In a letter to position-holders this week, Eclipse Aviation CEO Vern Raburn asked customers to send money now, and he will in return give them a discount on the final delivery cost when their jet is ready. Raburn said he hopes to raise $30 million in the next few weeks with the offer, which will go to finance operations while the company finalizes a new round of capital raising. The offer would give customers a locked-in base price of $1.25 million in return for an up-front payment by Dec. 14 of $625,000. The deal can save owners up to a half-million dollars on the final cost. Some customers already have shown interest in the program, Eclipse spokesman Andrew Broom told AVweb on Wednesday. "We're not trying to raise all of our money via customers, but we are raising more money and thought we would ask our customers to participate," he said. If not enough customers come forward to raise at least $30 million, then Eclipse will refund the money, he added.
Raburn said the money would "help meet our need for short-term funds while our production capability matures and we put in place additional long-term financing.... The financing we are seeking is relatively small as a percentage of the total capital we have raised to date. We have been successful in the past in our ability to raise capital and believe we will be able to close this financing within 120 days. In the meantime, we are looking to raise funds now so that we can complete our financing in an orderly fashion." Raburn also said acknowledged in the letter that Eclipse has not met demand for pilot training, but three full-motion simulators will be operational by March, which should allow training to catch up with deliveries.
Friday, November 30, 2007
Saturday, November 24, 2007
FAA Confirrms VLJ Commercial Regs
Saying it would like to see new regulations governing commercial very light jet operations in place by 2008, FAA’s Acting Manager of AFS-250 Harlan Sparrow indicated the work is part of the agency’s re-write of its Part 135 rules as recommended by the Aviation Rulemaking Committee in 2003.
Sparrow’s three-year-old division handles Part 135 on-demand services as well as Part 142 training centers. Sparrow hopes to have the proposed rule out of the FAA by January when it will have to undergo scrutiny by the Department of Transportation and the Office of Management and Budget.
The agency is in the process of writing a draft rule allowing Part 23 jets to operate in commuter service under Part 135. Currently, the rules preclude turbojets from being used in scheduled operations unless they operate under Part 121. Sparrow would not say whether these commercial operations would have to meet all requirements of the single-level-of-safety standards imposed in 1997 which dramatically increased the cost of operations and led to the wholesale abandonment of many communities, including those that were not subsidized.
”There are a number of items operators are required to meet in order to operate in commuter service,” he said. “It’s still being decided about the single level of safety [requiring commercial to follow Part 121 regulations] but there will be no degradation of safety.” In addition, Sparrow said that it remains undecided as to whether or not to include jets certificated under Part 25. (A complete analysis on the impact of the single-level-of-safety rule was covered in a five-part series in Regional Aviation News)
The ARC recommendations sought to resolve current issues affecting this part of the industry and enable new aircraft types, size and design and new technologies in air transportation operations. Its recommendations also covered the provision of safety and applicability standards that reflect the current industry, industry trends and emerging technologies and operations, as well as addressed international harmonization and ICAO standards. It could potentially rescind part 125 from 14 Code of Federal Regulations.
Sparrow indicated that small commuter air services are certainly up to operating small jets and the new regulations are simply a part of the agency’s continuing effort to promote growth in aviation. “We are actively working on the rule because of the number of new very light jets on the market,” he said. “Cessna and Eclipse have already been certificated and there are a number in the process of certification. Sparrow was part of the flight standardization board for the Cessna Mustang.
He does not expect VLJs to “flood the skies” but noted that because of new technology and the use of composites and improved engines and avionics systems, they have changed the economics of operating the aircraft. “They allow operations at a lower cost compared to classically built aircraft,” he said. “We anticipate the use of them to provide additional service to the public. That is why we are taking a hard look at allowing them to operate in commuter service under Part 135. Part 25 jets are just not cost effective for some services.”
DOT has been working on new and creative ways to provide small community air service and has pointed to VLJs as a potential solution. Sparrow said that both FAA and DOT are looking for ways to provide opportunities for business to capitalize on new aircraft and “the spinoff would be improved air service to small communities.” However, the GAO and industry analysts doubt VLJs will be used in such service because essential air service points are just too small. However, allowing their use in commercial operations could produce other opportunities. Even so, most doubt their use in filling the void in small community air service.
On-Demand Services
The advent of VLJs and on-demand, air taxi service offer exciting prospects but this technology and business model remains unproven. The concern is that, knowing the DOT would be receptive to creative ways to address community air service, they would apply for subsidies for serving small communities that have been dropped from the national air transportation system in order to bolster their balance sheets as they develop. The government has often been a patron of such emerging services but it would likely come at the expense of such programs as essential air service and would be unlikely to achieve regular community air service.
There is certainly no dearth of proposed air taxi services in the offing including charters and fractional ownership business models that are already well established and growing. Related Story
But many on-demand air taxis, proposed in the last several years have not lasted illustrating how competitive this business is. There are other hurdles to overcome for on-demand services and that is traveler behavior. Michel Merluzeau, principal with the aerospace consultancy G2 Solutions, said in a recent AviationToday.com webinar that travel rules at businesses, including restrictions against top executives flying on the same plane, could preclude their success. The question is whether corporate travel departments change their rules, especially with respect to what they will pay for short-haul travel. To listen to the webinar click here.
Still, the concept is intriguing, especially in the face of a demand for about six million passenger trips per year in a mature air taxi system, according to an independent analysis by the Velocity Group. Velocity’s assessment of U.S. air taxi opportunities included an analysis of demographics and current services levels.
“We developed a ‘you-can’t-get-there-from-here’ index,” said Velocity Partner Gerald Bernstein. “We evaluated the connectivity between all commercial airports 300 to 600 miles from one-another. The greatest number without direct or non-stop service was in the southeast – particularly Georgia and contiguous states. The next [most populous] cluster was a band of states from New York, through Pennsylvania, Ohio, Indiana and Michigan. West of the Mississippi, except for Texas and California, few states have sufficient population centers within close proximity to one another for economic VLJ-type service. The 300-600 mile range exceeds the distance business travelers are willing to drive, is less than a two-hour VLJ flight and it is the range targeted by current developers.
“About 40 million domestic passenger trips a year cost $0.25 to $0.35 per passenger mile for full-fare coach, business class or first class service,” Bernstein continued. “Approximately 13 million trips are made annually on corporate jets and turboprops with costs ranging from $2 per passenger mile to over $30 per passenger mile, depending on aircraft type and passenger loads. Air taxis will provide a new option for $1 to $3 per passenger mile. We anticipate a good market for Very Light Jet sales with market demand by all users to be in the 600-700 aircraft per year range.”
But Velocity, in a separate report, indicated the share of full-fare traffic is constantly diminishing, dropping 11 percent since 1998 to nine percent of major-carrier traffic, further widening the gap between the cost of scheduled service and very light jets. The demand calls for about 2,500 VLJs over the next decade, said Bernstein.
DayJet, which launched its per-seat, on-demand service this month, is focusing its opening volley on the southeast, specifically Florida, promising to bring millions of dollars in new economic activity to Boca Raton, Gainesville, Lakeland, and Pensacola named last year as DayPorts. Tallahassee, which was previously named its first Center of Excellence, is the fifth DayPort. Calling its service the "next major advance in regional business travel," the company, which will operate under Part 135, is seeking partners with regional economic authorities, airports and FBOs that want DayJet as part of their business structure.
“This is a model still to be validated,” said G2’s Merluzeau. “The issue for VLJs is going to be training. The coming avionics, including ADS-B, will be critical components that will take them to the next level in terms of situational awareness. The big question is will they be able to operate safely and ADS-B will be a key enabler for places not equipped with radar capability.” He predicted that more and more avionics systems will be very intuitive and will emphasize anything to do with easing the pilot workload. However, he cautioned that some avionics cost $400,000, an enormous number for a $1.3 million aircraft. Still, to gain the credibility of the rest of the industry and assure high safety levels such avionics may be necessary, if not mandated.
Predicting travel managers will insist on a certain type of aircraft with a good safety record, Merluzeau and Richard Aboulafia, vice president-analysis, The Teal Group, indicated that Embraer and Cessna would have an advantage because of their reputations. Others, however, are unknown quantities which may forestall recommendations from travel managers. “If the Sino Swearingen and Eclipse do succeed, it will be the first in a long time,” concluded Aboulafia. Related Story: Webinar: Coming
Sparrow’s three-year-old division handles Part 135 on-demand services as well as Part 142 training centers. Sparrow hopes to have the proposed rule out of the FAA by January when it will have to undergo scrutiny by the Department of Transportation and the Office of Management and Budget.
The agency is in the process of writing a draft rule allowing Part 23 jets to operate in commuter service under Part 135. Currently, the rules preclude turbojets from being used in scheduled operations unless they operate under Part 121. Sparrow would not say whether these commercial operations would have to meet all requirements of the single-level-of-safety standards imposed in 1997 which dramatically increased the cost of operations and led to the wholesale abandonment of many communities, including those that were not subsidized.
”There are a number of items operators are required to meet in order to operate in commuter service,” he said. “It’s still being decided about the single level of safety [requiring commercial to follow Part 121 regulations] but there will be no degradation of safety.” In addition, Sparrow said that it remains undecided as to whether or not to include jets certificated under Part 25. (A complete analysis on the impact of the single-level-of-safety rule was covered in a five-part series in Regional Aviation News)
The ARC recommendations sought to resolve current issues affecting this part of the industry and enable new aircraft types, size and design and new technologies in air transportation operations. Its recommendations also covered the provision of safety and applicability standards that reflect the current industry, industry trends and emerging technologies and operations, as well as addressed international harmonization and ICAO standards. It could potentially rescind part 125 from 14 Code of Federal Regulations.
Sparrow indicated that small commuter air services are certainly up to operating small jets and the new regulations are simply a part of the agency’s continuing effort to promote growth in aviation. “We are actively working on the rule because of the number of new very light jets on the market,” he said. “Cessna and Eclipse have already been certificated and there are a number in the process of certification. Sparrow was part of the flight standardization board for the Cessna Mustang.
He does not expect VLJs to “flood the skies” but noted that because of new technology and the use of composites and improved engines and avionics systems, they have changed the economics of operating the aircraft. “They allow operations at a lower cost compared to classically built aircraft,” he said. “We anticipate the use of them to provide additional service to the public. That is why we are taking a hard look at allowing them to operate in commuter service under Part 135. Part 25 jets are just not cost effective for some services.”
DOT has been working on new and creative ways to provide small community air service and has pointed to VLJs as a potential solution. Sparrow said that both FAA and DOT are looking for ways to provide opportunities for business to capitalize on new aircraft and “the spinoff would be improved air service to small communities.” However, the GAO and industry analysts doubt VLJs will be used in such service because essential air service points are just too small. However, allowing their use in commercial operations could produce other opportunities. Even so, most doubt their use in filling the void in small community air service.
On-Demand Services
The advent of VLJs and on-demand, air taxi service offer exciting prospects but this technology and business model remains unproven. The concern is that, knowing the DOT would be receptive to creative ways to address community air service, they would apply for subsidies for serving small communities that have been dropped from the national air transportation system in order to bolster their balance sheets as they develop. The government has often been a patron of such emerging services but it would likely come at the expense of such programs as essential air service and would be unlikely to achieve regular community air service.
There is certainly no dearth of proposed air taxi services in the offing including charters and fractional ownership business models that are already well established and growing. Related Story
But many on-demand air taxis, proposed in the last several years have not lasted illustrating how competitive this business is. There are other hurdles to overcome for on-demand services and that is traveler behavior. Michel Merluzeau, principal with the aerospace consultancy G2 Solutions, said in a recent AviationToday.com webinar that travel rules at businesses, including restrictions against top executives flying on the same plane, could preclude their success. The question is whether corporate travel departments change their rules, especially with respect to what they will pay for short-haul travel. To listen to the webinar click here.
Still, the concept is intriguing, especially in the face of a demand for about six million passenger trips per year in a mature air taxi system, according to an independent analysis by the Velocity Group. Velocity’s assessment of U.S. air taxi opportunities included an analysis of demographics and current services levels.
“We developed a ‘you-can’t-get-there-from-here’ index,” said Velocity Partner Gerald Bernstein. “We evaluated the connectivity between all commercial airports 300 to 600 miles from one-another. The greatest number without direct or non-stop service was in the southeast – particularly Georgia and contiguous states. The next [most populous] cluster was a band of states from New York, through Pennsylvania, Ohio, Indiana and Michigan. West of the Mississippi, except for Texas and California, few states have sufficient population centers within close proximity to one another for economic VLJ-type service. The 300-600 mile range exceeds the distance business travelers are willing to drive, is less than a two-hour VLJ flight and it is the range targeted by current developers.
“About 40 million domestic passenger trips a year cost $0.25 to $0.35 per passenger mile for full-fare coach, business class or first class service,” Bernstein continued. “Approximately 13 million trips are made annually on corporate jets and turboprops with costs ranging from $2 per passenger mile to over $30 per passenger mile, depending on aircraft type and passenger loads. Air taxis will provide a new option for $1 to $3 per passenger mile. We anticipate a good market for Very Light Jet sales with market demand by all users to be in the 600-700 aircraft per year range.”
But Velocity, in a separate report, indicated the share of full-fare traffic is constantly diminishing, dropping 11 percent since 1998 to nine percent of major-carrier traffic, further widening the gap between the cost of scheduled service and very light jets. The demand calls for about 2,500 VLJs over the next decade, said Bernstein.
DayJet, which launched its per-seat, on-demand service this month, is focusing its opening volley on the southeast, specifically Florida, promising to bring millions of dollars in new economic activity to Boca Raton, Gainesville, Lakeland, and Pensacola named last year as DayPorts. Tallahassee, which was previously named its first Center of Excellence, is the fifth DayPort. Calling its service the "next major advance in regional business travel," the company, which will operate under Part 135, is seeking partners with regional economic authorities, airports and FBOs that want DayJet as part of their business structure.
“This is a model still to be validated,” said G2’s Merluzeau. “The issue for VLJs is going to be training. The coming avionics, including ADS-B, will be critical components that will take them to the next level in terms of situational awareness. The big question is will they be able to operate safely and ADS-B will be a key enabler for places not equipped with radar capability.” He predicted that more and more avionics systems will be very intuitive and will emphasize anything to do with easing the pilot workload. However, he cautioned that some avionics cost $400,000, an enormous number for a $1.3 million aircraft. Still, to gain the credibility of the rest of the industry and assure high safety levels such avionics may be necessary, if not mandated.
Predicting travel managers will insist on a certain type of aircraft with a good safety record, Merluzeau and Richard Aboulafia, vice president-analysis, The Teal Group, indicated that Embraer and Cessna would have an advantage because of their reputations. Others, however, are unknown quantities which may forestall recommendations from travel managers. “If the Sino Swearingen and Eclipse do succeed, it will be the first in a long time,” concluded Aboulafia. Related Story: Webinar: Coming
Friday, November 23, 2007
TAG, A Giant Among VLJ Programs
November 20, 2007
By Glenn Pew, Contributing Editor
Early next year, TAG Aviation (which has traditionally specialized in management of mid-size to VIP airliner business aircraft), plans to begin pushing its light jet management program as an alternative for customers currently flying anything up to the size of a Cessna Citation CJ3. The company plans next year to formally launch its "VLJ Flying Club" ownership program -- a venture with aviation investor Rolf Ilsley. In the managed VLJ market, TAG hopes its move will place it as an established giant with pre-existing clout amongst a field of start-ups with little track record. "We realized while working on the VLJ fractional program that there is much interest from owners of small jets for a professional management company that can leverage all the benefits of a large organization." ... "We're not a start-up company for a start-up category," TAG light jet program manager Matthew Sheble told Flightglobal.com.
By Glenn Pew, Contributing Editor
Early next year, TAG Aviation (which has traditionally specialized in management of mid-size to VIP airliner business aircraft), plans to begin pushing its light jet management program as an alternative for customers currently flying anything up to the size of a Cessna Citation CJ3. The company plans next year to formally launch its "VLJ Flying Club" ownership program -- a venture with aviation investor Rolf Ilsley. In the managed VLJ market, TAG hopes its move will place it as an established giant with pre-existing clout amongst a field of start-ups with little track record. "We realized while working on the VLJ fractional program that there is much interest from owners of small jets for a professional management company that can leverage all the benefits of a large organization." ... "We're not a start-up company for a start-up category," TAG light jet program manager Matthew Sheble told Flightglobal.com.
Monday, November 5, 2007
HondaJet Europe
Honda, which plans to begin mass production of the HondaJet in 2010 has announced it plans to start taking European orders for its HondaJet in 2008, according to Nikkei. Current production targets for the jet have jumped to 100 units per year and Honda has applied for EASA certification. Over 100 orders for the jet have been place in the U.S. since Honda began accepting orders in October of 2006. The company expects its engine-over-wing design and GE/Honda engine to allow for a better than 30 percent fuel efficiency increase over competing aircraft. Honda expects its jet program to become profitable sometime in its fourth year of production (circa 2014).
Thursday, November 1, 2007
OurPLANE Delivers First Eclipse 500 VLJ For Fractional Use
Thu, 01 Nov '07
"Let The VLJ Revolution Begin!"
Light aircraft fractional ownership company OurPLANE recently delivered the first Eclipse 500 very light to operate under Part 91 fractional ownership.
OurPLANE delivered its first Eclipse 500, S/N 66, to SheltAir at Jacksonville, FL for a corporate customer -- launching the company's new nationwide fractional VLJ aircraft service.
The company says the Eclipse complements its current, piston offerings. OurPLANE started operations in 1998 with new Cirrus and Cessna aircraft.
"OurPLANE pioneered fractional light aircraft eight years ago and today, this historic day for OurPLANE, we again solidify our leadership with the launch of the OurPLANE fractional Eclipse 500 VLJ," said company president and CEO Graham Casson. "Let the VLJ revolution begin!"
OurPLANE has a fleet order of Eclipse 500s worth $40 million... and plans to add additional VLJs to give their customers additional freedom to choose the right aircraft for their needs.
"OurPLANE customers are pilots and non pilots, executives and businesses... everyone looking for their own, new aircraft at a fraction of the cost. Our business model is low cost with great customer service so that business travelers can avoid the hell of commercial travel," Casson added.
The company says the Eclipse is geared towards executives of small- to- medium-sized businesses, who may now own a fraction of their own private jet for as little as $759 per hour... less than the cost to charter an aircraft, or flying commercially (nevermind owning their own large corporate jet.)
