Aero-News Alert:
DayJet Bankruptcy Filing Confirmed
Defunct Air Taxi Operation Files
Chapter 7 In Florida Court
ANN REALTIME REPORTING 11.18.08 1800
EST: Confirming
statements made to ANN over the past
several days from a number of
sources,
Aero-News has obtained court
documents from a filing for Chapter
7 liquidation made last Friday
afternoon by now-defunct air taxi
operator DayJet.
An initial review of the bankruptcy
documents by ANN shows DayJet
Corporation, DayJet Leasing LLC and
DayJet Services LLC as Debtors in
the filing. Those entities claim
$3,277,180.47 in assets, versus
$3,871,666.51 in liabilities.
Over 60 pages of unsecured creditors
are listed in the court documents.
The largest claims filed include
approximately $1.2 million owed to
Eclipse Aviation, manufacturer of
the Eclipse 500 very-light jets
operated by DayJet, along with
another $312,000 owed to Eclipse's
training operation. Enginemaker
Pratt & Whitney Canada is owed
approximately $225,000. Former
DayJet employees filed for over
$260,000 in wages, salaries and
commissions owed.
Aero-News has also obtained
documentation from a September 15
meeting by the Board of Directors at
DayJet, in which several last-ditch
efforts to remain in operation were
discussed. Options included a plea
for a bridge loan from the current
investors in DayJet... a merger
with air taxi operator Linear Air...
and even a loan from Eclipse.
The possibility of filing for
Chapter 11 bankruptcy was also
discussed... but the Board
determined the company did not have
enough funds available to file for
reorganization.
As ANN reported,
DayJet subsequently shut down all
operations September 19.
Aero-News will continue to analyze
the court documents, and will
provide additional details as they
become available.
Aero-News Alert:
Eclipse Employees WILL Be Paid
Sources: Last-Minute Funding Deal
Comes Through
ANN REALTIME UPDATE 11.14.08 1415
MST: Workers at
Eclipse Aviation will soon receive
the paychecks that 24 hours ago they
feared would not materialize...
though it's still not clear how much
longer they will be able to count on
that.
Based on available information --
precious little of which has come
from Eclipse itself, as the company
still refuses to comment publicly on
recent developments -- Eclipse was
able to secure a short-term loan to
cover payroll for the previous pay
period, which ended November 8.
A recorded message at the 800 number
given to Eclipse employees Thursday
states that money will be in their
checking accounts by Tuesday,
November 18. Where that money is
coming from is still not known...
though it appears this funding was
not the reported $200-$300 million
Eclipse states it needs to continue
operations.
On Friday morning, before news of
the funding became known,
Albuquerque Mayor Martin Chavez said
he had spoken with Peg Billson, VP
of Manufacturing at Eclipse, who
told him she was confident the issue
involving employee pay would be
resolved shortly.
"They're looking at much more than
paying the employees. They're
looking at the survival of the
company," Chavez told KRQE-13 Friday
morning. "This round of financing,
which they believe to be-if I recall
correctly-$200 million to $300
million, which they think is
forthcoming."
Chavez also revealed Eclipse owes
the city some $200,000 in back rent
for its facilities at the
Albuquerque International Sunport.
Also on Friday, three more Eclipse
customers filed lawsuits against the
company, accusing Eclipse of not
refunding deposits on their aircraft
owed to them under purchase
contracts signed prior to the May
price increase that raised the
purchase price of an Eclipse 500 to
$2.15 million.
As ANN reported,
purchasers still waiting for their
aircraft and who had not yet made
their majority payments were allowed
under contract to ask for refunds.
To date, at least seven buyers have
sued Eclipse, stating they're still
waiting for those refunds that were
promised to them.
Previous Reports
11.14.08 1250 MST: Aero-News
has learned Eclipse Aviation has
apparently pulled its umpteenth
rabbit out of a hat... and has
obtained last minute funding that,
at the very least, will cover
payroll for Eclipse workers in New
Mexico, New York, and Florida.
Independent reports to ANN have been
collaborated by local media. At this
time, few details are available...
including the source of the funding,
and the amount.
Needless to say, ANN will provide
more details as they become
available.
11.13.08 1545 MST:
Workers at Eclipse Aviation --
already told not to expect their
paychecks owed for the past two
weeks -- were told Thursday to head
home, and await further
instructions.
Aero-News has spoken to a number of
sources familiar with the matter, on
background. The consensus is that
Eclipse is now desperately working
to secure a "Hail Mary" round of
funding that would keep the
planemaker in operation. The outcome
of those efforts may be known within
the next 24-72 hours.
It is not clear what other measures
-- if any -- Eclipse executives are
now pursuing in order to stay in
business... or whether a possible
bankruptcy filing is on the horizon.
Eclipse employees apparently weren't
the only ones caught by
surprise Thursday morning. State
Economic Development Secretary Fred
Mondragon told New Mexico Business
Weekly he was told of the
developments by a third party.
"I heard from an Eclipse contractor
this morning that they gathered
employees together and told them
they could not make payroll, so they
were sent home, because they can’t
ask people to work without pay,"
Mondragon said. "The contractor said
the assembly staff is not working
and the assembly line is apparently
shut down.
"I understand the banks put a
squeeze on the company, freezing
their cash assets," Mondragon added.
"The news is not good."
In related news, Aero-News has also
heard reports of an imminent Chapter
7 filing for DayJet, which may come
as soon as Friday. DayJet -- the
largest single customer for the
Eclipse 500 very-light-jet --
ceased operations September 19.
1000 MST:
The parking lot in front of Eclipse
Aviation headquarters off Clark Carr
Loop remains mostly full Thursday
morning, hours after workers were
told they would not be paid for
their last two weeks of work...
but one must wonder whether that
will be the case for much longer,
unless an 11th-hour funding miracle
comes through.
