This article is based on an official press release from Honeywell and Flexjet.

Honeywell and Flexjet Settle Billion-Dollar Dispute, Extend Engine Contract to 2035

On January 21, 2026, Honeywell and Flexjet announced a comprehensive settlement to resolve all pending litigation regarding engine maintenance delays. The agreement not only ends a high-stakes legal battle that began in 2023 but also secures a long-term Partnerships between the two aviation giants. As part of the deal, the companies have renewed their Master Maintenance Agreement (MSA) for Honeywell HTF7000-series engines through 2035.

According to the joint press release, the settlement resolves all claims between the parties, including related litigation involving third-party maintenance providers StandardAero and Duncan Aviation. The deal allows Flexjet to secure guaranteed support for its fleet while enabling Honeywell to clear significant legal liabilities ahead of its planned corporate restructuring.

Key Deal Terms and Financial Impact

The settlement involves substantial financial considerations and service commitments. While the official press release emphasizes the renewed partnership, regulatory filings and company statements provide a clearer picture of the financial magnitude of the agreement.

Valuation and Cash Payments

Flexjet has characterized the total value of the settlement as exceeding $1 billion. This figure includes both “cash considerations and service credits,” which will likely be applied to future engine maintenance events. In contrast, Honeywell’s disclosures offer specific details regarding the immediate financial impact.

According to Honeywell’s SEC Form 8-K filings referenced in market reports, the settlement involves a one-time cash payment of approximately $470 million. Additionally, Honeywell expects to record a charge in the fourth quarter of 2025 that will reduce sales by approximately $310 million and operating income by roughly $370 million.

“We are pleased to have reached a resolution that supports our long-term growth and ensures the highest level of service for our customers.”

, Joint Statement from Honeywell and Flexjet

Contract Extension

The renewed Master Maintenance Agreement covers the HTF7000-series engines, which power a significant portion of Flexjet’s mid- and super-midsize fleet. This extension guarantees maintenance support through 2035, providing Flexjet with operational certainty for the next decade.

Background of the Dispute

The conflict between the two companies originated from a 2019 maintenance agreement. In May 2023, Flexjet filed a lawsuit alleging that Honeywell had failed to meet contractual turnaround times for engine repairs and did not provide sufficient rental engines during maintenance events.

Operational Disruptions

Flexjet’s legal filings claimed that these service failures led to significant aircraft groundings. At the peak of the supply chain crisis, reports indicated that up to 40 aircraft were parked due to a lack of available engines. Flexjet argued that Honeywell had prioritized new engine deliveries to original equipment manufacturers (OEMs) over supporting existing customers, a claim Honeywell contested.

The dispute escalated in 2025 when a New York court upheld the enforceability of a liquidated damages clause. This ruling exposed Honeywell to potentially massive liability, which analysts believe accelerated the push for a settlement before a jury trial scheduled for 2026 could commence.

Strategic Implications

The settlement serves distinct strategic goals for both organizations. For Flexjet, the deal secures the stability of its core fleet, which includes Bombardier Challenger 300/350 and Embraer Praetor 500/600 aircraft. The inclusion of service credits effectively subsidizes future maintenance costs, offsetting the financial impact of previous disruptions.

For Honeywell, the agreement removes a major legal distraction. The company is currently preparing for a spin-off of its Advanced Materials business. By resolving this litigation, Honeywell presents a “cleaner” investment profile to shareholders and avoids the unpredictability of a prolonged court battle.

AirPro News Analysis

We observe that this settlement is emblematic of the broader post-pandemic aerospace supply chain crisis. The dispute between Honeywell and Flexjet was not an isolated incident but a high-profile symptom of industry-wide shortages in skilled labor and critical parts, such as castings and forgings.

The structure of the settlement, heavy on “service credits”, is a common mechanism in aviation disputes. It allows the vendor to retain the customer’s business long-term while inflating the “headline value” of the compensation package without requiring an equivalent immediate cash outflow. For the industry at large, this agreement may set a precedent for how operators negotiate compensation for service failures, signaling that major OEMs are willing to pay a premium to avoid reputational damage and legal uncertainty during restructuring phases.

Frequently Asked Questions

What engines are covered by the renewed contract?
The agreement covers Honeywell HTF7000-series engines, which power Flexjet’s Bombardier Challenger 300/350 and Embraer Praetor 500/600 fleets.

How much is the settlement worth?
Flexjet values the total package at over $1 billion, including cash and service credits. Honeywell’s regulatory filings indicate a cash payment of approximately $470 million.

Does this end all litigation between the parties?
Yes. The settlement resolves all pending claims between Honeywell and Flexjet, as well as related litigation involving third-party maintenance providers StandardAero and Duncan Aviation.

Sources

• Honeywell & Flexjet Joint Statement
• Honeywell SEC Form 8-K (Dec 2025 & Jan 2026)

This article is based on an official press release from flyExclusive.

flyExclusive (NYSE American: FLYX) has announced the acquisition of two additional Bombardier Challenger 350 aircraft, a move that expands its super-midsize fleet to eight units. According to the company’s announcement on January 14, 2026, this acquisition is a key component of a broader fleet modernization strategy scheduled for completion in 2026. The operator aims to increase its inventory of what it describes as its “most economically productive” aircraft assets.

