Honeywell and fractional aircraft ownership firm Flexjet have ended a court battle related to engine maintenance, reaching a settlement that Honeywell previously warned could cost it $470 million.
Flexjet sued Honeywell in New York Supreme Court in 2023, alleging that the engine maker “consistently failed” to meet requirements specified in a 2019 service agreement, court papers say.
That agreement called for Honeywell to help maintain the HTF7000-series turbofans powering Flexjet’s aircraft.
Honeywell said on 21 January it reached a “comprehensive agreement to resolve… all pending claims” related to the litigation.
As part of the settlement, “Honeywell and Flexjet have agreed to extend their aircraft engine maintenance agreement through 2035,” Honeywell says.
The agreement also resolves litigation against Honeywell brought by business jet service provider Duncan Aviation and maintenance provider StandardAero, Honeywell adds.
Flexjet’s fleet of HTF7000-powered aircraft includes nearly 200 midsize jets, among them Bombardier Challenger 300-series aircraft and Embraer Praetor 500s and 600s, according to fleet data provider Cirium.
Neither Honeywell nor Flexjet discloses the dollar amount of the settlement.
But on 22 December Honeywell said it was negotiating a settlement with Flexjet that would involve a $470 million cash payment, which it said would fall in the fourth quarter.
Flexjet’s lawsuit alleged that Honeywell had attributed its failure to comply with the maintenance contract to factors including “force majeure”, citing global supply chain troubles and geopolitical conflicts like the Russia-Ukraine war.
“This agreement places supplier accountability at center stage, and we hope it further unites the industry around a matter essential to private aviation operators both large and small,” Flexjet says. “With a value surpassing a billion dollars in cash considerations and service credits, it sets a powerful precedent for businesses seeking to correct similar supplier transgressions.”
“Our hope is that the litigation, and now agreement, serve as a case study reinforcing the importance of supplier relationships built on authentic commitment, principled conduct and consistent delivery,” Flexjet adds.
Story updated on 22 January to include comments from Flexjet.
