Create a free Manufacturing.net account to continue

Eclipse Aviation Offering Discounts To Attract Capital

Airplane manufacturer hopes discounted prices in return for hefty deposits on its very light jet airplane will bring in capital to attract investors.

ALBUQUERQUE (AP) â€” The head of airplane manufacturer Eclipse Aviation hopes discounted prices in return for hefty deposits for its very light jet airplane will bring in capital to attract investors.
 
Vern Raburn, Eclipse chief executive officer, said in a letter to customers that the Albuquerque-based company is seeking deposits of $625,000 from customers as part of a new investment round. Raburn would not say how much the company hopes to raise, the Albuquerque Journal reported Wednesday in a copyright story.
 
Customers who sign up for the program will get their Eclipse 500 at a set price of $1.25 million, regardless of inflation or future price increases.
 
Eclipse also is offering to new customers a $1.4 million set price with an immediate deposit of $840,000.
 
Earlier this month, aviation industry analyst Boenning & Scattergood said Eclipse might need more cash from investors to make it through the rest of the year. But Eclipse has argued that it's not in shaky financial condition.
 
''This is not an act of desperation,'' Raburn said.
 
Instead, he said, $30 million in deposits from customers would enhance Eclipse's fundraising ability with investors.
 
Eclipse has orders for 2,700 planes, and the company expects to deliver up to 100 planes by the end of the year.
More in Supply Chain