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In a much-anticipated move, defense contractor Raytheon Co. soon will become the majority owner in Flight Options LLC, a Richmond Heights company that sells fractional ownership interests in corporate jets.
Flight Options CEO John Nahill, a former Raytheon vice president who took the Flight Options job in February, said the ownership transition is in the paperwork stages and "we expect that transaction to occur in the next few weeks."
Terms of the deal, including how much more equity Raytheon will have in Flight Options, were not disclosed. In March 2002, Raytheon's Travel Air fractional jet ownership unit formed a joint venture with the former Flight Options Inc. to launch what now is called Flight Options LLC. At present, Raytheon owns 49.9% of the joint venture, and Flight Options' original owners have a 51.1% stake. Raytheon, based in Lexington, Mass., continues to make corporate jets and other aircraft.
Since its creation, the Flight Options joint venture has lost money and has not been profitable, according to Raytheon's annual report, filed March 24 with the Securities and Exchange Commission. To provide necessary cash flow for Flight Options, Raytheon has loaned the venture $10 million since last Dec. 31, according to the annual report. That loan is...