Eclipse Aviation furloughs employees

UPDATED 21.00hrs GMT

This from the inbox, giving us the 'official' text:-

Wednesday February 18, 2009

Eclipsers,
We are sure that you have noticed that the sale of Eclipse Aviation is taking longer than
expected. The efforts of many people to finalize the sale of Eclipse to EclipseJet is still
on course but slower than we all had hoped for. Even with the difficult financial markets
around the world, all actions to date allow us to believe that the sale and closing of the
overall process is well within reach. In spite of this optimism, we now find it prudent to
take action to provide us the best possible chance of assuring a sale closing occurs.

To make the company’s remaining cash last as long as possible and give us the most time
to complete the sale, the Board of Directors directed management to furlough essentially
all of the company’s employees effective today. This means you can go home and unless
you are asked, you should not report to work starting tomorrow, Thursday February 19,
2009, until further notice.

You will receive Thursday’s paycheck as normally distributed for work through Saturday,
February 14, 2009. It is our intention that all benefit coverage will remain in full effect.
We regret the need to take this action but we ask that you see the necessity given the
circumstances. You will be contacted at your home address and/or by home phone to
notify you when to return to your job or to provide any additional updates.

While this is unpleasant and hopefully short lived, we are very thankful for all of the
ongoing support you are giving to Eclipse Aviation. We hope to have good news to
report to you in the coming days.

Roel Pieper
Mark Borseth
Michael McConnell

A sudden 'bloom' on the inbox always means big news out of ABQ. So it proved when I checked in this evening. At a meeting this morning, and via email for some, the staff were told of an immediate closure of the factory. Pay will be honored, but not for the past few days. As I get more detail I'll post it here, or as 'notice' on the blog.

The signs (behind the scenes) have been getting steadily worse for the past 10 days or so, with a number of missed deadlines in the Chapter 11 sales process. In the past few days, Roel has also gone 'walkabout', despite the crisis at the company. Various financial types have been deeply involved, trying to plot a way forward. I'd love to say more but I won't because today we need to think about the staff, their families and the supplier community.

I think I can speak for all of us 'critics' that this event, although long predicted, is not one that gives anyone a feeling of joy. My heart goes out to the breadwinner heading home to tell loved ones of hard times and disrupted lives and to the homemaker already struggling to stay upbeat in trying times.

One of the 'Honor Roll' has already offered help with those seeking jobs. I post his 'special purpose' address here, and will be happy to do so for others who's bona fides I'm happy with.

ColdWetMack@gmail.com

Coldwet (well known to all of 'us') is a solid professional, who will do all he can in the situation.

Every cloud has a silver lining, even if it seems bleak at present. Some suppliers are also in a very bad place, but can now at least move forward with other projects. Finally, it's almost inevitable that the next step will see the remaining stakeholders (owners, depositors and investors/lenders) left with little to feel cheerful about.

At least the speculation is coming to an end. One way or the other, this matter draws to a close.

Shane

Love it, loath it.

We've been so tied up waiting for news from Moscow that I've been slow to update the headline post, but I've also been working with a number of owners and/or pilots to provide a 'warts and all' review of the FPJ in the real world. It's fair to summarize my findings with the headline above, as it's clear to me that the aircraft is like the mythical 'little girl'. You all know the story, which goes like this:-

"When she is good, she is very, very good. But when she is bad, she is horrid"

So, with that in mind, herewith a mixture of quotations (in red) and my own contributions which remain in good old fashioned black. It's a very underrated colour in my humble opinion, but I digress.

The basics

Most of us have never flown an FPJ, and it's probably fair to say that few of us critics would embrace the opportunity were it ever to present itself. Across the range of replies I've had, the common theme is that the bird flies very well, and meets (or exceeds) it's performance numbers. A typical comment:-

"Aerodynamicly they got the airframe design and engines right, they are a well blended match producing the performance numbers that were advertised. So Eclipse actually did meet that promise. The jet is very simple to fly, and the Avio NG system, although full of bugs, has a great display presentation and very logical interface to all of the aircrafts' systems."

