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 Post subject: Re: Eclipse jet for $650K
PostPosted: 17 Feb 2010, 12:38 
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There is proof that they burned through 8 times the development and marketing money compared to their next competitor and brought a product to market that was still in its beta-1 phase.


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 Post subject: Re: Eclipse jet for $650K
PostPosted: 17 Feb 2010, 18:20 
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One thing that seriously hurt Eclipse was that the Williams engine did not perform as specified. So they had to significantly redesign the airframe for the P/W engines.

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 17 Feb 2010, 19:34 
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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.? :scratch:


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 Post subject: Re: Eclipse jet for $650K
PostPosted: 17 Feb 2010, 19:42 
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at the end of the day, we'll never know if their business model would have worked or not.

What we do know is that raising a brajillion dollars, making a 2MM 4pax baby jet, making your own WAAS avionics suite, and then declaring bankruptcy with one hand while taking deposits on the EA400 with the other is NOT a successful business model.


:werd:

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 17 Feb 2010, 20:13 
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I think it's time for the obligatory porn video :eek:

[youtube]http://youtu.be/DG-KXKN_jjM[/youtube]

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 17 Feb 2010, 20:18 
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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.
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 Post subject: Re: Eclipse jet for $650K
PostPosted: 17 Feb 2010, 20:40 
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I would accept the gift of an Eclipse ONLY if it was unconditional. Then I would sell it.

There are so many problems with this plane. The legality of the avionics is terrible. The dearth of included avionics is unforgivable considering the availability of modern equipment. In their haste to make deliveries Eclipse did not get certification on all of the sparse navigation equipment making it illegal to fly within the "system" except on airways. So much more could have been in the panel and fully tested, and certificated, and thus legal.

This is a sad situation. The Eclipse may go the way of the Beech Starship but without a "Father" company to buy back the unwanted planes.

One more lesson in aviation business.

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.

Only six U.S. corporations have made money making airplanes AND survived without a bankruptcy: Beech, Boeing, Cessna, Cirrus, Gulfstream and Lockheed. Of these six will there be a fatality in the near future? ??? Cirrus is the weakest.

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.

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 17 Feb 2010, 21:03 
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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." :D

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 18 Feb 2010, 07:40 
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Yes sir, and I was one of those idiots that was within days of putting a down payment on one of the EA400's. I was just waiting to head home at the end of the week to do it. This is the only time in my life I gave thanks to Dulles Airport for their delays.

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 18 Feb 2010, 08:27 
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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??? :doh:


Exactly ! They just did it because it all was a marketing joke. They figured out by making the EA400 they could do an extra round of cheating investors!

I have said it the day it was announced. Raoul Pieper is a criminal in Belgium. He frauded Belgium investors with a company called Lernaut & Hauspie 10 years ago. When he came to Eclipse I knew what was going on. Unfortunately it's the truth.


http://en.wikipedia.org/wiki/Jan_Sloot
http://en.wikipedia.org/wiki/Lernout_%26_Hauspie




I knew nothing of that Yvés. I wonder how many people who put down deposits knew of this guy and his past? :shrug:


Doug, you post reminds me of that Garth Brooks song..... "Unanswered Prayers"!

Glad you weren't another statistic bruh.
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 Post subject: Re: Eclipse jet for $650K
PostPosted: 18 Feb 2010, 08:36 
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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. :D

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??? :doh:



:eek: Say it ain't so Mikey. :sad: 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 :cheers: :dancing: :harhar:

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 18 Feb 2010, 11:16 
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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

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 18 Feb 2010, 11:27 
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don't get me wrong -- I like the cirrus too, and I think it's a more viable plane, should it ever come to light.

I just liked the EA400 better. :D



I feel ya. Kinda like the 35 or 33 to the 36. Sports coupe vs Sports sedan :shrug:


Well at least they R both V-tails vs Piper tails... :eek: :duck: :cheers: :harhar: :dancing:

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 18 Feb 2010, 11:30 
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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 :D ?) 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.

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 Post subject: Re: Eclipse jet for $650K
PostPosted: 18 Feb 2010, 11:55 
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Username Protected wrote:
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.? :scratch:


Because when Eclipse gave this to the market (they tried to sell their jet at 30% less fuel and at .8 and 2mil less than the next competitor) they didn't get the orders they need to make it happen. = proof that there is no business case.


I believe they got something like 2,000+ orders for it. The only problem was they could not deliver it. ;)

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