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November 26, 2008
By The AVweb Editorial Staff
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More Gloom Leads Into U.S. Holiday Weekend
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 About 500 production employees at Cirrus Design will be furloughed for about a month each as the company cuts production to clear
out built up inventory. Bill King, Cirrus's VP of Business Administration told AVweb in a telephone interview staff were told of the move on Tuesday. Only production employees are affected and not all
them will be off at the same time. Those at the beginning of the build cycle will be off first and will return first on Jan. 5. As the airplanes on the floor progress through completion, those farther
down the line will be furloughed as they complete their part of the process. Last to be furloughed will be the painters. Each worker will be off for about 30 days. "We don't want to add to the bad
economic news but we just think this is the prudent thing to do so we can hit 2009 hard," he said. King said the company is retaining all the workers and will be topping up their unemployment
insurance and paying medical and other benefits during the shutdown. King said the company is strong and its financial backers, Arcapita, are solidly behind Cirrus. "We're very well positioned and
the truth is that if we weren't well positioned we wouldn't be able to pay these benefits," he said.
Cirrus has trimmed its workforce twice in the last three months as sales have slowed. Company President Brent Wouters said the company is confident sales will rebound. "We are working diligently -
and making good progress - on rationalizing inventory levels, re-tooling the production line for greater product flexibility, and introducing new products - such as the new SR20 with Perspective, new
options and features to stimulate demand," he said. " Even so, we must make the sometimes difficult tactical decisions to match our overall production to the realities of the current market place."
The Vision SJ50 program is unaffected by layoffs and sales, customer service and other non-production departments will remain at work.
Eclipse Aviation filed for Chapter 11 bankruptcy protection today and it appears ETIRC, the company controlled by current CEO Roel Pieper, is moving to consolidate its hold on the troubled planemaker.
According to a news release from Eclipse, the company is "seeking court approval for debtor-in-possession (DIP) financing and procedures for the sale of substantially all of its assets under Section
363 of the U.S. Bankruptcy Code." At the same time, it announced it has a buyer for the assets, described as "an affiliate of ETIRC Aviation S.a.r.l., Luxembourg" and that the deal is subject to
"higher offers." According to court documents filed by Eclipse in support of the petition, the company owes investors about $577 million and has racked up about $135 million in debt to vendors and
suppliers.
"In the face of unprecedented economic challenges, it is clear that the sale of the Eclipse business through the Chapter 11 process is the right course of action to maximize the value of the
business, secure its future and protect the best interests of Eclipse's stakeholders, including customers, suppliers, employees and creditors," Pieper is quoted as saying in a release. "The successful
sale will position the business for aggressive global expansion, allowing the company to fulfill its promise and solidify its position as the world's leading manufacturer of VLJs."
And to address the current cash crunch, Pieper has cut a deal with existing shareholders and lenders to keep the company alive in the interim. The company is asking the Delaware court, where the
petition was filed, to approve the interim financing package quickly so Eclipse can honor its commitments. Once approved, this financing, along with other relief requested from the court, will
position Eclipse to pay wages and salaries, honor employee benefits, service customer aircraft and continue manufacturing operations throughout the sale period.
The company also announced that Peg Billson, president and manager of the company, has resigned "to pursue other career opportunities."
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Diamond, Exxon Not in Sync on Diesel
Dilemma |
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 Diamond Aircraft is advising its customers to continue fueling their diesel-powered aircraft with jet fuel in spite of a recommendation
from ExxonMobil to dealers to stop selling jet fuel to diesel aircraft owners. Diamond CEO Peter Maurer told AVweb he's unaware of any service issues that might have led the oil giant to issue
the letter sent to dealers last week. "It looks like they've come up with a solution to a problem that isn't there," Maurer said. He said he's in the process of arranging a conference call with
ExxonMobil officials to discuss the decision, which he said caught his company by surprise. "We're frankly a little perplexed," he said. Diamond is also sending a letter to customers outlining the
company's position. In the letter to fuel dealers, Martin Tippl, ExxonMobil's U.S. General Aviation Operations Manager, says the company has determined that jet fuel may not meet the technical
requirements for safe operation in piston engines and the company "does not support or endorse the supply of jet fuel to aircraft powered by diesel engines." The letter is posted on the Thielert Owners Group Web site. Dealers are asked to sign an agreement not to pump jet fuel into diesels. There is a provision for diesel
owners who insist on fueling with jet fuel, however. There's a waiver they can sign indemnifying ExxonMobil from liability if something goes wrong. "We're recommending [diesel aircraft owners] sign
the waiver and continue using jet fuel," Diamond's Maurer said.