Avio, both versions

It has some fans. Pilots like the presentation of everything in one style and they like the Crew Alerting System (CAS) popping up in plain view. They like the fact that you select one 'TO Configuration' and pretty much avoid the simpler ways to kill yourself on takeoff.

"The Avio NG system, although full of bugs, has a great display presentation and very logical interface to all the aircraft systems. For most this will be their first exposure to a crew alerting system. The CAS really reduces the workload and keeps you well informed on the health and status of the jet."

What drives everyone mad is due to the level of integration which tends to alert you a lot. Most pilots report that the audibles are too loud, to the point where they can interfere with ATC. The problem here is that there is no way to 'save' your preferred volume so that each time you fly you end up adjusting it again.

Startup, taxi and takeoff

A common thread with the FPJ is the GPU 'requirement'. It seems that any sort of hot weather at all makes the cockpit too uncomfortable to work in, so a number of pilots insist on starting the aircon first, which naturally ties you to the GPU. After doing the normal checklist, which is straightforward enough for a twin jet, it's time to taxi away. The size of the tires is blamed by several for what's claimed to be a rough ride, and the turning circle means you need to stay on top of your game out to the runway.

"Acceleration is fairly quick, inside is amazingly quiet. There is a nuisance alarm that can occur at warm ambient temps giving the occassional engine Warning message but other then that its APR armed, Airspeed alive, and at VR hands off the thottles and pull back on the stick. I wasn't sure if I would like the side stick, but after using it, I love the fact that you're wide open in front of you, perfect if you want to use your laptop or read something. At 400 feet flaps up, set max continuous thrust, and yaw damp on, 1000 feet auto pilot on, heading select, and the next check is 10k for recognition lights off and look for a delta P on the pressuization. To date all delivered E500'a are raw data, VOR DME aircraft. Autopilot is only good for pitch and roll. I have yet to fly an Eclipse that doesn't roll left and right 3 to 5 degrees when in heading mode."

So far, so good. The bird starts, taxi's and takes off without huge drama and in commendably short order. The takeoff distances are praised and the 'feel' of the aircraft also gets high marks.

Climb, cruise and descent

The Autopilot has its' limits, which many pilots have observed. While good in calm air, it tends to bug out in anything other than light turbulence. Range and payload are better than you would think, in large part due to the very low specific fuel consumption. This is clearly a tribute to the basic design, as well as the job P&W did on a 'clean sheet' engine. But there are 'real world' issues that you don't expect.

"Another downside to the autopilot is when commanding pitch changes in an NG aircraft. It sometimes takes up to 20 seconds or so before the input gets processed by the computers. My technique is to dial in 4 to 5 clicks of the wheel and resist the temptation to dial more if there is no initial response. Wait it out, eventually it will happen. In pitch mode the autopilot does a terrible job of maintaining a steady rate of descent, and it requires constant attention. I actuallly think it would be less work load to hand fly the descents."

ATC still don't quite know what to make of the FPJ. Over time this will probably go away, but only if the FPJ stays alive long enough, in numbers, so that the slower speed becomes more familiar to the controllers. To mix it with the jets at higher FL's also requires range limiting 'max thrust' settings, and there are issues with static interference on the radios cause by ice crystals. So, the comfortable range flight of about 850nm is coming to a end. What happens next?

Final approach and landing

Distractions from the 'high volume' audibles during final are a pain, as are the speed expectations from ATC. Our old friend of tyre wear makes a welcome reappearance on the blog. Remember when all we really talked about were simple things like that? Anyway, a concluding quote from an owner/pilot.

