History of Eclipse Aviation
Corporate brand
UnclaimedThe history of Eclipse Aviation, an American aircraft manufacturer whose Eclipse 500 program became one of general aviation’s most consequential financial failures.
Last updated November 4, 2026
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Overview
Eclipse Aviation was an American aircraft manufacturer founded in 1998 by Vern Raburn, a former Microsoft executive, to develop a small, efficient twin-engine business jet. The company became one of the most prominent participants in the early-2000s very light jet movement, which sought to make private and air-taxi aviation more accessible through smaller aircraft, lower acquisition prices, simplified operations, and high-volume manufacturing. The company initially operated from Scottsdale, Arizona, but moved its headquarters and planned production activity to Albuquerque, New Mexico, after receiving investment support from the State of New Mexico and incentives from the City of Albuquerque. Eclipse also established service facilities in Albuquerque, Gainesville, Florida, and Albany, New York. Microsoft co-founder Bill Gates became an important early stakeholder, helping give the start-up visibility and access to substantial investment capital. Eclipse’s first aircraft, later designated the Eclipse 500 or EA500, was designed around the Williams International EJ22 turbofan. Preliminary design work was completed in 2000, the design was finalized in 2001, and the first prototype flew in August 2002. The EJ22 did not deliver the performance Eclipse required, and the company and Williams disagreed about whether the problem reflected engine shortcomings or demands beyond the engine’s contractual capability. Eclipse subsequently selected Pratt & Whitney Canada’s PW610F-A engine. The replacement required substantial airframe changes, and the program suffered a lengthy delay before the re-engined prototype flew in December 2004. The Eclipse 500 eventually received United States Federal Aviation Administration certification in September 2006, and the first customer aircraft was delivered in January 2007. Eclipse promoted the aircraft as a new category of affordable personal and business aviation. It produced 104 aircraft during 2007 and reached a reported production total of approximately 260 aircraft before the company’s collapse. The program attracted strong customer interest and, during 2008, Eclipse reported more than 150 sales in the first three quarters of the year. The company also explored a single-engine derivative, initially presented as the Eclipse Concept Jet, which first flew in 2007 but was not placed into production by Eclipse. The company’s aggressive business model depended on a combination of unusually high production volumes, a low selling price, major upfront deposits, and continued investor financing. Industry analysts later argued that the proposed production scale was unrealistic for a new general-aviation manufacturer and that the low-price strategy depended on volumes Eclipse never achieved. Manufacturing delays, supplier disputes, rising costs, program changes, and weakening access to capital increased the company’s financial pressure. Eclipse furloughed roughly 100 to 150 workers in October 2007. A payment and quality dispute with Hampson Aerospace, a supplier of Eclipse 500 tail assemblies, led to litigation that was settled confidentially in February 2008. Eclipse also became involved in a 2008 legal dispute over anonymous contributors to the Eclipse Aviation Critic NG blog. The company obtained a California court order seeking information from Google about contributors’ identities, saying it wanted to determine whether employees or suppliers had breached confidentiality agreements. Critics characterized the action as an attempt to intimidate or expose dissenters and raised First Amendment and privacy concerns. During the latter part of 2008, Eclipse’s financial position deteriorated severely. The company entered bankruptcy proceedings and was dissolved in 2009. Contemporary aviation commentators described the collapse as an exceptionally large failure for general aviation, with losses affecting investors, suppliers, employees, customers, and aircraft order holders. The episode also damaged confidence in the term “very light jet,” which had become closely associated with ambitious promises and failed business models. Later ventures associated with the Eclipse aircraft design continued for a time, and a successor Eclipse 550 was introduced in 2014, but these developments did not restore the original Eclipse Aviation corporation.
