With the ink barely dry on their last press release, which announced Brazilian certification of the Phenom 100, Embraer announced the U.S. FAA certification of their Phenom 100.   With the FAA’s certification in their pocket Embraer is ready to start  delivering their new Executive Jet to customers next week.

EASA certification is expected in the second quarter of 2009.

       
           On December 9, 2008 the Phenom 100 program attained a major milestone when the Very Light Jet received Brazilian certification.   “This certification makes all of us at Embraer very proud. The Phenom 100 was conceived, developed, and certified in less than four years, which is very noteworthy,” said Emilio Matsuo, Embraer’s Senior Vice President, Engineering. “Furthermore, the performance figures obtained demonstrate the product’s excellent design.”   The Phenom’s certification comes without restrictions such as Flight Into Known Icing.  You may recall that the Eclipse 500 Jet didn’t gain FIKI certification until several months after it received type certification.  The Phenom 100’s Garmin G1000 avionics suite, which was also certified, allows for a low pilot workload and enhanced situational awareness allowing the Phenom’s certification to include single pilot approval.  Initially you can expect air taxi companies to offer their services with two pilots but within 5 years I expect we’ll see some US operators providing single pilot jet service in these aircraft.  European air taxi operations are required to provide two pilots on all passenger carrying flights.  Pilots will love the new avionics but passengers also benefit by state of the art systems through enhanced safety.  New avionics systems make flying easier and therefore safer.   

 On the heels of its Brazilian certification Embraer expects to gain US certification for the Phenom 100 “soon” with deliveries to begin in the “coming weeks.”  Original Equipment Manufacturers (OEM’s) use these vague terms because there may be some last minute issues that delay the certification.  I’d guess that they will get the US certification by the end of December or early January and deliveries of the aircraft should commence almost immediately.  Many of the first customers are already trained to fly the Phenom 100.   There are a number of air taxi companies planning to utilize this Executive Jet for their services.  They will need some time to train their aircrews and integrate the aircraft into their operations.  We should start to see the Phenom 100 available for air taxi service within the next few months.    I’ll make a best guess and say the first US air taxi Phenom 100 customer will fly on June 29th 2009.    Some air taxi companies are already flying with the Cessna Citation Mustang and the Eclipse 500.  The Phenom 100 is powered by two Pratt & Whitney Canada PW617F-E engines which gives the Phenom better fuel consumption rates than originally estimated, saving as much as 3.6% on longer trips.   Embraer produced an aircraft that exceeded other design goals as well.   The demonstrated top speed of 390 knots (true air speed) is 10 knots faster than initially projected.      

(*) MTOW, SL, ISA(**) MLW, SL, ISA(***) NBAA IFR reserves (35 min) with 100 nm alternate; 4 occupants @ 200 lb each   Read the rest of this entry »

     Eclipse Aviation is dead, long live Eclipse Aviation.  The assets of the bankrupt company will go to the highest bidder, probably ETIRC Aviation the major shareholder.  The company will be sold through competitive auction to be finalized in January 2009.  ETIRC has placed the highest bid to date.   “In the face of unprecedented economic challenges, it is clear that the sale of the Eclipse business through the Chapter 11 process is the right course of action to maximize the value of the business, secure its future and protect the best interests of Eclipse’s stakeholders, including customers, suppliers, employees and creditors,” said Roel Pieper, CEO of Eclipse Aviation. “The successful sale will position the business for aggressive global expansion, allowing the company to fulfill its promise and solidify its position as the world’s leading manufacturer of VLJs.”  

     Eclipse Aviation raised the price of their aircraft to $2.15 million in June 2008 because they were unable to produce the aircraft in the volume their business model required.  In its next life Eclipse may again aim for a lower price tag.  If the buyer of Eclipse’s assets is able to purchase the machining, plans and rights for a very low price I’d expect that they will be able to produce the airplane for less.  Perhaps much less because they also have turned their customers into “unsecured creditors.”     It seems that Roel Pieper’s plan is to continue with production and attempt to sell the Eclipse 500 aggressively in Europe.    The company was given enough financing to continue operations throughout the sale period.