"Descents and landings are straight forward, although you will soon find that the slow speeds on approach used in the Sims create road blocks in the real world. Because a lot of ATC controllers aren't familiar with the Eclipse, they know you are a jet and sequence you into traffic accordingly and are expecting jet speeds. I usually fly the approach around 120 to 115, and slow as I approach 200 feet AGL. The jet lands easy, and as long as you touch down close to VTD, braking or tire blowouts should not be a problem. The tires do not wear well at all, and it is not the landings that take the toll. Any time the jet rolls on the ground, you can see black marks on the pavement, proof that the tires are leaving behind lots of rubber. And they wear on the outside near the sidewalls, not in the center."

So thats a pretty nice summary of the general performance of the aircraft, with details supplied by those who fly it. Naturally, there is more.

Living with the 'issues'

Naturally people are reluctant to be identified when there is still a remaining chance the original service centers will be around. They don't want to be scapegoated for drawing attention to the problems they've experienced so I'll have to be a bit vague in collating this section and avoid direct quotations.

The CAS system does exactly that. It keeps the crew alert by streaming plenty of false messages into the cockpit. All pilots who've contacted me report the same 'heading disagree', 'attitude disagree' and 'stick pusher fail' messages which come and go at a whim. The general experience with the earlier birds is worse, but even the Avio NG craft deliver master cautions and warnings of a spurious nature about one flight in four.

Mechanical failures abound, sadly, with door seals, air conditioning, rudder and elevator trim 'issues' very common. All owners report difficulties with water getting into places it shouldn't, which is bound to happen when you're away from your home base with it's nice dry hanger. Most people also report interior trim falling off or not being fitted properly in the first place. There is a thread running through most of the report I have about difficulty communicating problems to the service centers. The staff themselves generally perform trojan work, but parts can take a long time to arrive from suppliers (I wonder why...) and often take several attempts to fix the underlying problem. At least one of my correspondents thinks this is due to the high level of integration within the aircraft, which means software problems with Avio are confusing the mechanics and (to some extent) vice versa.

So, there you have it. An up to date report, complied from many sources, on the current state of the FPJ, as an aircraft. As mentioned on the top of this post, we await news on the Chapter 11 outcome for the company, both from Moscow/ETIRC and the Bankruptcy Court in Delaware, where an appeal was lodged yesterday.

Spring approaches, as does the anniversary of the NG version of this blog. I'm just beginning to wonder if company (any version) will survive to help us celebrate the event, which takes place on Monday!

Shane

Eclipse is dead, long live Eclipski

According to the Governor of Ulyanovsk, Vladimir Putin has interceded on behalf of Eclipse Aviation. The Russian government has increased capitalization of the Vnesheconcom Bank by one hundred billion rubles, almost three billion dollars. Some of this is earmarked for ETIRC.

Asked for comment, a longtime Eclipse supporter said, “I’m just hoping they spend all of it on Eclipse… it would be a wise investment. Heck, for three billion dollars the Russians could annex the whole state of New Mexico. It would offset the bad deal they got on Alaska. I’m going to introduce the Governor of Ulyanovsk to Bill Richardson.”

Asked about the plane being built in Russia he added, “You know the Russians build great farm implements and heavy equipment. Right now the Eclipse 500 could use the robustness of a reliable farm tractor. I’m starting to study the Cyrillic alphabet so I can read the instrument panel. I can’t wait to take Putin for a ride in my jet.”

So we turn to another chapter in the Eclipse saga. Three billion down and three billion to go.

The company as we knew it will recede in the rearview mirror and we have unfinished business. Having had minor supporting roles in the investigations of PanAm 103 and TWA 800, I know survivors of aviation disasters need ‘closure’. Perhaps the blog can assist with this.

I propose an Eclipse Requiem Mass be held at Our Lady of Guadalupe Catholic Church in Albuquerque, New Mexico. We need a mournful but uplifting piece of music, composed for the occasion. I suggest something along the lines of Adagio for Strings by Samuel Barber, or perhaps Requiem by Giuseppe Verdi. With the broad array of talents represented here, there must be a composer in the house.

