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selecta · Member Joined: 24 Dec 2006 Posts: 813 Location: ORD

By TIM KORTE
ASSOCIATED PRESS WRITER
Saturday, January 27, 2007 · Last updated 9:48 a.m. PT
source

ALBUQUERQUE, N.M. -- Vern Raburn hopes to stir up an industry that typically doesn't like to be nudged, let alone shaken.

One of the first employees hired at Microsoft Corp. when the software heavyweight started in the 1970s, Raburn joined his old buddy, Bill Gates, in cultivating a revolution that changed the world's business tools.

Yet after nearly 10 years as president and chief executive of fledgling aircraft manufacturer Eclipse Aviation, Raburn has discovered cutting-edge innovation isn't always embraced in his new industry - for good reason.

"In the world of general aviation, change is viewed as bad," the 56-year-old Raburn said during an interview with The Associated Press. "Like with medicine, the cost of a mistake is high - human life."

As such, the aviation industry tends to hold strongly to time-tested products and philosophies. And that's the environment where the straight-talking Raburn is trying to sell his flashy Eclipse 500.

"In venture capital, failure is part of the culture. Failure has never been part of the culture in aviation," he said.

It's among the wave of very light jets that have been dubbed "SUVs of the skies." Supporters say the aircraft will radically change the way people travel.

Eclipse delivered its first customer-ordered aircraft last week, and 39 more are on the assembly line at the company's Albuquerque plant. Raburn said Eclipse expects to sell 500 jets this year.

Cessna Aircraft Co. delivered its first light jet in November. Brazil's Embraer SA, an alliance by Honda Motor Co., and Piper Aircraft Inc. are seeking certification and deliveries in coming years.

Such airplanes weigh less than 10,000 pounds. They have two engines, generally seat five to seven passengers and can fly at higher altitudes than traditional piston-driven or turboprop airplanes. And they're a lot cheaper than other private jets.

The Eclipse 500 sells for $1.5 million, about half as much as the most inexpensive business jets currently in service.

Raburn predicts the VLJs, as they're also known, will expand jet travel for small businesses and families in a way that never has been accessible until now.

But is there really a demand for these aircraft?

"There's always been a presumption of a market, a belief that if you can make airplanes affordable enough, that if you build it they will come," said Dr. Janet Bednarek, a University of Dayton professor who studies aviation history.

"How big the market is, that's the big question. It's never been as big, at least historically, as the dreamers have dreamed."

Raburn agrees, saying his gamble is rooted in his belief such a demand exists, and he's got company. Gates, chairman of Microsoft Corp., is Eclipse's second largest investor, and Raburn's company has raised about $600 million in private equity.

Raburn worked at Microsoft as president of consumer products and led the company's entry into the retail channel. He stays in touch with Gates and the two gather with their families a few times each year.

"We talk, but it's not like he's on our board of advisers," Raburn said. "Usually it's just about old friends or how global warming really can be solved. Bill is so passionate about all he does. He can tell you six ways to stop AIDS."

Raburn, who grew up in Oklahoma, first learned to fly as a teenager and has accumulated more than 6,500 hours of flight time.

He sees demand increasing for private regional air travel, making it easier and more convenient for businesses - law firms, automobile dealers, construction companies - to bypass the hassles of commercial airlines and fly on trips that he said are currently done in cars 95 percent of the time.

Or how about this scenario?

Assuming you can afford a very light jet - and, of course, that you're certified after jet pilot training - you could fly your family from Albuquerque for a skiing vacation in Colorado or haul the buddies for a golf weekend in Arizona.

Travel time: One to two hours each way, depending on the flight plan.

"There's ultimately something very seductive about your own airplane taking you where you want to go when you want to go," Raburn said. "Even better if you can go at the speed of a jet with the safety of a jet."

Bednarek agreed, saying: "It's an intriguing concept, simply because it's an enduring dream to fly on your own time and schedule."

Looking ahead to this year's orders, Raburn said 70 percent are designated for private owners and the rest will go to air-taxi services or shared-jet cooperatives like Jet-Alliance, the first Eclipse customer.

Critics of the VLJs - including a union for airline pilots - have expressed concerns about more congested skies. The FAA predicts 4,500 will go into service in the next 10 years; NASA projects 20,000 by 2010.

"That's one of the big fears, that it's going to overload an already strained air traffic control system," Bednarek said. "The system functions, but not always perfectly. Will it be able to absorb increased volume?"

Supporters insist these airplanes won't become like swarms of flies.

The VLJs can land on runways as short as 3,000 feet and are likely to operate at small airports, whether in large metropolitan areas or towns that are difficult or impossible to reach via commercial airlines.

"They're not going to darken the skies," Jet-Alliance chairman Randall Sanada said. "These planes are perfect for business travelers who want to go directly to smaller airports."

Added private pilot David Crowe, who bought a share of the first Eclipse jet: "You're not going to be flying this plane from LAX to Atlanta Hartsfield."

Raburn doesn't sound too concerned about the debate. While handing over the first aircraft to Sanada and Crowe, he proclaimed the end of Eclipse's development era. Now, he's focused on ramping up the production line.

Does Raburn see any parallels between Eclipse and the Microsoft startup? Well, there's at least one.

"Bill bet tens of millions of dollars," Raburn said. "We've made a big bet, too."
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