Flying J
Encyclopedia
FJ Management Inc., formerly known as Flying J Inc., is a privately held
Privately held company
A privately held company or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock to the general public on the stock market exchanges, but rather the...

 U.S. corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...

 which operates oil & refining, banking, and insurance businesses. Along with Pilot Corporation and CVC Capital Partners
CVC Capital Partners
CVC Capital Partners is one of the top five largest private equity firms globally with approximately US$46 billion in funds focused on management buyouts...

, it is a joint-owner of Pilot Flying J, the largest truck stop
Truck stop
A truck stop is a commercial facility predicated on providing fuel, parking, and often food and other services to motorists and truck drivers...

 chain in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

.

Description

The company was founded in 1968 by O. Jay Call and headquartered in Ogden, Utah
Ogden, Utah
Ogden is a city in Weber County, Utah, United States. Ogden serves as the county seat of Weber County. The population was 82,825 according to the 2010 Census. The city served as a major railway hub through much of its history, and still handles a great deal of freight rail traffic which makes it a...

. A lifelong fan of aviation
Aviation
Aviation is the design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft. Aviation is derived from avis, the Latin word for bird.-History:...

, Call named it Flying J in honor of the aviation industry.

It sought Chapter 11 (reorganization) bankruptcy protection in December 2008, blaming its financial woes on the collapse in oil prices and tight credit markets. Pre-bankruptcy, Flying J was the largest retailer of diesel fuel in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...

 with approximately 220 locations in the United States and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 and 15,000 employees. The company produces and refines petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...

 products for its truck stops and offers a number of pricing plans for owner/operators and trucking
Truck driver
A truck driver , is a person who earns a living as the driver of a truck, usually a semi truck, box truck, or dump truck.Truck drivers provide an essential service to...

 companies. The company also offers vehicle maintenance
Maintenance, Repair and Operations
Maintenance, repair, and operations or maintenance, repair, and overhaul involves fixing any sort of mechanical or electrical device should it become out of order or broken...

, banking, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...

 and telecommunications services for the trucking industry, and a number of restaurant
Restaurant
A restaurant is an establishment which prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services...

s at its locations.

The company had sales of $18.0 billion in 2008, but record prices for crude oil and a crumbling demand for gasoline eroded margins and affected cash flow.

Founder Jay Call died as pilot in a mysterious and tragic jet plane accident in 2003.

The company ranked 13th on Forbes' 2009 list of the largest privately held companies in the U.S.with 2008 revenues of approximately $18.00 billion. Flying J is cited by the Terror-Free Oil Initiative as a company that does not purchase oil from terrorism
Terrorism
Terrorism is the systematic use of terror, especially as a means of coercion. In the international community, however, terrorism has no universally agreed, legally binding, criminal law definition...

-sponsoring nations. The company's plans for travel plazas have occasionally met opposition from local residents concerned about traffic
Traffic
Traffic on roads may consist of pedestrians, ridden or herded animals, vehicles, streetcars and other conveyances, either singly or together, while using the public way for purposes of travel...

 safety and other issues. In 2006 Flying J associated with Shell Canada to improve highway services in Canada.

Pilot merger

In July 2009, Pilot Travel Centers
Pilot Travel Centers
Pilot Flying J is a chain of truck stops in the United States and Canada. The company is based in Knoxville, Tennessee where Pilot Corporation, the majority owner, is based. The company is owned by Pilot, FJ Management Inc., and CVC Capital Partners...

 agreed to acquire Flying J's travel stops. As part of the deal, Pilot will keep the Flying J name on existing locations as opposed to converting them to the Pilot brand, while the in-house Flying J restaurants will be replaced by national chains like Denny's
Denny's
Denny's is a full-service coffee shop/family restaurant chain. It operates over 1,500 restaurants in the United States , Canada, Curaçao, Costa Rica, Honduras, Jamaica, Japan , Mexico, New Zealand, Qatar, and the United Arab Emirates.Denny's is known for always being...

. The merged entity will be called Pilot Flying J.

In June, 2010, Flying J put forth a Chapter 11 plan to repay all creditors in full from the proceeds of the sale of its 250 travel plazas to Pilot, for a combination of cash and stock valued at $1.6 billion. Under Flying J's plan, its lenders and creditors will be paid in cash, and its owners, whose numbers include members of the company's founding Call family, will retain all the equity in a scaled-down Flying J. As of July 2010, hearings on the plan continue under Judge Mary F. Walrath of the U.S. Bankruptcy Court in Wilmington, Delaware. Flying J's oil & refining, banking, & insurance businesses will remain separate from the combined Pilot Flying J. To avoid confusion with the merged travel center business, Flying J Inc. renamed itself FJ Management Inc..

To settle antitrust
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...

 concerns, six Flying J locations as well as 20 Pilot locations were sold to Love's Travel Stops & Country Stores
Love's Travel Stops & Country Stores
Love’s Travel Stops & Country Stores is a chain of more than 200 truck stop and convenience stores located in more than 30 states.- History :...

on June 30, 2010.

External links

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