"OurPLANE customers can own their own private Eclipse 500 share for as little as $521,000 with fixed costs of $3,999 for 150 hours of annual flying time," Casson added.
"We are excited to start delivering OurPLANE's fleet of Eclipse 500 very light jets," said Eclipse Aviation CEO Vern Raburn. "The fractional aircraft market provides a valuable opportunity for more people to experience and own an Eclipse 500."
OurPLANE offers a nationwide network of factory new aircraft at several locations. In addition to Jacksonville, the company also has operations in Los Angeles, San Francisco, Houston, Dallas, Salt Lake City, St. Paul, Orlando, White Plains, and Toronto.
"Let The VLJ Revolution Begin!"
Light aircraft fractional ownership company OurPLANE recently delivered the first Eclipse 500 very light to operate under Part 91 fractional ownership.
OurPLANE delivered its first Eclipse 500, S/N 66, to SheltAir at Jacksonville, FL for a corporate customer -- launching the company's new nationwide fractional VLJ aircraft service.
The company says the Eclipse complements its current, piston offerings. OurPLANE started operations in 1998 with new Cirrus and Cessna aircraft.
"OurPLANE pioneered fractional light aircraft eight years ago and today, this historic day for OurPLANE, we again solidify our leadership with the launch of the OurPLANE fractional Eclipse 500 VLJ," said company president and CEO Graham Casson. "Let the VLJ revolution begin!"
OurPLANE has a fleet order of Eclipse 500s worth $40 million... and plans to add additional VLJs to give their customers additional freedom to choose the right aircraft for their needs.
"OurPLANE customers are pilots and non pilots, executives and businesses... everyone looking for their own, new aircraft at a fraction of the cost. Our business model is low cost with great customer service so that business travelers can avoid the hell of commercial travel," Casson added.
The company says the Eclipse is geared towards executives of small- to- medium-sized businesses, who may now own a fraction of their own private jet for as little as $759 per hour... less than the cost to charter an aircraft, or flying commercially (nevermind owning their own large corporate jet.)
"OurPLANE customers can own their own private Eclipse 500 share for as little as $521,000 with fixed costs of $3,999 for 150 hours of annual flying time," Casson added.
"We are excited to start delivering OurPLANE's fleet of Eclipse 500 very light jets," said Eclipse Aviation CEO Vern Raburn. "The fractional aircraft market provides a valuable opportunity for more people to experience and own an Eclipse 500."
OurPLANE offers a nationwide network of factory new aircraft at several locations. In addition to Jacksonville, the company also has operations in Los Angeles, San Francisco, Houston, Dallas, Salt Lake City, St. Paul, Orlando, White Plains, and Toronto.
Eclipse Will Monitor Performance Database on Jets
Eclipse has received FAA approval of its Flight Operational Quality Assurance (FOQA) program, the company said on Wednesday. The system is similar to those used by airlines, in which onboard software records the aircraft performance data, and it is then downloaded into a central database for analysis. "FOQA is a perfect addition to our progressive safety management system, which gives us the tools to proactively ensure the highest level of safety across all Eclipse 500 operations," said Vern Raburn, president and CEO of Eclipse Aviation. The information gathered by the system is used to identify, assess and correct high-risk operating conditions before they cause an accident, according to Eclipse's news release.
Instead of waiting for hazards to be identified through accidents, Eclipse says its system will identify risks so they can be managed in advance of an incident or accident. FOQA is central to this process, allowing Eclipse to understand what is actually happening with the Eclipse 500 fleet in the field. More about FOQA can be found at the FAA's web site.
Instead of waiting for hazards to be identified through accidents, Eclipse says its system will identify risks so they can be managed in advance of an incident or accident. FOQA is central to this process, allowing Eclipse to understand what is actually happening with the Eclipse 500 fleet in the field. More about FOQA can be found at the FAA's web site.
Friday, October 26, 2007
Eclipse 500 Breaks VLJ Speed Record Using Far Less Fuel
Eclipse Aviation’s very light jet beat the current NAA speed record by 20 percent while burning 25 percent less fuel.
ALBUQUERQUE, NM . — Eclipse Aviation, manufacturer of the world’s first very light jet (VLJ), today announced that it has set a National Aeronautic Association (NAA) performance record that distinguishes the Eclipse 500 as the industry’s fastest jet aircraft weighing 10,000 pounds or less. This milestone was achieved in early October when the Eclipse 500 set a new U.S. national speed record in the NAA record category of Class C, Aeroplanes, Very Light Jets.
The Eclipse 500 beat the existing NAA record on October 7, 2007 on a flight from New York (Westchester) to Atlanta (Peachtree-Dekalb), with a new record time of one hour, 55 minutes, and eight seconds (1:55:08), averaging 393.32 miles per hour (341.79 knots). The previous record holder, a Cessna Citation Mustang set the record on September 22, 2007, flying the same route in two hours, 23 minutes, and 44 seconds (2:23:44), averaging 318.87 miles per hour (277.09 knots). The NAA requires the record to be broken by at least one percent to qualify. The Eclipse 500, flown by Don Taylor, Senior Fellow at Eclipse Aviation, exceeded the previous record time by 20 percent, while using approximately 25 percent less fuel. Using actual aircraft data as well as data obtained from the Citation Mustang’s flight planning guide, the Mustang used 1,330 lb (198.5 gal) cruising at FL400 while the Eclipse 500 used 987 lb (147 gal) cruising at FL320.
"Upon reviewing the previous record, I was extremely confident that the Eclipse 500 could defeat the speed, but more importantly, we could use significantly less fuel while going faster. So two weeks later we flew the same route with the Eclipse 500 using at least 50 gallons less fuel than the Mustang and beating the time by about 27 minutes" said Vern Raburn, president and CEO of Eclipse Aviation. "With oil prices climbing, we are proud to offer the Eclipse 500 as the most efficient VLJ to move travelers from Point A to Point B on a quick, affordable and convenient basis"
The NAA announced a new record class exclusively for VLJs in the summer of 2007. A VLJ is defined as a jet-powered airplane with a maximum gross takeoff weight of 10,000 pounds or less, holding a standard airworthiness certificate, and capable of carrying four or more passengers. Each year NAA tracks dozens of new world and national aviation record attempts from numerous companies, certifying new records as the official record keeper for United States aviation and ratifying them with the Federation Aeronautique Internationale (FAI), the world air sports federation.
Related Links
ALBUQUERQUE, NM . — Eclipse Aviation, manufacturer of the world’s first very light jet (VLJ), today announced that it has set a National Aeronautic Association (NAA) performance record that distinguishes the Eclipse 500 as the industry’s fastest jet aircraft weighing 10,000 pounds or less. This milestone was achieved in early October when the Eclipse 500 set a new U.S. national speed record in the NAA record category of Class C, Aeroplanes, Very Light Jets.
The Eclipse 500 beat the existing NAA record on October 7, 2007 on a flight from New York (Westchester) to Atlanta (Peachtree-Dekalb), with a new record time of one hour, 55 minutes, and eight seconds (1:55:08), averaging 393.32 miles per hour (341.79 knots). The previous record holder, a Cessna Citation Mustang set the record on September 22, 2007, flying the same route in two hours, 23 minutes, and 44 seconds (2:23:44), averaging 318.87 miles per hour (277.09 knots). The NAA requires the record to be broken by at least one percent to qualify. The Eclipse 500, flown by Don Taylor, Senior Fellow at Eclipse Aviation, exceeded the previous record time by 20 percent, while using approximately 25 percent less fuel. Using actual aircraft data as well as data obtained from the Citation Mustang’s flight planning guide, the Mustang used 1,330 lb (198.5 gal) cruising at FL400 while the Eclipse 500 used 987 lb (147 gal) cruising at FL320.
"Upon reviewing the previous record, I was extremely confident that the Eclipse 500 could defeat the speed, but more importantly, we could use significantly less fuel while going faster. So two weeks later we flew the same route with the Eclipse 500 using at least 50 gallons less fuel than the Mustang and beating the time by about 27 minutes" said Vern Raburn, president and CEO of Eclipse Aviation. "With oil prices climbing, we are proud to offer the Eclipse 500 as the most efficient VLJ to move travelers from Point A to Point B on a quick, affordable and convenient basis"
The NAA announced a new record class exclusively for VLJs in the summer of 2007. A VLJ is defined as a jet-powered airplane with a maximum gross takeoff weight of 10,000 pounds or less, holding a standard airworthiness certificate, and capable of carrying four or more passengers. Each year NAA tracks dozens of new world and national aviation record attempts from numerous companies, certifying new records as the official record keeper for United States aviation and ratifying them with the Federation Aeronautique Internationale (FAI), the world air sports federation.
Related Links
Monday, October 22, 2007
Eclipse Lays Off Workers
The 100 to 150 employees recently laid off by Eclipse, almost all serving in positions necessary to begin production, were mostly temporary employees and only a handful of "direct" employees were affected, according to Eclipse spokesman Andrew Broom. The staff reduction amounts to roughly 10 percent of Eclipse's near-1,500 person workforce that is currently churning out about one aircraft each day, a local NBC affiliate reported.
Speaking for Albuquerque, which offered Eclipse incentives to set up shop and bring jobs to the area and holds Eclipse as an example of the city's high-tech industry, Mayor Martin Chavez told NBC, "They are contractors and it's what they do for a living." He added, "The job base in Albuquerque is really rich right now, so they'll be fine." Eclipse had initially hoped to have production levels up to two jets per day by now. Certain developmental and certification issues have caused delays.
Speaking for Albuquerque, which offered Eclipse incentives to set up shop and bring jobs to the area and holds Eclipse as an example of the city's high-tech industry, Mayor Martin Chavez told NBC, "They are contractors and it's what they do for a living." He added, "The job base in Albuquerque is really rich right now, so they'll be fine." Eclipse had initially hoped to have production levels up to two jets per day by now. Certain developmental and certification issues have caused delays.
Sunday, October 14, 2007
Very light jets' set to tranform industry
By JIM THARPE
The Atlanta Journal-Constitution
Published on: 10/05/07
They're sleek. They're fast. They're relatively inexpensive. And they're about to change the face of general aviation — for better or worse, depending on who's talking.
VLJs — the aviation world's term for "very light jets" — will soon be debuting at small airports across Georgia and the rest of the nation. That's a vision that brings smiles to the faces of private pilots, but makes commercial aviation officials and some safety experts grimace.
"Every time I think about these, I visualize the old Jetsons cartoon with George Jetson in his glass-walled house with all of these little things zipping around," said David Castelveter, a spokesman for the Air Transport Association. "It certainly causes concern."
Castelveter's organization, which represents the commercial airlines, testified before the U.S. Senate that if swarms of the small jets take to the skies it could create even more delays for the airline passengers and jeopardize safety.
Baloney, say proponents of the small jets. They argue the personal jets, which have a range of about 1,300 miles, will generally fly below the air space used by passenger jets. And insurance restrictions, they contend, will force private pilots to undergo intensive training before zooming around the increasingly crowded skies.
The small aircraft — they generally have two to six seats and weigh less than 10,000 pounds — offer the performance of high-end business jets at a fraction of the cost. About 20 VLJ models are now in various stages of design, certification and production. Most will cost between $1 million to $3 million and big companies like Honda and Cessna have gotten in the race to mass produce the pint-sized jets.
Experts estimate there could be 4,000 to 10,000 of the new personal jets in service within a decade or so.
Jonathan Sweatman, an Atlanta-based sales manager for a company that markets the Diamond D-Jet, said the airlines are howling because they fear the VLJs are going to skim off their highest-paying passengers.
DayJet, an air taxi service using Eclipse 500, a VLJ already on the market, recently began operations in Florida and plans to soon expand into Georgia. The company's pitch: Avoid the crowds and delays at hubs like Atlanta's Hartsfield-Jackson International Airport and fly hassle-free aboard your own jet into smaller airports.
"The threat to the airlines has got nothing to do with safety," Sweatman said. "It has everything to do with the fact that the people who used to sit in their first-class seats are now going to pay to sit in their own jet aircraft because they are sick and tired of the appalling service the airlines are now offering."
But some experts worry a lot about the millionaire-next-door running out to buy the latest aviation toy. Many of the new jets fly at twice the speed of piston-powered aircraft and many private pilots simply don't have the skills to control them, some experts contend.
"It's the speed. It's all about the speed," said Brian Alexander, a pilot and aviation lawyer with the Manhattan firm of Kreindler & Kreindler. "It's going from a Model T to a Porsche."
One VLJ now under development, the ATG Javelin, is a two-seater that looks like a fighter jet and will be marketed to private pilots as well as the military as a trainer. ATG sales representatives say it will let well-heeled businessmen fly the airborne equivalent of a Lamborghini on once-boring business trips. It can travel at more than 500 mph.
The company's Web site boasts: "Designed to turn heads. Built to perform."
That sort of promotion worries Alexander.
"They're unfortunately going to become lawn darts," Alexander said. "They have to raise the bar for training for people who want to fly these faster aircraft."
David Basha, a Gainesville car dealer and pilot who has ordered a VLJ from Diamond, said those worries are misplaced.
"I don't think the insurance industry will allow pilots to fly planes beyond their capability," said Bahsa, who hopes to take possession of his single-engine D-Jet late next year. "There will be a lot of pre-conditions."
Basha currently flies a high-performance, twin-engine Cessna Conquest 1, which has a maximum speed of about 300 mph. His D-Jet will top out at about 350 mph, he said.
He pays about $35,000 a year for insurance and figures that will go up for his jet.
"It will be a high-risk policy," he said. "You'll have very few companies that want to be in that business."
Basha said he will use his jet to visit his North Carolina beach property, to visit friends in Florida and for business. He figures his $1.3 million jet will cost about half as much to fly as his current plane.
"It's an eight-hour drive to North Carolina and an hour-and-10-minute flight," he said.
WSB Radio talk show host Neal Boortz, a pilot for 25 years, has also lined up to buy a D-Jet. Boortz said his insurance company probably will require 50 to 60 hours of training with a mentor pilot in the cockpit of his new plane. And that's just for starters. Another 50 hours of solo flight will be probably be required before he can carry passengers.
"The insurance company will kick my butt," Boortz said.
Boortz currently flies a piston-driven Mooney, which has a top speed of about 220 mph. He will pick up 130 mph or so with his new jet.
"To pilots, speed is everything, and you get the speed advantage with a jet," Boortz said.
Bob Everson, the Federal Aviation Administration's director of tactical operations for the Midwest, said he thinks most of the new jets will fly at 20,000 feet or so, far below the level of most commercial jets.
Everson said he does not anticipate any major air-traffic problems with the jets in the next few years.
"We're going to ensure safety first," Everson said. "We're never going to degrade safety."
The Atlanta Journal-Constitution
Published on: 10/05/07
They're sleek. They're fast. They're relatively inexpensive. And they're about to change the face of general aviation — for better or worse, depending on who's talking.
VLJs — the aviation world's term for "very light jets" — will soon be debuting at small airports across Georgia and the rest of the nation. That's a vision that brings smiles to the faces of private pilots, but makes commercial aviation officials and some safety experts grimace.
"Every time I think about these, I visualize the old Jetsons cartoon with George Jetson in his glass-walled house with all of these little things zipping around," said David Castelveter, a spokesman for the Air Transport Association. "It certainly causes concern."
Castelveter's organization, which represents the commercial airlines, testified before the U.S. Senate that if swarms of the small jets take to the skies it could create even more delays for the airline passengers and jeopardize safety.
Baloney, say proponents of the small jets. They argue the personal jets, which have a range of about 1,300 miles, will generally fly below the air space used by passenger jets. And insurance restrictions, they contend, will force private pilots to undergo intensive training before zooming around the increasingly crowded skies.
The small aircraft — they generally have two to six seats and weigh less than 10,000 pounds — offer the performance of high-end business jets at a fraction of the cost. About 20 VLJ models are now in various stages of design, certification and production. Most will cost between $1 million to $3 million and big companies like Honda and Cessna have gotten in the race to mass produce the pint-sized jets.
Experts estimate there could be 4,000 to 10,000 of the new personal jets in service within a decade or so.
Jonathan Sweatman, an Atlanta-based sales manager for a company that markets the Diamond D-Jet, said the airlines are howling because they fear the VLJs are going to skim off their highest-paying passengers.
DayJet, an air taxi service using Eclipse 500, a VLJ already on the market, recently began operations in Florida and plans to soon expand into Georgia. The company's pitch: Avoid the crowds and delays at hubs like Atlanta's Hartsfield-Jackson International Airport and fly hassle-free aboard your own jet into smaller airports.
"The threat to the airlines has got nothing to do with safety," Sweatman said. "It has everything to do with the fact that the people who used to sit in their first-class seats are now going to pay to sit in their own jet aircraft because they are sick and tired of the appalling service the airlines are now offering."
But some experts worry a lot about the millionaire-next-door running out to buy the latest aviation toy. Many of the new jets fly at twice the speed of piston-powered aircraft and many private pilots simply don't have the skills to control them, some experts contend.
"It's the speed. It's all about the speed," said Brian Alexander, a pilot and aviation lawyer with the Manhattan firm of Kreindler & Kreindler. "It's going from a Model T to a Porsche."
One VLJ now under development, the ATG Javelin, is a two-seater that looks like a fighter jet and will be marketed to private pilots as well as the military as a trainer. ATG sales representatives say it will let well-heeled businessmen fly the airborne equivalent of a Lamborghini on once-boring business trips. It can travel at more than 500 mph.
The company's Web site boasts: "Designed to turn heads. Built to perform."
That sort of promotion worries Alexander.
"They're unfortunately going to become lawn darts," Alexander said. "They have to raise the bar for training for people who want to fly these faster aircraft."
David Basha, a Gainesville car dealer and pilot who has ordered a VLJ from Diamond, said those worries are misplaced.
"I don't think the insurance industry will allow pilots to fly planes beyond their capability," said Bahsa, who hopes to take possession of his single-engine D-Jet late next year. "There will be a lot of pre-conditions."
Basha currently flies a high-performance, twin-engine Cessna Conquest 1, which has a maximum speed of about 300 mph. His D-Jet will top out at about 350 mph, he said.
He pays about $35,000 a year for insurance and figures that will go up for his jet.
"It will be a high-risk policy," he said. "You'll have very few companies that want to be in that business."
Basha said he will use his jet to visit his North Carolina beach property, to visit friends in Florida and for business. He figures his $1.3 million jet will cost about half as much to fly as his current plane.
