Business & GA

Eclipse Aviation is working to salve discontent among owners of early production aircraft over performance shortfalls and requests for progressive payments. The offerings, in letters to owners last week, come as the company works to secure its production certificate from the US Federal Aviation Administration, a step needed before deliveries can take place. An FAA review in November uncovered issues with Eclipse's compliance with the processes used to build and test the aircraft.

Troubles with financial arrangements arose as deliveries neared and Eclipse asked for a planned payment of 60% of the purchase price of the aircraft (minus initial deposit). The payment typically comes six months before the anticipated delivery dates, which have now slipped.

Eclipse is offering to reduce the final payment due on delivery by 0.5% of the 60% deposit amount for each month of slip. This applies to anyone with a delivery due on or before 30 September 2007. For example, if the 60% instalment is $500,000 and the delivery slips two months, the owner's final payment will be cut by $5,000.

A second concession will provide owners with significantly more savings, however. Eclipse has reversed course on its earlier plans to charge owners of the first 100 aircraft for newly revealed retrofits that will boost the twinjet's performance closer to the original guarantee - 375kt (690km/h) (+/-9kt) true airspeed and 2,370km (1,280nm) (+/-118km) range (NBAA IFR with 185km alternate).

Beyond the first 100 aircraft, the changes were to be incorporated into the production line. As currently built, the aircraft cruises at 360kt and has a range of 1,950km.