New Company Could Open As Early As September 1

Mason Holland, the new owner of Eclipse Aviation, says he plans to focus on profitability first, and growth second, as he tries to revive the Eclipse Very Light Jet program.

A federal bankruptcy judge approved the $40 million sale of the company to Holland and three other investors Thursday.

* The Associated Press reports that the company will continue to do business as Eclipse Aviation. Eclipse Aerospace, the parent company led by Holland, has no immediate plans to restart production of the Eclipse 500. Holland has said all along that he plans to begin by servicing the existing fleet of Eclipse jets. He decided to attempt to buy the company when he lost his deposit on an aircraft after Eclipse Aviation folded. He had considered pursuing legal action against the company, but decided on a different course after talking to Eclipse owners.

"The old Eclipse was a great company. They made a great product, but the fatal flaw was they focused on growth first and profit second," Holland said. "We're going to focus on profitability first and growth second."

Eclipse 500 File Photo

Eclipse Aerospace Co-Founder Mike Press said the company's initial business model will come from refurbishments of the 259 jets already in service, worth between $100,000 and $500,000 each, though the company has not determined how much it will charge for the upgrades. "We're going to price it with some profit, but we're not going to gouge the owners," he said. He also told AP they plan to purchase some of the existing planes from fleet operators and refurbish them for resale.

Holland and Press hope the company will eventually employ about 500 people. They also said some of the upgrades planned for the Eclipse jet, such as a new fire suppression system, could be offered for other aircraft, diversifying the revenue stream.

FMI: www.eclipseaviation.com