Honeywell Reveals Possible $470M Flexjet Lawsuit Cost

In an update provided in an 8-K filing with the Securities and Exchange Commission on December 22, Honeywell revealed the possible nearly $500 million financial impact of the March 1, 2023, lawsuit filed by Flexjet. The complaint alleged, according to Honeywell, “breach of the parties’ aircraft engine maintenance service agreement (the MSA), seeking liquidated damages for delayed engine repairs, and claiming that its liquidated damages continue to accrue monthly related to engines awaiting repair.”

In the 8-K filing, Honeywell said it “expects to record a one-time charge within its Aerospace Technologies segment in the fourth quarter of 2025 that will reduce GAAP sales (due to contra-revenue accounting) and operating income by approximately $310 million and $370 million, respectively. The Company further expects that any comprehensive settlements will include one-time cash payments to the parties to the Flexjet-related litigation matters totaling approximately $470 million in the aggregate.”

The Supreme Court of New York Commercial Division issued a partial summary judgment order on Dec. 12, 2024, “holding that the MSA could not be terminated for convenience,” according to Honeywell. Another ruling on May 8, 2025, responding to motions for summary judgment, found “that the MSA’s liquidated damages provision is enforceable and dismissing the Company’s force majeure defense, among other rulings.” The court also found that a trial would be necessary “to determine whether and to what extent specific engines are covered by the MSA,” and this is expected to take place in 2026. Honeywell has appealed the summary judgment decisions.

In a statement provided to AIN, Flexjet explained: “As disclosed in Honeywell’s 8‑K filed last week, we are actively engaged in ongoing negotiations in pursuit of an agreement that is comprehensive, and in alignment with the terms agreed upon and upheld via litigation of the original Maintenance Services Agreement (MSA). Honeywell’s $470M disclosure is an accounting recognition, not the result of a finalized agreement to have a value to Flexjet of in excess of $1 billion. While discussions remain ongoing, we are encouraged by Honeywell’s public acknowledgment of the significance of this matter. Our continued focus is on achieving a resolution that strengthens accountability and reinforces the importance of service reliability for the aviation industry at large.”