Flexjet (LXJ, Cleveland Cuyahoga Country) and Honeywell Aerospace have reached a comprehensive settlement to resolve all pending litigation between the two parties, ending a dispute over aircraft engine maintenance delays that had exposed Honeywell to potential liabilities exceeding USD1 billion. As part of the resolution, the companies have also extended their long-term aircraft engine maintenance agreement through 2035.

Announced on January 21, the settlement also resolves related proceedings involving maintenance providers Duncan Aviation and StandardAero, both of which had brought claims against Flexjet that were subsequently linked to the Honeywell dispute. Financial terms were not disclosed.

“This agreement places supplier accountability at centre stage, and we hope it further unites the industry around a matter essential to private aviation operators both large and small. 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,” a Flexjet spokesperson told ch-aviation.

ch-aviation has reached out to Honeywell for comment.

The dispute stemmed from a 2019 agreement under which Honeywell committed to provide maintenance and rental engine support for HTF-powered aircraft in Flexjet's fleet, including Bombardier Business Aircraft and Embraer Executive Jets. Subsequently, Flexjet filed a lawsuit in the New York Supreme Court in March 2023, alleging persistent delays in engine overhauls and rental engine availability that led to aircraft groundings and reduced fleet dispatch availability during peak operating periods.

In May 2025, the court upheld the enforceability of the liquidated damages clause, establishing a minimum potential liability of approximately USD600 million, while Flexjet argued that total exposure could reach USD1.2 billion depending on trial outcomes. Later in 2025, Honeywell disclosed in a regulatory filing that a settlement could involve a payment of around USD470 million, a figure that Flexjet characterised as an accounting recognition rather than a cap on potential damages. The case had been expected to proceed to a jury trial in the first half of 2026.