Aircraft Ownership
Eclipse promises to pay employees
Eclipse Aviation has acknowledged that it failed to meet its payroll obligations on Nov. 13. The company said it will pay employees by Nov. 18.
A short release from Eclipse said that employees were “given the choice to continue working or go home” while the issue was being addressed, but no one was laid off.
Eclipse has publicly stated that it needs up to $300 million in new capital to continue production, and company officials said they hoped to have the cash infusion before the end of the year. In the Nov. 14 statement, Eclipse said that the board of directors and executive management team was still working on a “long-term financial solution.”
Widely published forecasts have predicted that Eclipse would be forced to seek bankruptcy court protection in next year’s first quarter.
Eclipse has produced more than 200 twin-engine Eclipse 500 jets and had announced plans to certify and deliver V-tailed, single-engine Eclipse 400s. But the company’s original business plan depended on being able to produce large numbers of aircraft at drastically lower unit costs. Eclipse never came close to meeting its ambitious production goals, however, and the air taxi firms that were expected to become Eclipse’s main customers never fully materialized.
Eclipse ousted founder and CEO Vern Raburn in August.
November 15, 2008
