“"I've got a list of corporations that have gotten out of their airplanes [because of criticism from politicians]. It is the stupidest thing I've ever seen. When you look at the time and cost savings; it does not make sense not to fly [privately]. You can't let public perception interfere with your business decision to fly. It either is a good business decision or it isn't."”
Raytheon Selling Fractional Provider Flight Options
Raytheon has entered into a definitive agreement to sell Flight Options, its Cleveland-based business aircraft fractional ownership division, to HIG Capital, a global private investment firm headquartered in Miami. The deal is expected to close before the end of 2007.
This is the latest in a series of aviation-industry investments by HIG Capital, which has also acquired cargo specialists Amerijet International and Gemini Air Cargo, and helicopter services provider Rotorcraft Leasing. Earlier this year, Raytheon sold its Raytheon Aircraft division to GS Capital Partners and Onex Partners for $3.3 billion in cash.
Flight Options recorded an operating loss of $96 million in the third quarter, compared with an operating loss of $10 million in the same period in 2006. In disposing of the division, Raytheon will record after-tax impairment charges totaling $114 million in the second half of 2007, which includes the fractional provider's remaining goodwill and intangible assets.