Great News!! Flight Options Has Been Bought!!!!!

[Frac Cap]

Flight options has been bought by H.I.G. Capital. A $4 Billion dollar firm.

 

[IFLYHI]

Right you are.....

H.I.G. Capital to Acquire Flight Options Thursday, October 25, 2007; Posted: 07:05 AM

H.I.G. Capital, LLC, a leading global private equity firm based in Miami, Florida, announced today that it is acquiring Flight Options LLC from Raytheon Company. Terms were not disclosed.
Flight Options, headquartered in Cleveland, Ohio, is a leading private jet aviation company that operates a fleet of 130 luxury aircraft to provide a full suite of services to businesses and high net worth individuals. The Company currently serves its customers primarily through fractional ownership programs and its JetPASS pre-paid card plan. In 2007, Flight Options also began offering aircraft management services - complementary offerings to better leverage the Company's aircraft fleet and operating infrastructure.
Flight Options has earned a reputation as a leader and innovator within the private aviation industry with programs that emphasize customer service and flexibility. The Company provides its personalized service to owners and members from airport and FBO locations across United States and has strategically located service and maintenance operations in Cleveland, Ohio; Las Vegas, Nevada; Sacramento, California; Teterboro, New Jersey; and West Palm Beach, Florida. Flight Options' current fleet consists of a full range of aircraft types, including Hawker 400XP, Hawker 850XP, Citation X and Embraer Legacy models. The Company is also an industry leader in private aviation safety. Flight Options is the first fractional provider to implement the FAA's Aviation Safety Action Program (ASAP) for its pilots and maintenance professionals and the only fractional provider selected by the FAA to partner and participate in the development and implementation of the next generation Safety Management System (SMS), soon to be required for all air service providers.
"H.I.G. demonstrates a commitment to growth and excellence that mirrors Flight Options' own values and approach and we look forward to working with them to further grow the Company," said S. Michael Scheeringa, Chief Executive Officer of Flight Options. "As part of this combined growth strategy, we are also pleased to note that Flight Options is in final negotiations with Embraer on a long-term aircraft supply agreement that will continue to modernize our fleet and provide our customers with best in class aircraft."
Doug Berman, a Managing Director of H.I.G., commented, "We view private jet aviation as an attractive, growing market with strong underlying fundamentals. Flight Options is uniquely positioned within its market to benefit from these dynamics and we are excited to partner with an exceptional management team to support the growth of Flight Options."
H.I.G. Capital has extensive experience investing in the aviation industry. Its current portfolio of companies includes:
-- Amerijet International, a full-service global logistics and transportation provider, offering scheduled air cargo service to 30 destinations in the Caribbean and Latin America, utilizing its fleet of Boeing aircraft.
-- Rotocraft Leasing Company, the largest privately-held helicopter operator in the Gulf of Mexico region with a fleet of approximately 100 helicopters. Rotocraft is certified by the FAA to operate helicopter charters and leases under an FAR 135 certification.
-- Gemini Air Cargo, an air cargo ACMI operator with a fleet of MD-11 and DC-10-30 freighters.
The transaction is subject to final government approval and is expected to close before the end of calendar 2007.
About Flight Options
Flight Options is a leading provider of private aviation services in North America. Flight Options has been a pioneer in the private jet industry since the founding of predecessors Flight Options International in 1998 and Raytheon Travel Air in 1997. The two predecessor companies combined operations in 2002. Cleveland, Ohio-based Flight Options offers the complete spectrum of programs from Fractional First(TM) ownership to leasing, aircraft management, and JetPASS Ultimate Travel membership. The company is an industry leader in private aviation safety as well, having been selected by the FAA to partner and participate in the development and implementation of a formal Safety Management System (SMS) soon to be required for all air service providers. For more information please refer to the Flight Options website at www.flightoptions.com.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $4 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. has completed more than 75 transactions. The firm's current portfolio includes companies with combined revenues in excess of $7 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
SOURCE: H.I.G. Capital, LLC

 

[bchjetdrvr]

Flight Options is a leading provider of private aviation services in North America. Flight Options has been a pioneer in the private jet industry since the founding of predecessors Flight Options International in 1998 and Raytheon Travel Air in 1997

What brand of crack are they smoking!! FLOPS a pioneer?! What a f--king joke.

"Leaders" HAHAHAHAHA 130 whopping planes. Oooooh the Big Boys on the block huh? I guess the 650 aircraft NJA has are sitting around doing nothing.