"It's an eight-hour drive to North Carolina and an hour-and-10-minute flight," he said.
WSB Radio talk show host Neal Boortz, a pilot for 25 years, has also lined up to buy a D-Jet. Boortz said his insurance company probably will require 50 to 60 hours of training with a mentor pilot in the cockpit of his new plane. And that's just for starters. Another 50 hours of solo flight will be probably be required before he can carry passengers.
"The insurance company will kick my butt," Boortz said.
Boortz currently flies a piston-driven Mooney, which has a top speed of about 220 mph. He will pick up 130 mph or so with his new jet.
"To pilots, speed is everything, and you get the speed advantage with a jet," Boortz said.
Bob Everson, the Federal Aviation Administration's director of tactical operations for the Midwest, said he thinks most of the new jets will fly at 20,000 feet or so, far below the level of most commercial jets.
Everson said he does not anticipate any major air-traffic problems with the jets in the next few years.
"We're going to ensure safety first," Everson said. "We're never going to degrade safety."
Wednesday, October 3, 2007
U.S. Airline Delays Worsen in August -
By DAN CATERINICCHIA,AP
Posted: 2007-10-03 13:00:43
WASHINGTON (AP) - The airline industry's dismal on-time performance in 2007 continued in August with nearly 30 percent of flights delayed.
The most recent government data, which also showed a surge in fliers' complaints, was released less than a week after President Bush promised to help fix the problem.
Forcing carriers to shrink their flight schedules or to pay more to fly during peak travel periods are some of the steps the government is considering.
The nation's 20 largest carriers reported an on-time arrival rate of 71.7 percent in August, down from 75.8 percent a year ago, the Department of Transportation's Bureau of Transportation Statistics said Wednesday. The on-time rate was 69.8 percent in July and 68.1 percent in June.
Through August, more than 25 percent of flights have arrived late - the industry's worst on-time performance since comparable data began being collected in 1995.
The airline industry and the Federal Aviation Administration blame the delays on outdated air traffic control technology, bad weather and increasing passenger traffic. Analysts say commercial airlines' use of smaller planes is partly to blame for increased congestion in the skies and on runways, as is an increase in general aviation aircraft used by corporate travelers.
Whatever the cause of the worsening delays, travelers have noticed.
Customer complaints nearly doubled to 1,634 in August compared with 864 in the same month last year. Poor weather conditions were blamed for more than 38 percent of delays in August, a slight increase from a year ago.
"Endless hours sitting in an airplane on a runway with no communication between a pilot and the airport is just not right," Bush said last week after meeting with Transportation Secretary Mary Peters and the acting head of the FAA, Bobby Sturgell.
Peters asked airlines to form a plan to improve scheduling at New York's John F. Kennedy International Airport, one of the nation's busiest. Without an industry solution, the department is prepared to issue a scheduling reduction order, she said.
The government also could force a so-called congestion pricing model upon the industry, Peters said, but airline executives last week told Congress that raising flying costs during peak periods would simply result in higher fares.
The airlines and the FAA are pressing for a new, satellite-based air traffic control system that will cost about $15 billion and take nearly 20 years to complete. Airline traffic is projected to double by 2025.
The FAA in late August awarded ITT Corp . a contract worth up to $1.8 billion to build the first portion the system, known as NextGen. The agency on Tuesday said it wants all planes to be equipped to use the new navigation technology by 2020.
"NextGen is pie in the sky. What about Now-Gen?" Patrick Forrey, president of the National Air Traffic Controllers Association, quipped Tuesday in a conference call with reporters.
The union says delays will worsen unless the government hires more members and pays them better. The FAA and the union have been locked in a contract dispute since the agency declared an impasse last year.
Bush on Saturday signed a stopgap spending bill to keep Cabinet departments running at current levels through mid-November. Congress has until then to reauthorize the FAA and possibly raise taxes and fees to pay for upgrades to the air traffic control system and other programs. Commercial airlines are battling corporate jets and small plane operators over what share of the cost they each should shoulder.
The commercial airline industry and the White House say a House-passed FAA funding bill does not fairly link fees to system use.
August's on-time performance was the second worst on record for that month, topped only by a 70 percent arrival rate in 2000. But not all airline performance was poor.
Aloha Airlines had the highest on-time arrival rate at 97 percent, followed by Hawaiian Holdings Inc .'s Hawaiian Airlines at 93.7 percent and Southwest Airlines at 77.7 percent, according to government data.
But almost half of Atlantic Southeast Airlines were delayed, and two of its flights arrived late every time they took off. The Delta Connection carrier, which is owned by SkyWest Inc ., had the lowest on-time arrival rate at 55 percent, followed by United Airlines at 66.2 percent and Alaska Airlines at 67.1 percent.
The rates of mishandled baggage fell to about 7.6 reports per 1,000 passengers from 8.1 reports a year ago, according to government data.
Posted: 2007-10-03 13:00:43
WASHINGTON (AP) - The airline industry's dismal on-time performance in 2007 continued in August with nearly 30 percent of flights delayed.
The most recent government data, which also showed a surge in fliers' complaints, was released less than a week after President Bush promised to help fix the problem.
Forcing carriers to shrink their flight schedules or to pay more to fly during peak travel periods are some of the steps the government is considering.
The nation's 20 largest carriers reported an on-time arrival rate of 71.7 percent in August, down from 75.8 percent a year ago, the Department of Transportation's Bureau of Transportation Statistics said Wednesday. The on-time rate was 69.8 percent in July and 68.1 percent in June.
Through August, more than 25 percent of flights have arrived late - the industry's worst on-time performance since comparable data began being collected in 1995.
The airline industry and the Federal Aviation Administration blame the delays on outdated air traffic control technology, bad weather and increasing passenger traffic. Analysts say commercial airlines' use of smaller planes is partly to blame for increased congestion in the skies and on runways, as is an increase in general aviation aircraft used by corporate travelers.
Whatever the cause of the worsening delays, travelers have noticed.
Customer complaints nearly doubled to 1,634 in August compared with 864 in the same month last year. Poor weather conditions were blamed for more than 38 percent of delays in August, a slight increase from a year ago.
"Endless hours sitting in an airplane on a runway with no communication between a pilot and the airport is just not right," Bush said last week after meeting with Transportation Secretary Mary Peters and the acting head of the FAA, Bobby Sturgell.
Peters asked airlines to form a plan to improve scheduling at New York's John F. Kennedy International Airport, one of the nation's busiest. Without an industry solution, the department is prepared to issue a scheduling reduction order, she said.
The government also could force a so-called congestion pricing model upon the industry, Peters said, but airline executives last week told Congress that raising flying costs during peak periods would simply result in higher fares.
The airlines and the FAA are pressing for a new, satellite-based air traffic control system that will cost about $15 billion and take nearly 20 years to complete. Airline traffic is projected to double by 2025.
The FAA in late August awarded ITT Corp . a contract worth up to $1.8 billion to build the first portion the system, known as NextGen. The agency on Tuesday said it wants all planes to be equipped to use the new navigation technology by 2020.
"NextGen is pie in the sky. What about Now-Gen?" Patrick Forrey, president of the National Air Traffic Controllers Association, quipped Tuesday in a conference call with reporters.
The union says delays will worsen unless the government hires more members and pays them better. The FAA and the union have been locked in a contract dispute since the agency declared an impasse last year.
Bush on Saturday signed a stopgap spending bill to keep Cabinet departments running at current levels through mid-November. Congress has until then to reauthorize the FAA and possibly raise taxes and fees to pay for upgrades to the air traffic control system and other programs. Commercial airlines are battling corporate jets and small plane operators over what share of the cost they each should shoulder.
The commercial airline industry and the White House say a House-passed FAA funding bill does not fairly link fees to system use.
August's on-time performance was the second worst on record for that month, topped only by a 70 percent arrival rate in 2000. But not all airline performance was poor.
Aloha Airlines had the highest on-time arrival rate at 97 percent, followed by Hawaiian Holdings Inc .'s Hawaiian Airlines at 93.7 percent and Southwest Airlines at 77.7 percent, according to government data.
But almost half of Atlantic Southeast Airlines were delayed, and two of its flights arrived late every time they took off. The Delta Connection carrier, which is owned by SkyWest Inc ., had the lowest on-time arrival rate at 55 percent, followed by United Airlines at 66.2 percent and Alaska Airlines at 67.1 percent.
The rates of mishandled baggage fell to about 7.6 reports per 1,000 passengers from 8.1 reports a year ago, according to government data.
Monday, October 1, 2007
VLJs' Impact on ATC Is Uncertain
Aviation Week & Space Technology 09/24/2007, page 63
David Hughes Washington
As deliveries begin, the impact of very light jetson the ATC system is just beginning
With as many as 7,600 very light jets forecast to be flying in U.S. skies by 2025, a key operational question will be whether an air traffic system transitioning to satellite-based navigation will be able to absorb all of them.
The Government Accountability Office recently summarized nine VLJ outlooks, ranging from the Teal Group’s low of 3,000 aircraft by 2016 to Rolls-Royce’s high of 7,600 by 2025. The air taxi business will play a role, alongside owner-flown aircraft, in any additional load on the U.S. air traffic system.
Florida-based DayJet is about to show what it can do with an on-demand air taxi service using the Eclipse 500. The company expects to have 40 Eclipse 500s in service by year-end and 140 by late 2008, according to Bruce J. Holmes, director of air systems research. For 33 years, he worked as a research scientist at NASA Langley Research Center, where he helped to design the NextGen ATC system with the FAA.
Holmes says DayJet will be opening up service primarily to “underutilized” airports, with initial operations using five DayPorts at Boca Raton, Lakeland, Gainesville, Tallahassee and Pensacola, Fla. Flights will operate selling seats “in network” to these airports and “out of network” to other facilities in Florida when a customer charters an entire airplane. DayPort locations will then be added at similar airports in Alabama, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.
Meanwhile, DayJet is starting operations just at the end of the biggest summer-delay meltdown in the history of U.S. civil aviation. The problems naturally have been at large and congested airports—in the New York metropolitan area, for example. But big airports aren’t where DayJet plans to fly. Holmes says the NextGen ATC plan devised by the Joint Planning and Development Office in Washington will not fix congestion at 14 of the 35 biggest U.S. airports. They will still be in a serious delay crunch when the program is completed, he notes.
Instead, DayJet will operate in a “parallel universe” of underused airspace and airports where air service has been scarce, if available at all. But the company also plans to be an “early adopter” of some of the innovative air traffic techniques that will be possible with the NextGen satellite navigation approach to ATC.
For example, DayJet intends to use Required Navigation Performance (RNP) approaches to fly GPS-guided procedures down to precision minimums (200-ft. decision altitude) as soon as possible. It’s even working with airports and state governments to determine if ADS-B ground-based receivers could be installed earlier than the FAA envisions at some locations. The agency is not targeting Florida to receive ADS-B equipment by 2010, meaning the state may have to wait until the next phase, scheduled for completion in 2013.
Holmes explains that DayJet may base as many as 25 aircraft at some airports, and they will often be arriving at about the same time late in the day. Thus, “ADS-B in” capability for cockpit display of other DayJet traffic would help pilots plan their arrivals efficiently.
The GAO report says the impact of VLJs on FAA costs and Aviation Trust Fund revenues will depend on how many aircraft are delivered, the extent to which they replace existing aircraft, and whether they facilitate a large-scale air taxi industry.
The same factors will influence VLJs’ impact on ATC. Aviation consultant Jack Olcott, former president of the National Business Aviation Assn., says he agrees with the GAO in that the introduction of VLJs will be orderly and the “sky won’t be blackened” by them. He adds that it’s too early to quantify the effect of owner-flown VLJs, a refinement of the entry-level business jet. The industry has 35 years of experience with this type of aircraft, he adds.
“Today’s FAA, training community and insurance industry are prepared to deal with VLJs in the hands of owner pilots, albeit cautiously. Time and accident/incident experience will shape future policy, but I suspect there will be few surprises,” says Olcott.
In a 2005 analysis, Philippe A. Bonnefoy, a graduate student at the Massachusetts Institute of Technology, states that VLJs might operate much the way light bizjets do now. This means they won’t always take off from an out-of-the-way airport and head for another one in a similar location (AW&ST July 25, 2005, p. 51). For example, they may want to travel to the New York city area; but unlike large bizjets using Teterboro, N.J., airport, VLJs have short-runway capability that might allow them to use small airports such as Princeton, N.J.’s
David Hughes Washington
As deliveries begin, the impact of very light jetson the ATC system is just beginning
With as many as 7,600 very light jets forecast to be flying in U.S. skies by 2025, a key operational question will be whether an air traffic system transitioning to satellite-based navigation will be able to absorb all of them.
The Government Accountability Office recently summarized nine VLJ outlooks, ranging from the Teal Group’s low of 3,000 aircraft by 2016 to Rolls-Royce’s high of 7,600 by 2025. The air taxi business will play a role, alongside owner-flown aircraft, in any additional load on the U.S. air traffic system.
Florida-based DayJet is about to show what it can do with an on-demand air taxi service using the Eclipse 500. The company expects to have 40 Eclipse 500s in service by year-end and 140 by late 2008, according to Bruce J. Holmes, director of air systems research. For 33 years, he worked as a research scientist at NASA Langley Research Center, where he helped to design the NextGen ATC system with the FAA.
Holmes says DayJet will be opening up service primarily to “underutilized” airports, with initial operations using five DayPorts at Boca Raton, Lakeland, Gainesville, Tallahassee and Pensacola, Fla. Flights will operate selling seats “in network” to these airports and “out of network” to other facilities in Florida when a customer charters an entire airplane. DayPort locations will then be added at similar airports in Alabama, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.
Meanwhile, DayJet is starting operations just at the end of the biggest summer-delay meltdown in the history of U.S. civil aviation. The problems naturally have been at large and congested airports—in the New York metropolitan area, for example. But big airports aren’t where DayJet plans to fly. Holmes says the NextGen ATC plan devised by the Joint Planning and Development Office in Washington will not fix congestion at 14 of the 35 biggest U.S. airports. They will still be in a serious delay crunch when the program is completed, he notes.
Instead, DayJet will operate in a “parallel universe” of underused airspace and airports where air service has been scarce, if available at all. But the company also plans to be an “early adopter” of some of the innovative air traffic techniques that will be possible with the NextGen satellite navigation approach to ATC.
For example, DayJet intends to use Required Navigation Performance (RNP) approaches to fly GPS-guided procedures down to precision minimums (200-ft. decision altitude) as soon as possible. It’s even working with airports and state governments to determine if ADS-B ground-based receivers could be installed earlier than the FAA envisions at some locations. The agency is not targeting Florida to receive ADS-B equipment by 2010, meaning the state may have to wait until the next phase, scheduled for completion in 2013.
Holmes explains that DayJet may base as many as 25 aircraft at some airports, and they will often be arriving at about the same time late in the day. Thus, “ADS-B in” capability for cockpit display of other DayJet traffic would help pilots plan their arrivals efficiently.
The GAO report says the impact of VLJs on FAA costs and Aviation Trust Fund revenues will depend on how many aircraft are delivered, the extent to which they replace existing aircraft, and whether they facilitate a large-scale air taxi industry.
The same factors will influence VLJs’ impact on ATC. Aviation consultant Jack Olcott, former president of the National Business Aviation Assn., says he agrees with the GAO in that the introduction of VLJs will be orderly and the “sky won’t be blackened” by them. He adds that it’s too early to quantify the effect of owner-flown VLJs, a refinement of the entry-level business jet. The industry has 35 years of experience with this type of aircraft, he adds.
“Today’s FAA, training community and insurance industry are prepared to deal with VLJs in the hands of owner pilots, albeit cautiously. Time and accident/incident experience will shape future policy, but I suspect there will be few surprises,” says Olcott.
In a 2005 analysis, Philippe A. Bonnefoy, a graduate student at the Massachusetts Institute of Technology, states that VLJs might operate much the way light bizjets do now. This means they won’t always take off from an out-of-the-way airport and head for another one in a similar location (AW&ST July 25, 2005, p. 51). For example, they may want to travel to the New York city area; but unlike large bizjets using Teterboro, N.J., airport, VLJs have short-runway capability that might allow them to use small airports such as Princeton, N.J.’s
AVweb's NBAA 2007 Podcast #1: DayJet's Iacobucci — Initial Eclipse Availability Is Promising
Podcast Index | How to Listen | Subscribe Via RSS
Ed Iacobucci, president and CEO of DayJet, told AVweb in this extended podcast that the initial maintenance availability and reliability of the company's first 12 Eclipse 500 twin jets has been better than he expected and that operating economics have thus far panned out to within 5% of expectations as DayJet flies its first revenue passengers. So far, so good — but Iacobucci says DayJet's marriage to Eclipse isn't necessarily monogamous; he's talking to other jet makers, too. Bottom line: It's too soon to tell what the long-term potential of either the VLJ market or the air taxi segment will be.
www.avweb.com/podcast/podcast/196219-1.html?kw=AVwebAudio
Ed Iacobucci, president and CEO of DayJet, told AVweb in this extended podcast that the initial maintenance availability and reliability of the company's first 12 Eclipse 500 twin jets has been better than he expected and that operating economics have thus far panned out to within 5% of expectations as DayJet flies its first revenue passengers. So far, so good — but Iacobucci says DayJet's marriage to Eclipse isn't necessarily monogamous; he's talking to other jet makers, too. Bottom line: It's too soon to tell what the long-term potential of either the VLJ market or the air taxi segment will be.
www.avweb.com/podcast/podcast/196219-1.html?kw=AVwebAudio
Friday, September 21, 2007
AVWEB'S FRIDAY PODCAST:
The age of the very light jet (and the version of the air taxi business it has spawned) is upon us, and it's now time to find out if the bold predictions of some of the players will come true. Phillip Butterworth-Hayes is an analyst with PMI Media, a British and German firm that studies the aviation market, and he's released his second report on VLJs just in time for the National Business Aviation Association (NBAA) Convention in Atlanta next week. AVweb's Russ Niles talked with Butterworth-Hayes about the report and where the VLJ sector is heading...
Wednesday, September 19, 2007
On-demand Air Taxis and Very Light Jets Predicted to Expand Air Travel Market According to Research 2.0 Report
Press Release
Source: Research 2.0
Wednesday September 19, 11:30 am ET
Low-cost, High-performance Jets to Greatly Expand Use of Municipal Airports; Offer Relief to Overburdened National Airspace System
BOSTON--(BUSINESS WIRE)--Research 2.0, a research firm that specializes in the analysis of emerging technology for the investment and business communities, today revealed findings from its new report focused on the impact of very light jets (VLJ) and on-demand VLJ air taxi services.