     Any guesses for how many Eclipse 500 aircraft will be produced in 2009?  Enter your best guess about how many of these little jets will be produced worldwide in 2009 and the winner will receive a digital copy of an original ME-262 operator’s manual signed by my father-in-law Erich Wuensch, WWII German fighter pilot.  As an added bonus Herr Dr. Dr. Wuensch will discuss with you some of his flying tales over the telephone, in English, German or Czech.   Entries must be submitted by the end of January 2009.  Just leave a comment to this blog with your guess.  He has some cool stories.

     With the recent loss of much personal wealth in the world the demand for air taxi services has been reduced but as the economy recovers the need for air taxi travel will grow again.  In the mean time there are still 20,000 private jet and turboprop aircraft in the US alone that still need gainful employment.  Business people still need to get to meetings and airline travel is becoming slower and more aggravating.   Driving still takes a long time.   Existing Air Taxi operators are looking for paying passengers and they are doing everything they can to get your business.

 Find your next flight on Taxijet.com.

—————————————————————————————————

Press Release issued by Eclipse Aviation today:

Today, Eclipse Aviation started a new era in its relatively short existence. Eclipse filed for protection in a Delaware court under Chapter 11 of the U. S. Bankruptcy Code. The company is using Section 363 of the U.S. code to sell its assets and a lead bidder, an affiliate of ETIRC Aviation, has filed an offer to purchase the business out of reorganization. As part of this filing, there is sufficient debtor-in-possession (DIP) financing to allow the company to operate until the sale is finalized in January 2009. The process allows for the current company operating under protection to continue the manufacture and support of the Eclipse 500.

While this is an extraordinarily difficult thing to face, it was the best possible choice before the Board of Directors, the senior lenders and the executive management team.

The implications of this action are many and certainly complicated for everyone involved. While we have modeled many different scenarios, at this time, until the sale is finalized, the old company cannot disclose the final plans for things like production, suppliers and deliveries in 2008 and 2009.

This letter will attempt to outline the immediate scenarios for each constituency amongst the customer groups.

Customers who have taken delivery of their aircraft:
During the sale process, the new company intends to operate as a going concern to support the Continued Airworthiness of the fleet. However, there is a different path of interaction between customers and the company operating in reorganization.

Warranty - Warranties are no longer covered by the new company, post petition. Any and all maintenance work performed on aircraft will be on a time and materials basis during debtor-in-possession operations. The new company must decide if it will honor any part of past warranties. Any outstanding warranty claims submitted pre-petition will not be honored by Eclipse or the new company.

If your aircraft is currently in an Eclipse service center for maintenance, the new company will continue to work on it and return it to service, on a time and materials payment basis.

JetComplete^® - JetComplete contract obligations are no longer being honored in this phase. It is too early to tell if a new aftermarket product will be offered by the new company. This means that Jeppessen and XM services (for the Garmin 496) will no longer be offered and paid by Eclipse on your behalf once your current subscriptions expire. Iridium services will be maintained by the new company for DSU purposes. Customers will be able to go directly to Jeppesen for service coverage so they are not grounded by out of date databases.

Pratt & Whitney Canada - Those with engine coverage as part of JetComplete will no longer have coverage through JetComplete or PWC under JetComplete. Please contact PWC for coverage in the Eagle Service Plan (ESP).

Spare parts - Debtor-in-possession financing will allow for spare parts to be supplied for continued airworthiness, providing the supplier is willing to continue providing parts to Eclipse while in reorganization. In the event a supplier is not willing to supply parts, the new company will be forced to find an alternate source.

Eclipse service centers - All Eclipse service centers will continue to operate while in debtor-in-possession for service, maintenance events and continued airworthiness.

Authorized service centers - At this time, Eclipse Aviation does not have any authorized service centers although a new service model could be implemented by the new company.

Post Delivery Commitments including modifications - Modification plans at the expense of Eclipse will not be honored in this phase of operations. Eclipse intends to sell services and/or the parts kits to all customers who request to have the final configuration installed on their aircraft. The new company will determine how to provide these mod services to the customer base after the sale.

The third party service centers that were intended to perform these mods will be given every chance to fulfill that opportunity for the new company and the Eclipse 500 customers.

