The House Transportation and Infrastructure Committee will hold a hearing on Sept. 17, at 10 a.m. EDT, regarding the Federal Aviation Administration's issuance of its type certificate (TC) granted to Eclipse Aviation Corp. for its Eclipse 500 very light jet (VLJ). The event can be viewed live at http://transportation.house.gov.
The committee, chaired by Rep. James Oberstar, D-Minn., ordered the Department of Transportation’s inspector general’s office to investigate whether the FAA should’ve issued the TC on Sept. 30, 2006, after an unprecedented grievance was filed on behalf of FAA-employed engineers and test pilots, who were responsible for validating compliance of the Eclipse VLJ. According to the grievance, FAA management awarded Eclipse Aviation with the TC for its airplane without allowing aircraft certification engineers and flight test pilots to properly complete their assigned certification/safety responsibilities. According to media reports, former Eclipse personnel will testify before the committee, validating that the VLJ was not safe to fly at the time of certification.
The engineers and test pilots’ concerns were partially vindicated on June 5, 2008, when an Eclipse 500 landing at Chicago's Midway Airport experienced uncontrollable, maximum power on both engines during the approach to land. Skillful piloting saved the lives of the four on board, after the plane’s computer that controls the engines experienced a condition it was not programmed to handle—uncontrolled maximum engine thrust on landing, and one engine rolling back to idle position, after the pilot-in-command and copilot got the plane back up in the air, as they were running out of runway.
In a move to obscure the thrust of Oberstar's investigation, the FAA last month initiated a 30-day review of the Eclipse 500. While a complete investigation of the Eclipse certification process would take a year, this investigation was limited to specific areas related to known problems brought forth by Eclipse operators since the aircraft entered service. The team looked at whether these issues were raised during the certification process, and if any of the issues are currently a safety threat.
Despite the narrow scope and brief time allocated for this investigation, on Sept. 12, Robert A. Sturgell, acting FAA administrator, issued a statement: "The team found that the airplane was certificated in accordance with safety regulations…” Further, her said, “This review tells us that while we made the right call in certifying this aircraft, the process we used could and should have been better coordinated."
However, the DOT’s IG’s office began its investigation after the FAA refused to hear the grievance formally, choosing to ignore documented safety issues.
In a related effort to influence the hearing, New Mexico Gov. Bill Richardson traveled to Washington on Sept. 3 to meet with Oberstar. Richardson's office issued the following statement: "We will emphasize the state of New Mexico's commitment to Eclipse Aviation and highlight the pivotal role that Eclipse has played in our efforts to create high-wage jobs. As a former congressman, I know how important it is to hear directly from communities that benefit from the presence of companies like Eclipse."
Richardson failed to address the safety issues. He failed to mention the alleged breakdown of protocols within the FAA of allowing unfettered hands-on experienced professionals to determine whether a new design was safe or met the intent of FAA regulations. He also failed to mention whether he had a hand in influencing the FAA to accelerate its issuance of the TC to Eclipse.
Meanwhile, Eclipse has admitted to being a cash-strapped company that recently laid off nearly 40 percent of its work force, halted aircraft production, refuses to return position holders' deposits, albeit lawsuits mounting, and is betting on the recent "FAA special review team audit" to clear its name, so it can continue its 10-year history of broken promises—delivering non-completed aircraft. Currently, the company is seeking additional funding to continue operation and open an additional production facility in Russia. Eclipse has burned through more than $1 billion; however, the company is seeking an additional $200 million to $300 million so it can produce aircraft.
Contacts
Eclipse Aviation Critic NG
http://EclipseCriticng.blogspot.com
E-mail: eclipsecriticng@gmail.com
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466 comments:
«Oldest ‹Older 401 – 466 of 466At least Eclipse will have some pre-canned wording for their web-page when they close their doors – pretty much just change the logo and they're all set. Save a little cash there I guess.
I'm sure that like DayJet the last thing Eclipse will see happens is that they pay their creditors. Just like how DayJet is giving the finger to their own customers despite not even being in BK, I expect Eclipse to give their customers and suppliers the bird.
What's with Ed stepping down as CEO on the date DayJet goes tits-up? What did THAT accomplish? Now that Ed is free he can join Vern and maybe Mz. Marion and bring us another exciting new concept? Oh, and they stiff their customers but keep one jet for Part 91 operations for themselves. Nice. (Spare parts shouldn't be a problem, anyway) A page from "lay em off and head for the Rolex maxi-yacht racing circuit" Roel. Bring in the forensic accountants, now, please!
fred said...
dave : the guy who told me about RP said that they had suspicions he is/was what we call in french "homme de paille" (rough trans. : dummy)
Fred the actual translation for homme de paille is the literal translation strawman.
The definiton of a strawman in English, when applied to a person, rather than the more common application to a postion is as follows:
strawman - a person used as a cover for some questionable activity
n'est–ce pas?
Seeing Ed's attitude toward paying people back, perhaps one of Ed's creditors will try and get his Challenger 604 (assuming his debts are to more than just customers). Ed's treatment of customers was really harsh leaving those with roundtrip tickets stranded and despite not even being in BK, telling their customers to file with their credit card companies if they want a chance to get paid back (and giving them the wrong advice on how to file while he he was at it).
AvWeb article nailed it. The real travesty for this industry and all of us is "...the bureaucracy likes to work unmolested in the dark and when the bright light of a congressional hearing is shined into the dark corner, that’s not a happy thing. (“Congress, you want by-the-book oversight and management? Fine. We’ll give you by-the-book oversight and management.) Unfortunately, that means things don’t get done or they take longer and cost more money. And we all know who eventually pays for that.
Just like the screwball job they did to WN's 737 and AA's MD-80, exclusively to make the above point. Congress thinks we are too cozy with airlines and want us to go inflexibly by the book - here is a little taste of what happens - boom - hundreds of flights cancelled, tens of thousands of stranded passengers. Do you (congress) want fries with that?
Now this s$#@ is aimed at GA because of Vern's stupid antics to force the FAA's hand to overrule field personnel. First time I am really pist at Vern.
Vern would you please come and help me hand-prop the right engine of the Baron - I seem to have an intermitent starter problem - I think it may be SW related - your area of expertise - can you please take a look at the propeller LCD (you need to look real close) as you hand prop it?
Ooops....I guess you fixed - Roel, do you mind wiping that stain from the spinning prop? Thanks budy.
Great men throughout history take responsibility for their own decisions.
At the Battle of Midway, Mitsuo Fuchida* reported the words of Admiral Yamamoto, “No, Nagumo is not to blame. I take full responsibility . . .” “That was the type of commander Yamamoto was, Fuchida reminisced, “and that is why we officers served under him so willingly and respected him so highly.”
DayJet reports**: “The shutdown of DayJet jet services is a direct consequence of the company’s inability to arrange critical financing in the midst of the global financial crisis. We regret the discontinuation of our operations without advance notice, and apologize for any inconvenience this may cause.”
Evidently, it’s the fault of those who wouldn’t loan them more money . . . and the blame is global . . . and there is the remote possibility that this “may” cause an inconvenience. That’s a relief . . . for a bit there, it almost appeared that the head of DayJet might get blamed for bad decisions, which could have reflected on the good Eclipse reputation.
