Eclipse Aviation made news this week announced it filed for Chapter 11 bankruptcy protection and that it’s found a buyer for its assets. Over the years, investors have poured more than $1 billion into the company and the development of the Eclipse 500 very light jet. Eclipse is often credited for giving rise to the new very light jet segment in business aviation.
Some start-up companies have found similar difficulties. Aviation Technology Group and Adam Aircraft, for example, have folded or gone into bankruptcy.
But should Eclipse fail to survive, don’t count the very light jet segment out.
Others are finding success. Such is the case for Cessna Aircraft’s Citation Mustang and Embraer’s Phenom 100. Both have strong backlogs of orders. Cessna plans to build 150 Mustangs at its Independence plant next year. HondaJet is expected to begin deliveries in 2011. And Diamond Aircraft, Piper Aircraft and Cirrus also have the small jets in development.
Honeywell Aerospace, in its October business aviation forecast, predicted demand potential for the very light jets and personal jets to range from 7,000 to 8,000 aircraft.
The long-estabished companies such as Cessna, Embraer and Honda, are financially more able to weather economic downturns. And Cessna and Embraer are more experienced at bringing a new plane to market.
