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Fly Alliance Sells Parts Business to Former CEO

Fly Alliance Divests Parts Business to Former CEO Amid Strategic Refocus
Fly Alliance, headquartered in Wilmington New Castle, has completed the sale of its entire aircraft parts inventory and warehouse operations to Altitude Parts, a company led by former Fly Alliance CEO Kevin Wargo. This transaction signals a deliberate strategic shift for Fly Alliance as it concentrates on its core aviation services, including charter flights, jet cards, fractional ownership, and maintenance.
Details of the Transaction and Operational Transition
Christopher Tasca, CEO of Fly Alliance, explained that the company is prioritizing its flying-related services, distinguishing them from the parts business, which operates under a different model. The sale, initiated in August following discussions between Tasca and Wargo, includes Fly Alliance’s Orlando facility, which holds assets valued at over USD 150 million. These assets comprise 156 disassembled aircraft and more than 42,000 individual parts. Manny Perez, formerly head of Fly Alliance’s parts division, will assume the role of president at Altitude Parts. The acquiring company is owned by Cove Capital Investments, co-founded by Wargo and Samantha Nunez in September.
Kevin Wargo reported that the parts business generated USD 60 million in sales in 2025. He also noted plans to disassemble six additional aircraft in August, including a Falcon 50, three Gulfstream IV-SPs, a Hawker 400XP, and a Hawker 4000. In July, Fly Alliance informed the Federal Aviation Administration that 20 aircraft had been dismantled and scrapped, encompassing models such as Learjet 45s, Citation Excels, Falcon 50s, Falcon 2000s, and various Hawker jets, all of which required deregistration.
Industry Context and Market Implications
The divestiture occurs amid increasing regulatory scrutiny and evolving market dynamics within the aerospace sector. Industry analysts suggest that the sale of Fly Alliance’s parts business to its former CEO may attract regulatory attention and provoke competitive responses. Rivals could attempt to capture market share or invest in similar parts operations, potentially intensifying competition. The broader aerospace market has already demonstrated sensitivity to such developments; for instance, Honeywell Aerospace experienced a significant stock price decline following its first standalone quarterly report, reflecting investor caution amid sectoral changes.
Cove Capital Investments, the owner of Altitude Parts, also holds interests in Sky Travel, a charter and aircraft management company currently operating a Hawker 400XP under its Part 135 certificate, with a total fleet of 12 aircraft under management. Wargo indicated that six Hawker 400XPs will be available for charter by the end of 2026. While Sky Travel’s charter fleet is slated for expansion, Wargo emphasized that Cove Capital’s primary focus remains on aircraft parts and refurbishment projects, including paint, interior work, maintenance, and resale. He further indicated that additional strategic acquisitions are planned as part of the company’s broader growth strategy.
As Fly Alliance shifts away from the parts business, this move is poised to alter competitive dynamics within the aerospace industry. The interplay of regulatory oversight and market reactions will likely shape the sector’s trajectory in the months ahead.

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