Flight Training and maintenance training - Flight training will continue as planned including recurrency training but while in the debtor-in-possession phase, it is no longer part of the purchase price of the aircraft. The new company must determine what type of structure and inclusion in the delivered price can be maintained. Because JetComplete contracts are no longer valid, those requiring and scheduling recurrent training will pay the retail price of that service. Maintenance training classes will continue as required or requested.

Customers who have paid any deposit including the 60% deposit:
Those customers who have paid a deposit for an Eclipse 500 are unsecured creditors of Eclipse Aviation.

If there is a way to offer consideration to those affected depositors, it will be reviewed for consideration but it is not known at this time if it will be assumed by the new company.

Customer who have asked for a refund:
Customers who have asked for a refund are now an unsecured creditor of Eclipse Aviation.

Eclipse 400 customers:
Customers who have asked for a refund are now an unsecured creditor of Eclipse Aviation.

Those customers that have not asked for a 400 refund are an unsecured creditor of Eclipse Aviation and must wait until the new company decides whether to honor those deposits. The new company will determine if the Single Engine Jet Concept is a viable aircraft for today’s market.

We truly understand that these are tremendously difficult times for you and for our employees. However, please be aware that there is not anything we are holding back from this communication so additional facts or answers will not be available from the teams staffing the phones.

The new company will continue the customer call events to update all customers on status and progress. The next one will be scheduled by the Customer care team.

Michael McConnell
Eclipse Aviation Corporation
President & General Manager
Customer Division

—————————————————-Eclipse Aviation Seeks Court Approval for Restructuring under 363 Sale Procedures and Debtor in Possession Financing

Affiliate of ETIRC Aviation, VLJ maker’s largest shareholder, announces offer to purchase Eclipse

ALBUQUERQUE, NM - November 25, 2008 - Eclipse Aviation^®, manufacturer of the world’s first very light jet (VLJ), announced today that it is seeking court approval for debtor-in-possession (DIP) financing and procedures for the sale of substantially all of its assets under Section 363 of the U.S. Bankruptcy Code. The proposed sale will enable the business to continue as an industry leader in the manufacture and sale of VLJs with lower costs and reduced debt liabilities.

Eclipse filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware this morning, simultaneously announcing an agreement for the sale of its assets for a combination of cash, equity and debt to an affiliate of ETIRC Aviation S.a.r.l., Luxembourg, subject to higher and better offers. ETIRC Aviation, a principal driver of the VLJ industry in Europe, is currently Eclipse’s largest shareholder. ETIRC Aviation’s Chairman Roel Pieper has been the acting CEO of Eclipse since July 2008 and has served as Eclipse’s Chairman since January 2008. The proposed sale is subject to competitive bidding through a public auction, which is expected to be completed and a sale finalized in January 2009.

“In the face of unprecedented economic challenges, it is clear that the sale of the Eclipse business through the Chapter 11 process is the right course of action to maximize the value of the business, secure its future and protect the best interests of Eclipse’s stakeholders, including customers, suppliers, employees and creditors,” said Roel Pieper, CEO of Eclipse Aviation. “The successful sale will position the business for aggressive global expansion, allowing the company to fulfill its promise and solidify its position as the world’s leading manufacturer of VLJs.”

Also announced today, a group of existing Eclipse shareholders and note holders will provide Eclipse with post-petition, debtor-in-possession (DIP) financing. This financing will provide Eclipse with sufficient resources to continue normal business operations through the closing of the sale. Eclipse has filed a motion with the Court to approve the financing with a request for an expedited hearing to avoid business interruption. Once approved, this financing along with other relief requested from the Court, will position Eclipse to pay wages and salaries, honor employee benefits, service customer aircraft and continue manufacturing operations throughout the sale period.

New York-based Greenhill & Co., Inc., a leading independent investment bank with proven expertise in mergers, acquisitions and restructurings, has been retained as financial advisor to Eclipse Aviation. Inquiries into the Eclipse Aviation sale process can be directed to Brad Robins, Greenhill & Co., Inc. at 212-389-1567 or brobins@greenhill.com.