Perhaps most telling is the fact the
lot in front of Sunport 2 --
Eclipse's primary assembly facility
-- had only about 15 percent of
available spaces filled (shown
below) on what normally would have
been a busy weekday morning.
Despite the glum news, at least one
Eclipse employee remained
optimistic. The worker, who declined
to give his name, said "there were
no layoffs" Thursday morning, adding
his understanding of the problem was
that "one bank refuses to give
another bank the money we need.
"I love working here," the employee
added. "I'd work here without a
paycheck."
Judging by those empty spaces -- as
well as the three workers seen by
ANN leaving the headquarters
building, carrying what appeared to
be their belongings -- not everyone
at Eclipse shares that sentiment.
A request for comment from an
Eclipse spokesperson has not been
returned.
Original Report
0835 MST:
From Albuquerque --
Barring a financial miracle, it
appears to be another nail in the
coffin for Eclipse Aviation. The
struggling planemaker told third
shift workers Thursday morning their
paychecks due on the 15th of this
month will not be honored, as the
company continues to fight to secure
desperately needed funding.
770-KKOB reports first-shift workers
filing into Eclipse's production
facility are being given the bad
news as this is written, two hours
after their late-shift counterparts
were given the news. KOB-TV added
several workers were seen "speeding
out of the facility's parking lot"
following that meeting.
Workers were reportedly given a
sheet of paper with a toll-free
phone number to call for updates on
the status of their paychecks, which
cover the last two weeks of labor.
KOB-TV adds some employees said they
were told executives 'stayed up into
the early morning hours' trying to
find a way to honor their paychecks,
but were apparently unsuccessful in
doing so.
At this time, Eclipse is still in
business... though the sword of
Damocles certainly appears to be
descending.
ANN will follow this story, and will
update it when any more information
becomes available.
Sources: Eclipse
Desperately Working To Obtain 'Hail
Mary' Funding
Employees Told To Head Home
ANN REALTIME UPDATE 11.13.08 1545
MST: Workers at Eclipse Aviation --
already told not to expect their
paychecks owed for the past two
weeks -- were told Thursday to head
home, and await further
instructions.
Aero-News has spoken to a number of
sources familiar with the matter, on
background. The consensus is that
Eclipse is now desperately working
to secure a "Hail Mary" round of
funding that would keep the
planemaker in operation. The outcome
of those efforts may be known within
the next 24-72 hours.
It is not clear what other measures
-- if any -- Eclipse executives are
now pursuing in order to stay in
business... or whether a possible
bankruptcy filing is on the horizon.
Eclipse employees apparently weren't
the only ones caught by
surprise Thursday morning. State
Economic Development Secretary Fred
Mondragon told New Mexico Business
Weekly he was told of the
developments by a third party.
"I heard from an Eclipse contractor
this morning that they gathered
employees together and told them
they could not make payroll, so they
were sent home, because they can’t
ask people to work without pay,"
Mondragon said. "The contractor said
the assembly staff is not working
and the assembly line is apparently
shut down.
"I understand the banks put a
squeeze on the company, freezing
their cash assets," Mondragon added.
"The news is not good."
In related news, Aero-News has also
heard reports of an imminent Chapter
7 filing for DayJet, which may come
as soon as Friday. DayJet -- the
largest single customer for the
Eclipse 500 very-light-jet --
ceased operations September 19.
Previous Reports
1000 MST:
The parking lot in front of Eclipse
Aviation headquarters off Clark Carr
Loop remains mostly full Thursday
morning, hours after workers were
told they would not be paid for
their last two weeks of work...
but one must wonder whether that
will be the case for much longer,
unless an 11th-hour funding miracle
comes through.
Perhaps most telling is the fact the
lot in front of Sunport 2 --
Eclipse's primary assembly facility
-- had only about 15 percent of
available spaces filled (shown
below) on what normally would have
been a busy weekday morning.
Despite the glum news, at least one
Eclipse employee remained
optimistic. The worker, who declined
to give his name, said "there were
no layoffs" Thursday morning, adding
his understanding of the problem was
that "one bank refuses to give
another bank the money we need.
I love working here," the employee
added. "I'd work here without a
paycheck."
Judging by those empty spaces -- as
well as the three workers seen by
ANN leaving the headquarters
building, carrying what appeared to
be their belongings -- not everyone
at Eclipse shares that sentiment.
A request for comment from an
Eclipse spokesperson has not been
returned.
0835 MST:
From Albuquerque --
Barring a financial miracle, it
appears to be another nail in the
coffin for Eclipse Aviation. The
struggling planemaker told third
shift workers Thursday morning their
paychecks due on the 15th of this
month will not be honored, as the
company continues to fight to secure
desperately needed funding.
770-KKOB reports first-shift workers
filing into Eclipse's production
facility are being given the bad
news as this is written, two hours
after their late-shift counterparts
were given the news. KOB-TV added
several workers were seen "speeding
out of the facility's parking lot"
following that meeting.
Workers were reportedly given a
sheet of paper with a toll-free
phone number to call for updates on
the status of their paychecks, which
cover the last two weeks of labor.
KOB-TV adds some employees said they
were told executives 'stayed up into
the early morning hours' trying to
find a way to honor their paychecks,
but were apparently unsuccessful in
doing so. At this time,
Eclipse is still in business...
though the sword of Damocles
certainly appears to be descending.
ANN will follow this story, and will
update it when any more information
becomes available.
ECLIPSE MISSES PAYROLL: TV REPORT
Albuquerque television station KOB
is reporting that Eclipse
Aviation failed to meet its payroll
for the first two weeks of this
month and that at least some
employees have "emptied their desks
and left." Eclipse public relations
manager. The station quotes unnamed
Eclipse employees as saying the
workers were called to a meeting
early this morning and told they
would not be receiving paychecks for
the previous two weeks. It said
employees "expressed anger,
frustration and uncertainty before
speeding out of the facility's
parking lot." Today's events would
appear to be the culmination of a
what has amounted to a media death
watch over the company in the past
two weeks.