And for those few, who might be inconvenienced, DayJet was kind enough to point them to the credit card company . . . suggesting that they “write” to them, enclosing photocopy, etc., for proof. That was a thoughtful suggestion. Well, who knows . . . maybe some “hacker” got into the DayJet reservation system and wiped out all the records. And remember: Some computers have “bugs” . . . DayJet has an entire “ant farm”.
gadfly
* “God’s Samurai”, the story of Mitsuo Fuchida, Page 83
**www.dayjet.com
"A good government is a government that is dedicated to its mission, accountable to the public and responsive to the needs of its citizens. I understand and appreciate that this Committee wants to ensure that responsiveness does not result in less than vigilant regulatory oversight. I am keenly aware of your concerns because they are my concerns as well. As always, you have my commitment to holding my organization and the industry we regulate to the highest aviation safety standards in the world.
"
Great conclusions of Mr. N. Sabatini before House Committee on Transportation and Infrastructure, Subcommittee on Aviation on "FAA Aircraft Certification: Alleged Regulatory Lapses in the Certification and Manufacture of the Eclipse Ea-500"!!!
(http://www.faa.gov/news/testimony/news_story.cfm?newsId=10288)
I think the congressman/women were very pleased to get these special instructions!
Is it typical for the FAA, that retrieval of reports don't work (WEB: SDR,news..), that they use different ids for the same object EA50 /Ea-500...
As the EA50 was not a secret project - in some aspects even more complex then the Mustang - why did Mr. Hickey and Mr. Sabatini send an unexperienced team to the Eclipse?
Why did they stick at a date when they learnt that Eclipse hadn't any experience in FAA certifications?
How much time was actually used to certify AVIO and later AVIO NG?
As major hardware and software elements had been changed the certification should not be "grandfathered". (Is it possible to change core elements of an ETOPS certifyed engine without a new certification?)
Julius
hi guys , a few comments :
Mr Gad :
could we become friends ?
no doubts about ...
you would be surprised that , despite , my professional activities , there is nothing that i love more than a good laugh with a few simple guys (simple : good way of taking life , not retarded like the nest which seems to be in EAC)... may be because i had a tutor in the past who kept on telling me " never forget at end of day , whoever you are , you are going to sit exactly on the same part of yourself than anybody else ..."
the best time i ever had was in a fisherman's wooden hut in a lost spot north of Baïkal lake without electricity , running water , fax , telephone , TV ...
to eat , we had to catch a few fish or pick-up of few berries = Paradise !
as for the "disease" of being french : don't worry ... i bear different passports ;-)) and always thought that patriotism is a very good way to have others spilling their blood to protect some your interest ...on this , yes ... i am probably too much european , already !
( i mean : since When being from a place or not is a guarantee of Best or Worst ?)
As for your mention of Mitsuo , i wish your wisdom could be spread a bit around ...
taking full responsibilities for your own action is , unfortunately something on the decline ...
like (i know some teeth are going to grind!) the New Plan for saving the Finance system is to me "pure madness" ...
2 or 3 Trillions $ to correct the banking sphere of its own greed is ridiculous ... they played with Mr anybody's live , they made hips of money , but when things go wrong =they call the Tax payers to face the bill ...!
what a good way to tell them "please , do it again in a few months !"
to simply write-off the debts of the ones who cannot afford anymore a living would have been a bit more human ...but the problem is that the one in charge never go to fancy restaurant with those Mr Anybody ...!
take care my friend , our path will cross one day ...
Karen has a new article up!:
http://www.charterx.com/resources/article.aspx?id=3521
Here's a blog entry on DayJet and the VLJ market:
http://www.maxtrescott.com/max_trescott_on_general_a/2008/09/sun-sets-on-dayjetmore-wreckage-along-the-vlj-highway.html
dave :
sorry , but you took me the wrong way ...
when i said about Roel , i was NOT mentioning any deficiency ...
i believe that to be a good "straw man" (thanks Baron for translating !) , to deflect the blame AND to be able of not getting caught (too much) in the waste ...
you need to be quite clever !
The closure of DayJet is good news for Eclipse owners. It means there will be more aircraft parked in the Arizona boneyard and a bigger supply of spares. Would anyone like to speculate on when the last Eclipse will fly? Be careful, as there one or two Bleriots flying a century later and many Stearmans and Wacos are approaching seventy.
"It means there will be more aircraft parked in the Arizona boneyard"
I don't think there is any money left to get them to Arizona; they will just mold away in Florida. On the good news front, one of the DayJet rocket scientist programmers has landed a job with the city government in the basement of the Boca Raton Courthouse! There are some changes afoot! If Ed wants to meet the bankruptcy judge at 9 am on Monday morning the charge is X dollars. If he can wait until Tuesday or Wednesday the price drops to y dollars. If Ed can see the judge any old time in the week the judge can fit him in the price drops to a low, low z dollars. Ed will be called Sunday night and told when to appear! Unless he isn't. Or not.
... and , if the judge fails to show.... Ed can call the credit card company and ask for a refund?
The credit card thing has me a little baffled. Most larger Charter Operators charge AFTER the flight.
I guess Dayjet spent the money before they flew their clients? They cannot just credit the clients cards?
They have the cash to operate an e500 for their own company purposes, but not enough to repay clients who did not fly?
This is very strange.
- it sort of reminds me of the EAC deposit money refund situation...
Julius asked "...why did Mr. Hickey and Mr. Sabatini send an unexperienced team to the Eclipse?"
Answer: The team that was originally assigned was not "unexperienced." The original three aviation safety inspectors assigned from the San Antonio office were all long time, well experienced employees. They previously had done the PC for Sino-Swearingen. They previously had done the PC for Mooney. They HAD experience, knew what they were doing, spent extraordinary amounts of time trying to get Eclipse to "get with the program" and understand the critical nature of safety systems in aircraft manufacturing. As an example, one of the first audit finding in 2006 was that Eclipse had no tool control program on site. The way they found this out was that one of the planes had a socket extension left inside a horizontal stab. When the next shift came on, an Eclipse worker moved the tail, and the leftover tool damaged the tail. The FAA Aviation Safety Inspector tried to explain to the former Ford Motor Company line manager the importance of establishing a tool control procedure to account for all tools, especially at shift change. This is an industry standard practice. The former Ford Motor Company line manager blew him off, and when the Inspector checked on his next visit with the QC Director, asking if a tool control procedure was being developed, argued with the ASI about the need.
The three ASI's assigned, (whom you DIDN'T see at this Congressional Hearing) knew full well the requirements of what it takes to obtain a PC. They bent over backwards to try and get Eclipse to understand that producing airplanes is different than producing automobiles. The three ASI's knew that mistakes in aircraft manufacture can result in deaths. The told their manager about the issues they found.
Their manager was Ford Laurer, who did testify. Mr. Laurer is the San Antonio MIDO Manager, who previously served many years as an ASI in New Cumberland PA, where he was responsible for Production Certification at dozens of locations for many years.
Because Eclipse picked up the phone, and complained to Hickey that these ASI's were not allowing them to produce airplanes fast enough, because these three ASI's wanted to actually inspect airplanes, the three ASI's were relieved by Mr. Hickey.
When Ford Laurer, the first level manager, raised the issues to his second level manager, MIO Manager Jerry Strentz, Ford Laurer was relieved by Mr. Hickey.
Mr. Strentz is well experienced as well. Mr. Strentz began his career in Quality at the Piper Aircraft company, and served in the Small Airplane Directorate as an ASI, then a MIDO Manager, then the MIO staff until the early 1990s. In the mid-1990's he took the third level Manager job in Fort Worth.
When Mr. Strentz validated the issues at Eclipse, and attempted to hold Eclipse to the same standard as any other Manufacturer, Mr. Hickey had Mr. Strentz relieved.
That brings us to the fourth level manager. Mr. Downey. You heard Mr. Downey testify of his experience and moral values. When Mr. Downey was not getting with Mr. Hickey's program, Mr. Hickey had Mr. Downey relieved. And they sent in Mr. Wojnar, the former deputy to Mr. Hickey, for a special mission.