ExxonMobil technical folks have determined that jet fuel and its processing misses the mark as a diesel fuel on three counts. Jet fuels are not tested for cetane, which is the determining factor in
the fuel's ability to ignite. There's also a fear that in extreme conditions jet fuel can cool to the point of becoming viscous and cause fuel-system problems. According to ExxonMobil, jet aircraft
fly fast enough that air friction over the wings warms the fuel enough to prevent those problems. ExxonMobil also claims that jet fuel might not have enough lubricating qualities to protect
fuel-system components. It also says the FAA is working with the fuel industry to determine if further certification action on diesel aircraft engines is required. Maurer noted that the Thielert
engines in his company's aircraft are specifically certified to use jet fuel only so he said he's not sure where that statement came from or why, in general, ExxonMobil has taken the action. "We don't
know what was driving this at ExxonMobil," he said. ExxonMobil did not immediately respond to AVweb's request for an interview.
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 Last week's controversy about the convoy of business jets that carried the CEOs of the Big Three automakers to Washington to ask for
a bailout was bound to get tongues wagging on the nightly news elsewhere. It prompted an "investigation" by "Chief
Investigator" Darcy Spears at KTNV in Las Vegas. Spears combed public records and discovered 80 percent of the state's Citation's flights are between Vegas and Reno (closest IFR airport to the
capital of Carson City) and that the average cost per passenger, round trip, on those flights was $760. Well, those who know something about bizjet costs might remark that the figure represents pretty
efficient utilization of the aircraft, which obviously flies fairly full most of the time. But Spears suggested her viewers would consider it "crazy" to spend that much when Southwest goes there a
dozen times a day for $300 or less. Robert Chisel, of Nevada's Department of Transportation, was patient and unapologetic about the Citation and the state's only other airplane, a Turbo Commander used
for mapping and photography.
He noted the time and peripheral expenses saved when the state plane is used and also noted that it's an essential tool for serving far-flung areas of the sparsely populated state. "You know,
everybody's opinion of waste is different. A state the size of Nevada with 110,000 square miles, I cannot imagine us not having aircraft available to move people and goods around at a moment's notice.
It is very important for the citizens of the state," said Chisel. Meanwhile, in Florida, the state made a very public display of the disposal of a surplus King Air, getting $1.35 million for the
23-year-old aircraft. Florida is keeping its Citation Bravo and an eight-year-old King Air 350, however.
 Oil prices have dropped but who knows where they'll be in four months and aviation representatives will have a meeting of the minds in
London in February to compare notes on squeezing the most from each drop of kerosene. The Efficiency In Aviation conference (PDF brochure) will be held Feb. 3-4 and proposes to bring together business and airline execs aimed
at "developing and implementing [a] proactive cost and fuel efficient strategy."
Among the topics to be covered are cost controls, the best techniques to save fuel in the air and on the ground, the future of fuel prices, the effect of air traffic control improvements on
efficiency and the pros and cons of fleet replacement. Manufacturers will also discuss the technology that's emerging to make flying more efficient.
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Cessna Aircraft Company, the World's Largest General Aviation Manufacturer
Based on unit sales, Cessna Aircraft Company is the world's largest manufacturer of general aviation airplanes. In 2007, Cessna delivered 1,272 aircraft, including 387 Citation
business jets, and reported revenues of about $5 billion. Cessna has a current backlog of $15.6 billion. The global fleet of more than 5,400 Citations is the largest fleet of business
jets in the world.
More information
about Cessna Aircraft Company is available at Cessna.com. 
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FAA Acting Administrator Robert Sturgell said this week the agency will move forward rapidly to
implement nationwide deployment of the Automatic Dependent Surveillance–Broadcast (ADS-B) system. ADS-B, which will replace radar-based services with data disseminated via satellite, will reduce
the risk of midair collisions and weather-related accidents, provide more efficient routes in adverse weather, and improve situational awareness for pilots, the agency said in a news release on
Monday. "ADS-B is the backbone of the future of air traffic control," Sturgell said. "NextGen is real and, as of today, NextGen is now. President Bush just last week stated that modernizing our aviation system is an urgent challenge, and today's announcement
demonstrates that the Department of Transportation and the FAA are taking concrete steps to do just that." The ADS-B system is now being installed in Florida. By 2013, it will be deployed nationwide,
with 794 ground stations, the FAA said. ADS-B will provide services everywhere there is radar coverage today, and will also cover areas that currently lack radar service, including the Gulf of Mexico
and Alaska.
