Eclipse, the self-proclaimed standard bearer for the very light jet (VLJ), appears to be in dire financial straits; and an attempted financial comeback by Adam Aircraft has apparently come up short. Reports from two aviation-oriented think tanks-the Teal Group and Forecast International-predict that Eclipse will cease production of its Eclipse 500 twinjet before the end of next year. The company’s most recent round of financing came last summer, at the cost of company founder Vern Raburn’s job. Similarly, Denver-based Adam Aircraft was forced to shut down earlier this year and stop development of its A700 twinjet. AAI Acquisitions, a Russian-based finance group picked up the pieces and recommenced work on the certification program, but the collapse of the Russian stock market has eroded investment capital availability there and needed additional funds have not been forthcoming. AAI reports it still intends to certify the A700, but notified employees that flight testing and other certification activity was to be suspended.
Analysts Fear for Eclipse’s Future; AAI Suspends A700 Certification Effort
Key Takeaways:
- Eclipse Aviation, a very light jet manufacturer, is experiencing severe financial difficulties and analysts predict it will cease production of its Eclipse 500 twinjet by the end of next year.
- Adam Aircraft, a developer of the A700 twinjet, had its certification program suspended by its Russian acquirer (AAI Acquisitions) due to a lack of investment capital following the collapse of the Russian stock market.
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