When Mr. Wojnar came, Ms. Broyles was assigned to the team. You read Ms. Broyles testimony- she is a 20 year FAA ASI, well experienced. When she raised issues, Mr. Hickey had her relieved.
The common thread in all of this should be clear to you.
No field FAA employee would compromise his or her soul.
When Mr. Hickey heard complaints about the first three ASI's, he had a choice. He could support his well-experienced ASI team.
He didn't trust his three ASIs, and he had them relieved.
Then he didn't trust the MIDO first level Manager. So he had him relieved.
Then he didn't trust his second level manager, and he had him relieved.
Then Mr. Hickey didn't trust the third level manager, Mr. Strentz, so he had him relieved.
Then Mr. Hickey didn't trust the fourth level Manager, Mr. Downey, and he had him relieved.
Hickey then sent his former deputy in to take over, who promptly put out the order "Only look an inch deep", and when one employee saw issues in the one-inch deep water, Mr. Hickey had that ASI relieved.
And now, not a single FAA employee of the aircraft certification service will apply to the job of being the new Eclipse Principal Inspector.
That ought to tell you something.
No FAA employee below Mr. Hickey has one ounce of confidence in Mr. Hickey.
We all want him relieved.
Safety demands it.
the "Gold Standard" demands it.
There is "No Confidence" in Mr. Hickey's decisions from among the rest of the employees of the Aircraft Certification Service.
Is the Eclipse production system today "safe"?
The Manufacturing Safety FAA side has no idea. We could accurately testify that we know of no "unsafe" practice at the moment. And that would be an accurate statement. We know of no unsafe practices.
That's because we have not been allowed back in to look after Mr. Wojnar issued the PC. After all,the August ACSEP evaluation was suddenly, at the last minute, canceled.
Perhaps you can go ask Mr. Hickey, since he seems to know better than any of his employees do, how to properly regulate an Aviation production company.
now we know what "appropriate experience" means, to Ms. Bilson.
FO - thanks for the detailed post
I do think DayJet's refusal to refund is very fishy and I think it is for more than chump change. Given how DayJet talked about how a certain feature they were advertising had to be order before 60 days, that tells me there's been many dayjet orders for 60+ days out. If DayJet had 1000 separate billing events for 3+ months worth of orders and the average billing event was $400 dollars, Eclipse would be sitting on $400K that doesn't belong to them. Even if DayJet had no other money in the bank, that $400K that doesn't belong to them could let the greedy execs still get their full paychecks for months as well as fly around on their customers' dime. It looks like DayJet is trying to burn up the money that doesn't belong to them. If anyone is familiar with the SCO BK case (which Ed had been on the board of SCO prior to their filing for BK, but he still probably knows what is going on), SCO has continually delayed to pay back its creditors and has burnt through lots of cash that didn't belong to them. It seems like Ed is doing the same thing to his customers...spending their money for himself while continually delaying in giving back the money that doesn't belong to him until there is no money left to give back. It might not be worth it given how nobody individually is probably owed more than a few grand, but this would seem to be a prime reason for a creditor to file involuntary BK for DayJet as DayJet is just so blatantly giving their creditors the bird. With companies like DayJet getting credit, it is no surprise that we are having a credit meltdown and DayJet has got no business whatsoever whining about it when they're the ones using credit to abuse people.
ATM pondered:
The credit card thing has me a little baffled. Most larger Charter Operators charge AFTER the flight.
You miss the beauty of it, Mr. airtaximan. DayJet's valuable service is not embodied by having a little bird show up at your point of departure to carry you to your destination - no, it's the ant farming, the scheduling, that represents DayJet's value proposition. And if the big, bad, global financial markets got in the way of that trivial 'last step' of actually providing the flight - well, let the markets get you your money back!
Remember - if it involves an Eclipse principal, and something doesn't go right - it's somebody else's fault.
Would you like the combo?
DI
Rep. Oberstar HAS to see Forward Observer's September 20, 2008 6:47 AM excellent post.
The Florida Attorney General should see Dave's following post- serial crooks shouldn't keep getting off.
Turboprop_pilot
fun with numbers...
"Since service launch, DayJet has built a growing membership base of more than 2,400 regional travelers. The company has flown over 9,000 segments totaling more than one million miles -- all while achieving an industry-leading 95% on-time performance record and a 93% customer satisfaction rating. DayJet also grew its "Per-Seat, On-Demand" service network from five initial destinations to more than 60 communities across the Southeast -- filling in the regional transportation gaps left from the airlines' drastic service reductions (especially to small and medium-sized communities)."
** 2,400 regional travelers
** 9,000 segments
** 1 million miles
** around 1 year of flight ops, IIRC
basic points:
- average segment = 111 miles or so
- at most, on average clients took 3 flights a year... this accounts for zero repos flights, and only 1 pax on the plane per segment. If you deduct repos flights/company flights etc... at say 30%, that means at most, on average the 2400 members took only 2 flights per year, at 1 pax per flight. If it was as Ed said, around 1.5 pax per flight, then you are at 3.5 flights per member per year, at most on average.
As a gut check:
28 planes IIRC,
111 miles per flight,
9,000 segments in a year - that is around 1 million miles in a year for 28 planes...
*** was there EVER a week where Dayjet was doing this kind of utilization?
By my calc: 1 million miles at 200MPH block = 5,000 hours / 28 planes / 52 weeks = 3.5 hours per plane per day - every plane, every day (not just 5 days a week). At 5 days a week, they would have had to have flown every plane amost 5 hours per day. Using half their fleet, its 10 hours per plane, per dayevery day, based on a 5 day week which is what they were flying until a few weeks ago - I mean the 5 day week.
Now, this sounds pretty good, but I don't think they EVER came close. NOT ANYWHERE NEAR THESE NUMBERS.
ANOTHER gut check: Based on garnering $3 per seat mile and 1.5 pax, using 25% for empties, that's... only $3.75M for the fleet for the year. That's 133k per plane per year GROSS revenue.
Maybe I'm missing something, but none of this looks even close???
Anyone?
well , honestly to me , the dayjet thing about CC sounds definitely like they expected to run on booking money ...
not exactly on a day to day basis , but the fact that we don't know the details about getting the EA500 , it sounds like it very much ...
dayJet had no real money ...
they didn't pay their EA500 (owners and depositors did for them!)
they expected lots of booking (to be paid in advance , why ?)
the planes would have been paid by the money harvested in the IPO ...
good business for Ed !
Good business for Vern !
just a kind of "take now,pay later"
the planes was not as promised , so the margin couldn't be made , the relation got sour with Vern departure (not because of Roel , but because of the lack of funds and new orders ...) deal was voided ... better to stop using something not paid for !!
if they are BK , i really wonder who is going to get final ownership of the biggest fleet of unfinished (and non retrofitted) EA500 ???
i wouldn't like to be the one who is going to have to sort-out this mess ...!
Fred,
by my calcs, Dayjet was just like EAC - losing money on everything delivered.
ALl things included, Dayjet had an average of say 2oo employees this year - their first and only year of flights.
At 75k each, that's $15 Million.
Debt service on 29 planes = $3.5M
Rent, etc... probably a total of $20M...
They also probably lost at least at least $1-$2 per mile = another 2 million, loss from flight operations.
Again, $20M lost this year easily.
They blew $25M before they ever started operations.
AND
they received $50M in Early 2007...
So? I would ask, where's the rest of the money?
If they paid for the planes themselves, which I doubt - that could have used up a lot of the cash - say another $35M.
