Aircraft Ownership
Eclipse promises customer refunds with interest
While it has suspended refund payments to customers who canceled Eclipse 500 orders after the recent price hike, Eclipse Aviation officials say they plan to fully pay the refunds with interest once the next round of funding closes before the end of the year.
The company notified position holders just before EAA AirVenture in July that it was temporarily suspending refund payments as a means of conserving cash. A company spokesman said the AirVenture announcement of a new round of funding linked to the departure of founder Vern Raburn caused some position holders to believe they would receive their refunds immediately. However, sufficient funds to complete the refund payments won’t be available until the entire finance deal closes, which is anticipated before the end of the year.
In addition, modifications of the 230-plus very light jets already delivered have also been suspended pending the additional funding. The only exception is that the company is attempting to install flight into known icing modifications for airplanes manufactured with the Avio NG avionics to allow those customers to fly in icing conditions this fall.
Meanwhile, the company continues to deliver airplanes. The second shift at the plant was shut down for two days because of a parts problem, but it is up and running again.
August 13, 2008
