EAA AirVenture

In addition to having the nation’s biggest aviation fest, the Experimental Aircraft Association EAA AirVenture is designed to put aircraft and the companies that produce them on the best footing, but this year, the news had more to do with changes in the execuitive suites than anything in the air. While AAI Acquisition (nee Adam Aircraft) announced the comeback of the A700 and the death of the A500, Eclipse Aviation took the prize in announcing the forced replacement of Eclipse Founder Vern Raburn, one of the more dynamic characters in the Very Light Jet industry.

Eclipse Gains New Funding, Raburn Steps Down But Stays with Company
At the opening of EAA’s AirVenture, Eclipse Aviation stunned the industry by announcing that Founder and CEO Vern Raburn was stepping down, as part of the cash infusion agreement with the ETIRC, the European firm that came to the company’s rescue earlier this year with an infusion of $100 million. Related Story
In a letter to Eclipse owners, Raburn stated: "I have not had any choice but to accept the terms of an agreement that provides Eclipse the first funds in a new round of financing that will take the company to a cash flow positive position.”
Raburn, who stepped down in favor of ETIRC Chair Roel Pieper, immediately left AirVenture but, according to the company’s announcement, will continue to provide counsel to Pieper and will assume the vice chair role at ETIRC Aviation, assisting in the global expansion of the Eclipse 500. Pieper became acting CEO of Eclipse effective immediately.
"As founder and CEO, Vern can be credited with creating the now prevalent very light jet category and achieving what the industry did not think possible,” said Pieper, Eclipse Aviation chair. Under his leadership, the company has delivered more than 230 Eclipse 500 aircraft and introduced the coveted Eclipse 400. It is now time to take the company to the next level of growth and operational excellence and this is what the board has tasked me to do. I will work toward this goal in the coming period."
Pieper has extensive international management experience having served as president and CEO of Tandem Computers (TDM), president and CEO of UNIX System Laboratories (USL), president and CEO of Ungermann-Bass (TDM) as well as senior vice president of strategy at Philips N.V. and chief technology officer at Software AG of Germany. In addition, he was formerly a director of Computer Associates (CA) and Veritas Software (VRTS). He is currently chair and founder of European Technology and Investment Research Center (ETIRC) Aviation, a company organized to provide business communities with affordable, on-demand, point-to-point air-taxi jet travel and also the largest shareholder in Eclipse.
"I am proud to have led the team that succeeded in creating the very light jet category and shipping the safest Part 23 aircraft in decades," said Raburn. "I love this company and the people who built it with me and my first objective is to do whatever I can to enable its ongoing success. I am pleased that our chairman is deeply committed to the same goal."
The company is currently working on an unknown number of $150,000 deposits on the Eclipse 500 and will detail how it will process refunds in the near future for those who objected to the recent Eclipse 500 price increase of $500,000. Related Story
ETIRC Aviation S.a.r.l. is a principal driver of the VLJ industry, according to the company which added it creates virtual jet networks for airlines and aviation entrepreneurs and providing business communities with affordable, on-demand, point-to-point jet travel that drives productivity. ETIRC Aviation will offer a full range of white-label VLJ services to virtual jet network and jet taxi operators, including a real-time operations system, fleet financing, VLJ leasing, business consultancy, pilots, training programs and VLJ maintenance centers. ETIRC Aviation is headquartered in Luxembourg and has offices in Moscow, Istanbul and Cyprus.

Adam 700 Getting Back on Track
AAI Acquisition, Inc. (AAIA), the successor company to Adam Aircraft Industries, announced during the EAA AirVenture in Oshkosh that it is taking significant steps to resume operations, naming Jack Braly as the new president and CEO of the company. It will focus its future efforts on the A700 Very Light Jet, but has no plans to resume production of Adam’s piston twin, the A500, only a few of which were delivered before Adam went bankrupt in February. Related Story AAIA purchased the assets and intellectual property of the former Adam Aircraft from the bankruptcy court in April 2008.
AAIA also announced that it has completed its business organization process and will focus on FAA certification of its A700 very light jet (VLJ) from its headquarters at Centennial Airport in Englewood, Colorado. Certification is projected for early 2010.
"We are working diligently to gain certification of the A700, with the goal of getting this jet into production," said Braly at EAA Airventure in Oshkosh, Wisconsin. Braly said the FAA has given the company notice that the A700 certification basis has been accepted, and AAIA has resumed the testing process.
AAIA is the first U.S. investment by the partnership of Industrial Investors Group and Kaskol, two Moscow, Russia-based private equity firms. Former Colorado Governor Bill Owens, who serves on the board of directors of another one of Industrial Investors Group's holdings, played a part in attracting the group to Adam. In a two-step approval process, AAIA's purchase of the assets of Adam Aircraft first gained approval of the bankruptcy court, and then in July from the U.S. Department of the Treasury.
Braly said AAIA has begun recruiting and hiring. The company already has 150 employees, many of whom previously worked for Adam Aircraft who bring intimate knowledge of the design and capabilities of the A700. The company said that is key to remaining FAA related activities in the certification process. AAIA's plans show employment levels growing to around 300 by the end of 2008, and to over 500 by the end of 2009.
AAIA, working with the FAA's Denver Aircraft Certification and Los Angeles Manufacturing Inspection District Offices, quickly re-established the A700 as an FAA-approved project. This allowed AAIA to successfully perform several structural tests and resume the manufacturing of test articles. At the time of bankruptcy, approximately 80 percent of the company's structural test requirements and 50 percent of the FAA's required structural tests had been completed.
"This has been a timely and impressive transition toward producing the best VLJ on the market," said Braly. "We are working hard to capitalize on the testing that had already been completed, in an effort to gain FAA certification as quickly as possible. That is the critical piece in moving toward production. Our goal is to sell a safe and dynamic airplane. Everything we are doing is working toward that goal."
With extraordinary efforts from the engineering and flight test teams, as well as the quick reorganization of AAIA, the A700 flew again on Thursday, June 26 less than 40 working days after AAIA moved into company headquarters. Since that time, the A700 has completed several additional flight tests.
Braly said he and AAIA will provide future updates on the progress toward FAA certification, as well as a new marketing plan to position itself as a crucial player in the VLJ industry. Full-scale production is planned to begin shortly before certification is achieved, but customer-ordering protocols and potential delivery dates still are to be determined.
Braly had been in retirement after serving as president of Sino Swearingen Aircraft (San Antonio, Texas), Rockwell's North American Aircraft Modification Division (Los Angeles, California) and Beech Aircraft (Wichita, Kansas). He was recruited to AAIA by the top management of Industrial Investors Group and the returning management team at AAIA.