Otherwise, they must have been bleeding much worse than $1-2 per mile from operations.
How can Ed say he proved anything worked?
I'm more than a little incensed with what DayJet is doing. For months DayJet complained they were the victims of the credit crunch and so now that DayJet owes people money what do they go and do? They fly off into the sunset while continuing to cash their executive paychecks with all being paid off money that doesn't belong to them! Now it is going to be all of us who end up paying for DayJet's abuses as DayJet will have spent all the money before the credit card companies have a chance to get it back. No wonder DayJet failed because Ed is definitely showing now (if it wasn't clear before) that he doesn't care at all about customers or for that matter hurting other businesses due to Ed's own needless actions worsening the credit crunch. He could pay back his customers, just he wants to spend it on himself instead! Jerk!!!
airtaxi :
i don't think your calculations are wrong ...!
just that if you add 1+1 = they could not (or did not a plan ) live out of the income made by the activity !
i am not sure , but i sense that the whole story was to bailed-out (V+E+R)
at the fist possibility of IPO
they probably fell in their own trap , by believing their own lies ...
was it determined at the first second to be a trap ?
did it become such because , at some point , they understood it would never work ?
we will never know ...
Forward-observer,
thank you very much for your clarification to my question
"...why did Mr. Hickey and Mr. Sabatini send an unexperienced team to the Eclipse?"
I was just refering to Mr. Sabatinis "testimony":
"I support John’s decision to elevate this matter by bringing in the headquarters certification policy staff. As I mentioned, this was a situation where there was an FAA field office that had not previously been responsible for the certification of a high profile, complex project and an Applicant that had never been through the certification process. The change in Eclipse’s compliance strategy came relatively late in the program and left little time for the FAA to develop a response strategy. It was entirely appropriate that headquarters evaluate the differences of opinion about how the matter should proceed. In the end, John left it to the headquarters policy officials to determine whether the Eclipse proposal that Avidyne’s product had already met the requisite standards for type certification, was appropriate. They ultimately agreed with the Eclipse position."
I think Mr. Mack (and Mr. Sturgell) subsume this incident as lack of effective communication between EAC and FAA and within FAA.
Does Mr. Oberstar agree to this point of view?
We will see if this "testimony" will have any impact on Mr. Sturgells career.
Anyhow the reputation of the FAA will suffer a bit just because VR did not want to miss a deadline!
Julius
Eclipse's pitot problems came out {again} during FIKI testing:
http://www.regulations.gov/fdmspublic/ContentViewer?objectId=09000064807087fd&disposition=attachment&contentType=msw8
The following media alert was issued today.
----------------------------------------------------
+++ MEDIA ALERT +++
Eclipse Aviation® is aware that DayJet™ Corporation eliminated most of its workforce Friday and ceased commercial air taxi operations. DayJet has taken delivery of 28 Eclipse 500®'s from Eclipse Aviation. While DayJet was Eclipse's largest customer, Eclipse's business model and success has never relied solely on DayJet. Eclipse still has hundreds of orders to fill independent of DayJet, and existing customers will be happy and eager to move up in line. Eclipse also anticipates ongoing interest in the United States as well as fulfilling the strong demand for the Eclipse 500 in the global markets.
DayJet is accredited with starting the air taxi revolution with its affordable "Per-Seat, On-Demand" jet service. While DayJet was able to fulfill the demonstrated growing demand for this new market, the company was unfortunately unable to raise the capital it required to continue its operations in the current environment. The air taxi market is now a proven market and Eclipse anticipates other companies will look at the market to determine how the needs of the regional executive traveler can be realized.
Eclipse will not be releasing any further information or conducting interviews surrounding this media alert.
About Eclipse Aviation
Eclipse Aviation is the world's leading very light jet (VLJ) manufacturer, producing innovative, affordable jets that are revolutionizing air transportation. The company created the VLJ category with the design, certification and delivery of the Eclipse 500 -- the industry's first VLJ. Eclipse applies advanced technologies, manufacturing processes and business practices to create high-performance aircraft that cost a fraction of other jets, and provide the lowest cost of jet ownership ever achieved. By changing the value proposition for private jet travel, Eclipse is allowing more pilots to enter the world of jet-powered aviation and enabling a new generation of entrepreneurs to help business travelers move between cities on a quick, affordable and convenient basis. Contact Eclipse at www.eclipseaviation.com.
###
Eclipse Aviation Corporation, Eclipse and Eclipse 500 are trademarks of Eclipse Aviation Corporation.
Eclipse Aviation Proprietary Information All information and data contained herein are the property of Eclipse Aviation Corporation and are not to be duplicated or disclosed to others for any purpose without the consent of Eclipse Aviation Corporation, Albuquerque, NM. If you are not the intended recipient, please delete this email immediately.
I HAVE AN AUDIO OF THE CONFERENCE CALL YESTERDAY IF ANYONE IS INTERESTED. 19SEP08 11AM MST
James Fallows raises good questions (even if he's not going to like the answers):
http://jamesfallows.theatlantic.com/archives/2008/09/before_getting_back_to_politic.php
Here's someone who thinks in 10 years Ed will be seen as having played a Preston Tucker role in air transportation (I obviously feel differently):
http://www.rexblog.com/2008/09/20/18286
Here's a blog entry with a good recent summary of DayJet and Eclipse:
http://wordcab.blogspot.com/2008/09/eclipses-biggest-customer-ceases-air.html
Eclipse still has hundreds of orders to fill independent of DayJet
Finally Eclipse admits their order book wasn't as big as they were claiming it was. So if Eclipse only has hundreds of orders, what is the purpose of the russian plant that would put out 800 units per year? Who is going to buy all of them?
The air taxi market is now a proven market and Eclipse anticipates other companies will look at the market to determine how the needs of the regional executive traveler can be realized.
The air taxi market was already proven decades ago. Acting like air taxis are something new is a loser strategy. Seeing the suddeness of DayJet closing up shop and Eclipse's prior actions toward customers, it has got to make you wonder when they'll turn their customers into unsecured creditors at a BK court. I guess the best that people could hope for is to go after ETIRC and Roel, which would be a long shot, but if enough money is involved, they might try. All of Roel's actions should be gone over with a fine-tooth comb should Eclipse go under as I expect to see that Roel gave ETIRC preferential treatment. A BK court could pull back payments and nullify contracts with ETIRC and a BK court or other court could get a judgment against ETIRC, just it would be a matter of enforcing it against a company in another country. Roel, Vern, Ed, etc have shown time and again how they only care about themselves and how if it is in their interest, they'll leaving customers, etc up a creek.
If removing DayJet's 1400 orders from the reported '2700' orders only leaves 'hundreds' of orders to fill, instead of 'over 1,200' orders to fill, I think we critics have, once again, been validated.
Where is Ken/TurbinePower/Turn&Burn to tell us how this is really great news now that the pent up demand that could not be met while the DJ planes were on the books can finally be met quickly?
Where are the Faithful DieHards of the Church of Flyantology?
How do you feel about your preemie jet now, having been exposed to the concerns and comments of the people who were responsible for determining the safety of the jet until they were overridden for political purposes to 'save this company'?
Reading through the House Committee testimony paints a picture that is even more dire than many of we critics, myself included, believed to be the case.
Where are the Faithful DieHards of the Church of Flyantology?
I think it is Governor Richardson, Mayor Chavez and those types that need to explain themselves and how come they didn't recuse themselves after taking money from Eclipse. Richardson in particular since he's a "fiduciary" (Chavez isn't) and Richardson flew to DC after all this evidence came out.
