Eclipse Aviation
Encyclopedia
Albuquerque, New Mexico
Albuquerque is the largest city in the state of New Mexico, United States. It is the county seat of Bernalillo County and is situated in the central part of the state, straddling the Rio Grande. The city population was 545,852 as of the 2010 Census and ranks as the 32nd-largest city in the U.S. As...
-based manufacturer of the Eclipse 500
Eclipse 500
The Eclipse 500 is a small six-seat business jet aircraft manufactured by Eclipse Aviation.Eclipse 500 became the first of a new class of Very Light Jet when it was delivered in late 2006...
very light jet
Very Light Jet
A very light jet, entry-level jet or personal jet, previously known as a microjet, is a category of small jet aircraft approved for single-pilot operation, seating 4-8 people, with a maximum take-off weight of under...
(VLJ) and also at one time proposed developing the Eclipse 400
Eclipse 400
The Eclipse 400 is a single engine very light jet that was designed by Eclipse Aviation, producer of the Eclipse 500.The Eclipse 400 was cancelled when the company went bankrupt in 2008 and development has not been pursued by Eclipse Aerospace, the company that bought Eclipse Aviation's...
single-engined jet.
The company was founded in 1998 by former Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
employee Vern Raburn. Due to Raburn's relationship with Microsoft, Bill Gates
Bill Gates
William Henry "Bill" Gates III is an American business magnate, investor, philanthropist, and author. Gates is the former CEO and current chairman of Microsoft, the software company he founded with Paul Allen...
was a major stake-holder in the Eclipse project.
Production of the Eclipse 500 was halted in mid-2008 due to lack of funding. The company entered an unsuccessful Chapter 11 bankruptcy in November 2008, which was converted into a Chapter 7 bankruptcy liquidation procedure in February 2009. In the final Chapter 7 procedure, completed on 20 August 2009, there was only one bidder, a new company formed to acquire the assets, Eclipse Aerospace
Eclipse Aerospace
Eclipse Aerospace is an American aircraft maintenance and upgrade company, with the expressed intention of becoming a future aircraft manufacturer if and when the Eclipse 500 is returned to production...
.
Eclipse operated service centers at Albuquerque, Gainesville Regional Airport
Gainesville Regional Airport
Gainesville Regional Airport is a public airport located three miles northeast of the central business district of Gainesville, a city in Alachua County, Florida, United States. The airport is owned by the City of Gainesville, FL and operated by the Gainesville-Alachua County Regional Airport...
, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
and at Albany International Airport
Albany International Airport
Albany International Airport is a public use airport located six nautical miles northwest of the central business district of Albany, in Albany County, New York, United States. It is owned by the Albany County Airport Authority....
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Startup and growth
Eclipse Aviation was founded by Vern Raburn in 1998 in Scottsdale, ArizonaScottsdale, Arizona
Scottsdale is a city in the eastern part of Maricopa County, Arizona, United States, adjacent to Phoenix. According to the U.S. Census Bureau, as of 2010 the population of the city was 217,385...
and the company started to design the twin-engined Eclipse 500
Eclipse 500
The Eclipse 500 is a small six-seat business jet aircraft manufactured by Eclipse Aviation.Eclipse 500 became the first of a new class of Very Light Jet when it was delivered in late 2006...
very light jet. Due to investments by the State of New Mexico and incentives and concessions from the City of Albuquerque, the company decided to set up its production facilities there and moved its headquarters in 2000. Construction of the first prototype started in 2001 and it first flew on 26 August 2002. Originally powered by two Williams International EJ22 turbofans these were found to be unsuitable and the aircraft was redesigned to accommodate a pair of Pratt & Whitney Canada PW610F-A
Pratt & Whitney Canada PW600
-External links:*...
turbofans. The engine change caused a delay in the programme and the PW610F-equipped prototype first flew in 2004. The aircraft was FAA
Federal Aviation Administration
The Federal Aviation Administration is the national aviation authority of the United States. An agency of the United States Department of Transportation, it has authority to regulate and oversee all aspects of civil aviation in the U.S...
certified on 27 July 2006 and the first customer aircraft was delivered in January 2007. European Aviation Safety Agency
European Aviation Safety Agency
The European Aviation Safety Agency is an agency of the European Union with offices in Cologne, Germany, which has been given regulatory and executive tasks in the field of civilian aviation safety. It was created on 15 July 2002, and it reached full functionality in 2008, taking over functions...
certification for private use was achieved on 21 November 2008.