In a significant technology upgrade for the operator, these two new aircraft will be the first in the flyExclusive fleet to feature Starlink high-speed connectivity. This inclusion signals a direct effort to compete with larger industry rivals by offering business-class in-flight productivity tools.

Strategic Fleet Expansion

The addition of these two aircraft brings flyExclusive’s total Challenger 350 fleet to eight. However, the company has outlined aggressive near-term goals, targeting a total of 12 Challenger aircraft on its operating certificate by the end of the first quarter of 2026. The company states that the Challenger 350 generates the highest revenue per flight hour and utilization rates within their current business model.

Jim Segrave, Founder and CEO of flyExclusive, emphasized that the move is calculated rather than purely opportunistic. In the press release, Segrave stated:

“These additions reflect a deliberate capacity strategy focused on long-term value creation, not opportunistic growth. The Challenger platform continues to demonstrate superior contribution and reliability across our customer base.”

The company utilizes its own MRO facilities in Kinston, North Carolina, to retrofit and maintain these aircraft. This vertical integration allows flyExclusive to control the quality of the fleet while managing the costs associated with bringing new assets online.

Connectivity and Customer Experience

A central highlight of this acquisition is the installation of SpaceX’s Starlink satellite internet. While legacy air-to-ground systems often struggle with high-bandwidth tasks, Starlink is designed to offer low-latency, high-speed connectivity comparable to ground-based offices.

According to the company, these will be the first jets in their fleet to offer this capability. The upgrade addresses a growing demand among business travelers for seamless video conferencing and streaming capabilities. Segrave noted the importance of this upgrade in the official release:

“The Challenger platform will be the first aircraft in the flyExclusive fleet to be equipped with Starlink… delivering a best-in-class experience that matches the Challenger’s reputation.”

AirPro News Analysis

The decision to equip the Challenger 350 fleet with Starlink places flyExclusive in a stronger competitive position relative to market leaders. Major operators such as NetJets and Flexjet have already committed to Starlink integration, making high-speed satellite internet a standard expectation rather than a luxury in the super-midsize segment.

Furthermore, the focus on the Challenger 350 aligns with a financial pivot observed in flyExclusive’s recent performance. By prioritizing the “super-midsize” category, which balances transcontinental range with lower operating costs than large-cabin jets, the company appears to be prioritizing margin growth over sheer fleet volume. This aligns with their reported Q2 2025 financial results, which showed a 16% year-over-year revenue growth and narrowed losses, suggesting a shift toward sustained profitability.

Industry Context and Competitors

While flyExclusive is rapidly modernizing its fleet, it remains a challenger brand in terms of sheer volume compared to legacy operators. Industry data highlights the scale of the competition in the super-midsize segment:

• NetJets: The market leader operates an estimated fleet of over 100 Challenger 350s and has placed significant orders for the newer Challenger 3500.
• Flexjet: Operates approximately 40+ Challenger 300/350 aircraft.
• VistaJet: Maintains a fleet of roughly 30+ Challenger 350s to support its global subscription model.

With a target of 12 Challengers by Q1 2026, flyExclusive is not attempting to match these fleets in size immediately. Instead, the strategy appears to be offering a comparable “big fleet” experience, defined by reliability and top-tier connectivity, at a potentially more competitive price point for Charter, Jet Club, and Fractional owners.

Frequently Asked Questions

What is the range of the Bombardier Challenger 350?

The Challenger 350 is a super-midsize business jet with a range of approximately 3,200 nautical miles. It is capable of flying non-stop routes such as New York to London or Los Angeles to Honolulu.

Why is Starlink significant for private aviation?

Starlink provides high-speed (up to 220 Mbps), low-latency satellite internet. Unlike older systems, it supports bandwidth-intensive activities like video conferencing and streaming, which are increasingly required by business travelers.

How many Challenger aircraft does flyExclusive operate?

As of the January 14, 2026 announcement, flyExclusive operates eight Challenger 350 aircraft, with a stated goal of reaching 12 units by the end of Q1 2026.

Sources

• flyExclusive Press Release
• flyExclusive Investor Relations

This article is based on an official statement from the National Business Aviation Association (NBAA) and regulatory filings regarding the FAA‘s January 2026 Notice of Proposed Rulemaking.

NBAA Mobilizes Coalition to Address New FAA 5G “Upper C-Band” Mandates

The National Business Aviation Association (NBAA) announced on January 16, 2026, that it has joined a broad coalition of industry stakeholders to address significant technical and logistical challenges posed by the Federal Aviation Administration’s (FAA) latest regulatory proposal. The FAA’s Notice of Proposed Rulemaking (NPRM), published on January 7, 2026, outlines strict new performance standards for radio altimeters to mitigate interference from future 5G telecommunications networks operating in the “Upper C-Band” spectrum.

