Malinski points out: "Whatever those postings have been, whether critical or otherwise, the speakers are protected in their anonymous speech by the First Amendment. Unmasking anonymous Internet speakers invokes a higher standard than ordinary discovery that doesn't invoke these constitutional rights."

In our April report, David Johnson, one of the 29 bloggers named, using the handle "Ringtail," made it clear he has never worked for Eclipse or its vendors. Yesterday,  "Gadfly," another blogger listed in Eclipse's subpoena, turns out to be none other than 70-year-old Robert Bruce Cushman, who works with his son, Scot, at Cushman Engineering Co.

"I got involved with the blog [currently hosted by Shane Price of Ireland] because of my love for aviation," Cushman told CharterX Industry Headline News. "Eclipse has lied about its aircraft [Eclipse 500 very light jet]; I only express my own opinion about what I think of the aircraft--to be a voice for those who may want a different perspective than what the company says through press releases. I'd like to see Eclipse shutdown; it's too late to redesign that plane and it's too late to fix the management at Eclipse. Of course, the plane flies, but if you put an engine on the back of a brick, that would fly, too." 

G. Hale, a businessperson from the Midwest, told CharterX Industry Headline News, "I've never made a post to the blog, but I do read it." "I'm sure more people today are reading the blog, due to Eclipse Aviation's action. I purchased a single-engine, TBM 700 turboprop in 2006; however, before doing so, I talked to Eclipse's sales people at an event. They didn't seem to care that I wasn't the type of private pilot who should not be flying the Eclipse jet. I realized that I wasn't qualified to fly a plane like that. "Their attitude was pretty much, ‘Don't worry about it; everything will be fine--we have training, etc.' I'm really glad that I didn't purchase that jet."

Eclipse CEO Vern Raburn has been invited to tell his side of story--to exercise his right of free speech. He declined to comment. Raburn has additionally been extended an invitation to correspond via email, about the blogger case, the Eclipse 500's production schedule, the company's financial stability, aircraft certification issues, etc. Eclipse's counsel has also declined to comment.

Malinski's motion to quash, in part, says [free] speech exemplifies the purpose behind the Bill of Rights [introduced in 1791] and of the First Amendment, particularly to protect unpopular individuals from retaliation and their ideas from suppression at the hand of an intolerant society.

Legal documents aren't known for being a good read, however, the legal response is interesting; it might provoke thought and consideration of how important it is as an American to be able to practice expression of speech. 

Email your news tips, feedback and press releases to Industry Headline News editor Karen@CharterX.com.

"Effective this week, we've made the difficult decision to scale back DayJet's 2008 growth plan," Iacobucci said. "Because of this change in strategy, the company has reduced its employee base across most areas of its business." 

Iacobucci said external economic factors caused the changes and that they aren't a reflection of a weakness in the underlying DayJet business model. 

"Our first phase of operations, the ‘proof-of-concept phase,' has gone exceptionally well," he said. "Response to our per-seat on-demand service during this first phase was consistent with our expectations. We answered many nagging questions: yes, customers will fly in a small jet; customers will embrace the per-seat model; customers will pay a premium for tangible value; and the technology works as planned. Most importantly, yes, we can find these customers. All in all, we've signed more than 1,500 members, of which more than 550 are active travelers; nearly 200 are frequent flyers."

Iacobucci said, unfortunately, a proof of concept is only the first step to profitability.

"The next step is equally important--growing the network to a density that generates operating margin," he explained. "Our projections have always indicated a network of 30 to 50 ‘line' aircraft serving 20 to 30 fully developed DayPort markets, which was needed to reach critical scale. This required a $40 million infusion of operating capital in the first quarter of 2008. I won't dwell on this point, but suffice it to say that given the current state of the United States capital markets, the timing of our planned financing could not have been worse."

Without the growth capital required to open new markets, Iacobucci says the company must scale back to a size that's consistent with the demand of its existing customers and service region.

"DayJet's business model is based on operating at a critical mass, requiring investment ahead of growth," he said. "We hired and trained a number of employees in anticipation of future growth and always planned for additional capital investment at this stage. This restructuring won't reduce our existing service region. This won't impact our quality of service to our customers."

He said the situation wouldn't impact DayJet's commitment to safety.

"Safety is the heart of our service," Iacobucci said. "We'll continue to operate and expand our service, albeit at a slower rate, to communities across the Southeast, in response to customer needs. And when the capital markets recover, then we would expect to resume the growth forecast in our original plan.