It was widely reported that Eclipse
abruptly cancelled its appearance
AOPA Expo last week and there has
been speculation on the various
blogs that monitor the company that
the end was near. The company has
publicly stated that it needs $200
to $300 million in capital to
continue operating and that it was
hopeful the money would be in place
before the end of the year. There
has been no announcement so far on
the company's immediate plans.
Meanwhile, Cessna followed through
on earlier warnings about layoffs at
its manufacturing operations.
Spokesman Doug Oliver said in a
release on Wednesday that a total of
665 jobs will be lost at its Wichita
and Bend, Oregon plants. The
Independence, Kan. plant, which
makes piston aircraft and the
Mustang very light jet, is
unaffected. About a third of the
workforce in Bend is being laid off
with 165 of 460 employees, who make
the Cessna 350 and 400 high
performance piston singles, getting
notice. Five hundred people lost
their jobs at the main Wichita
plant, which employs about 12,000
people. Most of the layoffs take
effect in January.
Increasingly Hard to
View: Signs of Eclipse
Eclipse Personnel Cancel Another
High-Profile Aviation Event
On the heels of their no-show at the
recently concluded San Jose, CA,
AOPA Expo, ANN has learned that one
of the remaining Senior Eclipse
personnel, Mike McConnell, has
canceled his speaking engagement at
the VLJ, Latin America and Caribbean
conference -- with little notice.
The cancellation of their booth
space and participation at the AOPA
Expo seems to have set tongues
wagging in anticipation of what many
consider to be Eclipse's impending
demise. Despite the fact that senior
personnel (including McConnell)
still insist that financing is
around the corner and that Eclipse
is anything but done. Still;
suppliers report that outgoing
payments have all but dried up and
that a number of promised payments
and agreements are being delayed or
canceled with little or no warning.
Others report having been
deliberately misled by Senior
Eclipse personnel on financial
issues and state that there is a
growing movement (among potential
creditors) to force Eclipse into an
involuntary bankruptcy.
The most recent event cancellation,
at a conference hosted by MIU Events
(in which ANN is the Senior Media
Partner), reported that McConnell
canceled (with little more than a
day's notice) his appearance at a
venue populated by players working
in one of the more aggressive
markets populated by VLJ operations.
The event featured a number of
Eclipse operators and suppliers...
each of which expressed some
cautious, if sparing, optimism for a
recovery from the Eclipse program...
though all agree that the airplane
should have a solid future (even if
after reorganization or bankruptcy)
since the demand for this aircraft,
and/or its mission, remains high.
Since the forced ouster of Eclipse
founder Vern Raburn, the company's
fortunes have have gone from
problematic to uncertain, while news
has been increasingly hard to come
by... though bad news continues to
leak out from disappointed
customers, operators, and suppliers.
Another recent difficulty occurred
late last week when EAC's Double
Eagle training operations were
halted, even as surprised clients
were showing up for training and
check-rides. Eclipse personnel have
blamed FAA issues for the shutdown
that "did not directly involve us,
but do involve our training vendor,"
while other reports implicate
Eclipse's increasingly precarious
financial position for exacerbating
this latest setback.
ANN continues to monitor this story
and will file additional reports as
information becomes available.
Forecast
International Projects End of
Eclipse 500 Production
Believes Company Will
Not Be Able To Secure New Investment
Capital
In a new report to be issued in
December, Forecast International has
projected that production of the
Eclipse 500 will soon end. The
Connecticut-based market research
firm believes the aircraft's
manufacturer, Eclipse Aviation, will
not attract new investment necessary
to allow it to continue making the
aircraft beyond the first quarter of
2009.
"Eclipse continues to produce
aircraft at a low rate as it seeks
to preserve cash," said Forecast
International aircraft analyst
Douglas Royce. "We have forecast
production of 162 Eclipse 500s
during 2008. We believe that the
company will be able to push
production out into early 2009 but
will be forced to cease production
within the first quarter of 2009."
Forecast International predicts only
about 12 Eclipse 500s will be
produced in early 2009, and "even
this forecast may prove too
optimistic," said Royce.
According to Forecast International,
Eclipse Aviation's business plan
depended on delivering a twin-jet
aircraft at an extremely low price
relative to its competition. This
low price was dependent on use of a
high-volume production strategy made
possible by importing methods of
production from the technology and
automotive industries. However, the
anticipated production ramp-up never
occurred and the company has been
unable to realize the economies of
scale it needs to meet its price
target.
Until May 2008, the list price of
the Eclipse 500 was $1.52 million.
Thereafter, the aircraft's price
increased to $2.15 million... but
Eclipse Aviation is required to
deliver aircraft at the earlier,
lower price to customers who
executed an Aircraft Purchase
Agreement and paid the required 60%
total deposit.
Every aircraft delivered under the
old price is delivered at a loss,
Forecast International notes. "At
the moment, the company does not
have the financial resources to
absorb these losses and survive," FI
states.
To restructure its operations and
reach profitability, Eclipse has
said publicly that it needs
$200-$300 million in new equity
investment. With credit markets in
the midst of a major crisis, Eclipse
Aviation is seeking funding at a
time when bankers and investors are
reluctant to pour hundreds of
millions of dollars into a company
facing an uncertain future.
Forecast International adds that in
addition to the credit crisis,
Eclipse is also battling a shrinking
market... as well as the failure
of the largest single customer for
its aircraft.
As ANN reported,
Florida-based DayJet -- which at one
time was reported to hold close to
half of the roughly 2,400 orders
Eclipse claimed for the 500 -- shut
its doors on September 19.
"Under the circumstances, Forecast
International believes that securing
new funding, while still possible,
is unlikely," said Royce. "Forecast
International has cut its forecast
for the Eclipse 500 accordingly."
Eclipse had no comment on the report
when contacted by Aero-News.
etter Times Coming?