Work at the sites of the next key milestones for ADS-B services — Juneau, Alaska; Louisville, Ky.; the Gulf of Mexico, and Philadelphia — is scheduled for completion by the end of 2010,
the FAA said.
With a new administration preparing to take over in Washington next January, AOPA's incoming president, Craig Fuller, met with members of the Department of Transportation transition team on Monday to
press the case for GA. Fuller, along with AOPA Executive Vice President of Government Affairs Andy
Cebula, met with Mortimer Downey, head of the DOT transition team; Duane Woerth, former president of the Air Line Pilots Association (and touted as the next FAA administrator); and Jane Garvey, former
FAA administrator (and maybe the next Secretary of Transportation). Fuller told the team that priorities for general aviation pilots include quickly naming a well-qualified FAA administrator;
investing in aviation infrastructure; addressing proposed regulations that target aviation gasoline, emissions, and noise; modernizing the Air Traffic Control system without placing undue burdens on
GA aircraft owners; and ensuring that aviation taxes (not user fees) pay for the FAA.
Fuller also suggested that GA should be included in the new administration's economic stimulus package. Many airport projects could be ready to go as soon as funding was received, he said. Fuller
also recommended that the administration should delay the implementation of ADS-B until the aviation industry can develop an implementation plan that would benefit all users. He will take over Phil
Boyer's job at AOPA on Jan. 1.
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Business Executives! Mark Your Calendars for February 3 & 4, 2009 in London, England
Active Communications' Efficiency in Aviation forum will provide a unique platform for senior aviation executives to discover, consider and discuss innovative management,
operational and technical strategies to achieve greater cost and fuel efficiency. AVweb is a media partner for this forum. As an AVweb subscriber, sign up by December 12, 2008 and
receive a special 15% discount. Call Melanie Mulazzi at +44 (20) 7981-2504, or
click here to
contact her via e-mail. 
Details
online. 
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As Eclipse Aviation's biggest investor, CEO Roel Pieper has the most to lose in the company's collapse. Does that mean he's the right person to try and save it? AVweb's Russ Niles still has
high hopes for Eclipse's future, but in the latest installment of the AVweb Insider blog, he tries to wrap his head around the restructuring plan.
Read more.
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Escape the Storm ... Invest in Diamonds
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2008), there has never been a better time to buy a Diamond DA40 XLS. See program details at
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| Alan Dias |
Angel Flight West has named Alan M. Dias as its Executive Director. Dias has been flying missions since 1993 and was previously vice chair of the board of directors.
Get a promotion or a new job? Your colleagues want to know about it, and AVwebBiz can get the word out. Drop us a line about the staff
appointment, with a nice recent photo, and we'll do our best to include it in our new section, "Who's Where." The items will be permanently archived on AVweb for future reference,
too.
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Look Around Your Hangar and Office!
Build A Plane needs items for their annual eBay auction. Avionics, parts, electronics, headsets, books, videos/CDs, software, leather jackets, even special airplane rides — well, you get
the idea. Anything Build A Plane can sell will benefit school-building projects offering students an exciting way to learn science, engineering, and math and building a new generation of
aviation enthusiasts. For complete information, contact Katrina Bradshaw at (804) 843-3321, or
go online. 
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The Top Reporter on Our Crack Staff ... Is
You! |
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 Our best stories start with you. If you've heard something 200,000 pilots might want to know about, tell us. Submit news tips
via email to newstips@avweb.com. You're a part of our team ... often, the best part.
Our sister publication, Aviation Consumer, would like to know. The magazine is conducting a survey of owners on their experiences
running the SR22's engine lean of peak.
If you'd like to participate, contact the editor directly at avconsumer@comcast.net.
(The results will appear in a future issue of Aviation Consumer. For subscription information, click
here.)
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Great Holiday Gift
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AVwebBiz is a weekly summary of the latest business aviation news, articles, products, features, and events featured on AVweb, the internet's aviation magazine and news service.
The AVwebBiz team is:
Publisher
Timothy Cole
Editorial Director, Aviation Publications
Paul Bertorelli
Editor-in-Chief
Russ Niles
Contributing Editors
Mary Grady
Glenn Pew
Features Editor
Kevin Lane-Cummings
Webmaster
Scott Simmons
Contributors
Jeff van West
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