Dear Messrs. Paulson and Bernanke:
This is to request Federal assistance for DayJet and Eclipse Aviation Corp. EAC makes complete© VLJ aircraft and DayJet in turn is our largest customer with 1400 orders©. DayJet is based in Florida and EAC in New Mexico both of which are battleground states for GOP. We are concerned that most of our customers have had a significant portion of their savings and retirement funds wiped out by Wall Street. These folks may not be able to afford to purchase our aircraft and/or take trips via DayJet anymore. We know we certainly have not been able to pay our suppliers for a while (or refund deposits, or pay employees, but sticking with the best business traditions, certainly have enough for marketing, legal misdaventures, and executive perks of course). Certainly the financial crisis has resulted in a drop in executive compensation. We are not able to pay our CEO the $50 million per year that he deserves, having kept EAC in operation for more than 10 years, and generating unmeasurable stock holder value. Who else besides him after all has given investors $1.3 billion (missed) opportunity in GA industry?
Given that we have 2000+ orders© and global operations© in Americas, Europe, and now Russia, I think it is safe to say that we are regarded as “too big to fail”, at least by pilots flying EA500 (The Disruptive Jet©). We believe an $85 billion loan would enable us to continue to operate, compensate executives appropriately, and make sure that market’s faith in our stability isn’t disrupted too much.
In exchange for $85 billion, we would be happy to give the Federal government warrants to purchase 80 percent of the stock in our companies. Heck we will even throw in 200 hours jet cards to be used at a DayPort of your choice. We would promise to purchase our insurance only from the Federally-backed AIG and our ground vehicles only from the soon-to-be-Federally-bailed-out GM and Ford. We will rework our payscale to be consistent with Fortune 500 norms. Our staff will therefore earn 1/430th of the CEO’s salary (source). As our CEO will be earning $50 million per year, this will give our factory workers enough income to take out a mortgage from the once-again-Federally-owned Fannie Mae.
Thank you for considering our request.
Vern, Roel, Ed
Note: Based on and modified from a post from Philip Greenspun’s excellent blog where he writes about aviation among other things.
Another thing to keep in mind with Eclipse's dishonesty was that it wasn't only "one pilot" being just "hearsay" who said that Eclipse shouldn't be operated with single pilot. It was in the redacted section of the report that we learn that it was FAA team evaluating the aircraft who said that as well. Eclipse unsurprisingly completely lied through their teeth in their so-called "facts" press release because they didn't think the public would find this out.
>> I HAVE AN AUDIO OF THE CONFERENCE CALL YESTERDAY IF ANYONE IS INTERESTED. 19SEP08 11AM MST
If you would, please send me a copy of it to free010203 at yahoo dot com.
Thanks.
Here's the Eclipse single pilot lie:
Statement 4: In interviewing Eclipse’s largest customer and operator of the Eclipse 500, one pilot “lacked the confidence that the aircraft could be operated safely by a single pilot.” Therefore, the IG is recommending that the Single Pilot certification be reviewed.
Reality 4: This is hearsay and selectively choosing a single pilot to push the agenda of changing the Single Pilot certification of the Eclipse 500. The Eclipse 500’s demonstrated safety record speaks to the fact that the aircraft’s fundamental design combined with Eclipse’s FAA approved training program is working today and producing the safest aircraft introduced into general aviation in the last twenty years.
http://www.eclipsefacts.com/Fact_Sheet.pdf
{{Mike McConnell wrote this BTW}}
Now from the secret section of the report that Eclipse doesn't want the public to see:
FSB discussed a two-pilot crew requirement until workload went down with updated systems. Eclipse protested a two-pilot rating to FAA Headquarters.
It was more than the one pilot who thought the FPJ should be two pilot but rather it was the FSB themselves, however, Eclipse whined to FAA execs about it.
Eclipse cares nothing about safety hasn't care about safety. They've been all about greed and only greed.
So Dayjet is toast. "DayJet Services, LLC, has discontinued its jet services and cancelled all future flights as a result of the company’s inability to arrange critical financing in the midst of the current global financial crisis."
Even at the end, they can't face reality. They place the blame for failure somewhere else - 180 degrees opposite of where they should. In this case, it is the "global financial crisis".
Come on Dayjet! Your business plan was flawed from the outset, and bad economy or not, your business was doomed to failure the moment the ribbon-cutting ceremony was over.
Eclipse, although it has hung on longer than any of us thought possible, is also operating under a flawed business plan that guarantee's its failure. Not a question of "if", just "when". You can't NOT make money and expect to survive, much less prosper.
So a lot of events that were predicted on this blog have now come to pass. During this time, many of the bloggers, including myself, have been accused of lying, exaggerating, violating NDA's, or just being hateful when all we were doing was pointing out the obvious without adding a sugar coating.
"The change in Eclipse’s compliance strategy came relatively late in the program and left little time for the FAA to develop a response strategy."
you mean lobbying vs actual compliance?
C'mon - this is a farce, right?
Refer to Peg Bilson's remark about "appropriate expereince" and pass the barf bag - these people are real assholes - all of them.
They should eventually go to jail - and I think, given the testimony, they actually might.
Think about what could happen, and some of the testimonay - and the attempt to characterize and cover - jail time is not out of the question, that's for sure.
If I were an EAC board member or responsible exec, I would resign right away.
** a quick thought on this aspect of liability - was it just a coincidence, or did Ed resign, and Dayjet shut down just after the testimony, for a very good reason.
Admitting EAC was not properly maintaining the planes, there were many, many SDRs, and the damning testimony makes me think there was at least a possibility that the liability side got too transparent.
Imagine the worst - and imagine citing the testimonsy of the players, including the statements of Dayjet regarding the plane's problems... I think its a slam dunk for any decent lawyer.
NZ,
I for one am amazed it has gone along this long... all of it.
A revolutionary transportation system, based on charging 50% MORE that a prop costs to fly the same mission, taking the same (or less) time, in around the same level of discomfort - c'mon!
One could consider it a HOAX...
- same with the theory there's amarket for thousands and thousands of tiny-jets $1.5 - $2.2 Million.. C'mon
How about the sub-$1M tiny-jet?
AND NOPE - IT DID NOT TAKE ANY REAL INSIDER INTEL TO FORM THE CONCLUSIONS THAT THIS WAS ALL A BUNCH OF IMPRACTICAL BS...
http://files.filefront.com/ECLIPSE+19SEP08+CONF+CALLazip/;11841400;/fileinfo.html
http://files.filefront.com/Eclipse+Teleconferencemp3/;11844736;/fileinfo.html
SORRY CANT GET URLS TO POST
http://files.filefront.com/Eclipse+Teleconferencemp3/;11844736;/fileinfo.html
This is interesting from Bloomberg.com. Maybe someone else has already reported on it:
9/16/08
"VEB, previously known as Vnesheconombank, will provide $330 million for the construction of a plant in Ulyanovsk that will assemble and service the Eclipse 500 ``very light jet,'' the bank said. The Development Bank of Kazakhstan will get a 15 year credit for as much as $300 million to buy high-technology equipment from Russian producers."
The article says the interest rate is around 12%. That's $24,000,000 per year on $200 million. How is Eclipse, which has never made a profit, going to be able to repay its depositors who have cancelled their airplanes, fund the construction of a new factory in Russia, fund their high overhead in ABQ and take care of all the retrofits and also pay $24 million per year in interest?
What am I missing? Or, am I not missing anything and this is just postponing the visit to Eclipse by the grim reaper?
NZ,
That's a hoax... debt service?
Kidding, right? On top of the number you quote they owe Pieper money, apparently they missed a paymnent... and untold others...