"DayJet has been fortunate to receive so much support and excitement from the regions we serve, our investors and the aviation community at large. Developing new markets is never easy, and I think it's important to be as forthcoming about our challenges as we are about our successes."

Email your news tips, feedback and press releases to Industry Headline News editor Karen@CharterX.com.

Cessna said it has more than 150 orders for the CJ4, and it's on target for Federal Aviation Administration certification in mid-2009, with customer deliveries beginning in the first half of 2010. The aircraft, configured to seat seven to eight passengers, will be certified for a maximum flight ceiling of 45,000 feet, and is expected to have a maximum speed of 435 knots, a full fuel payload of 1,000 pounds and maximum payload of 2,100 pounds.

The two-hour, 22-minute flight departed from McConnell Air Force Base (IAB) and landed at Wichita Mid-Continent Airport (ICAO: KICT). Two additional CJ4s are in production at Cessna's Pawnee Advanced Engineering facility. The three test aircraft will be used to log flight hours toward FAA certification. First flight for both production CJ4s will take place later this year.

The CJ4 can takeoff from 3,300-foot runways and land on runways as short as 2,665 feet. The new Williams International FJ44-4A FADEC engine will debut on the Citation CJ4, which provide each engine with 3,400 pounds of thrust.

First Production SkyCatcher's First Flight

On May 1, the first production SkyCatcher, a light sport aircraft, made its maiden flight, nearly two months after its first prototype flew. The 30-minute flight departed Cessna Aircraft Field (ICAO: KCEA) adjacent to IAB and landed at KCEA, where it will continue development testing. In addition to having two aircraft in the test program, Cessna is will begin static and fatigue testing on a separate airframe in mid-May.

Cessna will produce three airframes prior to commencing normal production on the SkyCatcher--a prototype, the first production model and an American Society for Testing and Materials test article. Cessna's engineering team will build in the development phase of program, with all engineering work and testing of the aircraft completed in Wichita. The aluminum aircraft is planned to meet all ASTM standards for the LSA.

Priced at $111,500, the plane's cruising speed is expected to reach 118 knots with a 470-nautical-mile range. The plane's Garmin G300 avionics system will have a single, split-screen primary flight display and a multi-function display, or as two full-screen displays with an optional second screen. The LSA will have day and night, visual flight rules operations. Preliminary designs include a maximum gross weight of 1,320 pounds, a flight ceiling of 15,500 feet, a 490-pound payload and fuel capacity of 24 gallons. It's cabin width, at shoulder height, is more than 44 inches. With two top-hinged cabin entry doors and two seats that pivot forward, there's access to a 12.5 cubic-foot baggage compartment.

Email your news tips, feedback and press releases to Industry Headline News editor Karen@CharterX.com.

"Key Air will invest more than $20 million for the new facilities at Anoka, inclusive of our 35-year lease," says Brad Kost, president and CEO of Key Air and CEO of Keystone. The groundbreaking ceremony at ANE took place in mid-April.

He said the three-phase building project would include 150,000 square feet of world-class FBO facilities and multiple hangars to accommodate large, corporate aircraft. "During phase one, we'll build our new terminal building, hangar complex and fuel farm," he said. "The second phase includes additional hangar and ramp space; the third phase includes additional hangar space." 

Kost said the MAC wants to see the FBO development take shape in time for the 2008 Republican National Convention, September 1- 4 at the Xcel Energy Center in St. Paul, Minn. The MAC also wants the facility up and running as events held by the Professional Golfers' Association are nearing. By Sept. 1, Key Air should have 14,000 square feet of terminal space and 65,000 square feet of hangar space completed.

"The MAC needs to relieve air traffic during these events, especially corporate planes; ANE is suited for such aircraft," Kost said.

Minneapolis-Saint Paul is the most populous urban area in the state of Minnesota, which has 188 cities and townships. Built around the Mississippi, Minnesota and St. Croix rivers, the area is nicknamed the Twin Cities. Kost said he doesn't foresee having problems on the real estate side, as Keystone will sublease space to major flight departments and private jet operators. 

"There's about 116 jet aircraft in the Minnesota area--a mix of private and commercial FAR Part 135 aircraft," he said. "The facilities we're building will create nearly 300 jobs to the area; the local community will benefit in excess of $20 million. Business aviation in the area is robust; with a backlog of private jet deliveries it will remain prosperous. Given the corporate aviation environment that the industry is experiencing, we're confident and comfortable that our investment dollars will be put to good use."

Because ANE has infrastructure, including two runways and an airport tower, Kost said that investors of the company are confident in building its first facility in Midwest. The company plans to build FBOs in Colorado, New York, Los Angeles, Florida and Texas.

