Raytheon Taking Control of FLOPs!

[Joe Jet Pilot]

Oh Little Mikey!

Still Waiting For Your Response!

 

[mike]

Patience Joe.

Patience Joe, I have got to work for a living. You could do some leg work and find sources that you think are credible. Here are a few items that you may find a good read.

Raytheon third quarter SEC filing on EDGAR. A quick online address is
http://investor.raytheon.com/edgar.cfm
You want the 11/06/02 filing of the SEC 10-Q. There you can read about FLOPS and see that Raytheon’s sale of RAC Engineering has problems too. If you are curious about the structure of the joint venture you can search the other filings.

Raytheon will take over at the end of January – Crain’s Cleveland Business News, “Change in Wings for Flight Options”, January 6, 2003. The on line address is http://crainscleveland.com/article.cms?articled=35105
This article quotes Mr. Robert Pinkas, a Flight Options board member and the managing Director of Beachwood Venture Capital. I don’t claim any knowledge of the management team, but I do know that the must cut costs.

The Business is for sale – Wall Street Journal, summer of 2000. Raytheon sold several elements of Raytheon Aircraft Company (RAC Engineering, Finance & Electronics) during the summer of 2000. The most surprising (most profitable) was the finance arm of RAC to Credit Suisse First Boston. It was reveled in July of 2000 that all of RAC was for sale and that Credit Suisse First Boston was contracted to find a buyer. You will find mention of the possible suitors, Dassault, BAE and General Dynamics. All of the companies wanted parts, but nobody wanted the whole. Thus, Raytheon Aircraft Company has not been sold. I know you want a link that is easy, so try
http://biz.yahoo.com/rb/030113/transport_raytheon_4.html
Pay special attention to the heading “Drag on the Business”. This will tell you why Raytheon is trying to unload RAC and all of its elements.

That’s enough for now. I have got to get back to work.

 

[Answerguy]

Go away Mike. Stop changing the words around. Robert Pinkas said nothing about cutting costs. He did say that his company will continue to invest in Options. Here is the real article.

Change in wings for Flight Options

By JEFF STACKLIN

Flight Options LLC, a Richmond Heights company that sells fractional ownership interests in new and used corporate jets, is about to go through an ownership change itself that could lead to the removal of CEO Kenn Ricci from the pilot's seat.
A majority interest in the company will shift from local investors to Lexington, Mass.-based defense contractor Ray-theon Co., according to Robert Pinkas, a Flight Options board member and managing partner of the Beachwood venture capital firm Brantley Partners.

Raytheon's fractional aviation division, Raytheon Travel Air, merged with Flight Options Inc. last March to form Flight Options LLC. Under the revised ownership arrangement, Raytheon will convert a $20 million debt it is owed by Flight Options LLC to take an increased equity stake in the company, Mr. Pinkas said.

Raytheon currently owns 49% of Flight Options LLC, while the owners of the former Flight Options Inc. hold a 51% stake. Mr. Pinkas said the conversion of the debt will push majority control of the company to Raytheon. However, he said it has not yet been determined what the ownership stakes will be after the transaction is completed by the end of January.

Mr. Pinkas' firm was one of the early investors in Corporate Wings, the company that evolved into Flight Options Inc. Brantley Partners, as well as other previous Flight Options investors, will make new investments in the company, Mr. Pinkas said, though he would not disclose how much money his firm and others will invest.

 

[mike]

That must be the answer

No cut costs. Let me get this right. FLOPS is running red ink and can't get venture capital. Their largest share holder (49%) steps in and converts debt to equity in the joint venture. You don't see cost cuts in their future.

You should run for political office because that logic only works in goverment.

Best of luck.

 

[Grim Reaper]

Mike, I can neither confirm nor deny the financial status of Flight Options. I am sure that you can not either. But we can spread rumors can't we?

There are rumors about that Raytheon will cut cost and sell Flight Options. Question, to who? Current business situation precludes this just as the current business situation precludes the rapid conclusion of union negoiations for all except those that will be liquidated if agreements are not made soon.

Flight Options might be for sale, but then again, everything is always for sale for the right price. That means the job you are sitting on could go away tomorrow if someone got a bug up there butt and made the right offer to your employeer.

As others have stated on this board, I am appalled at the glee displayed by some on this board at what they think is impending doom for over 3000 Flight Options employees.

 

[mike]

I take no pleasure in others pain. My first comment was an observation to the question. I guess the taunt for response made me a little short, and I can regret that flaw in my personality.

You are correct in stating that nobody has security in this awful economic climate. There are alot of guy's who provided excellent service and value for their company, but lost their jobs in 2002.

I sincerely hope this does not happen at Flight Options. And, I do wish them the best of luck.

 

[Grim Reaper]

Mike, thank you for the reply. Time will tell what goes on at Flight Options.