WASHINGTON -- Raytheon Travel Air said it ordered 27 new planes at
a cost of $1.5 billion to keep up with growing demand for its
fractional ownership program.
The airplane order includes 27 Hawker Horizon super-midsize
transcontinental business jets as well as 49 Raytheon Premier I
aircraft, 55 Hawker 800XP midsize jets, 45 Beechjet 400A light jets
and 23 King Air B200 twin turboprops.
Raytheon also is exploring the possibility of extending its
fractional ownership programs to markets in Europe, Mexico and
South America.
"We are bringing a lot of new people into airline ownership
through fractional ownership," said Raytheon president Gary Hart at
a press conference here. "[Many] didn't think they could afford
it."
Fractional ownership enables companies and individuals to
purchase a share of an airplane. The amount of the share is
determined by the number of hours the owner intends to use the
plane annually.
A minimum one-eighth share corresponds to 100 hours per year.
Additional shares in increments of one-sixteenth, or 50 hours, can
be added.
The larger corporate jets carry upward of 16 individuals, but on
average most of the planes carry about six people at a time,
officials said.
Raytheon, which is prepared to fly its corporate and individual
"owners" virtually anywhere in North America and some countries
overseas, provides a full-time staff that coordinates the owner's
flights, catering, ground transportation and hotel
accommodations.
Currently, Raytheon, which flies some 90 to 100 flights a day or
44,000 flight hours annually, has more than 400 owners.
Raytheon's fleet is made up of 47 planes, which are supported by
some 66 service centers around the country.
By contrast, Raytheon, a subsidiary of Raytheon Aircraft,
started two years ago with no airplanes.
Raytheon officials credited the company's swift growth to
increasing awareness of fractional ownership programs, some
dissatisfaction with scheduled airline service, a strong economy
and its own service-oriented corporate philosophy.