Eclipse, ETIRC Gain
Financing For Russian
Production
Eclipse 500s To Be Assembled In
'State-Of-The-Art' Ulyanovsk Factory
Eclipse Aviation has confirmed to
ANN, that the Russian State Bank
Vnesheconombank (VEB) Supervisory
Board, chaired by Russian Prime
Minister Vladimir Putin, has
approved the construction of a
factory in Ulyanovsk, Russia to
assemble the Eclipse 500. VEB
announced that it expects to finance
the project in full, with a total
value of $205 million. VEB and the
Ulyanovsk region administration will
be among the shareholders of the
enterprise.
"VEB’s decision to support the
Eclipse 500 at this level,
illustrates the strength of the
global demand for this amazing jet,"
said Roel Pieper, Eclipse Aviation
CEO. "Obtaining this approval and
financing is an enormous step
forward in our efforts to globalize
the Eclipse 500 and create a
highly-competitive worldwide
business model for Eclipse
Aviation."
Eclipse Aviation has already
received approval from the United
States and Canada to export the
Eclipse 500 Jet and its components
to Russia. Production in the factory
located at the Ulyanovsk-Vostochny
International Airport is expected to
begin in 2010.
The factory's ultimate capacity is
projected to be 800 jets a year. The
company took pains to stress that
production at Eclipse's headquarters
in Albuquerque, NM will continue "in
full" prior to and following the
start of the Russian facility's
operations.
Eclipse Aviation has already
confirmed that export of the Eclipse
500 Jet components to Russia
complies with United States and
Canadian export regulations.
European Technology and Investment
Research Center (ETIRC) Aviation is
the exclusive provider of sales,
customer service, maintenance
support and flight training for the
Eclipse 500 in the countries of
Western and Eastern Europe, the
Russian Federation, the Commonwealth
of Independent States and the
Republic of Turkey.
As ANN reported,
in January ETIRC Aviation made a
substantial investment to keep the
struggling planemaker afloat. A key
element of that investment granted
ETIRC Aviation the right to
establish local assembly of the
Eclipse 500 within its region.
Eclipse Responds To
Scovel's Testimony In Committee
Hearing
Says DOT IG Cited 'Hearsay' In His
Report
Below is the "Fact Sheet" released
by Eclipse Aviation late Wednesday
afternoon, in response to testimony
heard before the House
Transportation and Infrastructure
committee on concerns over the
certification of the Eclipse 500 VLJ.
Specifically, Eclipse addresses what
it terms misinformation and
"hearsay" cited by Calvin Scovel,
Inspector General for the Department
of Transportation.
ANN has only edited this report for
formatting; no text has been altered
or removed --
Ed.
Statement 1: The Eclipse 500 was
designed for use on “soft fields”
and certified tires not designed for
hard, paved runways.
-
Reality 1:
The Eclipse 500 was not designed
or approved for unpaved fields,
nor was that capability ever
sought in certification. The
tires delivered on the Eclipse
500 are not meeting their
promised durability from the
supplier and a change in tire
type is in FAA certification
testing now.
Statement 2: FAA granted ODAR status
in 2002 before approving the design
of the aircraft without the “proven
experience to perform the functions
requested”.
-
Reality 2:
Eclipse received ODAR status on
four items in 2002, all relating
to suppliers. In fact, Eclipse
did not receive full ODAR status
until seven months after it
received its Production
Certificate. A new company does
not equal inexperienced people.
Statement 3: EASA has declined to
certify the Eclipse 500 for
operation in Europe.
-
Reality 3:
EASA has not declined to certify
the Eclipse 500 and in fact,
there is an agreed to line of
sight to receive EASA
certification, without
restrictions within the next 60
days.
Statement 4: In interviewing
Eclipse’s largest customer and
operator of the Eclipse 500, one
pilot "lacked the confidence that
the aircraft could be operated
safely by a single pilot."
Therefore, the IG is recommending
that the Single Pilot certification
be reviewed.
-
Reality 4:
This is hearsay and selectively
choosing a single pilot to push
the agenda of changing the
Single Pilot certification of
the Eclipse 500. The Eclipse
500’s demonstrated safety record
speaks to the fact that the
aircraft’s fundamental design
combined with Eclipse’s FAA
approved training program is
working today and producing the
safest aircraft introduced into
general aviation in the last
twenty years.
act 1:
FAA Special Certification Review
report and press release confirms
that the Eclipse 500 is safe and
that there no reasons to believe
that the certification of the E500
was rushed or should not have been
granted. The FAA stands firm on its
position that the Eclipse 500 is
safe and was certified correctly
based on all established
requirements.
Fact 2:
The Congressional hearing is about
the FAA and its procedures through
which it certifies all aircraft.
Eclipse Aviation was chosen as a
test case and speaks of the many
political discussions in front of
the upcoming elections.
-
The Congressional
hearing is about the past
procedures and possible errors
within the FAA itself.
-
The FAA press
release on the Special
Certification review and
subsequently, the full report
confirms that the Eclipse 500 is
safe today, the FAA stands by
its certification decisions and
that is what counts for Eclipse
today.
Fact 3:
The Eclipse 500 is one of the safest
and most tested aircraft ever
introduced into the market. The
safety record reflects relatively
small incidents and no injuries or
fatalities. This safety record is a
testimony to the fact that the
aircraft was certified correctly
following FAA established
procedures, testing and
certification requirements.
Fact 4:
The Eclipse 500 will be EASA
certified within a matter of weeks
based on current estimates from EASA.
The renewed cooperation with the
EASA team allows us to make that
statement publicly. This would also
confirm and support the FAA SCR
press release and its position that
the Eclipse 500 is safe.
Eclipse 500
Certification Review Panel Makes Its
Recommendations
Says Cert Process Was Performed
Safely, But Communication Needs
Improvement
ANN REALTIME REPORTING 09.12.08 1430
EDT: The Federal
Aviation Administration (FAA) agreed
Friday to act on the recommendations
of a team that reviewed the agency’s
certification of the Eclipse 500
very light jet. The team found that
the airplane was certificated in
accordance with safety regulations,
but that the agency could improve
policies and communication
procedures used during the VLJ
certification process.