The report covers the growth of the VLJ services market, the predicted expansion of the Small Aircraft Transportation System (SATS) to local communities nationwide and the NASA-inspired technology that is enabling a potential seismic paradigm shift in air travel. The report also covers VLJ manufacturers, competition, manufacturing, regulatory, environmental and other issues specific to this new emerging market.
Summary of September 2007 Report Findings
VLJ Air Taxis Predicted to Relieve Overburdened Commercial Industry
Commercial airline traffic is predicted to see sustained annual growth over the next two decades, pressuring a lagging air traffic control infrastructure. VLJ air taxi services and increased utilization of hundreds of idle secondary landing facilities can substantially alleviate this pressure.
New Technologies Enable Small Aircraft Transportation System to Dramatically Expand
The Research 2.0 report affirms that only 660 of the approximately 5,400 public use landing facilities are used for scheduled air carrier flights as part of the standard commercial hub-and-spoke network system. Most of the other 4,800 facilities are utilized substantially below capacity. According to NASA, 93% of the U.S. population lives within a 30-minute drive of a SATS-type airport, while only 22% reside within the same distance of a major or hub airport. A NASA-sponsored five-year public private sector research project has shown that enabling technologies can support SATS's mission of providing a "safe travel alternative, freeing people and products from existing transportation system delays by creating access to more communities in less time."
Very Light Jets Offer Unique Advantages Over Existing Air Travel Options
The principal technological breakthrough behind the VLJ is a newly developed small, compact, lightweight jet engine with sufficient thrust force to propel the aircraft. VLJs are defined by several general specification factors, including a maximum passenger plus pilot capacity of seven, a maximum take-off weight below 10,000 pounds, acquisition cost of $1.2 million to $3.7 million and the performance capability to operate on runways approximately 3,000 feet long. Their maximum flight range is usually around 1,700 nautical miles. Fuel and maintenance direct operating costs for VLJs average $0.70 to $1.50 per mile. The report finds that VLJ manufacturers include a mix of new entry start-ups and traditional aerospace industry names. Forecasts for VLJ unit sales over the next decade vary considerably from 2,500 to a high of 8,000 or market sales of $6 billion to $20 billion.
Air Taxi Market Predicted to Create New Demand with Fresh Value Proposition
According to Research 2.0's analysis, with the emergence of VLJ air taxi operators, true on-demand personal air transportation can become economically feasible on a broad scale. These services will drive growth of the air taxi market, which historically has been more like the charter model. On-demand air taxi services, like traditional automobile taxis, provide one-way point-to-point personal transportation immediately upon request. These aircrafts operate between landing facilities or near traveler destination locations, thus delivering value and flexibility not possible with the traditional (scheduled) airlines.
The report finds that the market size for these services is an estimated $2 billion to $7 billion annually. Most new technology air taxi services are start-up operations financed through private equity sources and founded by individuals well known for previous leadership roles in IT, traditional air transportation, aerospace and finance.
"According to our research, on-demand taxi services and VLJs will create a new dynamic within the existing air travel industry," said Kris Tuttle, founder and senior analyst of Research 2.0. "For example, if 10% of travelers that use major metropolitan airports on a given day shift to more conveniently accessed small airports served by on-demand air taxis, the impact would be extraordinary. Beyond the airline industry, the ripple effects would inexorably alter regional economies by redefining overall travel related supply and demand patterns. These trends would likely usher in new economic development opportunities, particularly for those local areas closest to regional airports. The speed and magnitude of this prospective change will depend upon the ability of players in this personal air transportation sector to discern creative, compelling business models that clearly offer maximum quality, efficiency and customer responsiveness."
The On-Demand Air Travel report is available to Research 2.0 subscribers and via other outlets. For more information, visit www.research2zero.com.
Source: Research 2.0
Wednesday September 19, 11:30 am ET
Low-cost, High-performance Jets to Greatly Expand Use of Municipal Airports; Offer Relief to Overburdened National Airspace System
BOSTON--(BUSINESS WIRE)--Research 2.0, a research firm that specializes in the analysis of emerging technology for the investment and business communities, today revealed findings from its new report focused on the impact of very light jets (VLJ) and on-demand VLJ air taxi services.
The report covers the growth of the VLJ services market, the predicted expansion of the Small Aircraft Transportation System (SATS) to local communities nationwide and the NASA-inspired technology that is enabling a potential seismic paradigm shift in air travel. The report also covers VLJ manufacturers, competition, manufacturing, regulatory, environmental and other issues specific to this new emerging market.
Summary of September 2007 Report Findings
VLJ Air Taxis Predicted to Relieve Overburdened Commercial Industry
Commercial airline traffic is predicted to see sustained annual growth over the next two decades, pressuring a lagging air traffic control infrastructure. VLJ air taxi services and increased utilization of hundreds of idle secondary landing facilities can substantially alleviate this pressure.
New Technologies Enable Small Aircraft Transportation System to Dramatically Expand
The Research 2.0 report affirms that only 660 of the approximately 5,400 public use landing facilities are used for scheduled air carrier flights as part of the standard commercial hub-and-spoke network system. Most of the other 4,800 facilities are utilized substantially below capacity. According to NASA, 93% of the U.S. population lives within a 30-minute drive of a SATS-type airport, while only 22% reside within the same distance of a major or hub airport. A NASA-sponsored five-year public private sector research project has shown that enabling technologies can support SATS's mission of providing a "safe travel alternative, freeing people and products from existing transportation system delays by creating access to more communities in less time."
Very Light Jets Offer Unique Advantages Over Existing Air Travel Options
The principal technological breakthrough behind the VLJ is a newly developed small, compact, lightweight jet engine with sufficient thrust force to propel the aircraft. VLJs are defined by several general specification factors, including a maximum passenger plus pilot capacity of seven, a maximum take-off weight below 10,000 pounds, acquisition cost of $1.2 million to $3.7 million and the performance capability to operate on runways approximately 3,000 feet long. Their maximum flight range is usually around 1,700 nautical miles. Fuel and maintenance direct operating costs for VLJs average $0.70 to $1.50 per mile. The report finds that VLJ manufacturers include a mix of new entry start-ups and traditional aerospace industry names. Forecasts for VLJ unit sales over the next decade vary considerably from 2,500 to a high of 8,000 or market sales of $6 billion to $20 billion.
Air Taxi Market Predicted to Create New Demand with Fresh Value Proposition
According to Research 2.0's analysis, with the emergence of VLJ air taxi operators, true on-demand personal air transportation can become economically feasible on a broad scale. These services will drive growth of the air taxi market, which historically has been more like the charter model. On-demand air taxi services, like traditional automobile taxis, provide one-way point-to-point personal transportation immediately upon request. These aircrafts operate between landing facilities or near traveler destination locations, thus delivering value and flexibility not possible with the traditional (scheduled) airlines.
The report finds that the market size for these services is an estimated $2 billion to $7 billion annually. Most new technology air taxi services are start-up operations financed through private equity sources and founded by individuals well known for previous leadership roles in IT, traditional air transportation, aerospace and finance.
"According to our research, on-demand taxi services and VLJs will create a new dynamic within the existing air travel industry," said Kris Tuttle, founder and senior analyst of Research 2.0. "For example, if 10% of travelers that use major metropolitan airports on a given day shift to more conveniently accessed small airports served by on-demand air taxis, the impact would be extraordinary. Beyond the airline industry, the ripple effects would inexorably alter regional economies by redefining overall travel related supply and demand patterns. These trends would likely usher in new economic development opportunities, particularly for those local areas closest to regional airports. The speed and magnitude of this prospective change will depend upon the ability of players in this personal air transportation sector to discern creative, compelling business models that clearly offer maximum quality, efficiency and customer responsiveness."
The On-Demand Air Travel report is available to Research 2.0 subscribers and via other outlets. For more information, visit www.research2zero.com.
Monday, September 17, 2007
VLJ Market Looking Brighter, According to Analyst
A European company that has studied the emerging very light jet market says it's painting a rosier outlook for the sector than it has in the past but there are more caveats than a law library in his assessment. Phillip Butterworth-Hayes, of PMI Media, told AVweb Sunday in a podcast interview to be released on Friday that interest in VLJs seems to be sustained and new market possibilities are opening up but (and there are several of them) the next 12 months will likely be the harbinger of things to come, especially in the air taxi business." A lot will depend on just how robust the aircraft are," Butterworth-Hayes, author of the report, said. He said they're going to be called upon to fly far more hours in more rugged conditions than business jets are normally flown and many are far less expensive than the low-end business jets.
He said the other significant factor will be the world economy. Traditionally, companies buy jets when times are good. He said all indicators point to a downturn and that will likely mean the red-hot market for jets will soften. Butterworth-Hayes maintains that the models most likely to fly out of the uncertainty and market saturation that's looming will come from companies that already build, certify and support fleets of jets.
He said the other significant factor will be the world economy. Traditionally, companies buy jets when times are good. He said all indicators point to a downturn and that will likely mean the red-hot market for jets will soften. Butterworth-Hayes maintains that the models most likely to fly out of the uncertainty and market saturation that's looming will come from companies that already build, certify and support fleets of jets.
Friday, September 14, 2007
Eclipse Aviation Opens Customer Training Center At AEG
Company Hopes To Have Four Full-Motion Sims In Place By End Of '08
Eclipse Aviation held a grand opening ceremony Thursday morning for its Customer Training Center, the company's first facility at Double Eagle II Airport (KAEG) in Albuquerque, NM.
Eclipse tells ANN it has committed to an extensive pilot training curriculum that will prepare customers for real world operations of their Eclipse 500s and says the new facility will help the company to deliver its training program.
Eclipse 500 customers will receive all of their classroom and simulator training in this building including the type rating course and recurrent training. The 41,500 square foot two-story facility will accommodate four simulators, four classrooms and eight briefing rooms.
The first Flight Training Device (FTD) has already been installed in the Center, and Eclipse says it will be used to train Eclipse 500 pilots shortly. An additional full motion simulator is expected to be certified and operational in the coming months, with the goal of four full motion simulators operational by the end of 2008.
Once the full complement of full motion sims is operational, Eclipse 500 pilot training will transition from the current in-aircraft training to full motion simulator training.
"Since arriving in Albuquerque seven years ago, we have always planned to grow at the Double Eagle II airport. This Customer Training Center is the first step in our commitment to create an Eclipse Aviation campus and help grow the city’s planned Aerospace Technology Park at this airport," said Vern Raburn, president and CEO of Eclipse Aviation. "This new facility also shows our dedication to providing our customers with the ultimate training experience. We have an excellent flight training program, and we are extremely excited to start training our customers using the flight training device and the full motion simulators in this new state-of-the-art facility."
The Center is located on 3.5 acres of Eclipse Aviation’s 150-acre tract, which borders the northern boundary of Albuquerque’s Aerospace Technology Park at Double Eagle II airport. In the coming weeks, training personnel will start moving their offices to the facility. The company plans to employ approximately 100 people at the Center when it is in full operation.
Eclipse Aviation held a grand opening ceremony Thursday morning for its Customer Training Center, the company's first facility at Double Eagle II Airport (KAEG) in Albuquerque, NM.
Eclipse tells ANN it has committed to an extensive pilot training curriculum that will prepare customers for real world operations of their Eclipse 500s and says the new facility will help the company to deliver its training program.
Eclipse 500 customers will receive all of their classroom and simulator training in this building including the type rating course and recurrent training. The 41,500 square foot two-story facility will accommodate four simulators, four classrooms and eight briefing rooms.
The first Flight Training Device (FTD) has already been installed in the Center, and Eclipse says it will be used to train Eclipse 500 pilots shortly. An additional full motion simulator is expected to be certified and operational in the coming months, with the goal of four full motion simulators operational by the end of 2008.
Once the full complement of full motion sims is operational, Eclipse 500 pilot training will transition from the current in-aircraft training to full motion simulator training.
"Since arriving in Albuquerque seven years ago, we have always planned to grow at the Double Eagle II airport. This Customer Training Center is the first step in our commitment to create an Eclipse Aviation campus and help grow the city’s planned Aerospace Technology Park at this airport," said Vern Raburn, president and CEO of Eclipse Aviation. "This new facility also shows our dedication to providing our customers with the ultimate training experience. We have an excellent flight training program, and we are extremely excited to start training our customers using the flight training device and the full motion simulators in this new state-of-the-art facility."
The Center is located on 3.5 acres of Eclipse Aviation’s 150-acre tract, which borders the northern boundary of Albuquerque’s Aerospace Technology Park at Double Eagle II airport. In the coming weeks, training personnel will start moving their offices to the facility. The company plans to employ approximately 100 people at the Center when it is in full operation.
Thursday, September 13, 2007
Pogo files IPO
Pogo Jet files for $103.5 million IPO
Thu Sep 13, 2007 3:36pm EDT
WASHINGTON, Sept 13 (Reuters) - Pogo Jet Inc. filed with regulators on Thursday to raise up to $103.5 million in an initial public offering of common stock.
The provider of private on-demand jet charter service said in a registration statement with the U.S. Securities and Exchange Commission that WR Hambrecht & Co. would underwrite the IPO.
Pogo Jet said it plans to list its stock on the Nasdaq under the symbol "POGO" (POGO.O: Quote, Profile, Research). (Reporting by Karey Wutkowski)
Thu Sep 13, 2007 3:36pm EDT
WASHINGTON, Sept 13 (Reuters) - Pogo Jet Inc. filed with regulators on Thursday to raise up to $103.5 million in an initial public offering of common stock.
The provider of private on-demand jet charter service said in a registration statement with the U.S. Securities and Exchange Commission that WR Hambrecht & Co. would underwrite the IPO.
Pogo Jet said it plans to list its stock on the Nasdaq under the symbol "POGO" (POGO.O: Quote, Profile, Research). (Reporting by Karey Wutkowski)
Thursday, September 6, 2007
Waypoint launches new website
Waypoint Corporation is entering the air taxi market with an innovative new service offering that will fundamentally change the nature of regional air travel. Waypoint will provide safe and affordable “point-to-point, on-demand, per-aircraft” regional travel using Very Light Jet (VLJ) aircraft, with pricing comparable to a full-fare airline coach ticket …and at half the cost of traditional charter. Visit www.FlyWaypoint.com or contact us at Info@FlyWaypoint.com for more information and investment opportunities.
Monday, August 20, 2007
Eclipse Completes First Revenue Flight
North American Jet Charter became the first air taxi operator to put the Eclipse 500 very light jet to its much-anticipated use as a point-to-point charter aircraft. According to CharterX, a charter industry Web site, North American Jet CEO Ken Ross flew as pilot in command on the round trip from Chicago to Baltimore with two passengers on board on Friday. As we reported Thursday, North American was also the first to receive Part 135 approval to use the Eclipse in commercial service, a distinction that many in the industry assumed would go to DayJet, a Florida-based air taxi company that is also Eclipse's biggest customer. Eclipse was uncharacteristically quiet about North American's achievement, which, after all, was the culmination of eight years of work by the start-up manufacturer and its founder Vern Raburn. Eclipse usually chronicles its achievements with a wide distribution of press releases and photos but, to the best of our knowledge, there was no such effort on this milestone. An e-mail request for comment from Eclipse was not answered by press time.
Thursday, August 16, 2007
Chicago Firm First with Part 135 Eclipse VLJ
North American Jet Charter Group at Chicago Executive Airport in Wheeling, Ill., on Tuesday received FAA approval as the first U.S. Part 135 very light jet (VLJ) operator using an Eclipse 500. Operations are expected to begin Wednesday under the company moniker “Q,” for Quintessential Traveler service that offers an air limo at half the traditional charter rate, according to North American Jet. "Today begins a new chapter in aviation history," said North American Jet Charter Group President Ken Ross. "With the operating efficiency of a VLJ like the Eclipse, the flexibility and productivity benefits previously available only to company presidents and CEOs are now available to virtually any business traveler." Pricing has initially been based on one-way fares with no daily minimums for aircraft usage or overnight charges. North American Jet claims that up to three travelers will enjoy all the benefits of first-class travel on their Eclipse 500s for about the same rate as a one-way first-class airline ticket. Q service will eventually be expanded to offer a wide range of travel services from ground travel to lodging and entertainment venues. North American Jet expects its Eclipse 500 fleet to expand to more than six of the VLJs by year-end, with projected growth to more than 20 aircraft by the end of next year.
Monday, August 13, 2007
Bureacracy Ready for VLJs
While we still don’t know just how the alleged onslaught of very light jets (VLJs), personal jets and family jets will affect aviation as a whole, the FAA appears to be among those who believe the impact will be huge. If you've noticed that VLJs seem to figure in just about every FAA news release on airspace and new technology, there’s a good reason. It’s called the FAA VLJ Cross Organizational Group and it has representation from no fewer than 35 agency departments, all of which believe that VLJs will affect their particular bailiwick. "We started brainstorming, identifying issues that could possibly arise, and looking at what we could do as an agency to [promote safety] while ensuring the smooth entry of these type aircraft into service," Mary Pat Baxter, who heads up the group, told FocusFAA, the agency’s internal newsletter. The diverse interests meet in person and by teleconference about every six weeks, and Baxter says it has put the agency in a better position to handle the little jets when they start showing up in significant numbers. Among the projects underway now is evaluating DayJet's introduction of the Eclipse 500 to the air taxi business that some believe will be the foundation of the VLJ market. "With this, we're going to have Air Traffic involved, so they can actually see how this operation is going to roll out -- before it starts -- so they can work out any kinks," Baxter said. Her group has also become the go-to organization for agency officials who have to speak to Congress or auditing organizations about VLJ-related issues. "If Congress needs a briefing, or somebody's going up to the Hill from our agency, we make up the briefing papers," Baxter said
Tuesday, August 7, 2007
Forbes Magazine - Aug. 13, 07 DAYJET
Companies, People, IdeasA Bus In The CloudsMark Tatge 08.13.07
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Ed Iacobucci's DayJet wants to push private jet service beyond fat cats to serve the middle class. Flights on demand and fewer hassles, at the price of full-fare coach or less.
