip "The Eclipse, as a Part 23 normal category aircraft, includes the takeoff data specified in FAR 23.53. You will not find accelerate/stop listed there; it's a 23.55 requirement that applies only to commuter category planes." As a pilot with a lot of hours in jets....it scares me that does not provide charts to consider such an important factor in balanced field length. What's more, the Eclipse pilot did not think it was an issue. Kevin
Eclipse successfully lobbied the FAA with the argument that their airplane was a Baron replacement not a new Jet competitor and as such should only have to meet the certification requirements of a part 23 piston twin weighing less than 5000LBS.
The reason there is no balanced field data is because unlike all other Jets the Eclipse was not required to demonstrate the single engine climb performance required in all other jets and part 23 airplanes weighing 5000LBS or more. (i.e. it's not capable of balanced field operations)
The FAA was strong armed into providing them regulatory relief during the certification process resulting in a Jet that may climb on one engine just as well as a fully loaded Seneca will.
_________________ Member 184
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Post subject: Re: Eclipse jet for $650K Posted: 17 Feb 2010, 21:03 |
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Joined: 01/30/08 Posts: 1257 Post Likes: +1155 Location: San Diego CA.
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Username Protected wrote: Since WWII the U.S. airlines (combined) have a very significant net loss. It is a terrible business and even worse than the manufacturing side of aviation. New planes coming onto the market require a 20+ year amortization to break even but airlines keep placing orders...there is no logic to explain why airlines operate as they do.
I am always surprised that people are willing to put up capital to fund new aerospace ventures. Is it the romance of flying? Maybe so, but still it involves more hope than brains to be an investor in a new aviation company.
Thread drift warning. Your questions are valid but as usual the answer can be found if you follow the money. Airlines themselves have never been money makers and in fact a 2% return is considered phenomenal in the airline industry. There is money to be made, however. Leasing companies, OEMs and support industries all do very well. They need the airlines to facilitate their businesses but the airlines only need to be successful enough to survive. Most airlines today own little of their fleet ( in quite a few cases they own none - even when orders are placed the airframes are usually sold an leased back shortly after delivery) and in fact own very few real assets. Airlines do generate a tremendous amount of cash, they just capture very little of it themselves. One major airline's former CEO had an interest in one of the smaller leasing companies and I am sure there are others who do as well. There will always be capital available to finance airline start ups. The profits will only show up in the balance sheets of associated companies. "Hey, isn't this a conflict of interest? Naw, we call that a synergy." 
_________________ Member 184
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Post subject: Re: Eclipse jet for $650K Posted: 18 Feb 2010, 08:36 |
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Joined: 10/26/08 Posts: 4627 Post Likes: +1031 Location: Pinehurst, NC (KSOP)
Aircraft: 1965 Bonanza S35
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Username Protected wrote: It is my conjecture that they could've sold that plane with basic GNS530Ws in the panel for a snip over 1MM and gotten orders. not from me of course. Maybe from me and 9 friends though.  They could've rolled out their AVIO at a later date as a new whiz-bang 2.0 feature. Like Cirrus does with its progressive improvements. ...But we'll never know. I don't care about the 500 very much, but I am *very* cross with them for killing the EA400 in the process. I am very bitter about this - that was a COOL plane, better than the Cirrus "the jet" or vision or whatever it's called this week. It begs the question, though... WTF were they doing designing the EA400 when they still had huge bugs in their avionics suite to work out???   Say it ain't so Mikey.  I sat in every seat of the mock up of the cirrus jet @ NBAA this past year. I loved it. The room in the cockpit and the cabin was unbelievable (maybe that should be our first clue huh?). Those things are sexy.... They get you to thinking "Ok, ok, it'll be just fine if my kids go to a vo-tech instead of college, and who needs a 401K? I'll just fly around and sleep on friends and family's couches when I retire 
_________________ dino
"TRUTH is AUTHORITY..... Authority is not Truth"
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Post subject: Re: Eclipse jet for $650K Posted: 18 Feb 2010, 11:30 |
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Joined: 10/26/08 Posts: 4627 Post Likes: +1031 Location: Pinehurst, NC (KSOP)
Aircraft: 1965 Bonanza S35
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Username Protected wrote: Dino,
I had two friends that made a killing by selling their slot on the 500, so thats why I was looking to do it on the 400. God was good to me that day for not being able to get back home to pursue this further.
Doug Doug, I've got some friends down here ( yeah, who knew I had friends right  ?) who weren't so lucky. They got caught up in the whole "Buy a spec lot in a luxury development on the coast and flip it" craze. One buddy owns 3 of them, he's sitting on a 60% loss should he sell right now. Fortunately he has the ability to wait it out. I'd hate to be one of the folks that got caught up in this and financed it.
_________________ dino
"TRUTH is AUTHORITY..... Authority is not Truth"
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