Several have written here on integrity and ethics but none more eloquently than Gadfly. He is a professed man of faith and is best suited among us to deliver the eulogy. We can expect a thought provoking speech on the mortal temptations of the flesh, tempered with hope for better days. He may wish to call on the members of congregation for their recollections of the departed so start mentally rehearsing your piece. The program will be printed in English, Dutch and Russian with tasteful Eclipse colors.

We need to consider the Eclipse Survivors Memorial. This should be located near the rim of the Meteor Crater in Winslow, Arizona. The soaring aluminum sculpture will of course be fashioned of friction stir welded aluminum. On the front will be the engraved names of all 260 initial owners. An epitaph at the bottom will read, “A small smoking crater beside a giant formerly-smoking crater.”

Smaller text on the back of the monument will list 10% depositors, 60% depositors, investors, employees, politicians, parts suppliers, motel operators and taqueria owners. Affixed to the top of the memorial will be a life-size stature of Vern Raburn, reaching plaintively for the sky. He will be flanked by bronze replicas of the Collier Trophy and Cabot Award. The DayJet monument, complete with a working ant farm, will be located discretely nearby. We need a design competition for these memorials, to be judged by a team selected by Shane.

The dedication ceremony will draw cognoscenti from around the world. Sam Williams will be in back wearing dark glasses and a baseball cap. Bill Richardson will break into inconsolable tears. The service will end by spectators throwing rose petals, Eclipse apparel and memorabilia into the Meteor Crater (with the approval of the National Park Service, of course.) The crowd will retire for refreshments to a large Eclipse tent, preserved and replicating the vast presence and former glory at Oshkosh in year 2000.

Finally the Eclipse Fly-in at Sunriver, Oregon in September needs to be carefully orchestrated. It should be modeled after last year’s Legends aviation meet - billed as the last great roundup of P-51 Mustangs and the men who flew them during World War Two. It should culminate in an Eclipse flyby in the missing man formation. There won’t be a dry eye in the crowd.

We need volunteers. Can we count on the blog to assist Eclipse survivors in their one great hour of need?

As always, our very own Black Tulip blends truth (yes, Roel IS getting VEB support) with fiction in a delightful way. The remaining details have to be worked out, and I think it's very significant that the signing event is due to take place in Moscow on TUESDAY next week. Who says the Russians don't read the blog, or have a sense of humor?

Thanks again BT, and long may you continue to provide a 'sideways view' of our favorite American, sorry, Russian "Very Costly (sorry again, Delayed) Jet".

The tulip mania peaked in the Netherlands during the 1630s. The black tulip was the most sought after, until found to be biologically impossible.

Économie de bouts de chandelles

This phrase solved a real 'writers block' for me, so thanks Fred (and Julius) for your inspiration!

What I want to draw everyone's attention to now is the future of our favorite Very Costly Jet, and this lovely French 'truism' (roughly translated as 'saving the end of the candle') is apt in this context. The question I've been asked most in the past few weeks is 'What should depositors do?', and I've tried my best to illuminate what MIGHT happen, for those who've contacted me. 

A BIT OF BACKGROUND

It's easy to forget, sitting here on wearing our critic's uniform, that there are something like 450 '10%' and 230 '60%' people out there. A lot of them will have had a very nasty shock on the 25th of October, and really don't know where to turn to. A considerable number joined the 'E5C' group, which remained under the control of the 'faithful' throughout this process, some did their own thing (the 'Production Line Group' and those stuck in the ConJet) and a surprising number seem to have been kept in the dark. Many seem to have sent the money, sat back and blissfully ignored what they'd been suckered into.

'We' need to be aware that people reading the blog find it difficult to understand that we're not doing this for the fun of it (alone) but in a sincere effort to prevent further losses by the unwary. So, let's all try to cut the new reader or poster a little slack and make sure to reference the home page for the 'historical' stuff, as well as our little 'Glossary' of common terms.