HOAX
"While DayJet was Eclipse's largest customer, Eclipse's business model and success has never relied solely on DayJet."
Did Karl Rove write this release? While true that Eclipse didn't rely "solely" on DayJet, but more than half of the claimed 2,700 orders were from them. And the exaggerated orderbook was the reason Eclipse was able to go back again and again at the funding trough. It's quite obvious that Eclipse relied heavily on DayJet. "Hundreds of orders" surely isn't going to sustain Eclipse, which is now having its own little financial crisis.
How is Eclipse, which has never made a profit, going to be able to repay its depositors who have cancelled their airplanes, fund the construction of a new factory in Russia, fund their high overhead in ABQ and take care of all the retrofits and also pay $24 million per year in interest?
See DayJet with how they gave the finger to their creditors even though they could pay back their customers. They instead want to jet-set around and get their big paychecks on their customers dime.
These guys at Eclipse and DayJet are just so completely self-involved and self-centered. If they would have been less selfish and self-involved, they would have done much better. All they could think about was "ME ME ME" and because of that, they are going to get their fortune, but if they thought more of others, they would have done better for themselves. Eclipse could have been a great new company putting out around 100 well-built units per year and DayJet could have been respectable air transportation business with a nationwide fleet measured in the dozens, but since they put out so much BS and didn't think of anyone but themselves, they'll get nothing instead. So many hundreds of millions were wasted that could have better been used investing in other businesses.
a quick thought on this aspect of liability - was it just a coincidence, or did Ed resign, and Dayjet shut down just after the testimony, for a very good reason.
A different sort of liability might be in play - prior to the testimony, DayJet had liability insurance. It is reasonably plausible that the insurer was tipped off that they may wish to follow the proceedings on Capitol Hill. Upon learning that 26 of 28 of DayJet's aircraft had at some point in time been operated in non-conformance to the TC, hypothetical insurer contacted Ed and informed him that he was "self insured", effective immediately.
I'm not aware of anything like this actually occurring, I'm just saying...
Would you like the 28 piece combo?
DI
I'm not aware of anything like this actually occurring, I'm just saying...
If that was the case Ed could be in serious trouble if he was sued over his refusal to give customer refunds to instead spend that money on himself.
One thing that will definately help Eclipse's SDR count go down will be Dayjet's closure.
I'm sure the testimony is just now being sorted through, as the IG's office has not had enough time to sort through all of the written statements that they have. Just because you didn't see any former employees at the hearing, don't think for a second that the IG doesn't have WRITTEN testimony from former employees. Perhaps this was their (IG)"Ace in the Hole", as in "let's see what they say, then show it was perjury"
If they compare what is written with what was said, someone IS going to jail, however, just from the hearing itself, some may be headed that way anyhow.
Mr. Penksa noted that staff is currently working on the FY2008-2009 budget. He stated that due to
uncertainty in the aviation industry, staff will develop contingency plans in the event that there are any
changes to airline service or Eclipse Aviation operations. He added that he does not plan to add any new
debt.
http://www.gra-gnv.com/docs/082808ag.pdf
GRA has millions at stake because they borrowed around $7 million dollars to build Eclipse facilities. Eclipse's selfishness stands to damage the aviation industry for decades to come as GRA has a 20 year loan to payoff where they'd be paying hundreds of thousands each year to cover that bad debt caused by Eclipse.
Meanwhile, back at the E500 Club headquarters, one of the senior members starts to "come to".
Waking from his koolaid induced fog, he blurts "Roel said he puts the probability of obtaining financing at just above 50%".
"They have decided not to move forward with Van Nuys as a service center."
Through their surveillance monitors, Eclipse staff see the senior member is disrupting the other members, and that he is no longer wearing his rose colored glasses. A "medic" rushes to him, injects a hypo full of full-strength Cherry Kool-Aid directly into his heart, and replaces the rose colored glasses which have fallen to the floor.
The other club members turn away and go back to exchanging postcards from Sunriver.
Waking from his koolaid induced fog, he blurts "Roel said he puts the probability of obtaining financing at just above 50%".
Roel must be drinking heavy kool-aid himself - if he was to be believed that he actually thought chances were that great.
Industry rumor is that Thursday afternoon, in a closed door meeting at Dayjet in Boca, a "Lender" walked in and demanded the planes - as in reposessed.
This story has come to me from 3 sources (seemingly independent)... but I have no clue if its true.
- I guess IF Dayjet leasing has a lender, one could find this? Dave?
- Perhaps the planes were pledged for a line of credit?
I have no clue, but this would make a difference regarding the insurance issues.
I think since Dayjet knew of the problems with the planes, liability is a foregone conclusion, even with insurance. I am sure no operator has coverage for known equipment defects or known safety issues.... I cannot imagine a policy that covers you if you fly a plane you know has safety issues...
I seriously think (opinion) that Pieper was refusing to retrofit and or repair the planes... like he was stiffing the rest of EAC customers. I think Dayjet probably had a "program" like JetIncomplete, and it was probably not being honored any longer - as part of EACs "operational excellence" program!
Anyhow, with the operating losses on every flight, and mounting issues regarding mainteance costs, and the added transparency regarding safety - I think the business probably caved.
If a lender walked in, I think Ed probably had a (quiet) sign of relief... eventhough he likely lost $10M of his own money - or so the story goes.
Day Jet Utilization, Week Sept 14-20. Tails all flew to KGNV from KBCT at the end of the week.
134 and 135 were used for several flights on 9/18-- first real use in weeks.
Tail 161 had a uncoded flight KBCT>KAND on 9/17, I added estimated time, but flight may have been canceled and the record spurious.
Craft .. Sept.14-20
158 .. 16:25
160 .. 15:32
152 .. 15:13
153 .. 9:19
148 .. 8:42
146 .. 8:27
163 .. 6:22
150 .. 6:01
135 .. 5:54
139 .. 5:31
142 .. 4:06
161 .. 3:51
134 .. 3:42
147 .. 2:58
145 .. 2:25
136 .. 1:01
162 .. 0:56
109 ..
110 ..
115 ..
116 ..
119 ..
126 ..
130 ..
131 ..
132 ..
141 ..
156 ..
Total 116:25
depart Field .. Sept 14 - 20
KBCT .. 30:41
KGNV .. 16:29
KTLH .. 8:27
KAPF .. 8:29
KPNS .. 6:01
KSRQ .. 1:21
KOPF .. 5:20
KJAX .. 3:19
KMGM .. 6:18
KPIE .. 4:41
KOCF .. 1:36
KPFN .. 2:14
KORL .. 3:18
KCRG .. 2:04
KDAB .. 2:02
KEYW .. 1:25
KVLD .. 1:14
KMLB .. 1:31
KAVL .. 2:00
KAND .. 3:31
KGMU .. 1:12
KMOB .. 1:48
KINT .. 1:24
- I guess IF Dayjet leasing has a lender, one could find this? Dave?
- Perhaps the planes were pledged for a line of credit?
I have no clue, but this would make a difference regarding the insurance issues.
DayJet does:
http://abcnews.go.com/print?id=3520108
Also this article brings up about DayJet potentially operating under Part 121 with additional passengers with Ed saying "it's complicated." Given what we've seen with Eclipse and the FAA, Ed probably just whined to the FAA in DC to get around the Part 135 requirements.
Also it seems like quite a waste spending $20 million dollars for ASTRO. Complete overkill where the money could have been better used elsewhere.
FO,
Great summary. Clear and concise.
What are the chances that you can convince your publication to print it?
It should have broad exposure.
Thank you.
..
