Raytheon 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.
According to Raytheon, this partnership will allow the new company to capitalise 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.
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 finalised by the end of the first quarter 2002.
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.