Flexjet Seeks Up to $1.2B in Engine Delay Lawsuit Against Honeywell

Flexjet could receive as much as USD1.2 billion in damages if it prevails in an ongoing lawsuit against Honeywell International, the parent company of Honeywell Aviation Services. The dispute centers on a 2019 Mechanical Services Agreement in which Honeywell agreed to maintain and service engines across Flexjet’s fleet, including HTF turbofan engines used on Embraer and Bombardier business jets. The contract required Honeywell to return engines within four to 30 days, with liquidated damages set at USD30,000 per day for delays.
Flexjet filed the lawsuit in March 2023 in the New York Supreme Court, alleging that Honeywell consistently delayed repair turnaround times and failed to maintain an adequate rental engine pool. Flexjet said Honeywell initially complied with the agreement, but in 2021 invoked force majeure due to COVID-19. Flexjet argued the pandemic was used as a justification for what it describes as ongoing capacity and supply chain issues. It claimed that rental engine shortages left dozens of aircraft grounded and reduced dispatch availability to as low as 64%, below Flexjet’s typical 82% to 85%.
In December 2024, the court ruled that the contract could not be terminated for convenience. In May 2025, it upheld the liquidated damages clause, establishing minimum liability of USD600 million, while allowing the case to proceed to trial to determine specific amounts. Honeywell has appealed the rulings and maintains it has strong defenses.
Related litigation involving Duncan Aviation and StandardAero over maintenance bills has also drawn Honeywell into the proceedings. A jury trial is expected in the first half of 2026.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com