"This review tells us that while we
made the right call in certifying
this aircraft, the process we used
could and should have been better
coordinated. These recommendations
will be invaluable as we continue
certifying these new types of
aircraft," said Acting FAA
Administrator Robert A. Sturgell.
Sturgell said the review team,
headed by former Boeing executive
Jerry Mack, issued six
recommendations as part of the
Eclipse certification review, and
that the agency is committed to
acting on each of the
recommendations. Those
recommendations are as follows:
-
The FAA should
develop guidance for
demonstrating compliance to
regulatory requirements based on
a combination of software and
system development processes.
-
The FAA should
revise Advisory Circular
23/1309-1C, Equipment, Systems,
and Installations in Part 23
Airplanes, to address the
emergency of turbine engine
airplanes weighing 6000 lb. or
less maximum certificated
weight.
-
The FAA and Eclipse
should conduct a root cause
analysis of the operational trim
and mistrim issues being
reported in the field.
-
The FAA and Eclipse
should conduct a root analysis
of the trim actuator failures
documented through the SDR
system and other in-service
reports.
-
All cognizant FAA
offices within the Aviation
Safety Organization should work
together to establish
appropriate correction for fire
suppression bottle failure
issues documented through the
SDR system and other in-service
reports.
-
The FAA should
reevaluate the criteria for
applicability of function and
reliability testing.
Sturgell said the lessons learned
from one of the first certifications
of a new type of aircraft will help
the agency as it examines the
approximately eight other VLJ
certification applications pending
before the FAA.
The team focused on the
certification of airplane trim,
flaps, cockpit displays, and stall
speeds. The team determined that,
for the most part, in-service
difficulties were not related to the
certification of the aircraft.
The team noted it is common for
technical problems to be encountered
during type certification of a new
airplane, but that a lack of
commonly used internal FAA
documentation caused the perception
that the aircraft might not have
been properly certified.
It also cited a lack of effective
communication between Eclipse and
the FAA, and between the responsible
offices within the agency.
Sturgell said that the FAA agrees
with all of the findings and
recommendations in the report and is
committed to taking the appropriate
steps to ensure that increased
communications and better procedures
are put in place as the agency moves
forward with the certification of
this new category of aircraft.
The review was prompted by concerns
raised by FAA inspectors,
represented by the National Air
Traffic Controllers Association. The
review team consisted of FAA experts
with specialties such as flight
testing, avionics and certification.
Eclipse said it would not comment on
the findings of the report.
As ANN reported,
the company faces a Congressional
hearing next week before the House
Transportation and Infrastructure
Committee, regarding the concerns
that prompted the FAA review.
Congressional Hearing
To Be Held On Eclipse 500 Type
Certification
FAA Confirms Cert Review Now
Underway
Is it another sign of potentially
serious problems with the inaugural
very-light-jet... or
politically-motivated posturing? A
Congressional hearing will be held
next month to review the type
certificate issued to Eclipse
Aviation for the EA500 VLJ,
following claims by
some certification workers the jet
was issued its TC by the FAA long
before it was ready.
The hearing before the House
Transportation and Infrastructure
Committee, chaired by Congressman
James Oberstar (right), will be held
September 17.
The National Air Traffic Controllers
Association -- which, in addition to
its primary role in representing
controllers, also represents FAA
aircraft certification workers --
filed a grievance in October 2006,
alleging "several outstanding
safety/regulatory issues" raised by
several engineers and test pilots
involved with the EA500's
certification. The grievance didn't
mention specific issues with the
plane, and was denied by the FAA...
which stands by its certification.
That wasn't the end of the story,
however. Having been shut down by
the FAA, the inspectors took their
concerns directly to the Department
of Transportation, and to
Congress... where they found an
audience.
As ANN reported,
reports surfaced in July Oberstar's
committee was preparing to launch a
hearing following an investigation
by the DOT Inspector General.
Oberstar is no stranger to headlines
involving aviation safety. The
Minnesota Democrat spearheaded this
year's investigation into the
FAA's questionable oversight of
maintenance compliance at the
nation's airlines... efforts
that led to the highly-publicized
groundings of MD-80s at American
Airlines in April, and a $10.2
million fine issued by the FAA
against Southwest Airlines for
failing to conduct fuselage fatigue
inspections on its oldest Boeing
737s.
Separately, NATCA also has a
well-publicized beef with the
FAA. The agency
forced a new contract on controllers
in June 2006,
after FAA officials declared an
impasse in negotiations with the
union... and since then, NATCA
hasn't missed an opportunity to call
the FAA on the carpet. Certification
of the Eclipse 500 was one of the
agency's highest-profile projects in
some time.
That said, it's little secret the
Eclipse 500 has suffered a rocky
service record since the plane
entered serial production in January
2007. The FAA has issued a number of
Airworthiness Directives for the
plane, including for issues
involving
icing in the plane's pitot and AOA
probes. In June,
the FAA
issued an Emergency AD
following the failure of an Eclipse
500 throttle quadrant, which led to
an emergency, engine-out landing at
Chicago's Midway Airport.
Eclipse developed fixes for both
issues.
A number of pilots have also blown
maingear tires on landing. Though
Eclipse maintains that issue is tied
to pilots attempted to land the
plane at higher-than-book speeds,
the company is working to certify a
more durable tire.
Critics of the company (a very vocal
group) accuse the planemaker of
sacrificing build quality in its
quest to reach production rates as
high as four planes per day... a
total Eclipse has not come close to
achieving. Those naysayers point to
the high number of maintenance
squawks reported by Eclipse 500
owners in the field -- including
poor fit-and-finish quality,
avionics problems, and failures of
yaw dampener and autopilot servos --
as clear evidence of this problem.