Email your news tips, feedback and press releases to Industry Headline News editor http://www.keystoneav.com.

PlaneSmart, using a fleet of Cirrus SR22 and G3 single-engine, piston-powered planes, rents and sells shares of aircraft to pilots. However, the company plans to expand operations in United States, adding different makes of aircraft and possibly getting into the growing air taxi market. 

Email your news tips, feedback and press releases to Industry Headline News editor Karen@CharterX.com.

FAA funding will provide $800 million over the next three years to modernize the nation's air traffic control system. The majority of such funding, from the Senate vote, will be paid for by private general aviation in the way of increased excise jet fuel taxes increasing to 36 cents per gallon of fuel from the exiting 21.9 cents per gallon of fuel.

Although FAA funding to overhaul the ATC system is a heavy burden placed on private GA turbine aircraft to fund what's predominately used by commercial airline infrastructure, GA trade groups favor this funding scheme over the Bush-airline user-fee scheme, which would've placed most FAA funding to better commercial airlines at the detriment GA paying for commercial airlines' mismanagement and budget shortfalls. The flying public may not know: most GA aircraft doesn't use commercial hubs, however, the Bush administration would like GA to pay for airlines' screw-ups.

This is the beginning of a new debate, sure to grab the attention of the Senate floor during the week. Stay tuned: grab some popcorn as the show is starting.

Email your news tips, feedback and press releases to Industry Headline News editor Karen@CharterX.com.  

"The XLS+ can seat up to 12 passengers, but normal seating would accommodate nine passengers,"  Doug Oliver said, Cessna's director of corporate communication. As for how many orders Cessna has obtained for the XLS+, Oliver said the company isn't releasing that information at present. 

The Citation XLS+ will reach speeds of up to 440 knots with more than a 1,800-nautical-mile range. The aircraft will be able to land on runways as short as 3,180 feet at its maximum landing weight, and land on runways of 2,700 feet at its typical landing weight. Cessna said its family of Excel/XLS aircraft comprises nearly 650 planes with an accumulated total of more than 1.4 million flight hours.

The first XLS+ production unit is on its way to receive a paint job and an interior. The two flight test aircraft will to be used toward type certification from the Federal Aviation Administration, forecast to happen by mid-2008 and first deliveries before the end of the year.

The original Excel was delivered in May 1998 and XLS was delivered in July 2004. Cessna said its 500th Excel/XLS was delivered in June 2006, and that its Excel/XLS is the company's best-selling jet since its introduction.

Email your news tips, feedback and press releases to Industry Headline News editor Karen@CharterX.com.

In a statement, Jack Williams, Eos' president and CEO, said, "unfortunately, just as we were working toward closing on an investment that would have carried us to corporate profitability in 2009, some issues arose that we could not overcome. It's regrettable that, even though investors continue to be enthusiastic about our business model, and even though we had a term sheet in hand, we were unable to close on the financing we needed. That leaves us with insufficient cash on hand to continue operations."

Court filings and claims are available; Eos suppliers and passengers can read Eos' website.

Email your feedback, news tips and press releases to Industry Headline News editor http://www.eosclass.com.

Senate Majority Leader Harry Reid, D-Nev., who filed a motion on Thursday for FAA funding action, expects a vote April 28. If the bill passes, a vote by the full Senate may occur this week.

The Bush administration has threatened it will veto the House legislation bill, as it didn't include a user-fee clause. The airline backed user-fee bill that the president demanded would force private jet operators to pay more than their fair share for airspace and FAA funding, according to GA trade groups. Airlines have added smaller, regional jets to their fleets, which have caused gridlock at the nation's airports, according to GA groups. Two Senate bills followed the passage of the House bill; one included a $25 user fee, but now user fees have been removed from any FAA funding bill now being considered. 

Reid, speaking from the Senate floor Thursday, said, "We're going to approach FAA reauthorization and try to direct attention to some of the issues we read about every day-- 3,000 flights being canceled and airlines flying with improper equipment."

The airlines have vowed to ask for fuel tax breaks and other considerations. They've also opposed a bill that would give passengers the right to disembark aircraft after being stuck on the tarmac for three hours or longer. Members of Congress have accused FAA management of having a cozy relationship with the airlines, as it allowed aircraft to fly that were found to have fuselage cracks and wiring problems. 

The FAA has been accused of ignoring its own safety inspectors who've reported problematic maintenance audits, in the United States and overseas. Safety inspectors claim FAA management has used retaliation tactics for exposing improper oversight of commercial aircraft.  With all of the negative publicity from media reporting FAA safety failures, Congress is being pressured to fix the problem. 