This new regulatory push is driven by the “One Big Beautiful Bill Act” of 2025, federal legislation that mandates the auction of the 3.98–4.2 GHz spectrum band for commercial wireless use by July 2027. According to the NBAA, the aviation industry is now facing a tight timeline to develop, certify, and install next-generation equipment before these new wireless services go live, with initial compliance deadlines projected between 2029 and 2032.

The NBAA is collaborating with Airlines for America (A4A), original equipment manufacturers (OEMs), and the Radio Technical Commission for Aeronautics (RTCA) to ensure that the proposed rules are technically feasible within the mandated timeframe.

The Shift to Upper C-Band: A New Technical Challenge

While the aviation industry spent much of 2022 and 2023 retrofitting aircraft with filters to protect against 5G signals in the “Lower C-Band” (3.7–3.98 GHz), the new mandate addresses a distinct and more complex challenge. The upcoming expansion involves the 3.98–4.2 GHz band, which sits significantly closer to the 4.2–4.4 GHz frequency range used by radio altimeters, critical safety instruments that measure an aircraft’s height above terrain.

According to technical details released in the NPRM, the proximity of these high-power wireless signals renders previous “filter-only” solutions insufficient. The NBAA notes that the new mandate will likely require the full replacement of radio altimeter units with new hardware designed to meet stricter Minimum Operational Performance Standards (MOPS).

The “Solutions Gap”

A primary concern raised by the NBAA is the current lack of commercially available equipment to meet the FAA’s proposed standards. The industry is currently in a “solutions gap,” where the regulation demands performance specifications that manufacturers are still in the process of defining.

Heidi Williams, NBAA Senior Director of Air Traffic Services and Infrastructure, highlighted this discrepancy in the association’s statement:

“The timelines proposed will be challenging in light of solutions that haven’t yet come to market… Achieving the proposed rule’s objectives, on any timeline, will require continued collaboration between industry stakeholders, the FAA and standards organizations.”

Timelines and Compliance Deadlines

The FAA’s proposal sets a rigid schedule driven by the legislative requirement to auction the spectrum by July 2027. Based on the NPRM and industry analysis, the key milestones are as follows:

• March 9, 2026: Deadline for industry comments on the FAA’s NPRM.
• March 2027: Target date for RTCA Special Committee 239 to publish the new MOPS technical standards.
• July 2027: FCC deadline to auction the Upper C-Band spectrum.
• 2029–2032: Estimated window for new 5G services to go live; this serves as the initial compliance deadline for Part 121 (airlines) and Part 129 (foreign carriers).
• 2031–2034: Compliance deadline for general and business aviation, which are granted an additional two years after the initial deadline.

The FAA estimates that this rule will affect approximately 58,600 aircraft in the U.S. fleet. Industry estimates cited in the reporting suggest the total cost for these fleet-wide upgrades could exceed $4.5 billion.

AirPro News Analysis: Legislating Physics

The friction between the “One Big Beautiful Bill Act” and aviation safety highlights a recurring tension in modern infrastructure development: the pace of legislation versus the pace of engineering. Unlike the previous 5G rollout, where filters could be applied to existing hardware, the Upper C-Band expansion requires the invention and certification of entirely new avionics.

With the RTCA not expected to finalize the technical standards until March 2027, just months before the spectrum is legally required to be auctioned, manufacturers will be under immense pressure. If the standards are delayed, or if the certification process hits snags, the 2029 compliance window could close rapidly, potentially risking a repeat of the flight disruptions seen during the initial 5G rollout. The “collaboration” the NBAA speaks of is effectively a race to ensure the regulatory requirements do not outpace physical manufacturing capabilities.

Industry Collaboration Efforts

To mitigate these risks, the NBAA is working closely with the RTCA Special Committee 239 (SC-239). In late 2025, this committee shifted its focus from producing a guidance document to developing a full Minimum Operational Performance Standard (MOPS). This shift is intended to ensure a robust, long-term technical solution that creates altimeters immune to the closer, more powerful 5G signals.

Airlines for America (A4A) echoed the need for cooperation in a statement regarding the new spectrum usage:

“We have been working collaboratively with the telecommunications industry, the FAA and the FCC to identify solutions that ensure our nation’s airspace remains safe while allowing the spectrum to be used.”

Frequently Asked Questions

Which aircraft are affected by the new rule?

The FAA estimates the rule covers approximately 58,600 aircraft, including commercial airliners (Part 121), foreign carriers (Part 129), and business/general aviation aircraft equipped with radio altimeters.

When must business jets comply?

General and business aviation operators have a compliance deadline set for two years after the initial commercial deadline. Based on current projections for 5G deployment, this places the business aviation deadline between 2031 and 2034.

Why can’t operators just use the filters installed in 2023?

The filters installed previously were designed for the “Lower C-Band” (3.7–3.98 GHz). The new legislation opens the “Upper C-Band” (3.98–4.2 GHz), which is much closer to the altimeter’s operating frequency. The existing filters cannot block interference from this adjacent band without degrading the altimeter’s performance, necessitating full unit replacement.

Sources:
NBAA Statement on 5G Interference
Federal Aviation Administration (NPRM Filings)