Raytheon buys the rest of FLOPs

[TheGreatChecko]

[FONT=Times New Roman,Times,Serif] The parent of Raytheon Aircraft Company said Thursday it has purchased the remaining equity in fractional aircraft operator Flight Options LLC, making the Cleveland-based company a wholly owned subsidiary of Raytheon Co.

[/FONT][FONT=Times New Roman,Times,Serif]http://wichita.bizjournals.com/wichita/stories/2005/12/26/daily15.html[/FONT]

So is this a good or bad thing?

 

[Correcting]

It means that Raytheon wants to put FLOPS out of it's misery. However, in order to do so, Raytheon had to buy out all other parties with an interest in the company.

Raytheon tried to unload their fractional baggage when they sold TravelAir. Then they saw the value of their remaining interest in FLOPS decline, so they decided to invest more money and take majority ownership in an attempt to restore that lost value, all the while shopping around and hoping for someone to come and just take the damn fractional company off their hands. That didn't work, so now Raytheon has been forced to repurchase the entire company, so that it can either be repackaged and sold off at 100% to some investors, or simply liquidated.

Now of course there's all the background noise out there about how Raytheon can't just liquidate FLOPS because the owners actually own the planes...blah,blah,blah. That's what lawyers are for. All that will easily get sorted out with cash settlements. And I'll bet there's something in every one of those owner contracts to address a situation where the company goes out of business.

 

[BengalsFan]

and....

They are no longer hiring according to their website!?!?! Whats up at FLOPS?

 

[greygoose]

It means that Raytheon wants to put FLOPS out of it's misery.

Why would they want to sell off the company, when they are making money off of the maint and parts? They sell off the company all the money that goes towards maint, most likely wont be used at Raytheon...

 

[Diesel]

But what if the buyer signs an agreement to still use raytheon mx basis and parts for a better deal.

 

[Publishers]

For an aircraft manufacturer, this business has to be a major pain in the posterior area. The reason for ever trying was merely to market more aircraft and they say Cessna getting the lions share of Netjets and they had no chance to provide aircraft at Flexjet or Cessna.
They may be forced to keep some version of this going but it might turn into more like Citation Shares and less like Netjets.

 

[gunfyter]

As long as they get sales contracts with NJ. Could They could just let FLOPS wither on the vine. It seems like they want to sell airplanes not operate them.

A more humane option would be to negotiate a sale to NJ....

I was a naysayer on the sale to NJ rumour... but it is curious that hiring would stop when attrition is high.

 

[208starcheck]

but it is curious that hiring would stop when attrition is high.

Very interesting. I still don't think NJA and FLOPS with ever be one but that is very interesting.

 

[ArtVandalay]

Correcting,

If you want to get rid of something you don't go out of your way and spend millions of dollars to do it. You're a moron. Stick to flying airplanes and let the big boys handle business.

 

[Correcting]

Sometimes you got to spend money to make money (or lose less money)