THE CURRENT POSITION

I should issue a health warning, as in 'this is what we UNDERSTAND' is the current position. Sometime in the next few days the sale of the assets of EAC will complete. At that time, s/n 260 will (finally) be delivered to its owners and will become the LAST ever FPJ shipped by the original company. Thereafter EclipseJet Aviation International (EAI) is the beneficial owner, free of all contracts and liabilities, of the factory and all associated with it. The current fleet loses all warranty or contracted services (JetComplete) and has to pay whatever EAI decides for parts and labor. Under a Court sanctioned deal, the 27 aircraft on the production line will be finished and delivered to their purchasers upon payment of a further $1.375 million. This money is IN ADDITION to all payments made to EAC in the past.

However...

The Production Certificate for the FPJ 'died' with EAC. This means a number of months will pass (average guess is 6) before a new PC issues to EAI. I'm taking from this that it will take at least this long to get the last of these birds out the door and I suspect it will take longer. We know that critical suppliers have abandoned the FPJ, so new ones will need to be integrated, and others will likely be very reluctant to ship without cleared funds.

EASA certification requires full FIKI and AvioNG 1.6 and both of these need full FAA approval. In the revised circumstances, I pretty confident both agencies will be going over the aircraft with a fine toothed comb....

FUTURE PROSPECTS, IF ANY

Basically, those 10% and 60% people are in a real bind. In my opinion, EAI will seek more money, probably quite a lot more money, from this pool. They are already invested in the aircraft and will be under pressure to get something (anything) rather than walk away. So, I expect an offer will go out to these unfortunate depositors which says 'your deposit on s/n xxx has been converted to a coupon with a value of $yyy,000 which can be used to purchase a fully equipped FPJ at $2.5 million'. After some flowery words about a brave new outlook (or similar marketing fluff) the kicker will be something like:- 'In order to secure your position in the new order book, please remit $1.5 million to our bank account by March 1, 2009. The balance of $zzz,000 will be due on delivery. This limited time offer will not be repeated' etc etc.

Now, I'm probably wrong about the numbers, but then I don't work for EAI and I'm not a mind reader. But I know that as soon as these offers reach the depositors, I'll be sent a copy. In fact, I'm promised LOTS of them, which I'll be comparing to make sure they are broadly similar.

Why are depositors going to do this? Well, it might be a surprise, but not all of them trust the sales department at Eclipse anymore....

MY BROAD ADVICE TO DEPOSITORS

When this offer issues, which I'm promised it will be in the next few days, do nothing without taking professional advice. Talk to your lawyers, your accountants and others who've also been involved with this sorry saga. Consider alternatives like the Phenom 100 or the Cessna Mustang, both of which are now in serial production and are from companies with extensive service networks and a credible business plan going forward. Above all don't send any more money to EAI (or anyone else) until you've had a chance to reflect on the angles.

You are welcome to join my 'depositor mailing list', where I'll be contrasting the various offers made around the globe. You name and identity will be protected, as all who've dealt with me will attest, and you may learn enough to save yourselves a small fortune. Just email me at 

eclipsecriticng@gmail.com

and include 'Depositor' in the subject line. I'll do my best to get back to you promptly with any information I have to hand.

So, we're back to the 'candle' phrase we started with. The French have a fantastic world view, based on a genuine openness to change and a real thirst for adventure. Many of the things we admire in good food, classic wines and creative design flair comes to us with a Gallic flavor and is presented with a superb zest and 'joie de vivre'. As a people, they correctly despise those who regard money as an end in itself. So, I say, don't waste time trying to squeeze something out of this mess. If you have lost in EAC, think very, VERY carefully before adding to you woes....

Shane

SOLD!