Edward Iacobucci is a renegade. In the 1990s the ex-IBM software engineer created software to let many computers share a single application, founding Citrix Systems (nasdaq: CTXS - news - people ) and sparking a new generation of client-server apps. Seven years ago he quit Citrix and went into seclusion. Since then he has spent five years sequestered inside a dingy bank building in Delray Beach, Fla., eating bad takeout and plotting his next challenge.
Iacobucci, 53, wants to rock the world of private jets and commercial air travel. His new company, DayJet, is set to start flights in late August, offering an affordable, on-demand airborne shuttle service to white-collar professionals weary of the airlines' overnight-stay requirements, incessant delays and security hassles. "I like shaking things up. DayJet is a constructive form of rebelliousness," he says. "You might think I am crazy, but I Iike doing things that seem impossible."
He vows to have 30 to 40 aircraft and 170 pilots serving up to 10 stops in Florida and Georgia by year-end. DayJet aims to have 60 planes, 275 pilots and 15 destinations across the Southeast 12 months after it starts flying. Two years out Iacobucci hopes to have 300 jets ferrying 2,700 people daily among 70 cities across the Southeast.
To bankroll this expansionism, he has raised $68 million, much of it from hedge funds, private equity firms and individuals; $10 million of it came from his own bank account. He is lining up more than $100 million in debt to start the fleet. He and his wife, Nancy Lee Iacobucci, own just over 20%.
Some detractors, however, question the rosy forecast Iacobucci is peddling and say DayJet will run up huge losses. "He is greatly underestimating the risks," says Vaughn Cordle of AirlineForecasts, a consulting firm. "It's going to take a lot of money, and even when he gets to a very large scale, he may not have a viable business model." Richard Aboulafia, an aviation analyst with Teal Group, adds: "There's an awful lot here that doesn't make sense. The one thing that is certain is that this is going to lose a lot of money."
For years upstarts have tried to launch short-hop air taxis, but they have found little success. American Airlines (nyse: AMR - news - people )' retired chief, Robert Crandall, formed Pogo Jet three years ago (see " Sky Kings," FORBES, Aug. 16, 2004) with Donald Burr, who had run now defunct People Express in the 1980s. That effort remains embryonic. So far no one comes close to what Iacobucci proposes.
DayJet isn't an airline outright--it has no regularly scheduled flights, and you can order up a trip as late as four hours before takeoff. But DayJet isn't really a charter, either: Individual seats are sold, and renting an entire plane will be a rarity. A dozen Eclipse Aviation planes--lightweight, five-seat turbofan jets--soon will begin ferrying passengers in short hops among five backwater cities in Florida, including Tallahassee, Gainesville and Pensacola. The trips, taking an hour or less to cover 350 to 600 miles, will cost $700 to $1,200 a seat, on par with full-fare coach but sans long lines and crowded terminals. DayJet will use sleepy airfields outside major cities.
A total of 800 travelers have signed up to become members of DayJet, agreeing to pay a $250 fee to "join" the carrier. Only members can order DayJet flights once the site opens for business. In addition to wooing weary commercial fliers, Iacobucci will target drivers--business travelers who make frequent trips of several hundred miles in their cars. Getting from Boca Raton to Pensacola requires a backbreaking nine hours behind the wheel (635 miles), while most flights require a change of plane in Atlanta. DayJet could cut that to two hours tops.
Iacobucci counts 52 million business trips in the Southeast and says only 15% of these trips are made by plane. His target customers spend $500 to $1,000 for one day of travel, without an overnight stay. The rest are car trips, and the drivers are college-educated salesmen, accountants, consultants and managers, whose average age is 42 and whose average income is $100,000 a year. He argues he can turn a profit if he can fly 30 jets carrying 150 passengers daily. On a 300-mile flight he'll need to collect $780 in revenues to break even.
DayJet has ordered 700 planes, $1 billion worth, with an option for 700 more, in a new class of aircraft manufactured by Eclipse Aviation, called very light jets, or VLJs. He plans to marry the technical advances of Eclipse with complex logistical software that will manage DayJet's passenger flow, moving empty jets to where they are needed most.
The Eclipse jet is the first VLJ to be certified by the FAA. It costs $1.5 million and $425 an hour to run, burning 55 gallons of fuel per hour; by contrast, an eight-passenger Learjet costs $11.5 million plus $1,424 per hour to fly, burning 180 gallons an hour.
That is because the Eclipse weighs only 3 tons, roughly the scale of a sport utility vehicle; several adults can push it into a hangar. It seats three passengers and two pilots, with room for luggage (but no toilet). Its ability to land on and take off from shorter airstrips makes it ideal for secondary, uncongested airfields. "Florida is filled with these airports," Iacobucci says. So is much of the U.S. The FAA counts 5,000 small general aviation airports, and most see a handful of flights a day.
A short drive from Iacobucci's office in Delray Beach, an Eclipse, newly painted with the DayJet logo's blue-and-yellow stripes, purrs on the tarmac, awaiting passengers. Pratt & Whitney engines not much bigger than a pair of toaster ovens hang on the back of the fuselage. Iacobucci lumbers up the tiny stairs and ducks inside, his curly salt-and-pepper hair poking out from under a dusty Eclipse Aviation cap.
"If you normally fly a Gulfstream, you won't like this," he says, hunching beneath low headroom. Inside, the cabin is roomy and comfortable--so long as you stay seated. The door closes and moments later Iacobucci surfs the clouds 5,000 feet above Florida's Atlantic coastline (top altitude is 41,000 feet).
Back at DayJet mission control in Delray Beach, programmers feed thousands of simulations into a bank of computers that search for any holes in millions of interlocking flight plans, aiming to plug them before they occur. As customers book flights online, the system forwards electronic flight plans to DayJet pilots, who will carry tablet PCs.
Iacobucci spent years developing the software, hiring programmers who'd worked for the Soviet Union's space program in the Cold War. "The reasons the Russians are so good at algorithms is because their computers were so crummy," he says. "We have some very smart people working here."
But will their math work? DayJet expects revenue of $111 million after its first full year and an operating loss of $15 million, it says in a June 2006 prospectus. The average fare would be $859 for a 291-mile trip. Iacobucci says DayJet needs 1.3 passengers generating revenues of $2 per mile flown to break even.
But consultants who have seen Eclipse's business plan say DayJet's costs will likely be three times as high--more like $2,400 per flight, given labor and pilot costs. "People say a lot of stuff--I don't know where they get their data," Iacobucci counters. DayJet also must minimize empty return trips (deadheading). Most small operators fly up to half of their trips without revenue to position aircraft; DayJet aims for 10% to 20%.
The bigger question is whether the air taxi market is big enough. "Once we launch we will know if the dogs are going to eat the dog food. I am just as skeptical as anyone else," he says. "Just about everyone is watching us and wondering if we are going to make it."
.
Ed Iacobucci's DayJet wants to push private jet service beyond fat cats to serve the middle class. Flights on demand and fewer hassles, at the price of full-fare coach or less.
Edward Iacobucci is a renegade. In the 1990s the ex-IBM software engineer created software to let many computers share a single application, founding Citrix Systems (nasdaq: CTXS - news - people ) and sparking a new generation of client-server apps. Seven years ago he quit Citrix and went into seclusion. Since then he has spent five years sequestered inside a dingy bank building in Delray Beach, Fla., eating bad takeout and plotting his next challenge.
Iacobucci, 53, wants to rock the world of private jets and commercial air travel. His new company, DayJet, is set to start flights in late August, offering an affordable, on-demand airborne shuttle service to white-collar professionals weary of the airlines' overnight-stay requirements, incessant delays and security hassles. "I like shaking things up. DayJet is a constructive form of rebelliousness," he says. "You might think I am crazy, but I Iike doing things that seem impossible."
He vows to have 30 to 40 aircraft and 170 pilots serving up to 10 stops in Florida and Georgia by year-end. DayJet aims to have 60 planes, 275 pilots and 15 destinations across the Southeast 12 months after it starts flying. Two years out Iacobucci hopes to have 300 jets ferrying 2,700 people daily among 70 cities across the Southeast.
To bankroll this expansionism, he has raised $68 million, much of it from hedge funds, private equity firms and individuals; $10 million of it came from his own bank account. He is lining up more than $100 million in debt to start the fleet. He and his wife, Nancy Lee Iacobucci, own just over 20%.
Some detractors, however, question the rosy forecast Iacobucci is peddling and say DayJet will run up huge losses. "He is greatly underestimating the risks," says Vaughn Cordle of AirlineForecasts, a consulting firm. "It's going to take a lot of money, and even when he gets to a very large scale, he may not have a viable business model." Richard Aboulafia, an aviation analyst with Teal Group, adds: "There's an awful lot here that doesn't make sense. The one thing that is certain is that this is going to lose a lot of money."
For years upstarts have tried to launch short-hop air taxis, but they have found little success. American Airlines (nyse: AMR - news - people )' retired chief, Robert Crandall, formed Pogo Jet three years ago (see " Sky Kings," FORBES, Aug. 16, 2004) with Donald Burr, who had run now defunct People Express in the 1980s. That effort remains embryonic. So far no one comes close to what Iacobucci proposes.
DayJet isn't an airline outright--it has no regularly scheduled flights, and you can order up a trip as late as four hours before takeoff. But DayJet isn't really a charter, either: Individual seats are sold, and renting an entire plane will be a rarity. A dozen Eclipse Aviation planes--lightweight, five-seat turbofan jets--soon will begin ferrying passengers in short hops among five backwater cities in Florida, including Tallahassee, Gainesville and Pensacola. The trips, taking an hour or less to cover 350 to 600 miles, will cost $700 to $1,200 a seat, on par with full-fare coach but sans long lines and crowded terminals. DayJet will use sleepy airfields outside major cities.
A total of 800 travelers have signed up to become members of DayJet, agreeing to pay a $250 fee to "join" the carrier. Only members can order DayJet flights once the site opens for business. In addition to wooing weary commercial fliers, Iacobucci will target drivers--business travelers who make frequent trips of several hundred miles in their cars. Getting from Boca Raton to Pensacola requires a backbreaking nine hours behind the wheel (635 miles), while most flights require a change of plane in Atlanta. DayJet could cut that to two hours tops.
Iacobucci counts 52 million business trips in the Southeast and says only 15% of these trips are made by plane. His target customers spend $500 to $1,000 for one day of travel, without an overnight stay. The rest are car trips, and the drivers are college-educated salesmen, accountants, consultants and managers, whose average age is 42 and whose average income is $100,000 a year. He argues he can turn a profit if he can fly 30 jets carrying 150 passengers daily. On a 300-mile flight he'll need to collect $780 in revenues to break even.
DayJet has ordered 700 planes, $1 billion worth, with an option for 700 more, in a new class of aircraft manufactured by Eclipse Aviation, called very light jets, or VLJs. He plans to marry the technical advances of Eclipse with complex logistical software that will manage DayJet's passenger flow, moving empty jets to where they are needed most.
The Eclipse jet is the first VLJ to be certified by the FAA. It costs $1.5 million and $425 an hour to run, burning 55 gallons of fuel per hour; by contrast, an eight-passenger Learjet costs $11.5 million plus $1,424 per hour to fly, burning 180 gallons an hour.
That is because the Eclipse weighs only 3 tons, roughly the scale of a sport utility vehicle; several adults can push it into a hangar. It seats three passengers and two pilots, with room for luggage (but no toilet). Its ability to land on and take off from shorter airstrips makes it ideal for secondary, uncongested airfields. "Florida is filled with these airports," Iacobucci says. So is much of the U.S. The FAA counts 5,000 small general aviation airports, and most see a handful of flights a day.
A short drive from Iacobucci's office in Delray Beach, an Eclipse, newly painted with the DayJet logo's blue-and-yellow stripes, purrs on the tarmac, awaiting passengers. Pratt & Whitney engines not much bigger than a pair of toaster ovens hang on the back of the fuselage. Iacobucci lumbers up the tiny stairs and ducks inside, his curly salt-and-pepper hair poking out from under a dusty Eclipse Aviation cap.
"If you normally fly a Gulfstream, you won't like this," he says, hunching beneath low headroom. Inside, the cabin is roomy and comfortable--so long as you stay seated. The door closes and moments later Iacobucci surfs the clouds 5,000 feet above Florida's Atlantic coastline (top altitude is 41,000 feet).
Back at DayJet mission control in Delray Beach, programmers feed thousands of simulations into a bank of computers that search for any holes in millions of interlocking flight plans, aiming to plug them before they occur. As customers book flights online, the system forwards electronic flight plans to DayJet pilots, who will carry tablet PCs.
Iacobucci spent years developing the software, hiring programmers who'd worked for the Soviet Union's space program in the Cold War. "The reasons the Russians are so good at algorithms is because their computers were so crummy," he says. "We have some very smart people working here."
But will their math work? DayJet expects revenue of $111 million after its first full year and an operating loss of $15 million, it says in a June 2006 prospectus. The average fare would be $859 for a 291-mile trip. Iacobucci says DayJet needs 1.3 passengers generating revenues of $2 per mile flown to break even.
But consultants who have seen Eclipse's business plan say DayJet's costs will likely be three times as high--more like $2,400 per flight, given labor and pilot costs. "People say a lot of stuff--I don't know where they get their data," Iacobucci counters. DayJet also must minimize empty return trips (deadheading). Most small operators fly up to half of their trips without revenue to position aircraft; DayJet aims for 10% to 20%.
The bigger question is whether the air taxi market is big enough. "Once we launch we will know if the dogs are going to eat the dog food. I am just as skeptical as anyone else," he says. "Just about everyone is watching us and wondering if we are going to make it."
Monday, July 30, 2007
Wall Street Journal -Linear Air announces lease deal
Lease Deal Helps Plane Expansion Take Off
By SIMONA COVELJuly 30, 2007; Page B4
William Herp needed several million dollars last year to expand his jet-taxi company. He wanted to buy a fleet of a new kind of small jet -- one that would transport businesspeople visiting clients, like a car service with wings.
With airports overflowing with weary travelers and interest in private planes on the rise, Mr. Herp believed the new jets' speed and access to smaller regional airports would lure small groups of business travelers and families who may have never chartered a plane. Instead of paying by the seat, groups could rent the planes by the hour.
But a new kind of jet for a new kind of business -- banks "would never touch it," says the president and chief executive of Concord, Mass.-based Linear Air, which was founded in 2004.
Lease With a Twist
So he began courting wealthy individuals to help finance his idea. His pitch: Buy the small planes -- classified as very light jets -- and lease them to Linear Air. The buyers would receive income from the lease and a sizable tax benefit from the plane's depreciation, plus the ego boost from saying they own a jet. Linear Air, in turn, would have access to the planes without taking on high-interest loans. And the planes' owners would likely become repeat paying customers.
While most small companies don't need to buy $1.7 million jets, Linear Air's solution, a twist on a sale-leaseback arrangement, could work for entrepreneurs who need capital but don't want to sell equity or take on debt.
Leasing, says Murray Low, an associate professor at Columbia Business School and the director of Columbia's Eugene M. Lang Center for Entrepreneurship, is a form of financing "entrepreneurs probably don't use enough. It's relatively low-cost financing without tying up the rest of the balance sheet."
Mr. Herp, 44, a former chief financial officer of a public company and a recreational pilot, knew the risks associated with buying planes -- expensive products that depreciate quickly. And he knew individuals would be more likely to take this kind of risk than most bankers, because banks prefer to lend to firms with a track record of success. Recent widespread troubles among traditional airlines have rendered bankers even more hesitant to finance a new kind of plane and a new kind of operation.
Linear Air, with 40 employees and $2.3 million in revenue last year, has six Cessna Caravans -- three leased and three that it owns. But Mr. Herp's dream was a fleet of very light jets. The four-passenger jet is about the same price as the Cessna but able to go farther and nearly twice as fast. Taking the plane, for example, from Boston to Elmira, N.Y., might cost $3,000. That's within reach for a group of four business travelers and less costly than a traditional charter flight.
The plan wasn't easy. The jets' manufacturer, Albuquerque, N.M., start-up Eclipse Aviation Corp., has run as much as a year behind on delivery, Mr. Herp says. And, the "air taxi" model, where planes rent by the hour, is still unproven.
Eclipse spokesman Andrew Broom says the production delays are due to normal "teething pains" for a start-up manufacturer.
"We learned from the experience buying the Caravans what criteria equipment-finance companies or banks use to lend money," Mr. Herp says, "and we realized quickly Eclipse wasn't going to meet that criteria."
Mr. Herp says several finance companies offered to lend him money to begin the purchases -- but nowhere close to the amount he needed to put down deposits on several planes. Sixty percent of the price of each plane is due six months ahead of its scheduled delivery.
"The pricing was unworkable," he says. Even with the loans, "we'd still have to go out and raise cash" by selling part of the business.
So, Mr. Herp and his investment bankers constructed a leasing arrangement. Under the agreement, wealthy individuals buy a plane from Eclipse and agree to lease it to Linear Air for a period of time. During that time, the owner gets a discount if he or she wants to use the plane and also can usually earn an accelerated depreciation write-off on his or her taxes.
Leasing is common for owners of corporate jets and other transportation equipment, says Rick Schroeder, a partner in commercial finance at law firm Davis Wright Tremaine LLP in Seattle. Typically, the owner of a corporate jet will turn to an aviation-finance company, which will buy the aircraft and lease it back to that original owner. Linear Air's arrangement is a twist on that idea. In Linear's case, the company never owned the jets but persuaded investors to buy them instead. Those investors are then required to lease the jets to Linear.
While most industries don't deal with rapidly-depreciating assets like planes, lots of small companies can avoid taking on loans by leasing some of their equipment, says Prof. Low.
In the case of Linear Air's arrangement, the jet owners are also likely customers. Prof. Low notes that tapping into a potential customer base "is one of the most attractive sources of financing." When customers help finance the business, "it makes them vested" in the company's success, he says.
A Slow Beginning
Linear Air's plan appears to be working -- slowly. While several hundred potential jet owners have requested more information about the leasing program through the firm's Web site, only two deals have been completed.
That's partly because of manufacturing delays. Eclipse planned to deliver the first jet to Linear Air in August 2006, but now the plane isn't expected to arrive until August or September of this year. Because so much money is due prior to delivery, a handful of potential buyers balked after hearing of the delays. "They take a step back. They say the timing has changed, so there's no reason to do the deal now," Mr. Herp says.
