Eclipse Aviation Case Study

Eclipse breeze is a big private kelvin manufacturer, who does non create saucily jet aircrafts, but also new jet customers. Their aim is to offer the convenience, performance and safety of private jet locomote to be available to more people but non alone the elites. So their offers on products are more likely to be affordable, flourishing to own, easy to operate, but with handsome performance capabilities previously found except in military and commercial aircraft.The participation seems to energise a frank idea, but the reality does not go to the right direction. Eclipse Aviation was judged to be bankrupt by the Federal Bankruptcy Court of the joined States in 2009. Bankruptcy documents indicated that a enumerate of USD 702. 6 million was owed. aft(prenominal) the bankruptcy, the assets were bought by a new company, Eclipse Aerospace, to continue its business. The bankruptcy of the company was due to the problem of the market.The market was expected to have a nice per formance, but finally it didnt develop as well as it was expected. At the same time, many of the startups like Eclipse entered the market. At this point, the contestation of the competitors was quite high in the market. The current aviation market does not perform well either. According to the General Aviation Manufacturers Association (GAMA), the total worldwide aviation shipments fell by 2. 1% to 369 units in the first-year quarter of 2012, compared with 377 in the first quarter of 2011.Eclipse has not publicized its orders of the new aircraft, Eclipse 550, of the first quarter of 2011, but according the datasets of its nearest competitors Embraer Phenom vitamin C and Cessna Mustang, they didnt perform well on the market at the origination of the year. Both of them only delivered 4 and 7 of their lightest jets, compared to the number of 41 and 43 in the first quarter in 2011. As the market seems to have a great uncertainty, I dont think that it would be a good idea to invest in this startup.