Eclipse mixed two slices of good news in with a heaping portion of bad news earlier this month. The company announced it was increasing the price of its Eclipse 500 twinjet by $550,000 to $2.15 million-a jump of 35 percent-effective immediately, and based on June 2008 economics. The good news came in the form of the confirmed launch of Eclipse’s single-engine model 400 jet, priced at $1.35 million (see below); and the delivery of the 200th Eclipse 500. Eclipse’s original business plan called for delivering up to 2,000 Eclipse 500s annually at a selling price below $1 million. The latest price increase is blamed on “higher manufacturing costs and a slower than anticipated production ramp rate.” Eclipse still claims its 500 is the lowest priced very light jet on the market (the Cessna Citation Mustang costs $2.77 million). The company has also been plagued by delays in European certification, with EASA citing concerns over the twinjet’s ability to descend rapidly in the case of a rapid decompression; and doubts about the airplane’s deicing capability.
Eclipse Pricing Bombshell
Key Takeaways:
- Eclipse significantly increased the price of its 500 twinjet by 35% to $2.15 million, attributing the hike to higher manufacturing costs and a slower production rate.
- Despite the price increase for the 500, Eclipse announced the launch of its single-engine 400 jet at $1.35 million and delivered its 200th Eclipse 500.
- The company's current pricing and production fall short of its original business plan, which aimed for 2,000 units annually below $1 million.
- European certification for the Eclipse 500 is delayed due to EASA concerns about its rapid decompression descent capability and deicing performance.
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