One investor who has completed a deal is Chris Covington, founder of Boston boutique investment-banking firm Covington Associates, which does work for Linear. Mr. Covington, who also is a pilot, says he was attracted by the potential investment income as well as getting priority on flights. As someone who charters planes somewhat regularly -- he's been shuttling his teenage son on college visits -- he expects to reserve the Eclipse jet as often as once a month, especially if he's traveling to a city that's hard to reach directly on a commercial flight.
Mr. Covington's plane was to be delivered in May, but is now expected in September. While the delay is "regrettable," he says, "I want them to get it right."
Write to Simona Covel at simona.covel@wsj.com
By SIMONA COVELJuly 30, 2007; Page B4
William Herp needed several million dollars last year to expand his jet-taxi company. He wanted to buy a fleet of a new kind of small jet -- one that would transport businesspeople visiting clients, like a car service with wings.
With airports overflowing with weary travelers and interest in private planes on the rise, Mr. Herp believed the new jets' speed and access to smaller regional airports would lure small groups of business travelers and families who may have never chartered a plane. Instead of paying by the seat, groups could rent the planes by the hour.
But a new kind of jet for a new kind of business -- banks "would never touch it," says the president and chief executive of Concord, Mass.-based Linear Air, which was founded in 2004.
Lease With a Twist
So he began courting wealthy individuals to help finance his idea. His pitch: Buy the small planes -- classified as very light jets -- and lease them to Linear Air. The buyers would receive income from the lease and a sizable tax benefit from the plane's depreciation, plus the ego boost from saying they own a jet. Linear Air, in turn, would have access to the planes without taking on high-interest loans. And the planes' owners would likely become repeat paying customers.
While most small companies don't need to buy $1.7 million jets, Linear Air's solution, a twist on a sale-leaseback arrangement, could work for entrepreneurs who need capital but don't want to sell equity or take on debt.
Leasing, says Murray Low, an associate professor at Columbia Business School and the director of Columbia's Eugene M. Lang Center for Entrepreneurship, is a form of financing "entrepreneurs probably don't use enough. It's relatively low-cost financing without tying up the rest of the balance sheet."
Mr. Herp, 44, a former chief financial officer of a public company and a recreational pilot, knew the risks associated with buying planes -- expensive products that depreciate quickly. And he knew individuals would be more likely to take this kind of risk than most bankers, because banks prefer to lend to firms with a track record of success. Recent widespread troubles among traditional airlines have rendered bankers even more hesitant to finance a new kind of plane and a new kind of operation.
Linear Air, with 40 employees and $2.3 million in revenue last year, has six Cessna Caravans -- three leased and three that it owns. But Mr. Herp's dream was a fleet of very light jets. The four-passenger jet is about the same price as the Cessna but able to go farther and nearly twice as fast. Taking the plane, for example, from Boston to Elmira, N.Y., might cost $3,000. That's within reach for a group of four business travelers and less costly than a traditional charter flight.
The plan wasn't easy. The jets' manufacturer, Albuquerque, N.M., start-up Eclipse Aviation Corp., has run as much as a year behind on delivery, Mr. Herp says. And, the "air taxi" model, where planes rent by the hour, is still unproven.
Eclipse spokesman Andrew Broom says the production delays are due to normal "teething pains" for a start-up manufacturer.
"We learned from the experience buying the Caravans what criteria equipment-finance companies or banks use to lend money," Mr. Herp says, "and we realized quickly Eclipse wasn't going to meet that criteria."
Mr. Herp says several finance companies offered to lend him money to begin the purchases -- but nowhere close to the amount he needed to put down deposits on several planes. Sixty percent of the price of each plane is due six months ahead of its scheduled delivery.
"The pricing was unworkable," he says. Even with the loans, "we'd still have to go out and raise cash" by selling part of the business.
So, Mr. Herp and his investment bankers constructed a leasing arrangement. Under the agreement, wealthy individuals buy a plane from Eclipse and agree to lease it to Linear Air for a period of time. During that time, the owner gets a discount if he or she wants to use the plane and also can usually earn an accelerated depreciation write-off on his or her taxes.
Leasing is common for owners of corporate jets and other transportation equipment, says Rick Schroeder, a partner in commercial finance at law firm Davis Wright Tremaine LLP in Seattle. Typically, the owner of a corporate jet will turn to an aviation-finance company, which will buy the aircraft and lease it back to that original owner. Linear Air's arrangement is a twist on that idea. In Linear's case, the company never owned the jets but persuaded investors to buy them instead. Those investors are then required to lease the jets to Linear.
While most industries don't deal with rapidly-depreciating assets like planes, lots of small companies can avoid taking on loans by leasing some of their equipment, says Prof. Low.
In the case of Linear Air's arrangement, the jet owners are also likely customers. Prof. Low notes that tapping into a potential customer base "is one of the most attractive sources of financing." When customers help finance the business, "it makes them vested" in the company's success, he says.
A Slow Beginning
Linear Air's plan appears to be working -- slowly. While several hundred potential jet owners have requested more information about the leasing program through the firm's Web site, only two deals have been completed.
That's partly because of manufacturing delays. Eclipse planned to deliver the first jet to Linear Air in August 2006, but now the plane isn't expected to arrive until August or September of this year. Because so much money is due prior to delivery, a handful of potential buyers balked after hearing of the delays. "They take a step back. They say the timing has changed, so there's no reason to do the deal now," Mr. Herp says.
One investor who has completed a deal is Chris Covington, founder of Boston boutique investment-banking firm Covington Associates, which does work for Linear. Mr. Covington, who also is a pilot, says he was attracted by the potential investment income as well as getting priority on flights. As someone who charters planes somewhat regularly -- he's been shuttling his teenage son on college visits -- he expects to reserve the Eclipse jet as often as once a month, especially if he's traveling to a city that's hard to reach directly on a commercial flight.
Mr. Covington's plane was to be delivered in May, but is now expected in September. While the delay is "regrettable," he says, "I want them to get it right."
Write to Simona Covel at simona.covel@wsj.com
Friday, July 27, 2007
Buy an Eclipse on Ebay
Eclipse 500 Update: Oh Yeah, That Other Airplane
Eclipse held its second press conference of the week at EAA AirVenture on Wednesday morning to talk about the Eclipse 500 very light jet program, but CEO Vern Raburn is clearly still enamored of his brand-new single-engine Eclipse Concept Jet. "The response to the ECJ has just been spectacular," he said, in opening the conference. "It has far, far, far exceeded our expectations." The most common reaction from pilots who climb into the cockpit of the mockup, he said, is, "They say, 'This is the airplane I always wanted.' It elicits a very emotional response. It's staggering." Raburn then went on to update the progress on the Eclipse 500 twinjet. New copies of the 500 now on the assembly line will be delivered with a new color weather radar system made by Japan Radio Company, instead of the now-former Honeywell system. The JRC system will be more accurate and more reliable, he said. Also, Raburn said S/N 00038 will be auctioned off online via eBay, and whoever places the winning bid can take the jet home the next week, as soon as they deliver the check. Bidders must place a refundable deposit of $5,000. The auction opens at July 30 at 11 a.m. and closes at 8 p.m. on August 10 (Eastern Time).
The auction will provide an opportunity to buy an Eclipse 500 without having to wait until 2009 for a delivery position. "We'll let the market decide what that could be worth," Raburn said.
Exclusive Video: Eclipse 500 Video Update with Vern Raburn
Eclipse held its second press conference of the week at EAA AirVenture on Wednesday morning to talk about the Eclipse 500 very light jet program, but CEO Vern Raburn is clearly still enamored of his brand-new single-engine Eclipse Concept Jet. "The response to the ECJ has just been spectacular," he said, in opening the conference. "It has far, far, far exceeded our expectations." The most common reaction from pilots who climb into the cockpit of the mockup, he said, is, "They say, 'This is the airplane I always wanted.' It elicits a very emotional response. It's staggering." Raburn then went on to update the progress on the Eclipse 500 twinjet. New copies of the 500 now on the assembly line will be delivered with a new color weather radar system made by Japan Radio Company, instead of the now-former Honeywell system. The JRC system will be more accurate and more reliable, he said. Also, Raburn said S/N 00038 will be auctioned off online via eBay, and whoever places the winning bid can take the jet home the next week, as soon as they deliver the check. Bidders must place a refundable deposit of $5,000. The auction opens at July 30 at 11 a.m. and closes at 8 p.m. on August 10 (Eastern Time).
The auction will provide an opportunity to buy an Eclipse 500 without having to wait until 2009 for a delivery position. "We'll let the market decide what that could be worth," Raburn said.
Exclusive Video: Eclipse 500 Video Update with Vern Raburn
Phenom's first flight
Embraer's Phenomenal First Flight
Officials from Embraer's executive jet division were all smiles at AirVenture when they received word that the Phenom 100 very light jet made a one hour 36 minute first flight in Brazil. Aircraft S/N 99801 became airborne on Thursday at 10:55 a.m. local time, piloted by Embraer test pilot Antonio Bragança Silva and Eduardo Alves Menini. "This is a key milestone for Embraer," Embraer President and CEO Frederico Fleury Curado said. "When we unveiled the Phenom jets a little more than two years ago, we asserted to the business aviation community our commitment to be a long term player in the executive aviation market. The first flight of the Phenom 100 confirms this commitment." The flight crew, accompanied by flight test engineer Marcelo Toledo Basile, checked out the aircraft’s flight characteristics and systems operations. According to Embraer executive jets vice president Luis Carlos Affonso, during the flight the Phenom 100 reached 15,000 feet and the gear remained extended, which is not at all uncommon on a maiden jaunt.
Officials from Embraer's executive jet division were all smiles at AirVenture when they received word that the Phenom 100 very light jet made a one hour 36 minute first flight in Brazil. Aircraft S/N 99801 became airborne on Thursday at 10:55 a.m. local time, piloted by Embraer test pilot Antonio Bragança Silva and Eduardo Alves Menini. "This is a key milestone for Embraer," Embraer President and CEO Frederico Fleury Curado said. "When we unveiled the Phenom jets a little more than two years ago, we asserted to the business aviation community our commitment to be a long term player in the executive aviation market. The first flight of the Phenom 100 confirms this commitment." The flight crew, accompanied by flight test engineer Marcelo Toledo Basile, checked out the aircraft’s flight characteristics and systems operations. According to Embraer executive jets vice president Luis Carlos Affonso, during the flight the Phenom 100 reached 15,000 feet and the gear remained extended, which is not at all uncommon on a maiden jaunt.
Air taxi companies waiting in the wings
The others waiting in the air taxi rank
By Jeffrey Decker
Backers and operators of the numerous air taxi start-ups are eager for production of very light jets to accelerate so their business models can be put to the test and they can turn investment into profit.
In early July Linear Air received its first Eclipse 500, which the Massachusetts company intends to put into service immediately as the first Eclipse in air-taxi operation anywhere. “Our team couldn’t be more excited to be the first to offer the Eclipse to the travelling public,” says president and chief executive William Herp. Linear Air has another 30 on order to supplement its fleet of six eight-passenger Cessna Caravan single-turboprops.
The two latest Caravans arrived in the past three months, and their two-pilot crews operate from small airports near Boston and White Plains, New York. On 2 April operations began from Manassas, close to Washington DC’s Dulles International airport, and in June service expanded to central North Carolina. Linear also operates seasonally from San Juan, Puerto Rico, in addition to providing per-seat seasonal service to Nantucket from Boston and New York.
Since 2005, Linear has steadily expanded its service to over 500 destinations throughout Canada, the Caribbean and the north-east USA, extending down the Eastern seaboard. Within five years the company aims to have 1,000 pilots operating 300 aircraft.
While problems with pitot freezing have delayed the Eclipse’s entry into service, weather issues also contributed to the fall of Point2Point, an air taxi start-up in North Dakota. In May, founder John Boehle wrote to the city of Bismarck, announcing a restructuring due to “the inability of the airline to reliably dispatch aircraft due to inclement winter flying conditions”. He blamed delays in US icing certification for the Diamond DA42 Twin Star, which is already approved in Europe. Boehle also cited a lack of revenue.
Other potential start-ups are cautious. Pogo is planning to enter the market using Eclipses, but will not launch until the air-taxi sector is better established.
Magnum Jet is aiming for a 2008 start using the Adam A700, for which Adam touts a toilet and cabin space as its main advantages over the Eclipse.
There is no toilet on the Cirrus SR22, but that has not stopped SATSair from operating 26 of the four-seat piston singles and growing to 1,800 passengers a month from 1,000 in October last year. Vice-president Phil Quist says customers are glad to avoid major airports when they fly. “We are seeing new customers come to aviation. We continue to see new customers come into the air cab market that in the past would only drive to their meetings or vacation,” he says.
SATSair’s service area has grown to include all of Florida and reaches to Arkansas and Pennsylvania. It overlaps with the service area of Imagine Air, a smaller air-taxi service that stops midway through Florida in the south.
Haroon Qureshi, Imagine Air director of marketing and sales, says he does see other providers as competitors, but “with something like this in its infancy, with the market so huge, we really see it as helping each other out. We’re not going to be at each other’s throats for another 10 years.”
Imagine also operates SR22s, five currently, and intends to add three Eclipses, set for delivery in mid-2008. “If they perform how we like, we’ll put in a bigger order,” he says. A future Cirrus order could bring two more each month to build a total Imagine fleet of 120 aircraft in five years.
Service will expand steadily westward.The Lawrenceville, Georgia-based service launched on 10 April and booked its 100th three months later. Imagine does not always use price as a selling point. “Our pricing is competitive to the airlines on certain routes. Atlanta to Dallas, or Atlanta to California, we don’t compete with them on that. What we specialise in is saving people the hassle of the large airports by flying out of their back yard,” says Qureshi. Average passenger load has been 1.7 per flight in the three passenger seats in each Cirrus. Imagine does offer $199 specials to fill empty legs, and up to 20% off with pre-paid flight cards.
The European air taxi market, meanwhile, is estimated to be worth €1 billion($1.38 billion) annually, and interest was high at a conference on very light jets in Vienna in June. Stefan Vilner, chief executive of Dublin-based Jetbird, praised the 21 June launch of the Air Taxi Association (ATXA), saying: “We look forward to using our market leadership position with the ATXA to emphasise the importance of private air-taxi travel with the operational efficiencies of low-cost carriers.” Vilner also heads ELFAA, the low-cost carrier association in Europe. Although the company will not launch until 2009, Jetbird has orders for 100 Embraer Phenom 100s, which, its says, was selected partly because it has a lavatory on board. The service will be focused on London-Rome flights.
A deal for 180 Eclipses marked the birth of a still unnamed air taxi service that is to begin operation by the end of this year from a base in Turkey.The 120 firm orders and 60 options was placed by Eclipse’s eastern European distributor ETIRC, which is founding the service with Atasay, a luxury-goods company based in Turkey.
By Jeffrey Decker
Backers and operators of the numerous air taxi start-ups are eager for production of very light jets to accelerate so their business models can be put to the test and they can turn investment into profit.
In early July Linear Air received its first Eclipse 500, which the Massachusetts company intends to put into service immediately as the first Eclipse in air-taxi operation anywhere. “Our team couldn’t be more excited to be the first to offer the Eclipse to the travelling public,” says president and chief executive William Herp. Linear Air has another 30 on order to supplement its fleet of six eight-passenger Cessna Caravan single-turboprops.
The two latest Caravans arrived in the past three months, and their two-pilot crews operate from small airports near Boston and White Plains, New York. On 2 April operations began from Manassas, close to Washington DC’s Dulles International airport, and in June service expanded to central North Carolina. Linear also operates seasonally from San Juan, Puerto Rico, in addition to providing per-seat seasonal service to Nantucket from Boston and New York.
Since 2005, Linear has steadily expanded its service to over 500 destinations throughout Canada, the Caribbean and the north-east USA, extending down the Eastern seaboard. Within five years the company aims to have 1,000 pilots operating 300 aircraft.
While problems with pitot freezing have delayed the Eclipse’s entry into service, weather issues also contributed to the fall of Point2Point, an air taxi start-up in North Dakota. In May, founder John Boehle wrote to the city of Bismarck, announcing a restructuring due to “the inability of the airline to reliably dispatch aircraft due to inclement winter flying conditions”. He blamed delays in US icing certification for the Diamond DA42 Twin Star, which is already approved in Europe. Boehle also cited a lack of revenue.
Other potential start-ups are cautious. Pogo is planning to enter the market using Eclipses, but will not launch until the air-taxi sector is better established.
Magnum Jet is aiming for a 2008 start using the Adam A700, for which Adam touts a toilet and cabin space as its main advantages over the Eclipse.
There is no toilet on the Cirrus SR22, but that has not stopped SATSair from operating 26 of the four-seat piston singles and growing to 1,800 passengers a month from 1,000 in October last year. Vice-president Phil Quist says customers are glad to avoid major airports when they fly. “We are seeing new customers come to aviation. We continue to see new customers come into the air cab market that in the past would only drive to their meetings or vacation,” he says.
SATSair’s service area has grown to include all of Florida and reaches to Arkansas and Pennsylvania. It overlaps with the service area of Imagine Air, a smaller air-taxi service that stops midway through Florida in the south.
Haroon Qureshi, Imagine Air director of marketing and sales, says he does see other providers as competitors, but “with something like this in its infancy, with the market so huge, we really see it as helping each other out. We’re not going to be at each other’s throats for another 10 years.”
Imagine also operates SR22s, five currently, and intends to add three Eclipses, set for delivery in mid-2008. “If they perform how we like, we’ll put in a bigger order,” he says. A future Cirrus order could bring two more each month to build a total Imagine fleet of 120 aircraft in five years.
Service will expand steadily westward.The Lawrenceville, Georgia-based service launched on 10 April and booked its 100th three months later. Imagine does not always use price as a selling point. “Our pricing is competitive to the airlines on certain routes. Atlanta to Dallas, or Atlanta to California, we don’t compete with them on that. What we specialise in is saving people the hassle of the large airports by flying out of their back yard,” says Qureshi. Average passenger load has been 1.7 per flight in the three passenger seats in each Cirrus. Imagine does offer $199 specials to fill empty legs, and up to 20% off with pre-paid flight cards.
The European air taxi market, meanwhile, is estimated to be worth €1 billion($1.38 billion) annually, and interest was high at a conference on very light jets in Vienna in June. Stefan Vilner, chief executive of Dublin-based Jetbird, praised the 21 June launch of the Air Taxi Association (ATXA), saying: “We look forward to using our market leadership position with the ATXA to emphasise the importance of private air-taxi travel with the operational efficiencies of low-cost carriers.” Vilner also heads ELFAA, the low-cost carrier association in Europe. Although the company will not launch until 2009, Jetbird has orders for 100 Embraer Phenom 100s, which, its says, was selected partly because it has a lavatory on board. The service will be focused on London-Rome flights.