About Eclipse Aviation
Eclipse Aviation is the world’s leading very light jet (VLJ) manufacturer, producing innovative, affordable jets that are revolutionizing air transportation. The company created the VLJ category with the design, certification and delivery of the Eclipse 500 — the industry’s first VLJ. Eclipse applies advanced technologies, manufacturing processes and business practices to create high-performance aircraft that cost a fraction of other jets, and provide the lowest cost of jet ownership ever achieved. By changing the value proposition for private jet travel, Eclipse is allowing more pilots to enter the world of jet-powered aviation and enabling a new generation of entrepreneurs to help business travelers move between cities on a quick, affordable and convenient basis. Contact Eclipse at www.eclipseaviation.com.

###

Eclipse Aviation Corporation, Eclipse and Eclipse 500 are trademarks of Eclipse Aviation Corporation.

Airline travel is becoming more and more difficult, time consuming and unsure.  Delays are becoming a common occurrence and travelers are looking for alternatives.  Passengers have lost the romance of flying commercially.  An airline flight used to be something you would dress up for.  Now it is more like a bus ride.  Long security lines and the fear of terrorist attacks and exposure to airborne viruses have reduced the appeal of airline travel to a necessary evil.  People are looking for a viable alternative and air taxi may be their answer.   Next Generation small aircraft and creative new business models may provide a viable solution to the travel problems faced by a growing number of business travelers.  Air Taxi services have been with us for decades but only the very wealthy could afford them.  So what makes the new Air Taxi business different?  Why are there so many new start-up Air Taxi businesses and why does it finally seem that air taxi service can be affordable?

New jet engine technology has made possible a smaller jet that is able to carry smaller groups of people than previous jets.  It is more efficient to carry two people in a small jet than to carry two people in a large jet.  Most business jet trips are flown with only two people in the airplane.  The new jets are faster and cost about the same per mile as a comparable turboprop aircraft for trips of 300-1000 miles.  This is significant for more than the benefit to the client.  Speedier aircraft save the aircrew time and allow them to avoid many of the fatiguing effects of slower turboprop and piston aircraft.  Jet aircraft are quieter and vibrate less than propeller airplanes.  Faster aircraft will enable Operators to complete more flight legs in a day making their flying shifts more profitable.  FAA regulations limit pilots to a flying “crew day” to avoid accidents caused by pilot fatigue.   Since the new jets go faster pilots will be able to cover more ground in a given crew day.  Jet engines enjoy a better reliability record than do piston or turboprop aircraft.  In line with this statistic the flying public views Jets as “safer” than propeller aircraft.  Safety is enhanced by an aspect of the smaller jets that also allows them more flexibility in landings.  The new jets are designed for slower landing speeds and allow operations into and out of smaller airfields than larger jet aircraft.  This opens up more geographic flexibility and increases safety in the landing environment.

Very Light Jets tend to be slower than larger jets in the enroute environment.  This can cause complications for air traffic controllers as they attempt to sequence the little jets in with normal traffic flows.  As Next Generation air traffic control systems (NexGen) is implemented this minor VLJ limitation will begin to disappear. The Federal Aviation Administration (FAA) hopes to spend more on upgrading the Air Traffic control system in coming years to support the Small Airport Transportation System (SATS).  This expenditure is an important part of the infrastructure of air travel and should be viewed as a stimulus for growth rather than an unnecessary expense.  In the current financial environment legislators may argue to limit spending in this area.  I hope they will be able to see the benefits of bringing air traffic control up to speed.  This will provide the ability to fly into many smaller airports in poor weather conditions.  “Free Flight” technology will allow aircraft to easily maneuver to avoid conflicts without the need for rigid routing allowing more direct flights and better advantage of prevailing winds.  Advancements in avionics provide next generation pilots with better tools than were available in older aircraft, for lower cost.  New techniques in design, manufacture and testing make the new generation of aircraft better suited to the hard use of an air taxi aircraft.

The world-wide-web is now available to anyone with a Laptop computer or PDA.  Automated online services can make quick connections between a traveler and aircraft operators in a way that was not imagined in previous generations.  25% to 40% of Charter aircraft flights are flown empty due to the inherent inefficiencies of on demand travel.  This is the single biggest reason why prices for air taxis have heretofore been affordable only to the ultra wealthy.  Easy online access to empty leg information will allow travelers to find these efficiently positioned aircraft and book them for a bargain while increasing the revenue to operators who otherwise would have absorbed the cost of the flight.  Many online booking services have already brought the percentage of empty legs down.  Taxijet.com is designed to make rapid connections between traveler and operator in an online auction format to support the growth of the air taxi industry and bring more efficiency to on demand air travel.