HIG has no idea what they have bought. A big load of freakin trouble. How about a company with pilot/mang strife beyond comprehension. Firing pilots over emails, retaining certain pilots even if they bang airplanes into one another, keep special check airman from being fired even if they run airplanes off runways, force pilots to work unpaid OT, force pilots to take vacation and burn up their time, hide mx issues, (OPT443 KANJ OCT 19th), up the health care costs 157%, force pilots onto LOA and COBRA because they can't get CANPASS & then pay them the lowest in the industry working the most 8/7.

Good luck with that HIG. Have fun..........IDIOTS!

 

[skanza]

Perhaps you should find another place to work if you are displeased with your current employer. That's what most professionals do. No harm intended, just calling it like I see it.

 

[dime line]

Please....god I pray (normally don't).......get rid of sheringa.....send #2 back to india......God please give us a Chief Pilot worthy of the title.........and some new fresh PM's.......and also some hot hotters girls in the BJ fleet......thanks God I know you never hear from me but thanks anyway

 

[Guitar Guy]

I really hope that something positive for the pilots emerges from this transaction.

Good luck and fly safe over there.

 

[dime line]

Perhaps you should find another place to work if you are displeased with your current employer.

That's what most professionals do

. No harm intended, just calling it like I see it.

There's that punch line again...How about, if you don't like being union...you quit, if your displeased you should find another place to work?

 

[NachoMamma]

HIG has no idea what they have bought.

Perhaps they do...what if they purchased a struggling company because they saw an opportunity to liquidate the assets and make a quick buck. Its happened before. They appear to have some experience in the aviation industry and might be well aware that FLOPS is a sinking ship. No flame bait intended, just a thought.

 

[RNObased]

Perhaps they do...what if they purchased a struggling company because they saw an opportunity to liquidate the assets and make a quick buck. Its happened before. They appear to have some experience in the aviation industry and might be well aware that FLOPS is a sinking ship. No flame bait intended, just a thought.

Not beyond the realm of possibilty. The people who manage/run these kinds of things aren't stupid. Who knows maybe they needed a write off.

Either way, quite the press write up.

 

[T-1GUY]

I hear the Iranians are trying to build an Air Force for the upcoming war. I can see it now....

F-16: I have a beechjet on my tail. I can't shake him...

 

[Hobbes]

Perhaps you should find another place to work if you are displeased with your current employer. That's what most professionals do. No harm intended, just calling it like I see it.

Hey Skanza, you are speaking out of turn. Any idea where he works or worked? The guys spoke that truth about all the absolute shieet that is happening at Flops and that is all....

 

[Fozzy]

Perhaps they do...what if they purchased a struggling company because they saw an opportunity to liquidate the assets and make a quick buck.

What assets?

 

[NETFLIER]

They own Amerijet and Gemini, both shiza holes. hope it goes better for FLOPS.

 

[skyismyoffice]

They own Amerijet and Gemini, both shiza holes. hope it goes better for FLOPS.

Can't get much worse...

 

[NJAowner]

Don't know about their aviation holdings, but from an investment perspective H.I.G. is a good outfit. They stick to their plan and make good $$ for their partners. Not al lprivate equity firms do this.

Fly Safe.

 

[DirtyBeech]

Please....god I pray (normally don't).......get rid of sheringa.....send #2 back to india......God please give us a Chief Pilot worthy of the title.........and some new fresh PM's.......and also some hot hotters girls in the BJ fleet......thanks God I know you never hear from me but thanks anyway

I thought all girls were hot if they were working on your BJ.

 

[TurboHonda]

Perhaps you should find another place to work if you are displeased with your current employer. That's what most professionals do. No harm intended, just calling it like I see it.

That's what quitters do.

The professionals I know are sticking around to save our company from the likes of Shame and Babu.

 

[Nolife]

Seeing as HIG owns Amerijet, RCL, and Gemini... they're used to abusing crews. Might see no changes at FLOPS. I hope for the best.

 

[FR8DOG777]

Hey skanza I thought I told you to crawl back in your hole!

Flight Options being sold changes, changes, umm, uhh, umm, absolutely nothing. How bout a new tag phrase, "Flight Options: We give you more-of our hard working pilots money." Or how about "Flight Options: Pilots financing bad management decisions since 1999." Or even better, "Flight Options: Pilots subsidizing another Billion dollar company." We stay focused on what we need to do as a pilot group, PERIOD.

