Eclipse CEO Takes His Lumps, But Assures Ultimate Success

ANN recently printed a letter Eclipse Aviation CEO Vern Raburn sent to Eclipse customers waiting for jets they've ordered. The letter answered many questions about the company's problems getting its now fully-certified VLJ into to production, but we felt there was more to the story and asked him to speak briefly with us.

Just like his letter, Raburn was very candid and up front. He was just as willing to take the hit for internal problems as he was for the company to revel in its accomplishments.

The biggest issue for Eclipse right now is the all-important production certificate. A production certificate gives the company full authority -- within strict guidelines approved by the FAA -- to inspect every aircraft off the line and award an airworthiness certificate. Without a production certificate each aircraft must be inspected by the FAA.

In response to ANN's question as to whether Cessna has beaten Eclipse he said, "Not in any shape, form or fashion. Let's have this conversation a year from now and we'll see how many Mustangs are in the field and how many Eclipse's are in the field. The only thing that matters in this game is deliveries."

Raburn added Eclipse has far more orders for its VLJ than does Cessna, and the gap continues to widen. Eclipse has logged over 100 new orders since it announced it had received a provisional type certificate at AirVenture this year. Raburn says most people mistake certification and first delivery as the contest. He believes those are goals, but not THE goal.

"It's like racing at the Indianapolis 500. First you have to get a builder for the car; then a driver; then you need a pit crew and a good team -- and that's all just so you can qualify!" said Raburn. "If you qualify, then you get to the starting line. We're just getting to the starting line."

Asked if he believes Eclipse has stumbled in getting its aircraft to production he said, "We absolutely are stumbling." Raburn says just as he does for himself, he holds his company to a high standard, and right now it's not meeting them.

He says Cessna's Mustang is a wonderful airplane; a standard to which any aircraft manufacturer would love to compare. "But you're getting a Citation," he added, "There is little innovation and little new about it."

Raburn is quick to point out he's not knocking the Mustang, he just points to the lack of innovation to put Eclipse's problems in the proper framework. He says any time you choose to do something different, something that's never been done before you must expect unforeseen problems. He's acknowledged Eclipse's problems and the company is working on fixes.

As to those problems... Raburn says the hold up right now is related to process, not product. He says the quality, safety and performance of the jet have not and will not be compromised.

The problem is the final inspection procedures for the production line -- Raburn describes Eclipse's as flawed. He said his team's familiarity with the process allowed them to proceed despite the lack of suitable written procedures and acknowledges that's wrong. "Knowledge doesn't count on the production line."

To approve a production certificate the FAA requires detailed written guidance on both the building and inspection process. Detailed instructions ensure even the most inexperienced worker on the line can do the job the same way every time. They also make it very easy for an inspector to observe and ensure procedures are followed. "The inspection is the very last step and we got caught on that step -- justifiably so. This is not the FAA's problem; this is an Eclipse problem."

Raburn's relationship with the FAA has always been good. He has nothing but praise for the FAA team coordinating with Eclipse in working through this latest setback. "As in any relationship, there are highs and lows. The past few months have been trying, but just like a marriage, you must invest heavily in communication to make [the relationship] successful."

Eclipse's test fleet remains grounded while the company sorts out a couple of issues. As ANN reported, inspectors found abnormal wear on a wing fitting bolt and cracks in the outer acrylic pane of some windows. "Those were problems not in design, but in manufacture," said Raburn. The company grounded the jets on its own and has developed fixes for both problems that will be incorporated into all production aircraft.

Raburn says Eclipse's development process is unique among light aircraft. He says the test fleet has accumulated over 3,300 hours; double the industry average for the class. "We're approaching the number of hours Boeing's 777 had before it entered service." He said Eclipse wants to find problems like the bolt and windshield before its customers do. "We don't want to turn our customers into test pilots."

ANN asked Raburn how Eclipse will monitor the fleet as it enters service, especially since many will be going to individuals instead of fleet operators more likely to keep good records. He said Eclipse will lease back the first few jets. In fact, the second off the line will remain in Albuquerque to be used by Dayjet to train pilots. Eclipse will perform all the inspections and maintenance placing the company in a very good position to monitor the aircraft during their initial entry into service.

"Our production schedule is designed to aggressively pursue what we believe to be a large market for our product -- expert opinion notwithstanding," said Raburn, "We have every incentive to ensure all the issues are worked out before putting planes in customer's hands. We don't intend to fix problems in the traditional manner of handing them off to our customers in the form of mandatory service bulletins."

What does Raburn expect for 2007? He says many scoff at his company's claims of delivering over 500 aircraft next year, replying it's "a culmination of years of planning and work." He says Eclipse gets several visits per year from people all over the world and almost all are astounded at how well prepared the team is to meet the coming production challenges.

Asked if he believes the industry, government and public are ready for the VLJ, Raburn answered, "No one is ready for the impact the VLJ will have." He says the developers of innovative products rarely have a full appreciation of the ways their products might change things. He used the personal computer revolution as an example.

"There are always applications and effects and unintended consequences that no one can predict," he said, "We are clearly a change agent for this industry and some find us massively threatening. You either embrace change or you are destroyed by it. I think a lot of entities will be destroyed by the VLJ and that's simply because they are afraid of it."

Raburn says there has been a more rapid response than expected to the VLJ as Eclipse defined it six years ago. "I find it ironic that here's a market segment with a class of airplanes everybody wants to be everything but a VLJ. They don't want to compete directly with us so they have all kinds of other terms."

Raburn believes the VLJ market is the most highly competitive in all of aviation save the newly emerging LSA market. "I think that validates our vision of six years ago."

When asked to grade Eclipse's performance to date Raburn was as blunt as always. "For achievements in design and certification; A+. For meeting schedules and customer expectations; C-. For the production delay problems; F. And for that one we'll study harder, work harder and get an A on the next exam!"

FMI: www.eclipseaviation.com