Yes folks, Roel and his merry band are the new owners of the assets of Eclipse Aviation. They've chosen 'Eclipsejet Aviation International' as the name for their 'new' enterprise so, let the celebrations begin, pop the champagne and shower the homecoming champions with ticker tape. Payroll will be made this week down ABQ way, and all bar the fine print is ready for signing in court tomorrow, Wednesday the 21st of January 2009. Those who paid deposits/progress payments on the aircraft currently on the production line (last one is S/N 296) will be offered a 'fixed price' deal at $1.375 million extra for a 'final spec' aircraft, but some of you may need to act, so follow my instructions below.

But....

Shortly after the ink dries, all depositors (other than the ConJet/E400 group, also see details below) will be formally told their contracts are worthless. The new cost price of the aircraft will rise, and no refunds will be paid. The price for the base aircraft will rise, probably to $2.5 million. Suppliers have been offered cents on the dollar and a small share in the company, if they agree to new vendor contracts. The City of Albuquerque will also want to discuss what Roel intends, as there are a number of reporters asking searching questions following the revelations in the bankruptcy court.

The E400 group have managed to get the judge to escrow $3.2 million of the cash due from the sale until the outcome of their claim hearing. At least this will give them time to dig up the audio/video records of Wedges speech at Oshkosh last year, when he stated the $100k deposits would be in escrow.

Al Mann continues to support the company and will at the very least raise the moral tone in the boardroom. He's well known in business for his ethical approach, especially towards staff. It was Al who made sure the payroll 'hiccup' last November was corrected as quickly as possible. It's just a pity that in this turkey, he was surrounded by sharp operators and dodgy computer salesmen.

So, if you are one of those who's serial number is lower than 296, and you have paid your deposit/progress payments, but have NOT been represented by a lawyer, contact me promptly and I'll email you the appropriate details. But be QUICK. You have until 12 noon ET tomorrow to agree to the 'deal' and get included in this part of the Court documents. The usual address will get me

eclipsecriticng@gmail.com

I'm sure this headline will be updated, by events if nothing else. Stay tuned to your favorite Very Cheap Jet, sorry that should read Very Costly Jet, blog.

Shane

Where now?

This week the Bankruptcy Court in Delaware will rule on the Chapter 11 process. As there is only one 'credible' bid in play as I write, from Roel Peiper, it looks as if we can predict the future ownership based on what we already know. With that in mind, I decide to review some court documents that came my way. They are (or were) available to the general public and contain the facts and figures available to the company and it's officers, suppliers, customers and staff at then end of November 2008. Nothing in the files is therefore secret, but some people may find it hard to accept their dirty linen being washed in public, so I'll try to avoid naming too many names. If I've put you in the spotlight unfairly, drop me a line at eclipsecriticng@gmail.com and we'll see what we can do.

The FACTS

1. Total deliveries. 259 aircraft since the 31st of December 2006, although not all are currently in the hands of customers. Some have been retained in companies associated with EAC, or 'loaned' to ex CEO's. S/N 260 was in process of being delivered to a company who had paid EAC not less that $1,288,000 when the aircraft was 'seized' by the bankruptcy process. It's the subject of it's own legal action and I'm sure we will hear more.

2. 'Operations' income, per the 'Statement of Affairs' was $318,000 in 2006, $102,694,000 in 2007 and $210,185,000 (to the date of filing) in 2008. Interest earned (presumably from depositor funds) was $1,659,000 in 2006 and $4,047,000 in 2007. As a historical footnote, DayJet paid $20,000 in 2007, for something....

3. Current spending. In the calendar year prior to filing, EAC had paid $61,606,000 to creditors, and $85,443,000 was listed as the amount still owing. There was $81,455,000 (September 2008) of inventory in stock. There were 28 (give or take one, see s/n 260 above) FPJ's in production at the end.