Well,
Since the August mass bootings of employees, the dust has mostly settled, here in KABQ. Someone recently asked about the current state of EAC, so I’ll pass along a few observations, and a few questions...
The firings were a bit stressful for the blindly faithful. After cleaning out her office, one distraught middle manager drove off, leaving her two grocery bags of personal belongings sitting in the parking lot. Another, a long time EAC employee, who took large amounts of Eclipse stock in lieu of salary, was walking around looking pretty shell-shocked. I know he was wondering how he will explain to his teenage daughter that her college fund is now worthless. Many newly-fired folks were asking around about jobs, but there are few local aviation opportunities for the guys who performed basic assembly work. Also, there appears to be a stigma against hiring Eclipse employees, at least in the minds of a few local aviation managers. Vern’s comment that hiring “experienced aviation professionals” was a mistake, seems to have made quite an impact. Having EAC on your managerial resume is probably a career limiting factor today.
Clark-Carr Loop is slowly returning back to its pre-EAC days. Dozens of open parking spaces, whereas a month ago, the nearest open space was often 1/4 mile away. So, how many EAC employees in ABQ? About two weeks ago, a three day count averaged 21 cars in front of the main assembly and paint buildings. I’d guess at least five were security/janitorial folks. The service center averaged 12 cars. The main headquarters building averaged 101 vehicles. I seriously doubt there are more than 200 EAC people in Albuquerque today. I find it hard to believe there are1100 people still working for EAC.
KABQ is awash with E500s. Most available hangar space is stuffed with them, and usually 8-10 are parked behind the paint building. Some are looking for buyers, some are awaiting maintenance at a service center barely bigger than your local pharmacy, others are awaiting fixes at EAC’s expense. The few dozen aircraft sitting outside got hammered pretty good by a hailstorm a while ago. Time for new control surfaces, plus sanding, bondo and repaint the aircraft. Ouch! This is one company that can’t catch a break.
None of the local aviation folks I socialize with, were surprised by the Eclipse implosion, and they do NOT read this blog. EAC was never really taken seriously to begin with. The endless string of design failures made them a bit of a joke. Despite the NDAs, people talked. Most local KABQ folks knew the engines self-destructed on the first flight, within 24 hrs of the landing. And when puzzled EAC folks asked our experienced aviation professionals for help on failed nosewheels, toasted engines and cracked windshields, most of us just rolled our eyes and walked away. Today, a casual glance at a nearby E500 shows a large number of #6 mechanical rivets on the empennage, and that .050" thick paint is probably covering more than a few structural “oops”. I hope those #6s aren’t oversized and don’t fret, because the next bigger fastener is a 1/4" bolt, and there probably isn’t sufficient edge distance. Besides, all those bolt heads sticking out would really cement the nickname “frankenjet”. It is interesting that three different E500s have visibly different construction techniques on their empennage. A wide variety of solid rivets, blind rivets, and Hi-Lock fasteners.
I feel a bit sorry for the early buyers. Two owners derisively refer to their aircraft as Edsels, and another calls his a Corvair, because of the brakes. However, the guys who bought in the past year, well, these guys are total idiots. I have a hard time keeping a straight face when they start talking about their new 500 or 400. I am sooooo tempted to offer them Arizona beachfront property. How do people this stupid, manage to acquire funds to purchase a personal jet?
Our troubled neighbor tried to outsource some work a while ago. But the proposal’s terms merely garnered a lot of heavy laughter. It was sent round the manager’s circuit, for entertainment value. I’ll bet there is a company motto at headquarters that says “SCREW EVERYONE, as HARD as possible, as LONG as possible”. Managers from a business failure as monumental as EAC, should not attempt to tell decades-old successful businesses, how to make a buck. The arrogance is still overwhelming.
Who is going to maintain these aircraft? Owners are asking around. I know of a few shops that are politely steering clear of them (sorry, we’re just too busy). Anyone want the liability of having your company name in the logbooks of a partially completed, unproven jet with known design flaws? If any E500 owner thinks an FBO will work on his aircraft and bill EAC for warranty work, they probably need to check themselves into rehab.
Why would any FBO shell out 10s of thousands of dollars for training and tools, just to service a few aircraft, for maybe 1-2 years? Eclipse still wants $6,000.00 for the one week training seminar. That’s 2-3 times more expensive than comparable Beech/Cessna schools. Plus, they want $16,000 for a maintenance laptop that probably cost them $800.
Is Eclipse still pushing that nonsense about voiding the warranty if a non-EAC “certified” mechanic touches the aircraft? Blow a tire in BFE and the nearest “certified” mech is 1000 miles away? I know how that problem will get solved. Maybe the E500 flyaway kit should include rubber patches, glue, and a bicycle pump, or perhaps strap a mechanic and two spare wheel/tire assemblies into the passenger seats.
I won’t be surprised to see a few E500 airframes sitting down at the junkyards on Broadway Blvd, next to the mockup of the Century jet. I wonder if some owners are going to scrap their forever AOG’d aircraft to get some $$ out of it. Maybe sell components off them to EAC or other owners (for astronomical prices I’ll wager). EAC is probably running out of parts as well as suppliers by now. Someone should really investigate to see if the total value of low-time salable parts is close to the purchase price of the early jets. An owner might be able to get most of his money out of his investment.
Here’s a question about the possible Russian factory. Aren’t those E500 engines still restricted in their use, as highly controlled military technology? EAC, but mostly Pratt, made a huge scene a few years ago, saying they were usable in cruise missiles and could not be exported, all data was strictly controlled, and anyone allowing the technology to fall into Russian/Chinese hands would be punished severely by the federal govt.
Oh, and a loooooong-time, currently-employed, senior EAC employee just stopped by, looking for a job. He believes another mass booting of employees is coming soon.
NZ
#The article says the interest rate is around 12%. #
12% .....12%? .....12%!!
i cannot refrain a sardonic laugh ...!
12% = it is not even the inflation ...
so we have a company NOT selling (even if they try very hard) an unfinished Plane without making a kopeck of profit each time one roll-out planning to have a facility made in a distant land , factory which is going to be build on a loan LOWER than inflation ???
anybody to still believe in Santa-Claus ??? ;-))
sounds like Russian Govt not enough sure they would loose their shirt on such scamming-BS , they decided to loose an other 4 to 6% per year on the loan ??
i repeat : anybody to still believe in Santa-Claus ? ;-))
as for CNN , unfortunately the nature of the "information civilization" make informations VERY imperfect !
it's quite simple to understand : you spread a lie in a very easy manner by just suggesting that an Event X may happen , all news firms being interconnected , buying or selling news to each others , as soon as you succeed with one , the whole structure follows ...
if you add it to the "unknown" of most persons aimed by the news (nothing bad , how could they know in the first place ?) , you can claim they will pay 12% interests , most will be fooled by such a gigantic rate , while the one who have a little clue would say
"WOW ! very cheap !"
(taking in consideration : inflation [15/20%/year] uncertainty of project [ that's one good thing with EAC , it's almost CERTAIN they will fail!] and profit on loan [where does the bank get paid if not enough %] )
anyone to see a bank officer to say : " i want a loan lower than inflation , for a project which has never made a kopeck , and with a 99,99% probability of failure ..."
who is to believe ANY bank is going to say yes ? even if backed by a [Unfriendly , listen to Condoleeza Machin ] Govt ??? in a situation where it could become a foe (once again) in near future [listen to Praline=nuts ; sorry : Palin ]
no , the whole thing is about to Transplant a reality from one place to the "projected image " of a second place into the mind of the ones from the first place ...
