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CEO Warns OEMs and MROs Threaten Small Charter Operators

CEO Warns OEMs and MROs Threaten Small Charter Operators
Nicholas Air CEO NJ Correnti has joined Flexjet, Inc. Chairman Kenn Ricci in expressing serious concerns over the conduct of original equipment manufacturers (OEMs) and maintenance, repair, and overhaul providers (MROs) in supporting existing private jet operators. Ricci recently highlighted Flexjet’s ongoing lawsuit against Honeywell, the manufacturer and service provider for engines powering its Challenger, Praetor, and Legacy fleets. Court filings allege that Honeywell prioritized new aircraft deliveries at the expense of repairing engines for current customers, resulting in a substantial portion of Flexjet’s fleet being grounded. This situation forced the company to incur additional costs to fulfill its commitments to fractional owners.
Impact on Smaller Operators
Speaking at the Corporate Jet Investor conference in Miami, Correnti reinforced these concerns, warning that delays in servicing existing aircraft are jeopardizing the financial viability of smaller charter operators. He dismissed the notion of a supply chain shortage, noting that aircraft production is proceeding at an unprecedented pace, with backlogs extending up to two years depending on the OEM. Correnti stressed that the parts required to maintain the existing fleet must be made available alongside the production of new aircraft.
While larger operators such as Nicholas Air—the tenth-largest charter and fractional operator in the United States—have managed to navigate these challenges, Correnti cautioned that smaller operators face a far bleaker outlook. He expressed sympathy for small-scale operators and emerging entrepreneurs managing one to three aircraft, warning that many are unlikely to survive under current conditions. Correnti illustrated the predicament by comparing it to purchasing a luxury car that breaks down immediately, only to be told that the necessary repair part will not be available for eight months, with no loaner vehicle offered, even as new cars continue to be delivered to other customers.
Broader Industry Challenges and Supply Chain Fragility
This tension arises amid wider industry difficulties. Recent financial troubles at suppliers such as Spirit AeroSystems have underscored the vulnerability of aviation supply chains, raising concerns about the availability of critical components for all operators. Market analysts suggest that these disruptions may increase scrutiny on smaller charter companies’ ability to secure essential parts, potentially undermining their operational reliability and profitability. Meanwhile, larger OEMs like Embraer are capitalizing on their more resilient supply chains to sustain production targets, further disadvantaging smaller firms struggling to compete.
Correnti criticized OEMs and key parts suppliers for eroding customer confidence by prioritizing profits over service. He urged the industry to abandon this approach, emphasizing the need to uphold customer service principles. The pressure on fractional operators to optimize performance and maintain profitability is intensifying, as the competitive environment increasingly favors those with greater resources and supply chain influence.
The challenges facing small charter operators are not isolated. Prior to ceasing operations in 2023, Jet It CEO Glenn Gonzales publicly criticized Honda Aircraft for inadequate support, citing poor aircraft uptime and unmet expectations regarding quality and reliability. As the industry continues to grapple with supply chain disruptions and shifting priorities among OEMs and MROs, the future for smaller charter operators remains uncertain.

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