For the last few years, Eclipse Aviation was to seen to be the foundation of a whole new world of air taxis and personal jets with their Eclipse 550 aircraft. Times have changed and this week, Eclipse filed for federal bankruptcy-court protection. The company which is based in Albuquerque, New Mexico, struggled to make payroll earlier this month. The Wall Street Journal reports that ETIRC Aviation, which holds nearly 65% of the company's shares, will endeavor to continue manufacturing operations as it moves to acquire Eclipse's assets.
Eclipse still has a backlog of over 2,000 planes on order. The company may slow down production on order to get solvent as soon as possible. The planes sell for around $1.5 million each. Eclipse joins other companies that are planning layoffs and slowing production in order to cope with the dramatic economic shifts.
The news follows on the heels of an incentives package worth tens of millions of dollars from the state designed to ensure that Cessna would build its Citation Columbus plant in Wichita. It still plans to do that and by 2014 there should be 1,000 people working there. Unfortunately that is a long way off. For now there are layoffs both at the Wichita plant where Cessna employs 12,000 people and in Oregon where 165 employees will be laid off from the Bend, Oregon plant. Cessna was planning to deliver a record 535 business jets in 2009 but some of the customers who were slated for shipment have asked to defer delivery until the economy is a bit rosier.
Another Wichita-based aviation company Hawker Beechcraft cut five percent of its work force on Friday about 490 people as it lowered target production numbers.The aviation companies are bullish on their long term survival and see this trimming back as a necessity to keep going in lean times.
Last month when I wrote about the fate of Boston-New York shuttle flights I touched on the subject of the popularity of luxury bus lines between the two East Coast cities. Well the deal just got a bit better on one of them. One of the most popular bus options, the luxurious LimoLiner, which we first wrote about way back in 2005, has just cut their one-way ticket price, from $89 to $49. The offer is good until January 31 and you have to buy a ticket at least two weeks in advance to get that rate. The LimoLiner has reclining leather-seats, satellite TV and radio, sockets and plugs at every seat, cell-phone signals, two separate wi-fi areas, free snacks and drinks and a clean washroom with fresh flowers.
Usually when I hear of something in need of a home it's a kitten or maybe a puppy. Today's homeless item is a bit bigger, it's Texas Raiders, a member of the Commemorative Air Force (CAF). This World War II B-17 Bomber is one of 12 still capable of flight and it is losing its Houston home. Aero-News Network reports that the owner of the hangar that houses Texas Raiders will terminate the lease effective November 30, 2008 leaving the $3.5 million plane homeless. The CAF Gulf Coast Wing has to vacate the hanger and the vintage bomber is not flightworthy so another hangar is needed to complete the restoration process. They are seeking anyone in the Houston area who can offer a standard lease or donation agreement to allow the bomber to remain in Houston. Else it will have to go to go to the Commemorative Air Force Headquarters in Midland, Texas and will have to be partially dismantled basically undoing six years of volunteer restoration. It last flew in November 2001 to celebrate the opening of the National D-day Museum in New Orleans, LA.
In these days when it seems like not a lot of people are in a plane buying mood, LoPresti Aviation makers of the LoPresit Fury, have created a Fury buyer-protection plan. Basically, instead of using your deposit and putting that money toward keeping the business afloat, they will have potential Fury buyers instead secure a position with a Certificate of Deposit in the customer's name.This way only the customer can access the money and it earns interest until the plane is ready. There is no penalty for canceling an order and the customer can access the CD whenever they need to. Basically it's like putting your money in a nice safe CD and then blowing it all on a plane. But hey, it's not like you were going to put it in the stock market anyway.
There is some good news amidst the bad news for private jet companies. Recently, as CNN reports, Hawker Beechcraft told employees it would cut nearly 500 jobs and Cessna has also planned cuts. But Bombardier Aerospace has said that plans for its new Learjet 85 assembly line will go forward. Bombardier spokesman Leo Knaapen has said that the the company is hiring 500- 700 people to work at the Wichita plant on Learjet 85. Bombardier spokesman Leo Knaapen cites the company's more international focus as a reason for its success at a time when others are faltering. The company has said they are conscious of the financial crisis but for the moment they are not predicting any layoffs at their Wichita plant.
The latest news from Delta Air Lines is a bit win some, lose some depending on how often you travel. Delta has said that it will charge $15 fee to check a first bag but that it will be cutting certain other fees. USA Today reports that as of December 5, customers flying within the U.S. will be charged $15 for the first checked bag and $25 for the second checked bag which is consistent with the policies of Northwest Airlines which they recently acquired. Those who purchased Delta tickets on or before Wednesday, and who are traveling on or after Dec. 5, will be charged $50 for a second bag, but can still check their first bag for free Delta's previous policy.
Good news for customers flying in first or business class, including SkyMiles Medallion members and WorldPerks Elite members, you can still check up to three bags, up to 70 pounds each for free. Delta is also eliminating the $25 to $100 fuel surcharges assessed for SkyMiles and WorldPerks award ticket travel now that fuel prices have declined. And if you purchase tickets over the phone versus online (which is free), you'll also save a little, the fee for tickets purchased over the phone from a reservations sales representative has been dropped from $25 to $20. Delta will also drop the $3 curbside check-in fee.
Anyone want to buy some Eclipse 500 very light jets? Now that the DayJet, air taxi operation has folded, their 28 Eclipse 500 planes are looking for a home. DayJet had originally ordered 1,400 of the small jets for their planned network of fights but closed up shop in September citing the current economic crisis and the inability to secure funding as causes. The 28 are now up for sale and are being sold "as is" with DayJet logoes and interiors. The DayJet Eclipses had accumulated no more than 450 hours each. There are three different configurations of the jets. Eclipse hasn't disclosed a price for the aircraft but some have estimated that it would be in the $1.5 million range per plane.