Recently we have seen some signs of weakness in the air taxi business that is delaying their entry into large scale use.  Dayjet was an ambitious undertaking that ceased operations on September 19,  2008.  Eclipse Aviation is struggling to find investors willing to pump money into their Eclipse 500, the VLJ that sparked the dreams of new air taxi hopefuls.   These and other air taxi related businesses are feeling the economic pinch but the concept of air taxi has never rested solely on the shoulders of these early pioneers.   The news is not all bad however.  Taxijet Spain, not affiliated with Taxijet.com, announced on October 30, 2008 that they intend to build a fleet of 30 Eclipse 500s with 150 pilots by 2013.   They are positioning themselves for the expected economic turnaround in 2010.  Linear Air has been operating the Eclipse 500 successfully in the northeast US.  North American Jet provides a robust service using the Eclipse 500 in the Chicago area.  Memley Aviation provides Eclipse 500 air taxi service in the Fresno area with some of the best pricing we’ve seen.  Other US based operators flying the Eclipse 500 include:  Guardian Air, -  Baton Rouge Air Charter, - Wilson Air Charter, and Alpine Air.

Today Eclipse Aviation announced that the European Aviation Safety Council (EASA) has certified the Eclipse 500 jet.  This certification will allow Eclipse Aviation to be registered in any of the 37 European countries.  Also today Eclipse Aviation announced FAA certification of its Avio NG 1.5 avionics suite.  “Obtaining EASA certification is one of Eclipse Aviation’s greatest accomplishments,” said Roel Pieper, Eclipse Aviation CEO.  “With the additional FAA approval for Avio NG 1.5, EASA certification enhances Eclipse’s capacity to spread the global reach and impact of the Eclipse 500, and we expect many new orders from all over Europe, Russia and Turkey to follow.”

Dayjet may make a comeback and I’m still hopeful that Eclipse Aviation will secure the financing it needs to continue production.  Fortunately for travelers there are other aircraft manufacturers and other air taxi operators in the game as well.  The air taxi business is not dependent on the Eclipse 500.  At their current pricing level of $2,150,000 the Eclipse 500 may still be a good value but it does not represent the disruptive technology that its founder Vern Raburn set out to create.   Had Mr. Raburn and Eclipse Aviation been able to produce the Eclipse 500 in the volume they promised and at the price they promised we would have seen a real shift in the value equation for air taxi travelers.   So air taxi prices won’t come down quite as far as we hoped but other Light Jet and Very Light Jets such as the Cessna Citation Mustang, Embraer Phenom 100 and Hondajet will help bring the price of air taxi service down while improving convenience and comfort.  Embraer expects to certify the Phenom 100 very soon and produce 10 of the aircraft by the end of the year and 120-150 in 2009.  The Hondajet is expected to enter service in 2010.  The Citation Mustang is in production and US based operators providing charter service in this aircraft include American Jet International Corp,  OpenSky Aviation, -  26 North Aviation, - Gary Jet Center, - Scott Aviation, and  TWC Aviation.

Next generation Light and Very Light Jets fit into a niche between business class airline travel and higher end charter aircraft.  Air taxi operators hope to capitalize on this niche and provide customers with new travel options that provide them value.  Operators of existing aircraft are making gains in efficiency of use that is bringing down the price of air taxi services even in older aircraft.  They are experimenting with new business models such as per seat pricing and using technology to aid in efficient aircraft positioning and maintenance.   The price of fuel is a very large part of the cost of operating aircraft and recent reductions in fuel prices has also reduced the end price of air taxi and aircraft charter.  I saw the price for unleaded automobile gas at $1.57 yesterday downtown. 

