Raytheon Gets FAA Approval for Business Jet

Raytheon Co. said it received Federal Aviation Administration approval for its six-passenger Premier 1 business jet, which analysts said may bode well for a potential sale of its aircraft division. Long-awaited approval for the $5.3-million jet came after Raytheon’s aircraft division overcame a series of assembly problems with the Premier 1, which ran more than a year behind schedule. Lexington, Mass.-based Raytheon, the No. 3 U.S. aerospace and defense company, said it has orders for more than 300 Premier 1 jets and is preparing to deliver as many as 36 this year. It said it expects to deliver the jets at a rate of up to 60 a year by 2002. Premier 1 is Raytheon’s first all-new business jet from original design. It was built to offer cruise speed and cabin space similar to those of more expensive light jets but at an entry-level price. Analysts said in January that Raytheon took the Wichita, Kan.-based aircraft division off the auction block after it was unable to get its $4-billion asking price. Raytheon’s Class A shares rose 65 cents to close at $27.10 on the NYSE.