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Eclipse 500: Flying The Low Price Jet

A new day is dawning in corporate travel as the first very light jet has been delivered. CNBC’s Phil LeBeau explains how quickly this new idea is going to take off.

Nuts and bolts: The Eclipse 500 (which is made by Eclipse Aviation) seats 4 to 5 people; you fly it yourself and about 2,000 have been ordered already.

LeBeau calls the light jet exciting news for small businessmen who otherwise fly on twin engine planes. Now they can fly at jet speed.

LeBeau also said, “This is the beginning of the low price jet. Jets used to cost between $4- $5 million for an entry level aircraft. These jets cost about $1.5 million.”

“This (new plane) could also advance the air taxi business. In theory you could be sitting at home, call an air taxi and travel at your own time and at your own schedule!”

Expect to see competition in this niche market. Cessna is introducing the Mustang, which is likely to be delivered later this year. Honda is coming out with a light jet in 2010.