EclipseAviation

Eclipse Aviation Looks Toward Liquidation

Filed under: Wings

Various sources are reporting that Eclipse Aviation is converting its Chapter 11 bankruptcy filing to Chapter 7. The move suggests that Eclipse might not have been able to complete its proposed sale to ETIRC Aviation for $188 million. Now, instead of a sale to a new owner, Eclipse may be looking at liquidation to pay off its debts. KOAT, a news station in Albuquerque received an e-mail from an Eclipse employee signed by a company vice-president that indicated that the company's shutdown was permanent, that e-mail would be turned off and employees would be given a time to pick up any belongings left behind at the facility.

This is bad news not just for fans of private aviation or those who had ordered planes but even for the state of New Mexico which had invested $19 million in the company and the business it would bring to the state. A few years ago, Eclipse was seen as the future of flight, a relatively inexpensive plane which could take a few passengers on shorter journeys. A cluster of air taxi services that planned to use the plane sprung up and then, just as quickly, disappeared. There is still the possibility that someone could buy the assets and the plant and reopen operations but right now that seems unlikely. Workers were furloughed earlier this month and there are still planes in various states of completion inside the plant.

[Thanks, Jerry]

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Tags: eclipse aviation, EclipseAviation, planes, small planes, SmallPlanes

Eclipse Aviation Lays Off Workers After Sale Delay

by Deidre Woollard (RSS feed) —

Filed under: Wings

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.

Gallery: Production Slowdowns

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Tags: eclipse 500, eclipse aviation, Eclipse500, EclipseAviation, jets

Eclipse Ramps Up Production

by Deidre Woollard (RSS feed) —

Filed under: Wings

Aero-News Network reports on the latest plans from Eclipse Aviation. In order to handle the heavy demand for the Eclipse 500 jet they have created Sunport 11, their new primary assembly building at the west end of the Albuquerque International Airport. The new space will enable Eclipse to create four planes per day and help them burn through the huge backlog of orders. By June 2006, Eclipse plans to have six buildings for a total of more than 350,000 square feet of space.

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Tags: airplanes, eclipse aviation, EclipseAviation, flight, planes, wings