History
Eclipse Aviation was established in 1998 by Vern Raburn, who had worked at Microsoft. The start-up aimed to create a small twin-engine jet that could be manufactured and operated at substantially lower cost than conventional business aircraft. Raburn’s connections in the technology sector helped attract prominent early backing, including investment from Bill Gates. The company formed a board in 1999 and began work on its first aircraft. Eclipse initially operated in Scottsdale, Arizona. Economic-development support from New Mexico and incentives offered by Albuquerque led the company to establish its production base and move its headquarters to Albuquerque in 2000. The company also developed service-center operations in Albuquerque, Gainesville Regional Airport in Florida, and Albany International Airport in New York. The Eclipse 500 design was developed between 2000 and 2001. Its first prototype was built around Williams International EJ22 turbofans and flew on 26 August 2002. The aircraft flew only once with those engines. Eclipse maintained that the EJ22 did not produce its rated thrust, while Williams argued that the engine met its contractual obligations and that Eclipse was seeking performance beyond the engine’s design capability. Eclipse selected the Pratt & Whitney Canada PW610F-A as a replacement in December 2004. The engine change required extensive redesign and contributed to a delay of about thirty months. The modified prototype first flew on 31 December 2004. The aircraft gained considerable attention as a symbol of the very light jet movement. In February 2006, the National Aeronautic Association selected Eclipse Aviation for the 2005 Collier Trophy, citing technological innovation, cost reduction, performance, safety, and the potential for a new air-taxi model. The decision was controversial because the aircraft had not yet completed FAA certification and had not entered customer service. The Eclipse 500 was certified on 30 September 2006, and the first customer aircraft was delivered in early January 2007. Eclipse pursued an ambitious production and pricing strategy. It forecast extremely high annual output for a new turbine-aircraft manufacturer and promoted a purchase price and operating model intended to open private aviation to a wider market. The company produced 104 aircraft in 2007 and ultimately manufactured about 260 Eclipse 500s before its collapse. In 2007 it also revealed the Eclipse Concept Jet, a single-engine, four-seat aircraft built with outside partners. The prototype had flown earlier that year, but Eclipse said it had no immediate production plans. The program was later associated with the Eclipse 400 designation. Operational and financial difficulties became increasingly visible. In October 2007, Eclipse furloughed approximately 100 to 150 workers. The following month, Hampson Aerospace sued over payment for Eclipse 500 tail assemblies. Eclipse attributed the disagreement to quality concerns and disputed invoices; the parties reached a confidential settlement in February 2008. The company also faced criticism from customers, employees, suppliers, and commentators about delivery expectations, aircraft completion, warranty support, and the viability of its business plan. In April 2008 Eclipse obtained a court order in California seeking the disclosure of identities associated with anonymous contributors to the Eclipse Aviation Critic NG blog hosted on Google’s Blogger service. The company said it wanted to investigate possible violations of confidentiality agreements and denied that it intended to suppress criticism. Opponents argued that the action threatened anonymous speech and privacy, and some challenged the subpoena in court. The broader financial model failed as investment and customer funding became more difficult to obtain. Analysts later concluded that the company’s planned production volumes were incompatible with the size and maturity of the general-aviation market, while the low proposed price depended on those volumes being achieved. Eclipse collapsed in the latter part of 2008 and was dissolved in bankruptcy in 2009. Contemporary assessments described the failure as the largest financial disaster in general aviation up to that time, affecting investors, suppliers, employees, order holders, and owners whose aircraft did not receive the promised long-term support. The collapse had consequences beyond Eclipse itself. The company’s highly publicized promises contributed to skepticism toward the very light jet category, and manufacturers increasingly preferred terms such as “entry-level jet” or “personal jet.” Later successor ventures continued development and support of the aircraft family, including the Eclipse 550 introduced in 2014, but those efforts were separate from the original Eclipse Aviation corporation.
- 2014
Eclipse 550 introduced
[1]A successor venture introduced the Eclipse 550, continuing the aircraft family after the original company’s failure.
- 2009
Bankruptcy dissolution
[1]The original Eclipse Aviation corporation was dissolved through bankruptcy proceedings.
- 2008
Financial and legal pressure intensifies
[1]Supplier litigation, workforce reductions, customer disputes, and declining financing marked the company’s final period.
- 2007
Customer deliveries begin
[1]The first customer EA500 was delivered, and Eclipse produced 104 aircraft during the year.
- 2007
Concept Jet unveiled
[1]Eclipse presented a flying prototype of a single-engine, four-seat jet at AirVenture.
- 2006
Collier Trophy and FAA certification
[1]Eclipse received the 2005 Collier Trophy and the Eclipse 500 gained FAA certification on 30 September.
