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Eclipse Aviation Releases Results of VLJ Economic Impact Study
CRA International report highlights significant role
VLJs are positioned to play in the US economy
VLJs are positioned to play in the US economy
OSHKOSH, WI - July 27, 2006 - Today Eclipse Aviation, manufacturer of the revolutionary Eclipse 500 very light jet (VLJ), released a report on the economic impact of VLJs developed by CRA International, a worldwide leader in economic, financial, and management consulting services. Commissioned by Eclipse, the study assesses the growing impact of this new class of aircraft, and underscores the vital role VLJs are positioned to play in the national economy.
VLJs are a new class of jet aircraft that use technological innovation to deliver advanced levels of performance, automation and efficiency at an unprecedented cost. The FAA predicts that a fleet of nearly 5,000 VLJs will be in service by 2017, with this report assuming that two thirds of these aircraft will be used for air taxi service.
As detailed in CRA’s report, based on the FAA forecast, by the year 2017 VLJs are expected to play a significant role in the US economy. Nationwide, there will be over 23,000 jobs directly connected with the manufacture or operation of VLJs, representing some $6.5 billion in output and $1.7 billion in personal earnings. Economic activity in 2017 related in some fashion to VLJs will total nearly $24 billion in output, $6.9 billion in earnings and over 189,000 jobs.
“While a number of research organizations have examined isolated facets of the emerging VLJ market, we commissioned this report to assess the full scope of the impact of VLJs on our economy.” said Vern Raburn, president and CEO of Eclipse Aviation. “In addition to highlighting the gains in flexibility and time savings VLJs will provide to individual travelers, CRA details the significant contribution VLJs will make to American output, earnings and jobs over the next decade. We are proud to be at the center of a new aviation ecosystem that will add value, vibrancy and billions of dollars to our economy.”
According to the report, VLJs will provide significant benefits to travelers. Based on the assumption that two thirds of these aircraft would be used for air taxi services, more than 7.7 million air taxi trips would be made in 2017, with air taxi travelers saving over 35 million hours of travel time, valued at over $1.8 billion.
In addition, VLJs will positively impact local communities. Typical communities that serve as bases for the operation and maintenance of VLJ-based air taxi services will experience nearly $16 million in economic activity and nearly 150 permanent jobs directly associated with VLJs. On average, such a community will in total produce over $76 million in economic output and over 500 jobs that are in some way connected with the use of VLJs.
Study Background
The CRA International study, “The Economic Impact of Very Light Jets,” examines
the economic impact of VLJs used in point-to-point on-demand air taxi services and for personal and business aviation purposes. CRA’s report estimates national level impacts,
as well as impacts on local communities served by VLJs. Because VLJs are not yet in service, the study projects VLJ impacts in the year 2017, when a VLJ fleet will have been produced, VLJ-based air taxi services will have begun operating and the industry will have progressed through its initial development.
The economic impacts described in the report represent output, earnings, and employment associated with the production and/or operation of VLJs. Impacts were calculated using multipliers and direct factors published by the US Department of Commerce and Bureau of Economic Analysis as part of its Regional Input-Output Modeling System (RIMS II).
A copy of the report, “The Economic Impact of Very Light Jets,” may be obtained by going to http://www.eclipseaviation.com/files/pdf/EconomicImpactOfVLJs.pdf.
VLJs are a new class of jet aircraft that use technological innovation to deliver advanced levels of performance, automation and efficiency at an unprecedented cost. The FAA predicts that a fleet of nearly 5,000 VLJs will be in service by 2017, with this report assuming that two thirds of these aircraft will be used for air taxi service.
As detailed in CRA’s report, based on the FAA forecast, by the year 2017 VLJs are expected to play a significant role in the US economy. Nationwide, there will be over 23,000 jobs directly connected with the manufacture or operation of VLJs, representing some $6.5 billion in output and $1.7 billion in personal earnings. Economic activity in 2017 related in some fashion to VLJs will total nearly $24 billion in output, $6.9 billion in earnings and over 189,000 jobs.
“While a number of research organizations have examined isolated facets of the emerging VLJ market, we commissioned this report to assess the full scope of the impact of VLJs on our economy.” said Vern Raburn, president and CEO of Eclipse Aviation. “In addition to highlighting the gains in flexibility and time savings VLJs will provide to individual travelers, CRA details the significant contribution VLJs will make to American output, earnings and jobs over the next decade. We are proud to be at the center of a new aviation ecosystem that will add value, vibrancy and billions of dollars to our economy.”
According to the report, VLJs will provide significant benefits to travelers. Based on the assumption that two thirds of these aircraft would be used for air taxi services, more than 7.7 million air taxi trips would be made in 2017, with air taxi travelers saving over 35 million hours of travel time, valued at over $1.8 billion.
In addition, VLJs will positively impact local communities. Typical communities that serve as bases for the operation and maintenance of VLJ-based air taxi services will experience nearly $16 million in economic activity and nearly 150 permanent jobs directly associated with VLJs. On average, such a community will in total produce over $76 million in economic output and over 500 jobs that are in some way connected with the use of VLJs.
Study Background
The CRA International study, “The Economic Impact of Very Light Jets,” examines
the economic impact of VLJs used in point-to-point on-demand air taxi services and for personal and business aviation purposes. CRA’s report estimates national level impacts,
as well as impacts on local communities served by VLJs. Because VLJs are not yet in service, the study projects VLJ impacts in the year 2017, when a VLJ fleet will have been produced, VLJ-based air taxi services will have begun operating and the industry will have progressed through its initial development.
The economic impacts described in the report represent output, earnings, and employment associated with the production and/or operation of VLJs. Impacts were calculated using multipliers and direct factors published by the US Department of Commerce and Bureau of Economic Analysis as part of its Regional Input-Output Modeling System (RIMS II).
A copy of the report, “The Economic Impact of Very Light Jets,” may be obtained by going to http://www.eclipseaviation.com/files/pdf/EconomicImpactOfVLJs.pdf.
About Eclipse:
Eclipse Aviation is in the business of designing, certifying and producing modern, affordable jet aircraft that will revolutionize the transportation market. The company is applying advanced electronics systems, manufacturing and business practices to produce aircraft that cost less than a third of today's small jet aircraft, will be significantly safer and easier to operate than those of today, and have the lowest cost of ownership ever achieved in a jet aircraft.
The goal of Eclipse is to bring the word "personal" into aviation, making it possible for commercial air passengers to move directly between cities on a quick, affordable and convenient basis. It will also allow pilot owners to enter the world of jet-powered aviation.