Raytheon Might Move On Flight Options


Raytheon may move to take control of Flight Options LLC, less than a year after Raytheon’s Travel Air fractional ownership arm and Flight Options formed a joint venture. According to Raytheon’s latest Securities and Exchange Commission filing, it’s invested $83 million in the merger, including a $20 million loan to Flight Options. The merger created a company with 200 aircraft and 2,000 owners. But since the partnership was formed in March of this year, Raytheon’s SEC filing says that Flight Options has been unsuccessfully seeking more equity financing and there are no guarantees it will find more funding. If Flight Options can’t find the money it needs, Raytheon says it might offer to exchange the Flight Options debt for additional equity in the joint venture, effectively taking operational control of the fractional business. The SEC filing says taking over Flight Options wouldn’t affect the company’s financial position other than to reduce its backlog of aircraft by filling an $850 million order received from Flight Options earlier this year. Raytheon spokesman Tim Travis declined to elaborate and no one at Flight Options was available to respond to our inquiries.