The circumstances under which
Eclipse eventually earned its TC has
also raised eyebrows. Former FAA
Administrator Marion Blakey awarded
Eclipse with a
provisional TC at AirVenture 2006,
about a year later than the company
had hoped. The "provisional" nature
of the certification was due to the
company's continued efforts to
resolve avionics integration issues.
Eclipse also had to redesign the
plane's tip tanks to meet lightning
safety guidelines... a requirement
that led Eclipse to implement a
slate of performance-improving
airframe modifications, to
compensate for the performance hit
from the larger, aluminum tanks.
The FAA issued Eclipse its full TC
on September 30, 2006...
a Saturday, and the end of the FAA's
fiscal year. The certification
workers who brought their complaints
to the DOT questioned whether the
odd timing of the issuance was tied
at all to performance-based pay
bonuses for FAA higher-ups, an
accusation the FAA has vehemently
denied.
FAA Confirms Certification Review
The FAA
acknowledged Wednesday that on
August 11, the agency began a
30-day review of the Eclipse 500.
Jerry Mack, a former Boeing safety
executive, is leading an oversight
team of seven FAA experts with
specialties such as flight testing,
avionics, and certification. None of
the team members were part of the
original certification group.
"The FAA convened this Special
Certification Review (SCR) team to
look at: aircraft safety,
certification of aircraft trim,
flaps, screen blanking, and stall
speeds," the agency writes. "These
issues were the subject of Service
Difficulty Reports (SDRs) that have
been filed by operators since the
aircraft was certificated on
September 30, 2006. The team will
look at whether or not any of these
issues were raised during the
certification process and if any of
the issues are currently a threat to
safety."
Eclipse tells ANN it will cooperate
fully with the FAA in the matter,
and that the planemaker is confident
the review will find the Eclipse 500
was in full compliance with all
federal regulations at the time of
its certification.
"Without a doubt, this special
review will uncover what we already
know -- that the Eclipse 500 marks
the safest new airplane introduction
into service in 20 years," said
Eclipse CEO Roel Pieper. "Customer
safety has always been a priority at
Eclipse, and we look forward to this
investigation dispelling any
inaccuracies about the certification
of this airplane for once and for
all."
Eclipse also claims that with more
than 5,000 test hours on six test
aircraft, the EA500 is the
most-tested Federal Aviation
Regulation (FAR) Part 23 (general
aviation) aircraft in decades. The
company also implies the high number
of service-related issues for the
plane is tied to the relatively
large number of Eclipse 500s already
in service: in 20 months of customer
shipments, Eclipse has delivered 245
aircraft, and accumulated more than
32,000 total fleet hours.
The FAA notes such
certification reviews are regularly
conducted by the agency. "In the
past 10 years, the agency has
conducted special reviews on the
Liberty XL-2 (2008), Mitsubishi
MU-2B (2005), Cessna 208 (2005),
Twin Cessna 400 Series Models
(2004), Raytheon 390 (2004), and the
Beechcraft T34 (2003)," the agency
said.
Eclipse Supplier Says
Planemaker 'Substantially' Reducing
Production
Cutting Purchases For Rest Of Year,
First Half Of '09
A possible picture of future events
for Albuquerque, NM-based Eclipse
Aviation may be starting to come
together. On Tuesday, composites
supplier Albany International Corp.
said its sales growth for the
remainder of the year will take a
significant hit, due to cutbacks in
planned production rates at Eclipse.
Albany said Eclipse plans to cut
production through the first half of
2009, and has slashed its parts
purchases from subsidiary Albany
Engineered Composites accordingly,
reports Reuters. The company adds
Eclipse told AEC to expect orders to
sharply rebound after that.
Shares in the New York-based company
tumbled on the news, falling some $7
before rebounding somewhat to around
the $30 mark.
Despite the gloomy announcement,
Albany expects its overall 2008
revenue to exceed the previous
year's $1.09 billion aggregate total
by at least 35 percent, though the
company adds its composites division
will fall below the break-even
point.
"Break-even" is a mark Eclipse
aspires to... and Albany's
announcement gives a sign of the
planemaker's plan to accomplish
that, albeit a perplexing one.
Founded in 1998 by recently-ousted
CEO Vern Raburn, Eclipse promised
its customers and suppliers alike
that profitability would come from
high production rates -- as many as
four finished planes per day. In the
nearly two years the Eclipse 500 has
been in serial production, the
planemaker has come close to
attaining one per day... an
impressive figure, though still far
from the levels Eclipse needs to
survive on its own, without outside
funding.
Acting CEO Roel Pieper -- head of
ETIRC, a major foreign investor in
Eclipse -- appears willing to
consider all options in making
Eclipse profitable, many of them
painful. Since AirVenture, Eclipse
has laid off approximately 190
temporary workers on its production
line, and there's
evidence manufacturing has slowed
significantly as the company
considers its next move.
The planemaker also told customers
that plans to upgrade older Eclipse
500s to Avio NG avionics have been
delayed indefinitely, pending
receipt of the latest round of
funding. Refunds to depositors who
opted to cancel their orders, in
response to a May price increase,
are also on hold... leaving some
position holders to consider legal
options.
As ANN reported,
Eclipse said last week it would not
speak to the press until it was
ready to announce its plans for the
future, which representatives said
should come by the end of this
month. That statement was followed
by a separate announcement from
Raburn, saying he had decided not to
accept a role with ETIRC, despite
earlier statements that he would
become vice chairman of ETIRC
Aviation.
In the interim, the industry is left
to ponder how a volume-based company
plans to make more money... by
building fewer aircraft.
FAA Issues Revised
EA500 Throttle Quadrant Emergency AD
Orders TQA Testing During Next
Service
The Federal Aviation Administration
(FAA) has issued an updated
Airworthiness Directive (AD) for the
Eclipse 500 fleet of aircraft
manufactured by Eclipse Aviation,
offering clarification on how the
aircraft's Throttle Quadrant
Assembly (TQA) should be inspected.
