Eclipse CEO Shuffle Highlights Production Problems For Very Light Jets

It was big shocker when Vern Raburn, grandaddy of the Very Light Jet (VLJ) resigned as CEO of Eclipse Aviation that week. But possibly it shouldn’t have been. The company has been plagued with a series of production and safety issues that have turned some public sour on the promise of the VLJ.

Many in the aviation world thought that Raburn was crazy when he proposed a six-seat plane that could be built fast with new-school production methods and pre-assembled components, the same way that Dell snaps together personal computers. His vision included replacing manual gauges and switches with a computer system that would work like a “virtual co-pilot.”

But Rayburn shut the naysayers down when in 2001 Eclipse began production on the 500, a 3,500 pound jet that’s 31 feet expanded with a wingspan of 37 feet and a max cruise speed of 425 mph. It’s a good looking plane, and the Eclipse website has a gallery that lets you customize a 500.

While Eclipse racked up orders for by 2,000 jets, the company’s
production line ended up being sort of a mess. Suppliers missed
delivery deadlines which put the company behind on its delivery
schedule, pissing off investors and customers. A throttle problem
earlier that year forced mandatory inspections

and a software update,
further tarnishing the company’s image. For these reasons, investors
forced Rayburn out the door before agreeing to pour a fresh batch of money into the
company.

Although unrelated, these problems came as some of the air taxi operators that have ordered most of Eclipse’s VLJs are stumbling. The air taxi commerce model envisions VLJs providing on demand service amidst cities where trade travelers might otherwise drive. The notion is a good one, and early response to the model has been promising.

DayJet, one of the most promising of the air taxi operators, has signed up 1,600 customers, but just laid off 100 of its 260 employees. Why? The same issue facing businesses everywhere: the credit crunch. The company says that it needs $40 million to grow, money that it’s now having trouble getting its hands on. Without the scale that would come with an expansion of its operations, there is question as to whether DayJet can assemble the numbers work.

Eclipse says that with its leadership shuffle and new financing, it’s back on track. But the credit crisis isn’t precisely easing up, leaving in doubt the future of some of their core customers.

Photo by Flickr user hyku

Original post by Dave Demerjian