From out of Minnesota comes a sign that the light sport aircraft market is faltering. Recently Cirrus Design CEO Alan Klapmeier told the Duluth News Tribune that the company has reduced its work week to three days from four due to a decrease in demand for their planes. The slowing market also means a delay for the introduction of the Cirrus SRS LSA. It will now come out in 2010 instead of 2009. Teh company is still working on the Cirrus Vision SJ50 personal five- to seven-seat jet. So far the company has received more than 400 orders for the jet, each with a $100,000 deposit. Cirrus laid off 100 staff in Duluth and at its parts plant in Grand Forks, N.D. back in September but still employs about 1,280 people. Business is off about 10% at Cirrus so far but Klapmeier is hopeful that an accelerated depreciation measure passed by Congress earlier this year might stimulate fourth quarter airline sales. If sales don't pick up, however, Cirrus plans to keep the three day a week production schedule for the rest of the year. The small planes are a favorite with those who fly for pleasure including celebrities like Angelina Jolie but these days flying simply for the sheer joy of it is a luxury many feel they can't afford.
H21 LLC, the company controlled by Google's top executives, to manage their planes, has added an interesting new purchase, a Dornier Alpha Jet. What does Google need with a fighter jet?
The NY Times reports that the Alpha Jet is being outfitted with scientific instruments for NASA missions. H21 LLC already has an agreement with NASA to fly out of Moffett Field which is located near the Google campus. The plane will be used by the Google executives' pilots would use the Dornier Alpha Jet mainly for "training and pilot proficiency."
Last year,H21 LLC signed a contract with NASA giving them rights to use Moffett Field with NASA receiving $1.3 million in rent every year and the right to put scientific instruments on the planes for use by its researchers. It turned out they couldn't make the necessary alterations to the existing planes without getting new certifications from the Federal Aviation Administration each time. Because the Alpha Jet is considered an experimental aircraft and not a passenger jet it is not subject to the same restrictions.
Way back in 2004, Neiman Marcus offered a personal airship for sale from German company Zeppelin Luftschifftechnik GmbH. Now just one of the three zeppelins in the world is available for sightseeing trips. A zeppelin has an internal framework covered with a canvas filled with the lifting gas while a blimp gets its shape from the lifting gas itself. The Airship Ventures Zeppelin is, at 246-foot-long the largest airship in the world. It will have a permanent home in California's Bay Area where it will offer quiet cruises at 35 to 40 mph for $500 a ticket. Each journey will carry just 12 passengers. While this may not be the best time to launch such a pricey venture, the investors are hopeful that the area's many tourists will be interested in getting this unique experience of the California landscape.
We've reported earlier on the intended decadence of Dubai's new airport. Now its Terminal 3 has had its official unveiling -- and its $4.5 billion pricetag is apparent in the project's vast scale (the parking lot alone is the equivalent of 33 football fields). Check out the gallery for a sneak peek -- including some terrific amenities.
I've been writing about the plans for the Rocket Racing League for over three years but it looks like the new sports league is one step closer to reality. The Rocket Racing League, which seeks to create a Nascar in the sky with multiple races and up to 10 Rocket Racers taking to the sky on a closed circuit raceway, has been granted an Experimental Exhibition Certificate from the FAA for their next generation rocket racer. As Aero-News reports this is especially significant because it is the first time in the FAA's history that a production level rocket-powered aircraft has been cleared to perform exhibition flight demonstrations at over 20 venues across the U.S.
The Rocket Racing League has locked up a fancy sponsor, DKNY for men and their ship is called the DKNY Bridenstine Rocket Racer vehicle. It was built on a Velocity Aircraft airframe and equipped with a liquid oxygen and alcohol engine manufactured by Armadillo Aerospace. The league plans to hold a 2009 Exhibition season followed by the first official race season in 2010. The league will choose eight venues out of the possible 20 approved locations.
Membership may have its privileges but, for the Platinum American Express cardholder, complimentary companion tickets on domestic flights won't be one of them anymore. Webflyer points out that effective Nov. 15, 2008, AmEx is discontinuing their Domestic Companion Airfare Program which let you book up to four complimentary companion tickets on qualifying domestic coach tickets. Cardmembers can still get complimentary companion tickets on full-fare international first or business class tickets when they are booked through the Platinum Travel Service. The card, which has a hefty annual fee of $450, still has a variety of beneifts including concierge service, airport lounge access and travel and hotel programs.
Back in March I reported on the fact that it seems that shuttle flights between cities on the East Coast like New York, Boston, and Washington haven't been faring too well in recent years. Joe Brancatelli who writes the Seat 2B column for Portfolio says that the recent news that Delta will add first-class cabins to its shuttle flights between New York, Boston, and Washington isn't a positive sign; it proves that the shuttles may well be on their way out. The shuttles have become less profitable and the shuttle aircraft which are equipped with standard first- and coach-class cabins can now be used on any flight path. In the 1980s large shuttles used to run every hour and promised no reservations needed. Now the remaining shuttles use smaller aircraft and fly less frequently especially on weekends and non-peak times.
Is this the last gasp of the shuttle flight? It certainly seems like it, the rise of technology, the high-speed Acela train, private jet charter services and even luxury bus lines have made shuttle flying less and less attractive. Like Joe Brancatelli, I'm a little nostalgic for the shuttles of my youth but in these days when it seems that hardly any flights go smoothly and airlines are struggling to stay afloat it seems like the shuttle is an idea whose time is long gone.
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