In February 2006 the company was named the winner of the Collier Trophy
Collier Trophy
The Collier Trophy is an annual aviation award administered by the U.S. National Aeronautics Association , presented to those who have made "the greatest achievement in aeronautics or astronautics in America, with respect to improving the performance, efficiency, and safety of air or space...
for 2005 by the National Aeronautic Association
National Aeronautic Association
The National Aeronautic Association of the United States is a non-profit 501 organization and a member of the Fédération Aéronautique Internationale , the international standard setting and record-keeping body for aeronautics and astronautics. NAA is the official record-keeper for United States...
for its work with the Eclipse 500. The award was controversial because only the prototype aircraft was flying.
Oshkosh, Wisconsin
As of the census of 2000, there were 62,916 people, 24,082 households, and 13,654 families residing in the city. The population density was 2,662.2 people per square mile . There were 25,420 housing units at an average density of 1,075.6 per square mile...
Eclipse unveiled the already flying prototype of a second company design initially called the Eclipse Concept Jet. The four-seat aircraft was powered by a single Pratt & Whitney Canada PW610F turbofan and was built in secrecy at NASA
NASA
The National Aeronautics and Space Administration is the agency of the United States government that is responsible for the nation's civilian space program and for aeronautics and aerospace research...
's Wallops Flight Facility
Wallops Flight Facility
Wallops Flight Facility , located on the Eastern Shore of Virginia, is operated by NASA’s Goddard Space Flight Center, primarily as a rocket launch site to support science and exploration missions for NASA and other U.S. government agencies...
in Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
by Swift Engineering
Swift Engineering
Swift Engineering is an American engineering firm, most notable for producing racing cars for a variety of open-wheel racing series, including Champ Car World Series, Formula Atlantic, and Formula Nippon.-History:...
and Basis. The ECJ had first flown on 2 July 2007 and the company said then did not intend to place the aircraft into production but by May 2008 it began to take orders for a production version designated the Eclipse 400
Eclipse 400
The Eclipse 400 is a single engine very light jet that was designed by Eclipse Aviation, producer of the Eclipse 500.The Eclipse 400 was cancelled when the company went bankrupt in 2008 and development has not been pursued by Eclipse Aerospace, the company that bought Eclipse Aviation's...
.
In October 2007 the company laid-off between 100-150 contract workers and employees, about 10% of its workforce. In November 2007 subcontractor Hampson Aerospace
Hampson Industries
Hampson Industries plc is a large British provider of engineering services to the aerospace and automotive industries. The Company is listed on the London Stock Exchange and is a former constituent of the FTSE 250 Index.-History:...
, which built the tail assembly for the Eclipse 500, filed a suit against Eclipse alleging that Eclipse had not paid them for work completed.
During 2007 Eclipse had produced 104 aircraft and claimed a record for building its "first 100 airplanes faster than any GA jet aircraft manufacturer in history."
Financial challenges and decline
Founding President and CEO Vern Raburn resigned as a condition of a financing package by European Technology and Investment Research Center (ETIRC) Aviation, which had invested more than USDUnited States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
100 million in Eclipse in 2008. Raburn announced his resignation at AirVenture on Monday 28 July 2008. The new CEO, Roel Pieper
Roel Pieper
-Early life and education:Pieper was born in Vlaardingen, son of an engineer at a car manufacturer. His father died when Pieper was 20, and on his 18th birthday he suffered a motoring accident which destroyed his sporting career as a player of the Juventus Schiedam basketball team. According to...
, the chairman of the board of directors and president of ETIRC, said that the company should be profitable by the first quarter of 2009.
Despite orders for the aircraft, the company announced in August 2008 that development of the Eclipse 400 was on hold and it had not started the certification process. The company declared it had not spent any of the deposit money for the Eclipse 400 but the deposits were later a subject of legal action.
