“When you get into the larger aircraft it becomes like a hotel, with dozens of staff supporting the plane based in a galley area down below. You have very comprehensive cooking facilities, and on larger aircraft we have looked at theatres, with spiral staircases and a Steinway grand piano. The limitations for what you can put inside a plane are pretty much the limits of physics, and even money cannot always overcome that. Even so, people are still always trying to push [the limits]. ”
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.