Thursday's AD replaces the prior
emergency AD,
which was issued by the FAA on June
12. Under the
new AD, Eclipse 500 aircraft tested
under the previous AD must complete
Eclipse's FAA-approved TQA testing
process during their next scheduled
aircraft maintenance visit, or
within the next 60 days. Aircraft
that were not previously inspected
must be tested under the new AD
within 30 days.
The AD also allows the aircraft
owner up to 10 hours of flight time
to reposition the airplane for the
inspection. Eclipse has created a
special suite of tools to
efficiently conduct these tests at
Eclipse Service Centers or
Eclipse-designated facilities.
If the TQA fails the inspection, the
quadrant must be replaced before the
next flight... grounding the
aircraft until the new part is
installed.
Eclipse says it sent the Service
Bulletin to customers Thursday,
explaining how to comply with the
AD. Eclipse recently announced its
plan to increase the TQA range limit
to prevent the fault condition,
through a software update to all
Eclipse 500 owners and operators.
The planemaker states software
requirements have already been
completed, and the company is
working with its suppliers to
develop an implementation schedule.
Eclipse says it expects FAA
certification on the software update
in early Q4.
FIKI... Finally!
Eclipse 500 Receives Flight Into
Known Icing Certification
Dramatically Expands Operating
Envelope For VLJ
ANN REALTIME REPORTING 06.25.08 1600
EDT: It's a major step forward for the
inaugural very-light jet. Moments
ago, Eclipse Aviation announced the
Federal Aviation Administration has
granted Flight Into Known Icing (FIKI)
certification for the Eclipse 500.
"This certification process is one
of the most difficult things to put
a new model of aircraft through,"
said Vern Raburn, president and CEO
of Eclipse Aviation. "We've worked
through this process for some time,
flying the Eclipse 500 in the
precise natural icing conditions
that the FAA requires. We tested the
aircraft in some of the most severe
weather conditions we could find,
wherever we could find it.
"By receiving the FAA certification,
we proved that the aircraft can
withstand known icing conditions in
a real-world operating environment
with no structural changes required
of the airframe," Raburn added.
Though the company had promised
imminent FIKI certification at
numerous times over the past three
years, Eclipse says it conducted its
first test flight with an artificial
ice shape in August 2007. Since that
time, more than 300 flight hours on
three test aircraft have been
recorded, including more than 60
hours conducted in natural icing
conditions in many locations in the
United States and Canada.
Eclipse also performed extensive
tests with the Eclipse 500 in normal
operation and ice protection system
failure conditions in icing tunnels
and with artificial ice
shapes (shown below) to simulate ice
build up attached to the aircraft's
airfoils.
The de-icing system on the Eclipse
500 includes pneumatic de-ice boots
on the wings and horizontal
stabilizer leading edges,
electrically heated windshield and
air data probes, and bleed air
heated anti-ice engine inlets.
Eclipse states aircraft delivered in
late summer 2008 will incorporate
all the changes needed for FIKI, but
earlier planes will require a series
of modifications -- some easier to
install than others. For starters,
any EA500s prior to S/N 38 -- before
a series of performance
modifications were introduced, the
most prominent of which were larger
tip tanks -- will need the
performance mods installed. The
Albuquerque, NM-based planemaker
also changed deicing boot suppliers,
starting with S/N 78... so again,
all previous aircraft will
require that change.
All FIKI-compliant EA500s will
require numerous changes, including
a rain-repellant coating around
static ports, and changes to static
bonding and discharge equipment --
including windscreen coatings,
engine bonding straps, and new
static wicks. The planes will also
need a new autopilot pitch servo
installed, as well as a new rudder
centering spring.
Following its previous policies
regarding post-delivery upgrades,
Eclipse says it will perform all
necessary modifications on the
company's dime... but the planemaker
isn't saying yet when its
maintenance facilities -- already
struggling to meet commitments to
retrofit the performance mods to
earlier planes, as well as the
post-S/N 104 changeover to the Avio
NG avionics system -- will be able
to start work on FIKI mods, as well.
Eclipse Says Software
Change Imminent To Correct Throttle
Problem
Stresses EA500 Fleet Remains Fully
Operational
Eclipse Aviation announced Tuesday
it will incorporate design
improvements to Eclipse 500 FADEC
software to prevent an engine fault
that may occur if the aircraft's
throttle levers are advanced with
enough force to exceed the Eclipse
500's FAA-certified design limits.
Eclipse intends to increase the
range limit of the Throttle Quadrant
Assembly (TQA) to prevent the fault
condition, pending approval from the
Federal Aviation Administration
(FAA). These changes will be
administered via a software update
to all Eclipse 500 owners and
operators.
"One of the advantages to having
such a technologically-advanced
aircraft is that we can quickly
isolate the cause of an incident and
then rapidly deliver a solution to
our customers via a universal
software update," said Vern Raburn,
president and CEO of Eclipse
Aviation. "In contrast to
traditional aviation industry
approaches, the time and customer
inconvenience factor saved is
immeasurable."
As ANN reported,
earlier this month an Eclipse 500
engine fault occurred during a
landing at Chicago Midway
International Airport. N612KB (s/n
026) encountered windshear on short
final to land. The plane's pilot
applied full power, using enough
force against the forward stops to
exceed the design throttle position
signal maximum range. The associated
fault mode with the plane's FADEC
held the engine thrust settings at
the last known throttle position --
full power.
Following the balked landing, the
pilot elected to shutdown one engine
in order to reduce thrust. After
spooling down the right engine,
however, the left-side turbofan
reduced thrust to idle... and failed
to respond to subsequent throttle
inputs. Fortunately, the pilot was
able to perform a safe emergency
landing at MDW, with two blown
maingear tires the only damage to
plane and crew.