(12% is hell of a lot in USA , so for US citizen , paying 12% in a foreign land sounds reasonable if the project is shaky , but 12% IS LOWER than what is common already in RUSSIA as normal interests)
sounds exactly like when Vern was touting about the European Countries just craving for Air-Jet-Taxi ...
like nothing efficient and fast would exist BEFORE EAC ...
(transplanting the US situation of transportation in the US idea of what is Europe , while we ,Europeans, didn't wait on Vern to develop a cheap , efficient and fast means of transport )
no = complete BS !!! as usual ...
i forgot :
if the Russian had in sight to put their hairy-hands on some parts of EAC ...
they would never make SO many mistakes ... (or they would be at about the same level of self-sufficiency than an other "colleague" name in alphabet soup)
they would have Etirc to build a plant in some European Country , do a few planes , orders XXX thousands spare-parts , get them ... and close the plant while taking the said spare-parts into Russia ... at the same time European Govts would be said to "shut-up" or no more Gaz ...!
less expensive , less messy , better results !
I managed to push this issue out in the open yesterday. LOL, channel 7 news offered to have ME go on camera. My fiancee' would have killed me before the wedding....
Alas, note where they say they have **hundreds** of orders that don't depend on DayJet. Then why do you need a factory in Russia with 800 units/year capacity????
And does anyone have a guestimate of what 28 planes on the market will do to the average transaction price???
Saturday, September 20, 2008
Eclipse Downplays Demise of Largest Customer
By Heather Clark
Associated Press
Eclipse Aviation moved Saturday to downplay the demise of its largest customer, air taxi operator DayJet Corp., which ceased passenger services and eliminated most of its employees.
"Regrettably, without access to growth capital, we have no choice but to discontinue operations," DayJet founder Ed Iacobucci, who stepped down as the company's president and CEO, said Friday in a statement.
The Boca Raton-based DayJet said it cannot honor reservations or issue refunds. DayJet was the largest single user of the Eclipse 500.
The loss of its largest customer is the latest in a series of struggles for Eclipse, whose "very light jet" aircraft's Federal Aviation Administration certification was the subject of congressional hearings last week. The company also has suffered massive layoffs and a management shake-up this summer.
The Albuquerque-based aircraft manufacturer sought to ease fears that DayJet's failure would affect its bottom line.
"While DayJet was Eclipse's largest customer, Eclipse's business model and success has never relied solely on DayJet," Eclipse said in a statement. "Eclipse still has hundreds of orders to fill independent of DayJet, and existing customers will be happy and eager to move up in line."
Despite DayJet's downfall, Eclipse said it believes the air taxi market is now a proven market and other companies will look at how they can serve regional executive travelers.
DayJet's shutdown is a "direct consequence of the company's inability to arrange critical financing in the midst of the current global financial crisis," DayJet's statement said.
Its operations also suffered as a result of Eclipse Aviation's failure to install missing equipment or repair agreed technical discrepancies under the terms of DayJet's purchase contract, the statement said.
Eclipse's FAA certification was the subject of a House hearing last week. Congress was looking into concerns that the aircraft's certification was rushed, despite safety concerns.
In August, the company announced layoffs of 650 employees, more than one-third of its work force. A month earlier a management shake-up in a financing deal saw the ouster of Eclipse founder and former CEO Vern Raburn, who later left the company.
On June 5, a throttle failed on an Eclipse approaching Chicago's Midway Airport, forcing the pilots to make an emergency landing. At the behest of the National Transportation Safety Board, the FAA issued a safety directive related to the throttle. No one was injured.
DayJet inability to reach for funds in the current finance crisis ?
Complete BS !
yesterday evening a fund called me to ask about some "GOOD and STABLE" project they could enter with several hundreds millions $ ...!
this crisis is not about lack of funds ...
more about the crowds of BS projects around ...!
underlining that banks and funds have LOTS of cash , they just do not want anymore to put it in any schemes looking dubious ...!
before it was GREED before anything ...
Now it is going to be ROI vs SECURITY before anything ...!
or in a simpler way :
what is the real price of a flat , plane , car ,etc ... which is NOT selling at asked price ???
probably a lot less , it depends what peoples ,with REAL cash at hands , want to put in it and how sellers are starved for new liquidities ...
in the case of EAC and EA500 = almost nothing !
in some more "down to the point" view :
all the ones who claimed about the beauty of "imaginative Finance "
are going to be the very same one to tell you :
" a rabbit in the pot is better than 2 running in the bush !"
back to old basics ! how funny ...! ;-))
New headline up.
It was not the best of weeks for me, but life goes on...
Shane
fred,
the URBAN inflation rate in Russia is 28%
this is the number which should be used as a sanity check - it reflects the "industrialized inflation rate" where the people work and live.
Big farce
QUIET ROCKLAND LANDS ALL KEY FAA BOBBY STURGELL INTERNET DOMAIN-NAMES
QRNewswire/Rockland County, NY – September 29, 2008:
In a tri-partite deal with a New England-based seller and Herndon, VA Internet domain-name registrar Network Solutions,
http://www.networksolutions.com
suburban New York anti-FAA aero-activist group Quiet Rockland today announced its acquisition of the 3 most critical Internet Uniform Resource Locator (URL) domain-names relating to failed FAA Acting Administrator Robert Allan (“Bobby”) Sturgell:
http://www.bobbysturgell.com
http://www.bobbysturgell.org
http://www.bobbysturgell.net
The transaction was handled by Quiet Rockland co-founder John J. Tormey III, Esq., and his law practice, John J. Tormey III, PLLC:
http://www.tormey.org
The arrangement with Network Solutions accords Quiet Rockland the unilateral option of an up-to-100-year extension of each domain-name registration term. Further specifics of the purchase remain undisclosed.
Said Tormey:
“Today Quiet Rockland strikes another blow for justice, fair treatment of air traffic controllers (ATCs), and historical accuracy. In the last year at the helm, Bobby Sturgell ‘piloted’ his Tombstone Agency FAA directly into the ground – abusing his ATC workforce, continually threatening our safety, and putting us Americans all at risk while doing so. We therefore return the courtesy to him and his awful FAA. Quiet Rockland today dedicates these 3 permanent First Amendment-protected electronic-memorial reciprocal-tombstones to Bobby Sturgell’s abysmal, morally-bereft legacy of putting profits over people and failing the American citizenry. Now, election-result irrespective, whether or not Bobby Sturgell follows through on his earlier-stated intention to quit his post by November, each person accessing the Internet worldwide who searches Bobby Sturgell’s name at any time in the next 100 years, will be virtually-certain to take heed of Sturgell’s well-earned agency cyber-posterity heritage of FAAilure. This is Quiet Rockland’s virtual parting gift to Bobby Sturgell.
“Quiet Rockland also intends this action to be a warning to those other aero-head officials, misguided enough to think of threatening our interests in the future. As but one additional example, we expect that FAA NY/NJ/PHL Airspace Redesign Project Manager Steven (Steve) Kelley will now want to carefully review the website at the also-newly-acquired URL
http://www.stevekelleyfaa.com
This site permanently chronicles Steve Kelley’s own role in the 1985 Fairview, NJ aircrash killing 6 people – an event which Steve Kelley himself worked as an ATC. We look forward to exercising our 100-year option on that URL filing as well.
“More communications will follow. Our rock-solid foundational message is clear. Whether a federal official, or anyone else – if you threaten Quiet Rockland’s interests or those of any ATC, expect a response – and expect that response to follow you throughout your career, your life, and perhaps beyond, in, at minimum, electronically-memorialized posterity. We have the resources. We have the technology. And, we have the will. FAA management will be repopulated with responsible personnel. The NY/NJ/PHL Airspace Redesign will be defeated.
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