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Flight Options buys RTA

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Well-known member
Nov 28, 2001
Raytheon, Flight Options to Create Leading Fractional Aircraft Ownership Business;
December 20, 2001 2:30:00 PM ET

Raytheon Aircraft Company to supply 115 aircraft to new company

LEXINGTON, Mass., Dec. 20 /PRNewswire/ -- Raytheon Company RTN has signed an agreement to unite its fractional aircraft ownership business, Raytheon Travel Air (RTA), with Flight Options Inc. to form a new company, Flight Options LLC. This partnership will allow the new company to capitalize on the rapidly growing demand for fractional aircraft ownership services.

The new company will have more than 1,600 customers, a fleet of over 200 aircraft and a reputation for safety and customer service. Raytheon Travel Air and Flight Options are ranked either No. 1 or 2 in every operating category of owner satisfaction in a 2001 survey conducted by the independent Aviation Research Group/U.S. (ARG/US).

Under terms of the agreement, Flight Options will hold 50.1 percent ownership of the new business with Raytheon holding 49.9 percent. Raytheon Aircraft Company will also supply 115 new business jets over five years in a transaction worth approximately $900 million. The transaction is expected to be finalized by the end of the first quarter 2002.

"The combination of Raytheon Travel Air and Flight Options allows us to better serve our customers with a broader product portfolio and array of services," said Jim Schuster, chairman and chief executive officer of Raytheon Aircraft Company. "At the same time, it allows Raytheon Aircraft to continue to focus on its core mission -- designing, building and supporting world class aircraft."

Fractional jet ownership allows several owners to own a share of a jet, typically one-sixteenth or larger, entitling each owner to a fixed amount of annual flight time.

Raytheon Travel Air, based in Wichita, Kan., is a division of Raytheon Aircraft Company. It had $300 million in sales in 2000 and employs approximately 700 people.

Founded in 1998, Flight Options Inc., headquartered in Cleveland, Ohio, provides complete private air travel service through the sale of fractional interest in pre-owned aircraft.

With headquarters in Lexington, Mass., Raytheon Company is a global technology leader in defense, government and commercial electronics, and business and special mission aircraft.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act concerning the company's financial results, future plans, objectives and expected performance. Specifically, statements in this release that are not historical facts, including statements accompanied by words such as "believe," "expect," "anticipate," "estimate," "intend," or "plan" are intended to identify forward-looking statements and convey the uncertainty of future events or outcomes. The company cautions readers that any such forward-looking statements are based on assumptions that the company believes are reasonable, but are subject to a wide-range of risks, and actual results may differ materially. Closing of the sale is subject to regulatory approvals and satisfaction of various closing conditions. Accordingly, there can be no assurance that the sale will be consummated.

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