4. Refunds. Something called "Olympus Aviation Corporation" looks like it was the last one to succeed in recovering a deposit ($175,000) which it did on or before 24th October 2008. That left 22 'pending' lawsuits seeking deposit refunds at time of filing. It's not clear how many aircraft these suits involve.

5. Property held for another person. There was $85,787,857 (and 64 cent) held by EAC, the vast majority of which is for 'City of Albuquerque' or 'Wesco Tools'. The items from Wesco I understand (tools etc) but the City seems to have provided all sorts of stuff, including computer servers and things like a 'Teletronics-Data acquisition unit -Exp AC 106' (listed at $53,523.79). The list is varied, and goes on for a long time.

6. Receivable balances. EAC list $20,720,225 as owing, mainly from customers.

7. Deposits. EAC list 'Creditors Holding Unsecured Nonpriority Claims' (and this is truly AWESOME) of $568,143,152.55. A chunk of this is money claimed by suppliers, but I gave up counting the number of 10% and 60% listed, after I got to 300. In another document, ETIRC were shown as having paid $8,900,650 (and 39 cent) as deposits for FPJ's. At least they had the sense to avoid the Con Jet, which tells its' own story...

Speculation, short term

Roel will buy the assets, probably with input from Al Mann. There will be a round of cuts, including staff reductions. Suppliers will be offered some small amount of cash (cents on the dollar) and be promised the earth to stay on board. Depositors well get some sort of 'coupon' to salve their wounds, but the price of the FPJ will be increased by a similar amount, so they will still have lost everything. Customers will be told that parts are more expensive and that all repairs must be paid in cash before return of the aircraft.

Speculation, medium term

Within a short period, probably less than 6 months, Roel will be facing further cash problems with suppliers and will end up having little or no choice on Chapter 7. Sales of aircraft were already tailing off, which is one of the reasons EAC ran out of cash in the first place. New victims will be hard to find, once the remaining Faithful (and there are very few left of them) have paid up for the aircraft he can build in that time.

Speculation, long term

Much more difficult, post Chapter 7. I wonder how the avionics can be supported, given the very high order of integration within the FPJ. AvioNG is touted as a major strength of the package, whereas most people see it as a liability. P&W can be relied upon to support the engines, but will be able to 'think of a price and double it'. The airframe will present special challenges when repairs to the FSW joints are required. Further AD's will present problems, and the whole area of 'upgrades' to keep EASA happy presents it's own pitfalls.

My opinion

The facts presented in the Bankruptcy documents prove that the numbers don't add up now, and have never added up at any time. A whole range of people were sold a concept which had never any chance of becoming a reality. The City of Albuquerque, depositors, suppliers, banks and shareholders are all left nursing wounds they won't forget in a hurry.

I wish the new owners all the best of Irish luck. This 'business' is a crock, was always a crock and has no chance whatsoever of being anything other than a crock.

But I am biased.....

Shane

Reviews are fashionable, unlike EAC

I thought it timely (and, lets be honest, fashionable) to carry out a 'review' of our year. Ok, ok, it's not a full year for Eclipse Aviation Critic NG just yet, but you get my drift.

As most of you will recall, Stan called it a day at the end of January 2008, whilst allowing 'us' time to find an alternative home. After various forays', a large number expressed dissatisfaction and I decided to copy the style, location and name on the 16th of February 2008. Gadfly made the second 'comment', which really set the tone in those early days:-

"Put on the kettle, and this will seem like home in no time."

The record will show that this was one of the very few one line comments from Gadfly, who later had the courage to stand up for the defense of our 'home' in a very practical way. Thanks again, Gadfly, in case you didn't hear me the first time.

During those first 6 weeks, we managed to have a variety of interesting and wide ranging discussions on the price of oil, the first bank collapse, the Russian factory and the possibility of EAC raising funds at Oshkosh by selling T shirt 'positions'. A series of valuable contributions came to the blog via the blog email address (eclipsecriticng@gmail.com) from suppliers, customers, depositors and, in particular, staff. We also got the first signs of trouble with the FAA.