Through analysis of the incident
aircraft's advanced data collection
and reporting system, Eclipse
determined the fault was generated
by an exceedance of the Eclipse
500's FAA-certified design limits.
The company says it took immediate
steps to notify owners of the issue,
but the NTSB and FAA acted on the
problem as well.
In compliance with
an Emergency Airworthiness Directive
from the FAA,
pilots were told to inspect the
throttle quadrants on their aircraft
before further flight, and to place
updated procedures pages in the
Eclipse 500 flight manual and quick
reference handbook to provide
guidance on how to handle a similar
incident.
Eclipse also announced that of all
the Eclipse 500 aircraft in customer
operation -- 207 planes, according
to the FAA -- over 80 percent have
been inspected as directed by the
AD. Of this group of inspected
aircraft, seven have reported fault
errors. Four of the seven reported
faults were determined to be
erroneous due to noise caused by
normal operation of the TQA.
"Interestingly, an analysis of more
than 12,000 hours of flight data
from across our fleet collected
through the Eclipse Flight
Operational Quality Assurance (FOQA)
system reveals that three Eclipse
500 aircraft have experienced the
TQA range exceedance fault, and one
was the aircraft in Chicago," said
Raburn. "While this tells us there
is an extremely low probability of
this fault happening, we are moving
very aggressively to ensure it will
not occur again. We're working
closely with both the staff members
of the NTSB and the FAA to
understand this condition fully, and
put the necessary design
improvements in place to safeguard
our customers and our fleet."
FAA Orders Eclipse
500 Throttle Checks Before Further
Flight
Issues Emergency AD Following Power
Loss
In response to a customer
notification and subsequent
recommendations from the National
Transportation Safety Board, the FAA
issued Emergency Airworthiness
Directive 2008-13-51 late Thursday
evening, requiring pilots of the
Eclipse 500 to test their aircrafts'
throttle operation before taking
flight again in the very-light-jet.
As ANN reported,
N612KB (s/n 026) encountered
windshear on short final to land at
Chicago's Midway Airport on June 5.
The plane's pilot applied full
power, using enough force against
the forward stops to exceed the
design throttle position signal
maximum range. The associated fault
mode with the plane's FADEC held the
engine thrust settings at the last
known throttle position -- full
power.
Following the balked landing, the
pilot elected to shutdown one engine
in order to reduce thrust. After
spooling down the right engine,
however, the left-side turbofan
reduced thrust to idle... and failed
to respond to subsequent throttle
inputs. Fortunately, the pilot was
able to perform a safe emergency
landing at MDW, with two blown
maingear tires the only damage to
plane and crew.
Concerned that exceeding the
throttle position signal maximum
range could cause loss of left and
right engine control, the FAA
ordered Eclipse pilots to inspect
their aircraft's throttle
assemblies, and also insert
temporary revisions in the Aircraft
Flight Manual (AFM) dealing with
procedures on how to handle dual
engine failure.
"After careful review of all
available information related to the
subject presented above, we have
identified an unsafe condition that
is likely to exist or develop on
other products of this same type
design. For this reason, the FAA has
determined that AD action should be
taken to reduce the likelihood of
the throttle position signal
exceeding its maximum range, which
could cause loss of left and right
engine control. The FAA has also
determined that AD action should be
taken to provide an airplane flight
manual (AFM) procedure for
responding to dual engine control
failures. This condition could
result in the inability to maintain
desired airspeed and/or altitude
with consequent loss of control."
The AD applies to the entire Eclipse
500 fleet, which currently numbers
207 flying aircraft according to the
FAA.
Full details of the Emergency AD,
including compliance instructions,
are available at the FMI link below.
NTSB Issues Urgent
Recommendations Regarding EA500
Throttle Problem
Full-Throttle Application Might Push
Levers Out Of Range
ANN REALTIME UPDATE 06.12.08 1845
EDT: The National Transportation Safety
Board formally issued two urgent
recommendations Thursday afternoon
to the Federal Aviation
Administration to address a safety
issue concerning a failure that
resulted in uncontrollable engine
thrust in an Eclipse 500 airplane
and the lack of emergency procedures
developed for that failure.
The Safety Board recommended that
the FAA should require immediate
inspection of all Eclipse 500
airplane throttle quadrants to
ensure that pushing the throttle
levers against the maximum power
stops will not result in an engine
control failure, and that the FAA
should further require that all
units that fail inspection be
replaced and replacement parts be
similarly inspected.
The Board also recommended that the
FAA require Eclipse to immediately
develop for the Eclipse 500 airplane
an emergency procedure for a dual
engine control failure and
incorporate the procedure into the
airplane flight manual and quick
reference handbook via an
airworthiness directive.
On June 5, 2008, an Eclipse 500
airplane, N612KB (s/n 026), on
approach to Chicago Midway Airport,
experienced a failure that resulted
in uncontrollable maximum power
thrust from two Pratt and Whitney
Canada PW610F turbofan engines.
After referencing the emergency
procedures of the airplane’s quick
reference handbook, the pilots shut
down one of the engines. However,
following the shutdown of the
engine, the other engine rolled back
to idle power and continued to be
unresponsive to the throttle. The
pilots declared an emergency, were
cleared to land on any runway and
were able to land the plane without
injury to the two pilots or two
passengers.
(Editor's
Note:
This account differs somewhat from
that reported in the Eclipse CPC,
which states "the pilot was able to
return around the pattern and land
the aircraft with no injury or
substantial damage, although both
main tires were blown during the
event.")
"The Eclipse 500 is still a new
aircraft model, with some 200
hundred having been delivered," NTSB
Chairman Mark V. Rosenker said.
"This incident demonstrated a
technical safety-of-flight issue
that we believe needs immediate
attention."
The Safety Board noted that the
dual-channel failure of both
throttle levers occurred after the
airplane had accumulated only 238
hours and 192 cycles since new. As a
result, the Board is concerned about
the reliability of an assembly that
fails in su | 
Home
