Flexjet (LXJ, Cleveland Cuyahoga Country) could receive up to USD1.2 billion in damages if it wins a maintenance delays-related lawsuit against Honeywell International Inc., the parent of Honeywell Aviation Services, according to ch-aviation research.
The lawsuit stems from a 2019 Mechanical Services Agreement (MSA) under which Honeywell agreed to service and maintain engines in Flexjet’s fleet, including Honeywell HTF turbofan engines on Embraer Executive Jets and Bombardier Business Aircraft aircraft. The contract required engines to be returned within four to 30 days, with USD30,000 per day in liquidated damages for delays.
On March 1, 2023, Flexjet filed lawsuit against Honeywell in the Supreme Court of the State of New York, County of New York, Commercial Division, alleging breach of the MSA and seeking liquidated damages for delayed engine repairs, which continue to accrue monthly.
Flexjet said Honeywell initially met the terms but later invoked force majeure in 2021, citing COVID-19. Flexjet claimed that the pandemic was but a pretext, revealing pre-existing capacity issues in Honeywell’s engine rental bank. It alleged that Honeywell rarely had more than four rental engines available between 2019 and 2023, leaving dozens of Flexjet aircraft grounded at peak times. This resulted in Flexjet's dispatch availability falling to 64%–74% during regular weeks, below the typical 82%–85%.
In December 2024, the New York Supreme Court, in a partial summary judgment, ruled that the MSA could not be terminated for convenience.
On May 8, 2025, the court found the liquidated damages provision enforceable, for a minimum liability of USD600 million. It dismissed Honeywell’s force majeure defence, while holding that a trial is needed to determine coverage for specific engines. Honeywell filed appeals on January 10 and June 17, 2025. According to Flexjet, an unfavourable verdict for Honeywell could result in an additional USD600 million liability. The case is expected to proceed to jury trial in the first half of 2026.
Asked for comment, Flexjet chairman Kenn Ricci, in a statement shared with ch-aviation, said: "We urge everyone who works with these large industry suppliers to demand excellence and integrity. One of our fundamental principles is taking a long-term approach to relationships. We entered into our agreement with Honeywell in good faith, and we simply expected the same in return." He added: "I’m speaking out, after several years, not just for us, but for the smaller operators who face even greater vulnerability. If this is acceptable behaviour, it threatens the very foundation of our industry."
A regulatory filing with the US Securities and Exchange Commission (SEC) reveals two related cases filed by third-party aircraft repair and services companies, where Duncan Aviation (PHD, Lincoln, NE) and StandardAero Business Aviation Services, LLC brought suit against Flexjet for amounts allegedly owed for services provided.
The Duncan litigation was filed in the US. District Court of Nebraska, and is pending transfer to the US. District Court for the Southern District of New York. The StandardAero litigation was filed in the New York Supreme Court. Flexjet filed amended pleadings in the Duncan and StandardAero cases on January 10, 2025, and June 10, 2025, respectively. According to the SEC filing, Flexjet purported to join Honeywell as a third-party defendant and claimed that amounts allegedly owed to the respective plaintiffs are the liabilities of Honeywell.
"Honeywell believes that it has strong defences and intends to continue to vigorously defend the Flexjet-related matters," the company states in the SEC filing. "The company does not expect the outcome of the Flexjet-related litigation matters, either individually or in the aggregate, to have a material adverse effect on the company's consolidated financial position," it said.
ch-aviation has contacted Honeywell for comment.