Honeywell and Flexjet announced Wednesday that they finalized a major settlement resolving litigation between the two companies that has been ongoing since 2023.
The companies said they also extended their aircraft engine maintenance agreement through 2035. The settlement brings to a close all outstanding claims tied to a dispute over engine maintenance services that began in March 2023.
Honeywell said in late December that it expected to record a charge of about $470 million in the fourth quarter related to the settlement, Reuters reported at the time.
“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,” a Flexjet spokesperson told AVweb. “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’s lawsuit against Honeywell alleged breaches of an engine maintenance contract and sought liquidated damages tied to delayed engine repairs. In prior court filings, Flexjet said it was entitled to at least $500 million in damages, with additional amounts continuing to accrue for engines awaiting delayed repair.
Honeywell said the settlement fully resolves the litigation, which also involved related claims connected to third-party maintenance providers. The agreement also extends the companies’ existing engine maintenance relationship for another decade, through 2035, with both parties indicating plans to continue working together following the resolution.