April was a huge month, beginning with the confirmation that Avio NG would be 'completed' by the Garmin G400's and gathered pace with the announcement of yet another 'special offer' to raise funds. But the action of the Wedge that truly raised the stakes was his attempted SLAPP suit against 29 named bloggers. Turns out this was a really serious mistake by Wedge, who suddenly found himself in the media spotlight for all the wrong reasons. If he was right, and the Honor Roll really did work at EAC, then he was attempting to hide wrongdoings by his company. As it happens, he was wrong and had simply been trying to prevent free speech. Or at least the words he didn't like, as his own actions with Brian Skupa at the same time were rather extreme by any standards.

The month of May included the scaling back at DayJet, increased press coverage of the blog, words from suppliers and staff that all was not right at EAC and various legal actions funded by Rich Lucibella (a.k.a Gunner) who had undertaken the formal defense of the Honor Roll. In the background various attempts were made by EAC lawyers to reach a 'settlement' but Rich was having none of it. He knew that Wedge was on the roasting spit and wanted to turn it a few times. The month closed with the formal announcement of the Con Jet and a price increase for the FPJ.

June contained a few real gems, one of which sticks out, from Shadow:-

"Oh, how I love to watch a cash arsonist at work."

The best definition yet of the Wedge, and a reminder of how some of the best comments are the one liners. The month also saw healthy discussion on the 'Stuck Throttles' including an excellent headline post by Karen Di Piazza and a stellar parody from Black Tulip on the little known crew monitoring systems, FOQA. Read it and weep.

July began with my 'Tales of woe' headline, and the first indications that refunds due after the price increase had not been paid. It ended with the Wedge's departure, which he was forced to announce his own firing at one of the early Oshkosh press briefings. What a way to go. Other highlights included the increased participation by suppliers and staff, and a much higher visibility for the blog on Google, in the aviation media and through the mainstream press. It was a busy month all round.

August and September were varied. We started with the end of the EAC action against the Honor Roll, moved through the DoT IG investigation of the TC and PC awards, had the 'operational excellence' program (fire almost half the staff) from Roel Peiper and had that surprise visit from our old friend Ken Meyer. In the background, suppliers in particular were wailing at me about not getting paid, and the usual roll of legal actions against EAC seemed to gather pace. The 'die hards' were also having real issues with how they were being treated and I started to listen to the various conference calls that took place between EAC management, customers and suppliers. Mike McConnell in particular came across as a self serving twerp of the worst sort. My only regret is that he works in aviation and not in my field of activity, for one of my competitors.

October and November began with another AD for the FPJ, continued with the closure of DayJet, saw our 50th headline post and our 10,000th comment and had the 'Nuclear Winter' speech from the Wedge at the VLJ conference in Florida. It continued with more word from depositors issuing proceedings, a flood of negative press comments on the future viability of EAC, saw the staff unpaid for a short period and finished with the Chapter 11 action by the management. Phew, they were busy months....

December was much quieter, where I seem to have been appointed (by customers and depositors) as the official clearing house for the various groups formed after the Chapter 11 proceedings. We finished with Black Tulip, who was kind enough to see the funny side of a group of lawyers inviting the Wedge to speak at an upcoming event on bankruptcy. Who would have thought American lawyers saw the funny side of things?

So, there you have it. 2008 has left us and the New Year opens on a positive note. We are all still (more or less) in one piece, EAC struggles on and the next two weeks will determine what the short to medium term holds for suppliers, customers, staff and depositors. Shareholders know they are last in the queue, unless of course, you name happens to be Roel Peiper. The remaining banks are very reluctant to fund anything, a new and untested American President has enough problems to test Superman and every company in aviation is shedding workers and/or scaling back product development. The auction results from the 'bidding process' for EAC will make interesting reading on the 14th.

Oh, and a Happy New Year to one and all.

Shane