true true 0 <img src="http://realestate.halogenguides.com/image/show/eclipse500.jpg" title="Eclipse 500" alt="Eclipse 500" class="floatright" width="300"/>In mid-September, charter company [DayJet](http://jets.halogenguides.com/articles/1451-night-falls-for-dayjet) grounded its fleet of very light jets (VLJ) and closed shop, bringing to an end one chapter in the fledgling air taxi industry. Now the industry may be headed for another challenge, as one aviation market researcher speculates that production of the Eclipse 500, a workhorse in the air taxi world, will cease in early 2009. Last week Connecticut-based [Forecast International](http://www.forecastinternational.com/press/release.cfm?article=158) released a report predicting that Eclipse Aviation, the maker of the Eclipse 500 jet, may be forced to stop production of the aircraft in the first quarter of 2009. The aviation market watcher estimated that just 12 Eclipse 500s would be produced in 2009. "Even this forecast may prove too optimistic," said Forecast International aircraft analyst Douglas Royce, in a company-issued release. The necessary economies of scale—dependent on fast, cheap production of the aircraft—never materialized for the company, according to Forecast International. As a result, Eclipse was forced to raise the Eclipse 500 price tag by 41% this spring while continuing to take a loss on every jet ordered prior to the price increase. Add in credit woes that have made raising new capital nearly impossible, and the business model gets even tougher. So is the concept of air taxis, which launched amid promises to bring down the cost of [private aviation](http://jets.halogenguides.com) by offering consumers short hops on small jets, grounded for good? Not necessarily. There are still a handful of smaller regional operators in the U.S., including Linear Air, an air taxi operator in the Northeast that continues to operate and just announced a new round of funding. But no doubt new air taxi companies like POGO, slated to launch in 2009, will face a huge challenge if they do lift-off. In Europe, the air taxi concept is still spreading. Blink operates flights throughout Western Europe and this fall, U.K. startup FlairJet announced that it would begin flights next May with a fleet of Phenom 100s, a new VLJ model that should hit the skies this year. If the Eclipse 500 ceases production, air taxi companies and fliers will have fewer choices, since the Phenom 100 and the Cessna Citation Mustang would be the only two remaining VLJs in production. 2008-11-06T23:44:54Z 2 true 1543 true false 2008-11-06T14:41:00Z true false air-taxis-may-take-another-hit-in-2009 false 0

Aviation market researcher Forecast International predicts an end in sight for the Eclipse 500.

Article 2009-03-25T04:11:00Z 600 16