A deal for 180 Eclipses marked the birth of a still unnamed air taxi service that is to begin operation by the end of this year from a base in Turkey.The 120 firm orders and 60 options was placed by Eclipse’s eastern European distributor ETIRC, which is founding the service with Atasay, a luxury-goods company based in Turkey.
Tag Aviation VLJ Flying Club
Monday, July 23, 2007
TAG Aviation USA Supports VLJ Flying Club
OSHKOSH, Wis., July 23 /PRNewswire/ -- VLJ Flying Club, working with program manager
TAG Aviation USA, has accepted the first of ten Eclipse 500 Very Light Jets scheduled for delivery to the VLJ Flying Club.
VLJ Flying Club, TAG Aviation USA and the Eclipse jet are located in booth #299-300 at EAA AirVenture Oshkosh this week.
"The delivery was on June 6, and we're excited to see the arrival of this first aircraft, which is owned by the founder of the VLJ Flying Club and fully managed by TAG," said Matthew Sheble, TAG's Program Manager for the VLJ Flying Club Program. "This proof-of-concept demonstrator gives us the opportunity to show the market not only what Eclipse does to enhance business productivity and personal travel options, but also show the advantages of the TAG managed VLJ Flying Club concept."
TAG Aviation will support the VLJ Flying Club as a sales agent for Eclipse aircraft shares and as the aircraft management company providing assistance to the Owners with their FAR Part 91 operations, including aircraft scheduling, maintenance management, accounting, reporting and standards oversight.
The next VLJ Flying Club Eclipse delivery is scheduled for late 2007. As one of the world's leading business jet management organizations, TAG Aviation is among the first to manage a VLJ. The VLJ Flying Club is a collaboration between TAG Aviation USA and aviation investor Rolf Illsley.
"The Eclipse is the first of this new generation of aircraft to lower the capital investment barrier to business jet ownership," stated Illsley. "The VLJ Flying Club's combination of shared ownership and aircraft management further lowers the barrier for the business jet user."
The VLJ Flying Club is a shared ownership program operated under FAR 91 scaled to daily, rather than hourly, travel use. Each aircraft is flown under the operational control of the Owner under FAR Part 91 by a full-time, professional, two-pilot crew. Quarter share owners will have exclusive use of their aircraft for at least fifty days each year, under an equalized access scheduling system, without restriction on daily flight hours. The simplified financial structure sets a share purchase investment, monthly fees based on share size, plus daily trip and hourly flight fees. Aircraft will be based where the Owners are located.
Sheble explained, "Our research indicates the VLJ will serve both business and recreational markets. The VLJ business traveler will be regionally- focused, needing to visit several office or plant sites in as short a time as possible, on a monthly or weekly basis. The recreational traveler might have a second home that's five hours by car, but less than an hour by jet and near one of the thousands of local airports accessible to the VLJ."
Each aircraft in the VLJ Flying Club program can support a shareholder group of up to four. Owners will self schedule, providing ownership groups with a defined scheduling system as well as personal assistance with travel management and support.
Jake Cartwright, TAG Aviation USA President and CEO, continued, "VLJ Flying Club harnesses TAG's thirty years of management experience and expertise on behalf of each Owner. We've adapted our experience and expertise to provide an integrated aircraft and travel management program in a service package tailored to VLJ capabilities and economics. The VLJ Flying Club represents not only the safest and practical VLJ shared ownership program, but a great value, as well."
In additional to Sheble, the VLJ Flying Club is supported by TAG Aviation sales, operations and client services personnel on behalf of the aircraft Owners.
TAG Aviation USA Supports VLJ Flying Club
OSHKOSH, Wis., July 23 /PRNewswire/ -- VLJ Flying Club, working with program manager
TAG Aviation USA, has accepted the first of ten Eclipse 500 Very Light Jets scheduled for delivery to the VLJ Flying Club.
VLJ Flying Club, TAG Aviation USA and the Eclipse jet are located in booth #299-300 at EAA AirVenture Oshkosh this week.
"The delivery was on June 6, and we're excited to see the arrival of this first aircraft, which is owned by the founder of the VLJ Flying Club and fully managed by TAG," said Matthew Sheble, TAG's Program Manager for the VLJ Flying Club Program. "This proof-of-concept demonstrator gives us the opportunity to show the market not only what Eclipse does to enhance business productivity and personal travel options, but also show the advantages of the TAG managed VLJ Flying Club concept."
TAG Aviation will support the VLJ Flying Club as a sales agent for Eclipse aircraft shares and as the aircraft management company providing assistance to the Owners with their FAR Part 91 operations, including aircraft scheduling, maintenance management, accounting, reporting and standards oversight.
The next VLJ Flying Club Eclipse delivery is scheduled for late 2007. As one of the world's leading business jet management organizations, TAG Aviation is among the first to manage a VLJ. The VLJ Flying Club is a collaboration between TAG Aviation USA and aviation investor Rolf Illsley.
"The Eclipse is the first of this new generation of aircraft to lower the capital investment barrier to business jet ownership," stated Illsley. "The VLJ Flying Club's combination of shared ownership and aircraft management further lowers the barrier for the business jet user."
The VLJ Flying Club is a shared ownership program operated under FAR 91 scaled to daily, rather than hourly, travel use. Each aircraft is flown under the operational control of the Owner under FAR Part 91 by a full-time, professional, two-pilot crew. Quarter share owners will have exclusive use of their aircraft for at least fifty days each year, under an equalized access scheduling system, without restriction on daily flight hours. The simplified financial structure sets a share purchase investment, monthly fees based on share size, plus daily trip and hourly flight fees. Aircraft will be based where the Owners are located.
Sheble explained, "Our research indicates the VLJ will serve both business and recreational markets. The VLJ business traveler will be regionally- focused, needing to visit several office or plant sites in as short a time as possible, on a monthly or weekly basis. The recreational traveler might have a second home that's five hours by car, but less than an hour by jet and near one of the thousands of local airports accessible to the VLJ."
Each aircraft in the VLJ Flying Club program can support a shareholder group of up to four. Owners will self schedule, providing ownership groups with a defined scheduling system as well as personal assistance with travel management and support.
Jake Cartwright, TAG Aviation USA President and CEO, continued, "VLJ Flying Club harnesses TAG's thirty years of management experience and expertise on behalf of each Owner. We've adapted our experience and expertise to provide an integrated aircraft and travel management program in a service package tailored to VLJ capabilities and economics. The VLJ Flying Club represents not only the safest and practical VLJ shared ownership program, but a great value, as well."
In additional to Sheble, the VLJ Flying Club is supported by TAG Aviation sales, operations and client services personnel on behalf of the aircraft Owners.
Sunday, July 15, 2007
Eclipse news from Vern Raburn
ECLIPSE 500 UPDATE: July 6th, 2007 Update:By CEO, Vern Raburn
Things are busy at Eclipse as we continue to accelerate our manufacturing ramp and gear up for another exciting EAA AirVenture show. As always, I look forward to seeing many of you in person in Oshkosh, and to sharing the highlights of what is sure to be a very productive summer with the rest of you in the weeks ahead.
As I reflect on the first half of this year, I think about both the significant problems and very significant progress we have made. In particular I'd like to highlight the aircraft deliveries and improvements that Eclipse Aviation has made in the second quarter of 2007. I would also like to give you an update on how we are progressing on a number of other Eclipse 500 fronts.
Aircraft Manufacturing & Deliveries Since our first aircraft delivery on December 31, 2006, our primary objective has been a ramp-up to our production goals. As I have previously discussed this process proved to be far more difficult then we estimated it to be. Following the receipt of our production certificate early in the second quarter, we have spent the past few months focusing on our successful transition into a production company.
I'd like to provide a quick snapshot of our delivery progress. In the first quarter of this year, we received certificates of airworthiness and delivered four Eclipse 500s. In the second quarter we certified 26 aircraft, bringing our total for the first half of the year to 30 aircraft, and our overall total to 31. If you review the quarterly production numbers released by GAMA (General Aviation Manufactures Association) you will see that we have only reported 17 aircraft for the second quarter. GAMA uses as a measurement point the actual sale of the aircraft, not the certification of the individual aircraft. Internally we measure the final delivery and sale of the aircraft, but from a manufacturing standpoint we consider the aircraft complete when the Certificate of Airworthiness is issued. As our processes continue to improve the difference between the two points will decrease. In fact, we expect to deliver over 20 aircraft during July.
As does any manufacturer that strives for greatness, we have established internal monthly performance targets to guide our efforts. Based on the track record of deliveries highlighted above, I am happy to report that we met our target for the last two months of the second quarter.
The ramp in production throughput is a result of the tremendous improvement we have seen in our production flow. Our new vice president of manufacturing Todd Fierro - who came to us from Ford Motor Company - was instrumental in leading significant process improvements and industrial engineering efforts. That work and more has enabled increases in both production rates and quality. In fact, we are now consistently breaking our own records for cycle times and quality.
In terms of our manufacturing staff, we continue to aggressively build our team. Our manufacturing training classes at Central New Mexico Community College (CNM) are filled to maximum capacity. We have the capability to train up to 90 people in three separate classes every 12 weeks. This increase in employees has helped us boost our production hours, and we now have night shifts throughout all manufacturing plants.
We will continue to notify customers of their expected delivery dates six months prior to delivery, and update all customers on deliveries by quarter. The delivery numbers outlined in this quarterly report will also be provided to GAMA (www.gama.aero), but I wanted you - our loyal customers - to see them first.
Pitot/AOA SystemWe completed certification flight testing on the improvements to the pitot/AOA system earlier this week. The FAA testing was conducted in a humid/rainy environment in actual Instrument Meteorological Conditions (IMC) and cold soaking at altitude. Nine of the 10 test flights were conducted after subjecting the probes to a humid mist on the ground for at least one hour. All 10 flights were successfully completed without any anomalies. We have submitted the final report to the FAA and certification will follow shortly. The AD will be revised to include the installation of the modifications as a terminating action to lift the day/VFR and two pilot restrictions. Our expectation is that we will have approval to start modifications of the aircraft very shortly. The service bulletin that will allow us to begin retrofitting the fleet is written and we have the initial ship sets of parts in stock. At this time, we anticipate the in position production line cut in will begin at aircraft 65, with earlier aircraft receiving the new pitot/AOA system before delivery.
Although I'm glad to report that this problem is behind us there are lessons to be learned. The Eclipse 500 was one of the most tested aircraft to be certified in the last 20 years. We accumulated over 3,400 hours including typical operational flights using a marketing aircraft. There was extensive and thorough FAA involvement including approval of the test plans for the airdata/pitot/AOA system that resulted in an unrestricted Type Certification of the aircraft. Yet this problem was caused by fairly unique meteorological conditions that went undetected even though we did numerous tests in Texas, Florida and even the Climate Test Chamber at Eglin Air Force Base. Perhaps the fact that we live and work in a high desert environment contributed to the problem. So the fact that the problem went undetected is not the lesson, but how we as a company have responded to the problem is.
The early Citation CJs have had well over 100 service bulletins issued to correct design and reliability issues. These included very serious issues such as runaway pitch trim that caused the loss of a CJ and generated three different ADs. The point is not that CJs are bad aircraft. They are in fact great aircraft. But virtually all newly certified aircraft have had problems inherent in the design that were not discovered in the certification testing. How the company supports those aircraft when the problem is discovered is the important issue. From the time we discovered this problem to having the fix certified will be less then 3 months. In addition, we will have the fleet retrofitted in another 60 days and I have kept all of you fully informed of the problem and progress. Thus this process is part and parcel of the growth and maturing of Eclipse Aviation. And I'm proud of the company's response to this difficult issue.
Performance ImprovementsCertification flight testing is on track to be completed this week, and we are expecting certification of the performance improvements within the next couple of weeks. The final certification date will be dependent on the FAA's approval of the AFM changes and other certification documents. We have submitted 44 of the 56 documents requiring FAA approval, and 41 of these are already FAA approved. The remaining 12 documents will be submitted in the next few days. As previously announced, the new performance numbers have been met and will be reflected in an updated AFM. The FAA is required to amend the Type Certification Data Sheet within 30 days of certification completion. A service bulletin will be issued shortly after certification and aircraft retrofitting will begin. We are still on track to cut the performance modifications into the production line at aircraft 39. In fact, aircraft 39 is currently in final assembly with all of the performance modifications incorporated.
Registration Number SizeLastly, I want to update you on the change in the size of the registration number on all Eclipse 500s. As part of our type certificate data sheet that we received on September 30th of last year, the FAA approved six-inch registration numbers via note 8 on the TCDS. However, the FAA reversed that decision and is now requiring registration numbers that are as large as practical on all Eclipse 500s. Working with the FAA we have defined a maximum sized area on the tail for the placement of the N numbers. If your N number is something like N1K then the numbers will be 12 inches in height. But if your N number is something like N777WW then the height will be closer to 9.5 inches. Our plan is to paint the larger registration number on your plane when you return for the performance modifications. Beginning with aircraft #29, all Eclipse 500s are being delivered with the larger N numbers. Sincerely,
Vern RaburnPresident and CEOJuly 10th, 2007 Update:By CEO, Vern Raburn
Business
Eclipse 500 in EuropeI want to start with a quick update on our recent travels in Europe. We essentially launched the Eclipse 500 in Europe with a three month marketing tour flying N505EA across the Atlantic in April. This aircraft went to Europe with all the performance improvement modifications and has consistently demonstrated all of our projected performance in every flight regime. This trip confirmed our expectations, there is unprecedented interest the Eclipse 500 in other parts of the world. We have now introduced N505EA to audiences in Germany, France, Switzerland, and the UK - and the response has been overwhelmingly positive. Most recently at EBACE, we announced that we have successfully closed Europe's largest VLJ aircraft order for 180 aircraft. The next stop for the Eclipse 500 is Italy before returning home to re-enter the flight test program to support Avio NG efforts. I look forward to sharing a more comprehensive review of our European tour in the coming weeks,
TrainingThe first Flight Training Device (FTD) has been certified by the FAA and we are currently planning its installation in Albuquerque to start customer training in simulators. This training will begin with the opening of our new training facility at Double Eagle II Airport which is scheduled for late July. This nearly 42,000 square-foot facility will be the first building on our campus on the West Side of Albuquerque, which will become our permanent home within the next few years.
Rightfully so, our early customers are very concerned with the wait between aircraft delivery and the start of their training - so are we! Unfortunately, we did not adequately plan our staffing levels and have thus fallen behind schedule. Frankly, the miscalculation occurred in the number of FAA employees and company pilots that have been required to obtain type ratings. The much larger number has resulted in an unplanned utilization of training slots that would have been used for customer training. There was no choice in the order of who was trained since all the FAA and company pilots needed to be trained before we could start the customer training program. In an effort to accelerate pilot training and make up for this delay, we are aggressively hiring more instructors and finding ways to increase throughput. We have recently contracted with an experienced ground school training partner (Global Jet Services, our maintenance training partner) to assist this portion of the training course. This in turn has freed up our ground school instructors to handle additional flight training. We expect that by the end of summer our capacity will be at the levels required and the backlog will be eliminated. So customers taking delivery in late summer and beyond will not see any delay between the delivery of their airplane and the start of their training.
Service & MaintenanceOur first Eclipse Service Center (ESC) outside of Albuquerque, in Gainesville, FL, recently received its FAR Part 145 certificate and will hold a grand opening ceremony on June 15th. This ESC will serve the Southeast region of the country and will be able to service up to 12 Eclipse 500 aircraft at a time. The technicians in this facility will be equipped to perform both scheduled and unscheduled Eclipse 500 maintenance, as well as work on the Pratt & Whitney Canada PW610F engines. This also marks a significant achievement for Eclipse because we have been granted FAA approval to certify all of our Part 145 repair stations through a single FAA Flight Standards District Office (FSDO) based in Albuquerque, which is unique for an airframe company. This office will be responsible for monitoring all repair station activity, including the application and certification processes for future repair stations. With our plans for service center expansion in 2007, this streamlined process will allow us to efficiently place new facilities quickly into operation. Albany, New York and Van Nuys, California are next and they are scheduled to be ready for occupancy and operational in the 3rd and 4th quarters of 2007.
I have found it very interesting that one of the common "faults" that Cessna loves to point out about Eclipse is that we will not be able to support our customers after they receive their aircraft. That led me to research the truth about Cessna's entry into service of the Citation. The facts are very revealing. The first Citation entered service in 1972. It took Cessna nearly four years before they had three Citation Service Centers operational. It was another five years before the 4th Citation Service Center came on line. Cessna required nine years and over 700 Citations delivered before they had four Citation Service Centers operational. Eclipse will have four Eclipse Service Centers operational within nine months of the entry into service of the E500. I think the facts speak for themselves as to which company is truly committed to world class customer support. Model DifferencesSome customers continue to refer to "A" and "B" models of the Eclipse. I am totally puzzled by this continued misperception. I have committed Eclipse Aviation to a path of not only continual improvement of the Eclipse 500 but to retrofitting existing Eclipse 500s to the same level as aircraft currently coming off the production line. The reason for this commitment is due in no small part to the comments I have received from you. Frankly, this is going to be a difficult strategy to follow. Not only will it be expensive for the company, especially as the installed base grows, but there will inevitably come a day when an improvement will be such that we simply cannot retrofit every aircraft in the field. But in the near term, I can assure you that there are no and will be no "A" or "B" models of the Eclipse 500. They will all be one model.
Technical
Avio NG Avio NG is progressing but continues to be slightly behind the original schedule I informed you of earlier this year. A significant milestone was reached recently when one of our flight test jets was successfully modified with Avio NG equipment and powered up for the first time. Within the next week, we will begin installing Avio NG in a second flight test aircraft, with plans to begin flight testing Avio NG in this jet later this month. Once safely home from Europe, N505EA will become the 3rd aircraft modified with AvioNG and will join the first two as part of the FAA and EASA certification test fleet. With these three planes modified as planned, the revised schedule should hold steady but recovery to the end of July target is unlikely. I'll provide you with a more accurate certification and in service date next month.
