“What we need to do is always lean into the future. When the world changes around you and when it changes against you—what used to be a tail wind is now a head wind—you have to lean into that and figure out what to do because complaining isn’t a strategy. ”
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.