In the end, President George W. Bush will have to make a decision to veto or to sign a FAA funding bill. 

Email your news tips, feedback or press releases to Industry Headline News editor Karen@CharterX.com.

When asked why he decided to host the site, Price replied to CharterX Industry Headline News, "I found the site by accident." "Although I'm not in aviation, and I'm busy with my own business affairs, I smelled a rat--Vern Raburn [Eclipse CEO]. After I saw how he [Raburn] treated his employees, suppliers and customers, I realized that these bloggers needed their home back." 

After Price posted the news about Eclipse's subpoena, 174 posts were immediately made. Rich Lucibella, who's in the publishing business, and also a frequent blogger [not targeted on Eclipse's list], responded to the news. He told CharterX Industry Headline News that he found Eclipse's actions "outrageous."

"What Eclipse is attempting to do is just wrong," Lucibella said. "They want to take advantage of people's rights; I can't stand by and let them do that."

A proponent of the First Amendment, Lucibella hired Florida-based attorney Norman Malinski, who will file a motion to prevent Google from releasing bloggers' private information. 

Raburn was contacted several times for this article, but he refused to answer questions.  Via email, he was asked to confirm or deny if he wrote a letter to all personnel about firing someone for breaking the company's non-disclosure agreement, and then using that person as an example of what would happen to the next person who did so. Raburn was also asked to provide an update on the status of when the jet's avionics would become fully functionally and when he expected ice certification on the plane. Eclipse's production schedule of its aircraft has suffered delay after delay; suppliers have been blamed for most of the company's production woes. Many aviation analysts and industry observers have expressed great concern about whether Eclipse can become a viable, profitable company. Florida-based DayJet Services LLC, Eclipse's largest commercial air taxi customer with 1,400 orders, operates 28 Eclipse 500s; the company hasn't added 500s to its carrier certificate since Jan. 15. 

Privacy Rights 

Malinski agreed that if any blogger is employed or was employed by Eclipse, they might have violated a NDA. "But it's a question of how Eclipse is going about it," he said. "The question is have they walked the last mile in trying to obtain such information, if any of its employees or former employees have breeched a NDA on the blog? Is this the easy way of going about it for Eclipse? Yes.

"Eclipse doesn't have the right to access other people's private information. For example, if three bloggers are or were employed by Eclipse but others aren't, then the rest of the people's privacy rights are violated under the First Amendment. Eclipse hasn't appeared to invoke the rule of reason." 

"Ringtail," one of 29 blogger names that Eclipse listed on its subpoena, brings Malinski's point home--an unfounded fishing expedition.      

"I was shocked to see my blog name on the list," David Johnson told CharterX Industry Headline News. "I've never had any relationship with Eclipse."

Johnson's wife, Becky, posted a letter to Raburn on the blog, believing he must be checking the site. In part it reads: "Everything we posted on this blog was based on our own opinion gleaned from reading and participating on this blog, and other aviation magazines and news articles. People have the right to say what they want. I believe you've initiated an opposition on that right."

Malinski said after Google receives a motion to seek that material isn't released that Eclipse has demanded, Google will wait to see what the judge's decision is. 

"If we don't like the judge's decision, we'll appeal; Google will wait until the appeal process is over, assuming Google is allowed to wait," he said. "In May, the judge will have to make a decision.  If this ends up in a court of appeals it could take a year from now. Or there's a possibility we can reach an agreement with Eclipse's counsel. I'm not talking about an agreement that involves money. I'm confident that there's not enough information on Eclipse's part to warrant the subpoena."

Eclipse counsel declined to comment.

Lucibella, who's footing Malinski's bill to represent bloggers' privacy rights, said in June 2006, he had ordered an Eclipse VLJ. But after Eclipse "wouldn't provide him with a serial number on production," he asked for his deposit back. He said he wasn't impressed with how Eclipse handled its business transaction. Shortly thereafter, he joined the blog. 

The plane maker's claim that it needs personal information on all 29 bloggers, as inside company information has been leaked, has angered many people. Some people now view Eclipse as a bully, trying to blame 29 bloggers for the company's failures. Because of Eclipse's actions, many people have said they would not purchase its plane.

Eclipse's subpoena served on Google demands the first and last names of all 29 bloggers, their zip code, email address given when they registered their account and all records pertaining to user login information. Eclipse wants all remote IP addresses with corresponding dates and times logged by Google's system, on each occurrence of the account being accessed.

Email your feedback, news tips and press releases to Industry Headline News editor Karen@CharterX.com.