Performance ImprovementsOne of the flight test aircraft with all of the performance improvements installed recently departed for Texas to test performance at sea level in hot conditions. We anticipate certification of the modifications soon. The first production aircraft to incorporate all the performance improvement package is serial #39, which is currently in primary assembly and will be moved to final assembly later this month. We will start scheduling the retrofitting of aircraft serial #1 through #38 in July. Customer Care is the contact group for scheduling, but please do not call now as they will not be able to begin scheduling for some time. I will send out another letter specifically on this topic in early July giving specific instructions to those affected.
Pitot/AOA SystemAs we informed you in early April, the Eclipse 500 experienced three in-flight events in which pitot pressure was lost on both the left and right primary flight displays (PFDs), with the MFD still functioning with the 3rd source. We found that internal condensation was collecting and freezing in the pitot tubing due to the aircraft's departure from a highly humid environment. In testing we were able to simulate the condition by injecting steam into the lines on the ground and reproducing the failure in flight. We have completed a new design that has been submitted to the FAA for certification this month. We expect this change to be available for production and via a retrofit in July and will communicate the retrofit plan to those customers affected when ready. This modification will remove the VMC only and dual pilot limitations.
Windshield and Cockpit Side WindowsWe also informed you a few months ago about an initial fix to the fatigue cracks in the outer layer of the acrylic of the windshield and cockpit side window. Extensive coupon testing has now been conducted on the new design. While further testing is needed on the full-scaled fatigue test article, the inspection and replacement intervals have increased dramatically and the certification process on the new design will begin this month. When the new windshield and side windows are installed, the inspection interval for these windows increases from every 50 flights to a new inspection every 300 flights. We have also approved a procedure that allows the inspection to be conducted with a prism, eliminating the need for the removal of the windshield. The replacement interval has also increased from 100 flights for the windshield and 250 flights for the cockpit side windows, to 1,500 flights and 600 flights respectively. Customers that are affected by these changes and updates will be notified with an updated Aircraft Maintenance Manual revision. These retrofits will be performed at the time of scheduled replacement intervals, starting in mid-July.
Customer Technical Communications (CTC)The discussions above covering the Pitot/AOA and Windshield issues will be communicated in much technical depth through a CTC. The CTC for each item will be distributed to the customers for whom their aircraft serial number is actually affected by the problem and change. As a company policy we will not send the CTC to customers whose aircraft have the change implemented in production and are therefore not affected. However, all of our customers will continue to receive summary letters like this one, as we are committed to providing all of our customer's insight and understanding of the maturing of the Eclipse 500 aircraft and our determination to provide you with the very best product possible.
Moving forward, I will continue with the increased communication pledge I made early this year, and as we continue to move into a more predictable and repeatable pace of operations the frequency of these communications will also become more predictable. Of course, if something significant comes up in the interim, I will send out a special communication. Naturally, the celebration of an occasional significant delivery milestone will also be communicated.
As is I sit and look at the delivery hangar and production flight test ramp in front of my office every day, I see significant progress at Eclipse Aviation. We are getting better on many fronts. With our Production Certificate in hand, we are steadily increasing the production ramp and the number of aircraft delivered. Someone commented recently that the day I don't know the serial number of a new airplane taxing by my office for its' first flight will be a good day. The inference being that I will not be able to keep up with the production rate. Of course, they don't realize we'll have to be at production rate of a Toyota before that could possibly occur!
We are not where I know this company can be by any stretch but I believe that in the second half of 2007, you will also see this progress and I look forward to sharing it with each of you.
Sincerely,
Vern RaburnPresident and CEO
Things are busy at Eclipse as we continue to accelerate our manufacturing ramp and gear up for another exciting EAA AirVenture show. As always, I look forward to seeing many of you in person in Oshkosh, and to sharing the highlights of what is sure to be a very productive summer with the rest of you in the weeks ahead.
As I reflect on the first half of this year, I think about both the significant problems and very significant progress we have made. In particular I'd like to highlight the aircraft deliveries and improvements that Eclipse Aviation has made in the second quarter of 2007. I would also like to give you an update on how we are progressing on a number of other Eclipse 500 fronts.
Aircraft Manufacturing & Deliveries Since our first aircraft delivery on December 31, 2006, our primary objective has been a ramp-up to our production goals. As I have previously discussed this process proved to be far more difficult then we estimated it to be. Following the receipt of our production certificate early in the second quarter, we have spent the past few months focusing on our successful transition into a production company.
I'd like to provide a quick snapshot of our delivery progress. In the first quarter of this year, we received certificates of airworthiness and delivered four Eclipse 500s. In the second quarter we certified 26 aircraft, bringing our total for the first half of the year to 30 aircraft, and our overall total to 31. If you review the quarterly production numbers released by GAMA (General Aviation Manufactures Association) you will see that we have only reported 17 aircraft for the second quarter. GAMA uses as a measurement point the actual sale of the aircraft, not the certification of the individual aircraft. Internally we measure the final delivery and sale of the aircraft, but from a manufacturing standpoint we consider the aircraft complete when the Certificate of Airworthiness is issued. As our processes continue to improve the difference between the two points will decrease. In fact, we expect to deliver over 20 aircraft during July.
As does any manufacturer that strives for greatness, we have established internal monthly performance targets to guide our efforts. Based on the track record of deliveries highlighted above, I am happy to report that we met our target for the last two months of the second quarter.
The ramp in production throughput is a result of the tremendous improvement we have seen in our production flow. Our new vice president of manufacturing Todd Fierro - who came to us from Ford Motor Company - was instrumental in leading significant process improvements and industrial engineering efforts. That work and more has enabled increases in both production rates and quality. In fact, we are now consistently breaking our own records for cycle times and quality.
In terms of our manufacturing staff, we continue to aggressively build our team. Our manufacturing training classes at Central New Mexico Community College (CNM) are filled to maximum capacity. We have the capability to train up to 90 people in three separate classes every 12 weeks. This increase in employees has helped us boost our production hours, and we now have night shifts throughout all manufacturing plants.
We will continue to notify customers of their expected delivery dates six months prior to delivery, and update all customers on deliveries by quarter. The delivery numbers outlined in this quarterly report will also be provided to GAMA (www.gama.aero), but I wanted you - our loyal customers - to see them first.
Pitot/AOA SystemWe completed certification flight testing on the improvements to the pitot/AOA system earlier this week. The FAA testing was conducted in a humid/rainy environment in actual Instrument Meteorological Conditions (IMC) and cold soaking at altitude. Nine of the 10 test flights were conducted after subjecting the probes to a humid mist on the ground for at least one hour. All 10 flights were successfully completed without any anomalies. We have submitted the final report to the FAA and certification will follow shortly. The AD will be revised to include the installation of the modifications as a terminating action to lift the day/VFR and two pilot restrictions. Our expectation is that we will have approval to start modifications of the aircraft very shortly. The service bulletin that will allow us to begin retrofitting the fleet is written and we have the initial ship sets of parts in stock. At this time, we anticipate the in position production line cut in will begin at aircraft 65, with earlier aircraft receiving the new pitot/AOA system before delivery.
Although I'm glad to report that this problem is behind us there are lessons to be learned. The Eclipse 500 was one of the most tested aircraft to be certified in the last 20 years. We accumulated over 3,400 hours including typical operational flights using a marketing aircraft. There was extensive and thorough FAA involvement including approval of the test plans for the airdata/pitot/AOA system that resulted in an unrestricted Type Certification of the aircraft. Yet this problem was caused by fairly unique meteorological conditions that went undetected even though we did numerous tests in Texas, Florida and even the Climate Test Chamber at Eglin Air Force Base. Perhaps the fact that we live and work in a high desert environment contributed to the problem. So the fact that the problem went undetected is not the lesson, but how we as a company have responded to the problem is.
The early Citation CJs have had well over 100 service bulletins issued to correct design and reliability issues. These included very serious issues such as runaway pitch trim that caused the loss of a CJ and generated three different ADs. The point is not that CJs are bad aircraft. They are in fact great aircraft. But virtually all newly certified aircraft have had problems inherent in the design that were not discovered in the certification testing. How the company supports those aircraft when the problem is discovered is the important issue. From the time we discovered this problem to having the fix certified will be less then 3 months. In addition, we will have the fleet retrofitted in another 60 days and I have kept all of you fully informed of the problem and progress. Thus this process is part and parcel of the growth and maturing of Eclipse Aviation. And I'm proud of the company's response to this difficult issue.
Performance ImprovementsCertification flight testing is on track to be completed this week, and we are expecting certification of the performance improvements within the next couple of weeks. The final certification date will be dependent on the FAA's approval of the AFM changes and other certification documents. We have submitted 44 of the 56 documents requiring FAA approval, and 41 of these are already FAA approved. The remaining 12 documents will be submitted in the next few days. As previously announced, the new performance numbers have been met and will be reflected in an updated AFM. The FAA is required to amend the Type Certification Data Sheet within 30 days of certification completion. A service bulletin will be issued shortly after certification and aircraft retrofitting will begin. We are still on track to cut the performance modifications into the production line at aircraft 39. In fact, aircraft 39 is currently in final assembly with all of the performance modifications incorporated.
Registration Number SizeLastly, I want to update you on the change in the size of the registration number on all Eclipse 500s. As part of our type certificate data sheet that we received on September 30th of last year, the FAA approved six-inch registration numbers via note 8 on the TCDS. However, the FAA reversed that decision and is now requiring registration numbers that are as large as practical on all Eclipse 500s. Working with the FAA we have defined a maximum sized area on the tail for the placement of the N numbers. If your N number is something like N1K then the numbers will be 12 inches in height. But if your N number is something like N777WW then the height will be closer to 9.5 inches. Our plan is to paint the larger registration number on your plane when you return for the performance modifications. Beginning with aircraft #29, all Eclipse 500s are being delivered with the larger N numbers. Sincerely,
Vern RaburnPresident and CEOJuly 10th, 2007 Update:By CEO, Vern Raburn
Business
Eclipse 500 in EuropeI want to start with a quick update on our recent travels in Europe. We essentially launched the Eclipse 500 in Europe with a three month marketing tour flying N505EA across the Atlantic in April. This aircraft went to Europe with all the performance improvement modifications and has consistently demonstrated all of our projected performance in every flight regime. This trip confirmed our expectations, there is unprecedented interest the Eclipse 500 in other parts of the world. We have now introduced N505EA to audiences in Germany, France, Switzerland, and the UK - and the response has been overwhelmingly positive. Most recently at EBACE, we announced that we have successfully closed Europe's largest VLJ aircraft order for 180 aircraft. The next stop for the Eclipse 500 is Italy before returning home to re-enter the flight test program to support Avio NG efforts. I look forward to sharing a more comprehensive review of our European tour in the coming weeks,
TrainingThe first Flight Training Device (FTD) has been certified by the FAA and we are currently planning its installation in Albuquerque to start customer training in simulators. This training will begin with the opening of our new training facility at Double Eagle II Airport which is scheduled for late July. This nearly 42,000 square-foot facility will be the first building on our campus on the West Side of Albuquerque, which will become our permanent home within the next few years.
Rightfully so, our early customers are very concerned with the wait between aircraft delivery and the start of their training - so are we! Unfortunately, we did not adequately plan our staffing levels and have thus fallen behind schedule. Frankly, the miscalculation occurred in the number of FAA employees and company pilots that have been required to obtain type ratings. The much larger number has resulted in an unplanned utilization of training slots that would have been used for customer training. There was no choice in the order of who was trained since all the FAA and company pilots needed to be trained before we could start the customer training program. In an effort to accelerate pilot training and make up for this delay, we are aggressively hiring more instructors and finding ways to increase throughput. We have recently contracted with an experienced ground school training partner (Global Jet Services, our maintenance training partner) to assist this portion of the training course. This in turn has freed up our ground school instructors to handle additional flight training. We expect that by the end of summer our capacity will be at the levels required and the backlog will be eliminated. So customers taking delivery in late summer and beyond will not see any delay between the delivery of their airplane and the start of their training.
Service & MaintenanceOur first Eclipse Service Center (ESC) outside of Albuquerque, in Gainesville, FL, recently received its FAR Part 145 certificate and will hold a grand opening ceremony on June 15th. This ESC will serve the Southeast region of the country and will be able to service up to 12 Eclipse 500 aircraft at a time. The technicians in this facility will be equipped to perform both scheduled and unscheduled Eclipse 500 maintenance, as well as work on the Pratt & Whitney Canada PW610F engines. This also marks a significant achievement for Eclipse because we have been granted FAA approval to certify all of our Part 145 repair stations through a single FAA Flight Standards District Office (FSDO) based in Albuquerque, which is unique for an airframe company. This office will be responsible for monitoring all repair station activity, including the application and certification processes for future repair stations. With our plans for service center expansion in 2007, this streamlined process will allow us to efficiently place new facilities quickly into operation. Albany, New York and Van Nuys, California are next and they are scheduled to be ready for occupancy and operational in the 3rd and 4th quarters of 2007.
I have found it very interesting that one of the common "faults" that Cessna loves to point out about Eclipse is that we will not be able to support our customers after they receive their aircraft. That led me to research the truth about Cessna's entry into service of the Citation. The facts are very revealing. The first Citation entered service in 1972. It took Cessna nearly four years before they had three Citation Service Centers operational. It was another five years before the 4th Citation Service Center came on line. Cessna required nine years and over 700 Citations delivered before they had four Citation Service Centers operational. Eclipse will have four Eclipse Service Centers operational within nine months of the entry into service of the E500. I think the facts speak for themselves as to which company is truly committed to world class customer support. Model DifferencesSome customers continue to refer to "A" and "B" models of the Eclipse. I am totally puzzled by this continued misperception. I have committed Eclipse Aviation to a path of not only continual improvement of the Eclipse 500 but to retrofitting existing Eclipse 500s to the same level as aircraft currently coming off the production line. The reason for this commitment is due in no small part to the comments I have received from you. Frankly, this is going to be a difficult strategy to follow. Not only will it be expensive for the company, especially as the installed base grows, but there will inevitably come a day when an improvement will be such that we simply cannot retrofit every aircraft in the field. But in the near term, I can assure you that there are no and will be no "A" or "B" models of the Eclipse 500. They will all be one model.
Technical
Avio NG Avio NG is progressing but continues to be slightly behind the original schedule I informed you of earlier this year. A significant milestone was reached recently when one of our flight test jets was successfully modified with Avio NG equipment and powered up for the first time. Within the next week, we will begin installing Avio NG in a second flight test aircraft, with plans to begin flight testing Avio NG in this jet later this month. Once safely home from Europe, N505EA will become the 3rd aircraft modified with AvioNG and will join the first two as part of the FAA and EASA certification test fleet. With these three planes modified as planned, the revised schedule should hold steady but recovery to the end of July target is unlikely. I'll provide you with a more accurate certification and in service date next month.
Performance ImprovementsOne of the flight test aircraft with all of the performance improvements installed recently departed for Texas to test performance at sea level in hot conditions. We anticipate certification of the modifications soon. The first production aircraft to incorporate all the performance improvement package is serial #39, which is currently in primary assembly and will be moved to final assembly later this month. We will start scheduling the retrofitting of aircraft serial #1 through #38 in July. Customer Care is the contact group for scheduling, but please do not call now as they will not be able to begin scheduling for some time. I will send out another letter specifically on this topic in early July giving specific instructions to those affected.
Pitot/AOA SystemAs we informed you in early April, the Eclipse 500 experienced three in-flight events in which pitot pressure was lost on both the left and right primary flight displays (PFDs), with the MFD still functioning with the 3rd source. We found that internal condensation was collecting and freezing in the pitot tubing due to the aircraft's departure from a highly humid environment. In testing we were able to simulate the condition by injecting steam into the lines on the ground and reproducing the failure in flight. We have completed a new design that has been submitted to the FAA for certification this month. We expect this change to be available for production and via a retrofit in July and will communicate the retrofit plan to those customers affected when ready. This modification will remove the VMC only and dual pilot limitations.
Windshield and Cockpit Side WindowsWe also informed you a few months ago about an initial fix to the fatigue cracks in the outer layer of the acrylic of the windshield and cockpit side window. Extensive coupon testing has now been conducted on the new design. While further testing is needed on the full-scaled fatigue test article, the inspection and replacement intervals have increased dramatically and the certification process on the new design will begin this month. When the new windshield and side windows are installed, the inspection interval for these windows increases from every 50 flights to a new inspection every 300 flights. We have also approved a procedure that allows the inspection to be conducted with a prism, eliminating the need for the removal of the windshield. The replacement interval has also increased from 100 flights for the windshield and 250 flights for the cockpit side windows, to 1,500 flights and 600 flights respectively. Customers that are affected by these changes and updates will be notified with an updated Aircraft Maintenance Manual revision. These retrofits will be performed at the time of scheduled replacement intervals, starting in mid-July.
Customer Technical Communications (CTC)The discussions above covering the Pitot/AOA and Windshield issues will be communicated in much technical depth through a CTC. The CTC for each item will be distributed to the customers for whom their aircraft serial number is actually affected by the problem and change. As a company policy we will not send the CTC to customers whose aircraft have the change implemented in production and are therefore not affected. However, all of our customers will continue to receive summary letters like this one, as we are committed to providing all of our customer's insight and understanding of the maturing of the Eclipse 500 aircraft and our determination to provide you with the very best product possible.
Moving forward, I will continue with the increased communication pledge I made early this year, and as we continue to move into a more predictable and repeatable pace of operations the frequency of these communications will also become more predictable. Of course, if something significant comes up in the interim, I will send out a special communication. Naturally, the celebration of an occasional significant delivery milestone will also be communicated.
As is I sit and look at the delivery hangar and production flight test ramp in front of my office every day, I see significant progress at Eclipse Aviation. We are getting better on many fronts. With our Production Certificate in hand, we are steadily increasing the production ramp and the number of aircraft delivered. Someone commented recently that the day I don't know the serial number of a new airplane taxing by my office for its' first flight will be a good day. The inference being that I will not be able to keep up with the production rate. Of course, they don't realize we'll have to be at production rate of a Toyota before that could possibly occur!
We are not where I know this company can be by any stretch but I believe that in the second half of 2007, you will also see this progress and I look forward to sharing it with each of you.
Sincerely,
Vern RaburnPresident and CEO
Saturday, July 14, 2007
Another twist on the per-seat, on-demand model
An interesting podcast describing BusinessJetSeats' new service:
www.avweb.com/podcast/podcast/195568-1.html?kw=AVwebAudio
www.avweb.com/podcast/podcast/195568-1.html?kw=AVwebAudio
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