Some piston air taxi operators have also been doing quite well by providing short haul regional services with a single pilot.  These small aircraft are very comfortable, decked out with the latest avionics packages and they can fly into very small airports.  Business travelers are finding these small aircraft can give them the extra two hours of sleep they need before the big meeting.  SATSair and ImagineAir are two companies thriving with this business model.  Also providing Cirrus SR22 air taxi services are Hopscotch Air in the Northeast and Skyway Air Taxi  providing service from New York to South Carolina to Ohio.  Not all attempts to provide air taxi service with the SR22 have been successful.  An air taxi operator in Bismark ND that flew the Cirrus SR22 light propeller aircraft closed its doors a few years ago citing weather related restrictions as a major contributing factor to its demise.  So you may not see these light piston aircraft in areas that are routinely affected by severe weather.  They have a harder time avoiding weather than jets.  Jet aircraft can generally fly high enough to get above thunderstorms while propeller driven aircraft must maneuver around.  Propeller aircraft are more susceptible to icing problems than jets (generally speaking).  These small propeller aircraft can provide you with quick transportation at near airline prices and you can often sit in the front seat if you like.  Personally I see that as one of the biggest advantages of flying in a single piloted aircraft.  It is fun. 

Wherever you want to go you can hail an air taxi.  A wide variety of airplanes are available for your use.  Prices are still not what they can be but we’ll bring them down together.  Use Taxijet.com to make more efficient use of aircraft and save yourself some time and money in the process.  As more people look to air taxi as a quicker and more comfortable travel option the air taxi industry will grow.  With growth comes economy of scale and lower prices.

Hello,

I’m Roger Burton, CEO and founder of Taxijet.com.   For three years I have been working on building an online portal to help passengers find air taxi and air charter flights.  My focus has been on making contacts in the aviation community and helping to promote the idea of an interdependent network of air taxi operators. I have written a few blog entries in the past with an emphasis on helping other pilots take the steps necessary to start air taxi businesses of their own with the hopes that they will utilize our service once they are up and flying.   During this time I have put a great deal of resources and effort into creating our online passenger coordination service.  This service is an integral part of my vision of facilitating the air taxi revolution.

Now that we have built the working online service I am shifting my attention to bringing you, the traveling public, to our website.   I’ll be writing in this blog on a regular basis to inform you of new developments in the air taxi industry as well as explain how our service can aid you in finding the Right Aircraft in the Right Place at the Right Time for your travel needs.  I’ll write about aviation related issues and hopefully help you see the benefits and limitations of flying private air taxis.

With over 20,000 private jet and turboprop aircraft in the United States there is a great need for an easy way to connect passengers with those aircraft.  The concept behind our online service is simple.  If you are looking for a private jet or other type aircraft you can enter a Travel Request on our home page in less than 5 minutes.  We have tools to help you find the right airport and get a sense of what the prices might be as you fill out the online form.  Once you have submitted the form the system can instantly send it to many FAA certified aircraft operators simultaneously.  We use an internal filtering system that sends your request to the aircraft operators who are likely to have an aircraft available.  Once these operators receive the request they can submit a bid through our service.  The automated system can instantly forward these bids to your email address.  Here is what makes us different from other demand aggregators.  We present all the options to you so you can make your choice based on cost as well as a number of other factors.

The operator bids we receive are sent to your email address along with the operator’s contact information and pricing.  You can contact the operator directly to finalize your plans and book flights or ask Taxijet to assist you in the process.  We are not a broker.  We don’t accept payments from the Requester.  The Requester will pay the Operator directly.  This is in keeping with the intent of the FAA’s recent guidance on operational control.  The flight transactions are between you, the Requester, and the aircraft operator.  After a flight has been conducted Taxijet bills the operator a finder’s fee.  This fee is 5% of the total charter price (less taxes) for cooperating operators.  This is the industry standard discount that operators offer to charter brokers and demand aggregators like Taxijet.com for their services.  What this means to the Requester is that you would pay the same price to the operator if you call them directly as you would if you find them through Taxijet.com.  What you save by using our service is time.   If you normally use a broker to find your aircraft we’ll also save you money by eliminating the middle man markup.

You can submit a Travel Request on Taxijet.com and we will advertise that request to many operators with aircraft that might work for the trip.  We don’t just send the request to operators based at the origin airport but to other likely regions as well.  If you try to contact operators by phone in person you would spend 10-15 minutes on the phone for each operator you call and you would be getting the same price quotes you get by using Taxijet.com.  Since we expose your Travel Request to many operators the chance that we can find an efficient trip is greater.     Since we have many contacts in the industry we can send your request straight to the people who make the scheduling decisions.

I hope you enjoy the commentary I include in my coming blog entries.  Blog one out.