On Wednesday 20 August 2008 Hampson Aerospace closed their Grand Prairie production plant, leaving Eclipse without a supplier of tail sections.
On 22 August 2008, Eclipse announced that it would be laying off 650 of its workforce of 1800 people (38% of its work force) and a week later Pratt & Whitney Canada
Pratt & Whitney Canada
Pratt & Whitney Canada is a Canadian aircraft engine manufacturer. PWC's headquarters are in Longueuil, Quebec, just outside Montreal. It is a division of the larger US-based Pratt & Whitney , itself a business unit of United Technologies...
repossessed 24 engines sold to Eclipse.
From August 2008 onwards a number of customers filed law suits against the company for failure to return deposits for cancelled and delayed orders. The company indicated that due to lack of funding it was not in a position to return deposits.
On 19 September 2008 Eclipse's largest customer, DayJet
DayJet
DayJet was an American commercial aviation operation that provided on-demand jet travel using Eclipse 500 Very Light Jets. The company began operations in Florida in October 2007 and suspended operations on September 19, 2008....
, representing 1400 orders for the Eclipse 500, ceased flying operations for financial reasons.
Eclipse Aviation announced on 23 September 2008 that it would establish a factory in Ulyanovsk
Ulyanovsk
Ulyanovsk The city is the birthplace of Vladimir Lenin , for whom it is named.-History:Simbirsk was founded in 1648 by the boyar Bogdan Khitrovo. The fort of "Simbirsk" was strategically placed on a hill on the Western bank of the Volga River...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
to assemble the Eclipse 500, but then halted production of the 500 in October 2008, with the company indicating that it lacked funds to continue production or refund customer deposits.
Bankruptcy and liquidation
On 21 November 2008, the company announced that it had achieved EASAEuropean Aviation Safety Agency
The European Aviation Safety Agency is an agency of the European Union with offices in Cologne, Germany, which has been given regulatory and executive tasks in the field of civilian aviation safety. It was created on 15 July 2002, and it reached full functionality in 2008, taking over functions...
certification for the 500 and then just four days later, on 25 November 2008, filed for Chapter 11 bankruptcy
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
protection. The company was "seeking court approval for debtor-in-possession financing
Debtor-in-possession financing
Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this security is more senior than debt, equity, and any other securities issued by a company...
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
Roel Pieper
-Early life and education:Pieper was born in Vlaardingen, son of an engineer at a car manufacturer. His father died when Pieper was 20, and on his 18th birthday he suffered a motoring accident which destroyed his sporting career as a player of the Juventus Schiedam basketball team. According to...
, 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
Chapter 7, Title 11, United States Code
Chapter 7 of the Title 11 of the United States Code governs the process of liquidation under the bankruptcy laws of the United States...
, 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
Eclipse Aerospace
Eclipse Aerospace is an American aircraft maintenance and upgrade company, with the expressed intention of becoming a future aircraft manufacturer if and when the Eclipse 500 is returned to production...
, 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.
Other products
Eclipse Aviation pioneered the use of Friction stir weldingFriction stir welding
Friction-stir welding is a solid-state joining process and is used for applications where the original metal characteristics must remain unchanged as far as possible...
in aircraft structures, using it extensively in the primary structure of the Eclipse 500.
Eclipse also developed PhostrEx
PhostrEx
PhostrEx is a fire suppression agent developed for use in aviation applications to replace halon, a greenhouse gas . It was developed by Eclipse Aviation for use aboard their Eclipse 500 very light jets as an engine fire suppression system, and is now being marketed to other aviation...
, a fire suppression agent for use in aviation applications to replace halon
Halon
Halon can refer to:* Haloalkane, or halogenoalkane, a group of chemical compounds consisting of alkanes with linked halogens. In particular, bromine-containing haloalkanes.* Halomethane fire extinguishing systems...
, a greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...
(GHG). It was developed by Eclipse Aviation for use aboard their Eclipse 500 jets, and is now being marketed to other aviation manufacturers.
External links
- Eclipse Aviation Homepage on Archive.org