 

[guido411]

Hate to break it to everybody but unless we see a press release that says they're going to clean house in upper management there will be NO change for the better. When is the last time you saw ANY involvement from RTN in our business? Bill Swanson was never going to make fixing the pilots' problems a priority. The higher ups at HIG won't worry about us either. This sh!tbox is STILL being run by the goons at CGF. This will end up being nothing more than a small footnote on the Flops timeline when this all is said and done.

 

[sqwkvfr]

Most private equity firms that make purchases like this have plans to groom the company to take it public.

This usually involves stabilization and cost trimming.

I'd guess that part of that stabilization is gonna involve solving the current labor strife and most likely replacement of the current management (provided that the "erratic" nature some on this board paint of FlOps management is true), but I'm curious to know what the cost trimming measures will be.

 

[FR8DOG777]

FO training program

I heard Sandjay the other day talking about starting a new FO program in January. You pay 25 bucks an hour for some quality right seater time. Of course there is a training contract to offset the three bounces that FLOPS is required to give them before cutting them loose. Plan on seeing a new bunch of recruits in mid January after everyone here has quit on the same day to go work at a real fractional-NETJETS.

 

[jetwash]

Management at FO has it all figured out.

When the aircraft go down for MX during peak travel, they will just throw a few lawn chairs in one of Amerijet freighters and send it down to PBI to take our owners back to TEB. I am sure our POI will approve it.


This has to be addressed in the scope part of the contract.

 

[learflyer]

That's what quitters do.

The professionals I know are sticking around to save our company from the likes of Shame and Babu.

Everyone whose left including myself has vastly improved their qol.!

That's all that matters

 

[Hobbes]

Management at FO has it all figured out.

When the aircraft go down for MX during peak travel, they will just throw a few lawn chairs in one of Amerijet freighters and send it down to PBI to take our owners back to TEB. I am sure our POI will approve it.


This has to be addressed in the scope part of the contract.

The best part is that the passengers may no longer be able to detect the difference.

 

[NJAowner]

Good Luck

Most private equity firms that make purchases like this have plans to groom the company to take it public.

This usually involves stabilization and cost trimming.

I'd guess that part of that stabilization is gonna involve solving the current labor strife and most likely replacement of the current management (provided that the "erratic" nature some on this board paint of FlOps management is true), but I'm curious to know what the cost trimming measures will be.

I do not know sqwkvfr but he is on the right track. Firms such as H.I.G. are looking to vastly improve underperforming companies. However, cutting costs is a small part of the equation. The larger piece of the equation requires growing the company substantially -- usually by increases in sales, changing product, new products/services, and key acquistions. The goal is to exit in 3-5 years with a substantial increase in value. They are not looking for 20% a year but much more. Management and employees who ride along (via stock options. other incentives, and employee stock ownership plan, etc.) usually do well (but not always). One of the keys is to align the interests of owners, management and employees. H.I.G. has been very successful in the past. This should be viewed as a good sign instead of just selling the company to someone who will strip, close and sell. That is not what H.I.G. does. The pilots should still protect their interests but realize that this is a good sign and this may be a good opportunity (and definitely mcuh better than bankruptcy).

In full disclosure, while you all know I am have have been an NJA share owner for years, I have invested in one of H.I.G.'s recent funds as a limited partner. While they run several investment funds at one time, I am not sure my fund will have an investment in Flight Options (which I will no longer refer to as FlOPS).

If your management is as bad as you say, do not underestimate H.I.G. They are no dummies. You can check out their portfolio of companies at http://www.higprivateequity.com/portfolioAlphabetical.html.



Good luck.

Fly safe.

 

[skyismyoffice]

The best part is that the passengers may no longer be able to detect the difference.

Sure they will...Amerijet's planes are much nicer.

 

[skyismyoffice]

.
Firms such as H.I.G. are looking to vastly improve underperforming companies.

We are definitely underperforming.

I hope you are right with your sense of optimism.

 

[dime line]

If your management is as bad as you say, do not underestimate

We can go on forever on how bad our upper management is and the bone headed schemes they come up with. Our management is the poster child on how not to run a company. An owner called our CEO a "25 year old punk". How does that make one feel?

 

[FracMonkey]

How about we see the glass as half full for once?

How about these for starters?

Now the rumors of Raytheon deliberately shutting us down will go away.

Someone has finally taken an interest in seeing us succeed.

Shirtfinger's incompetence may finally be recognized for what it is.

Maybe we'll finally get some competent people in management. ie: The garage door salesman goes back to middle America greasing garage door rollers.

Feel free to be optomistic with me. Add your own optomistic thoughts! Add to the list, I dare you!:beer: