Order Holders React to Eclipse Price Increase

Eclipse Vice President of Marketing and Sales Mike McConnell clarified some details on this month's price increase on the Eclipse 500 twinjet. Previously priced at $1.595 million in June 2006 dollars (adjusted to $1.7 million in 2008 dollars) the Eclipse 500 is now priced at $2.15 million-a price increase of $450,000 when adjusted for inflation, he said. Order holders who had already paid 60 percent of the agreed selling price in deposits-a payment total scheduled for six months before delivery-would not be subject to the higher price. Also, because Eclipse offered a price freeze last year if customers made a $650,000 upfront payment, regardless of the delivery status of their aircraft, those customers are also not subject to the price increase. Though company policy prohibits releasing exact figures, McConnell indicated that a significant number of Eclipse 500 order holders were taking advantage of preferential pricing and order positioning on Eclipse's newly launched model 400 single-engine jet. Eclipse 500 order holders are eligible to be first in line to put down deposits on $1.35 million model 400s and are offered a $125,000 discount. Non-order holders must wait until July 28 to place an order for the single. Asked to characterize customer reaction to the price increase on the 500 and the introduction of the 400, McConnell said, "We're overwhelmingly bullish on the Eclipse 400's position in the marketplace and our customers' reaction to it."