Eclipse Aviation Lays Off Workers After Sale Delay
Eclipse Aviation has hit another speed bump in its long journey. The company furloughed 800 of its 850 employees this week to save money. The company is running out of funds to pay employees as it tries to complete a bankruptcy sale with Luxembourg-based ETIRC Aviation. Just a limited crew will be retained until the deal closes. KRQUE reported that some people left the southeast Albuquerque plant where Eclipse makes their jets carrying family pictures and documents just in case what should be a short furlough turns out to be a bit longer. A bankruptcy court approved the sale of Eclipse assets to ETIRC last month but finding the $188 million to finance the deal is no easy task in this tough market. Because there is no solid closing date for the sale there's no real reason to keep making jets. Around 30 jets in progress are inside the plant.
This latest turn in the Eclipse saga comes just as there is some good news for private plane buyers, Congress approved a tax break in the stimulus package that will help businesses buy their own planes. An incentive reduces the upfront tax bill for businesses buying significant assets such as planes.
