Light(s) at the end of the tunnel?

UPDATED Sunday 1st March 2009

URGENT, FAA issues a "Special Airworthiness Information Bulletin" for Eclipse owners.

Check out the official notice from the FAA. They've clearly been fielding questions about the current 'issues' affecting the FPJ. Read it, fully, and act accordingly. Anyone operating one of these aircraft may find themselves in more hot water if they choose to ignore the advice. In particular I'd draw your attention to the issue affecting those with IS&S displays (AvioNG), which cut on on s/n 105 and may have been retrofitted to a few of the earlier aircraft.

Original Post

I've been watching, in my quiet way, a few of those who were interested in the original Chapter 11 sale for the assets of EAC. I did so in the firm belief that the pre cooked sale by Roel, to Roel, would end in tears. I'm aware of several entities who may, or may not, be able to make Eclipse V 2.0 happen, some of whom will make a go of it, and others who will not. As often happens in these matters, those who 'come out' early on get an advantage, if only by being brave enough to explain what they are about.

Herewith two of those efforts. Make of them what you will, and understand that I provide this space in a sincere effort to find a way forward for staff, suppliers and owners seeking some solace in difficult circumstances. Others, with similar intentions, are of course welcome to contact me. In the meantime, the best of 'Irish Luck' to Phil, his team and now the 'owners group', who join the fray below. I should add that this has been sent to me by the official representative of the the owners, who is know to me for some time.

So, now there are two. May the best 'entity' win....

Shane, updated 27th February 2009, 16.30 GMT

Dear Eclipse 500 Owner,

As you must be aware, Eclipse Aircraft Corporation has been in Chapter 11 bankruptcy for the last two months. In the last few days events have unfolded that will take the company into Chapter 7 liquidation.

The future utility and value of our aircraft is now in serious jeopardy. If we as owners do not take control of these events, we risk having our planes grounded, become unserviceable, and ultimately become worthless. We can no longer rely on someone else.

The only way the owners can be assured of the continued use of their aircraft is to come together as a group and as a group participate in the creation of a successor organization that will have full control of the serviceability, modification, and long term reliability of our airplanes.

Today there are a number of outside entities that are “looking” at the owners as an income stream that they can fully exploit like a monopoly. These entities believe if they control the assets of Eclipse, they can charge the owners hundreds of thousands of dollars just to get their plane upgraded and serviced. One of these plans wants to charge owners a $300,000 surcharge for any modification plus the marked-up cost of parts and labor. Another plan wants to charge owner a yearly fee of up to $90,000 just to access service. This would add $500 an hour to the average cost of operating your aircraft significantly reducing its value.

We as owners can either sit by and watch others take control of our airplanes or we can take that control ourselves. This will not be easy or without cost. But it will be far better than the alternative.

The Ad Hoc Committee of Eclipse Customers has recommended that Eclipse Owners join together and form their own group, taking charge of their destiny. We, the owners on the steering committee of the Ad Hoc Committee of Eclipse Customers, will be holding conference calls in the next few days so that we can reach out to all owners and discuss next steps in this process. We ask that you join us on one of these conference calls.

Just email your name, street address, telephone number and Eclipse serial number to EclipseOwnersGroup@gmail.com and we will send you the access number, dates and time so that you can be part of one of these conference calls. If you cannot attend one of these calls, we will send you full information on how we can all join together.

We are on a very fast timetable. The liquidation sale will take place very quickly. We don’t have a great deal of time to protect our future. Let’s all unite, and as a solid unified group we will be able take control of our Eclipse future and be able to fully utilize our aircraft without being held hostage by others.


Mike Press, Randall Sanada, Ron Lebel, David Green, Ken Meyer

P.S. As we mentioned there are a number of “plans” being developed by others. Please make sure that if you have to sign an NDA to view those plans that you are not limiting your ability to join all the owners in a common effort.

ALBUQUERQUE, NM — February 26, 2009 — Today Phil Friedman announced the formation of New Eclipse Acquisition LLC (“New Eclipse”) which intends to bid for the assets of Eclipse Aviation Corporation in the Chapter 7 bankruptcy proceedings.

Mr. Friedman is an experienced aerospace executive who has turned around several companies over his 28 year career. He is currently CEO of Harlow Aerostructures LLC in Wichita, KS which manufactures electro mechanical and structural assemblies for many OEM’s in the aircraft industry. Peter Reed, former CFO of Eclipse for seven years, is part of Friedman’s team and has actively participated in developing the New Eclipse business plan over the past
several months.

“I have been studying the Eclipse situation for over a year,” said Friedman. “It is sad that the company has ended up in bankruptcy, but I believe there is an excellent business opportunity going forward if managed correctly. Our plan is to take the first 24 months to stabilize the fleet of 259 aircraft and restore the brand. All aircraft will be brought up to the current type certification level so that ongoing service and support is as efficient as possible. We will also retain a significant number of engineers to improve aircraft reliability, upgrade the avionics suite, and focus on reducing manufacturing costs to industry benchmark levels. We will open several smaller service centers around the country to provide more convenient access to service the fleet and will also provide pilot training here in Albuquerque.”

“We will be charging customers to bring their aircraft up to the latest certification level. Our business plan assumes some of the customers will not be able to afford the upgrade. Our sales representatives will work with these customers at no charge to find new buyers who will have the means to pay for the upgrades. In providing this service, and with a business plan that translates into the New Eclipse becoming a company with a profitable long term future, we will be supporting the investment that the existing owners have made in their aircraft. Our objective is to bring the aftermarket price of the Eclipse up to the $2 million range, thereby providing a valuable service to all existing owners. We also plan to finish and sell seven new aircraft on the production line that are about 95% complete. In addition there are 28 DayJet aircraft that will need to be upgraded and refurbished and new owners found.”

“Employment levels over the next 24 months should be about 400 people as we upgrade and service the fleet,” said Friedman. “After the engineers have upgraded the avionics to the latest functionality, reduced manufacturing costs, and we have re-established relationships with the supplier base, we plan to restart new aircraft production in 2011 at modest levels, approximately 100 aircraft per year with pricing in the $2.4 million range. At that point employment will increase to approximately 600 people.”

“We certainly recognize that bringing Eclipse out of bankruptcy will be challenging. There are many parties that have been badly hurt and bridges will have to be rebuilt and relationships restored to execute on our plan. We understand that the employees who have been laid off need to feed their families and pay their mortgages. We are actively exploring ways to hold the key talent together during the Chapter 7 process so we can re-employ them with the new company.”

Mr. Friedman may be reached at (702) 449-8312 or email at phil@harlowair.com.