Final uncompleted VIP aircraft on company's books looks set for Colombian government use as presidential transport
Raytheon has found a customer for the last unsold Boeing Business Jet (BBJ) on its books, two years after it sold the division responsible for VIP aircraft completions to L-3 Communications. Negotiations are under way to sell the uncompleted aircraft to the Colombian government, which in January announced plans to buy a BBJ from the US Department of Defense (DoD) for use as a presidential transport.
Talks have begun to sell the BBJ, US registration N7378P, to the Colombian air force under the DoD's foreign military sales programme, says a source close to the negotiations. The aircraft was built in 1999 and has 22h on the airframe. Nigeria was previously interested in buying N7378P, disclosing a purchase price of $31.5 million, plus $10 million to complete the aircraft as a presidential transport.
The division responsible for VIP completions, Greenville, Texas-based Aircraft Integration Systems, was sold to L-3 in March 2002 for $1.2 billion, but Raytheon retained responsibility for the loss-making BBJ programme. Following the sale, Raytheon wrote down the book value of the one unsold BBJ by $23 million after deciding to market the aircraft uncompleted because of the declining prices for BBJs at the time.
Raytheon told analysts earlier this month that it has "reached agreement to sell the last unsold 737 in the BBJ programme", but at a reduced price, with the transaction expected to be completed in the third quarter. Raytheon's remaining BBJ-related assets, principally the unsold aircraft, are valued at $38 million. In January, the Colombian government approved a budget of up to $40 million for the BBJ, presumably including completion.
n Raytheon Aircraft's fourth Hawker Horizon super mid-size business jet has joined the flight test programme. In final production configuration, with interior components installed, RC-4 will be used for function and reliability testing, the final phase of US certification testing, and an operational evaluation phase intended to ensure a successful entry into service. Certification and deliveries are expected by year-end.
GRAHAM WARWICK / WASHINGTON DC
Source: Flight International