- 2004
Replacement engine selected
[1]Eclipse selected the Pratt & Whitney Canada PW610F-A after abandoning the original engine installation.
- 2002
First Eclipse 500 prototype flight
[1]The prototype flew on 26 August with Williams EJ22 turbofans.
- 2001
Eclipse 500 design finalized
[1]The design of the company’s first aircraft was finalized and prototype construction began.
- 2000
Headquarters move to Albuquerque
[1]The company moved its headquarters and production plans to Albuquerque, New Mexico, after receiving state and municipal support.
Products and positioning
Eclipse Aviation positioned the Eclipse 500 as an affordable, efficient very light jet intended to broaden access to business aviation and support emerging air-taxi and personal-jet markets.
Very light jet · 2006
Eclipse 500 / EA500
The Eclipse 500 was Eclipse Aviation’s principal product and the aircraft around which the company built its manufacturing and financing strategy. It was a compact twin-engine business jet powered in production by Pratt & Whitney Canada PW610F engines. The aircraft received FAA certification in September 2006 and entered customer service in January 2007. Eclipse promoted it as an economical alternative to larger business aircraft and as a platform for personal aviation and air-taxi operations. Approximately 260 aircraft were produced before the company collapsed.
Single-engine very light jet prototype · 2007
Eclipse Concept Jet / Eclipse 400
The Eclipse Concept Jet was a four-seat, single-engine jet prototype developed with Swift Engineering and Basis at NASA’s Wallops Flight Facility. It first flew on 2 July 2007 and was publicly shown at AirVenture later that month. The aircraft was intended to provide market and technical information about a smaller personal-jet category. Eclipse stated at unveiling that it had no production plans, although the project was subsequently associated with the Eclipse 400 designation.
Very light jet · 2014
Eclipse 550
The Eclipse 550 was introduced in 2014 by a successor venture rather than by the original Eclipse Aviation corporation. It continued the basic Eclipse light-jet concept after the original manufacturer had entered bankruptcy and been dissolved. Its inclusion in the history of Eclipse Aviation reflects the persistence of the aircraft design and related business activities after the failure of the original company.
Controversies
2008
Anonymous-blogger identity dispute
Eclipse sought information from Google identifying anonymous contributors to a blog critical of the company. Eclipse said it was investigating possible confidentiality breaches, while opponents argued that the subpoena threatened anonymous speech and privacy. The dispute became part of wider criticism surrounding the company’s treatment of dissent, customers, employees, and suppliers.
Brand decisions
2008
Maintain an aggressive high-volume production modelStrategyBackground
Eclipse’s low-price proposition depended on achieving production volumes unusually high for a new turbine-aircraft manufacturer.
Action taken
The company continued pursuing rapid production and sales growth despite workforce reductions, supplier disputes, and tightening access to capital.
Aftermath
The model became financially unsustainable, contributing to the company’s collapse in late 2008 and bankruptcy dissolution in 2009.
2007
Explore a single-engine jetProduct launchBackground
Eclipse sought information about the emerging market for smaller personal aircraft while focusing commercial production on the Eclipse 500.
Action taken
The company developed and displayed the Eclipse Concept Jet, a four-seat single-engine prototype, while stating that it had no immediate production plans.
Aftermath
The prototype informed the Eclipse 400 concept but did not become an Eclipse Aviation production aircraft.
2006
Certify and launch the Eclipse 500Product launchBackground
Eclipse needed regulatory approval before beginning customer deliveries of its low-cost very light jet.
Action taken
The Eclipse 500 received FAA certification on 30 September 2006, followed by the first customer delivery in January 2007.
Aftermath
The aircraft entered service and became one of the most visible products in the very light jet movement, but production, support, and financing problems later undermined the company.
2004
Replace the Eclipse 500 engineGeneration changeBackground
The original Eclipse 500 prototype used Williams International EJ22 engines, but the program encountered disagreement over thrust performance and suitability.
Action taken
Eclipse selected the Pratt & Whitney Canada PW610F-A and redesigned portions of the aircraft to accommodate the new powerplant.
Aftermath
The change enabled the eventual production configuration but contributed to a lengthy program delay and additional integration work.
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