Billson Named President Of Manufacturing; McConnell To Lead Customer Division

In a release sent to current Eclipse 500 owners and position holders, on Tuesday announced a new divisional structure, as part of the company's ongoing 'operational excellence strategy.'

Former Eclipse COO Peg Billson has been appointed president and general manager of the Eclipse Manufacturing Division, while Mike McConnell, previously vice president of sales and marketing, will serve as president and general manager of the Eclipse Customer Division. Mark Borseth, Eclipse’s chief financial officer, will oversee both divisions, termed "Process Improvement Teams" by the Albuquerque, NM-based planemaker.

All three executives will continue to report to CEO Roel Pieper as part of the executive management team. Pieper -- head of ETIRC, a major foreign investor in Eclipse -- implemented a series of tough cutbacks in the weeks following the July 28 ousting of Eclipse founder Vern Raburn from his CEO role.

As ANN reported, Eclipse first laid off approximately 190 temporary workers on its production line... followed by the August 22 announcement of at least 650 positions throughout the company's facilities in Albuquerque, and maintenance centers in Gainesville, FL and Albany, NY.

The company also slashed its expected production rates for the Eclipse 500 through 2008, in an effort to conserve cash ahead of an expected round of outside funding. To that end, the planemaker also postponed plans to upgrade older Eclipse 500s to Avio NG avionics, pending receipt of that funding. Refunds to depositors who opted to cancel their orders, in response to a May price increase, are also on hold... leaving many position holders to consider legal options.

Pieper told customers Tuesday the swift changes are necessary, if Eclipse is to survive its latest hardships.

"I have been directly involved in several turnaround efforts over the course of my career and believe these changes will be instrumental in driving world­class manufacturing and a superior customer experience. I have absolute confidence in this leadership team’s ability to deliver the profitable results this company requires," said Pieper.

The company has previously stated it plans to resume full production rates in 2009, against its claimed order book of approximately 2600 aircraft.

FMI: www.eclipseaviation.com