Boeing workers walked off the job at midnight on September 12 after more than 94 percent of union members rejected a tentative contract offer by the company.

After joining several picket lines in Washington state and Oregon on Wednesday and Thursday, Bryant told FreightWaves in a phone interview that union members were resolved to achieve fair pay and better benefits.

“The beginning of this week we wanted to visit with many of our members on the picket lines all the way from Everett [Washington], all the way down here to Portland to let them know they have the complete support of their union, the 600,000 active and retired IAM members both in the United States and Canada,” Bryant said. “… [W]hat it’s really about is, they’ve had 10 years of stagnant wages, 10 years where they’ve lost their pension, 10 years of continual increases in their health insurance. … [T]he workers here have just said enough is enough. … We’ve got to get a contract that truly respects us and recognizes the value that we do for the Boeing Company.”

Bryant said support for the strike has been overwhelming.

“We’ve talked to people who have 45 years in this plant, and we’ve talked to people that just started two months ago, and they’re all on the same page,” he said.

Bryant said that while Boeing does offer a 401(k) matching program, most workers can’t contribute to retirement because their wages aren’t high enough.

“They can’t afford both their mortgages, the rent payments, the vehicle payments, the gas, the fuel to get to work, the food to feed them and their families and their other utilities,” he said. “By the time that’s all done, they don’t have enough income to be able to even participate in the 401(k). It’s on Boeing. They’ve got to correct that. What they did 10 years ago with the pension was just ridiculous and uncalled for, but they’ve got to move forward. They’ve got to do something that gives people income security when they retire.”

Bryant blasted Boeing’s announcement of furloughs in response to the strikes.

“If they want to get serious about what they’re spending on executive salaries and if they’re overstaffed, they could have been dealing with that all [along],” he said. “It’s a cheap shot to make it look like they’re blaming the workers out here on strike because it’s their fault. Look, the workers are on strike here. None of Boeing’s problems have anything to do with these workers. In fact, all of the things that are wrong with Boeing right now are all attributed to bad decisions from corporate. … They’re the ones that have made the bad decisions that are putting Boeing in the position that they’re in. And it’s unfortunate that they’re trying to make this look like it’s the union’s fault. It’s just smoke and mirrors.”

Bryant said it will take a fair contract to resolve this strike and that members are resolved to wait as long as necessary to get that.

“I’m absolutely amazed and impressed with the solidarity and the commitment that our members of the Boeing workers have made to improve their situation,” he said. “This isn’t only happening with the Boeing Company. This strike is being followed all across—not just the U.S.—but in Canada also. This is being followed because the same thing that is happening and has happened to these workers here is happening at many different corporations.”

Boeing did not immediately respond to FreightWaves’ request for comment.

Editor’s Note: This article first appeared on FreightWaves.

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This comes after over 30,000 workers with the International Association of Machinists and Aerospace Workers (IAM) rejected a contract renewal with the company and went on strike last week.

The furloughs were anticipated earlier this week as the aerospace giant attempts to stop the financial bleeding caused by the strike. A Bloomberg Intelligence analysis predicted Monday that Boeing could be out $3.5 billion in cash in the third quarter if the strike continues through September.

• READ MORE: Boeing Freezes Hiring, Considers Furloughs as Strike Could Cost $3.5 Billion

In a memo sent to employees on Wednesday by Boeing CEO Kelly Ortberg, workers were notified that production was paused across many key programs in the Pacific Northwest due to the strike.

“… [O]ur business faces substantial challenges, and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover,” Ortberg said in the memo. “As part of this effort, we are initiating temporary furloughs over the coming days that will impact a large number of U.S.-based executives, managers, and employees.”

• READ MORE: Boeing Machinists Reject New Contract, Go on Strike

Ortberg stated that all benefits will continue for affected employees. The company is planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike.

Along with these steps, Ortberg said that he and his leadership team will take pay cuts for as long as the strike lasts. Ortberg is currently one of Washington state’s highest-paid CEOs. The Seattle Times reports his compensation package could reach $22 million in 2025.

He did not specify in the memo how much his pay will be reduced during the strike.

“Most important, we won’t take any actions that inhibit our ability to fully recover in the future,” Ortberg said. “All activities critical to our safety, quality, customer support, and key certification programs will be prioritized and continue, including 787 production.”

The post Boeing to Furlough Workers Amid Ongoing Strike appeared first on FLYING Magazine.

Over 30,000 machinists and aerospace workers at the company walked off the job Friday after a large majority rejected a tentative contract. A Bloomberg Intelligence analysis predicted Monday that Boeing could be out $3.5 billion in cash in the third quarter if the strike continues through September.

According to the Bloomberg report, the cash loss could reduce Boeing’s balances to $9 billion—near the minimum for the company. The largest driver of results in sales will be 737 deliveries, which Boeing will have made 78 of for Q3 versus 70 in Q2. The report stated that defense and Global Services are expected to perform similarly to Q2.

Boeing Cuts Costs

Boeing executive vice president and chief financial officer Brian West told employees in an emailed memo that the company would take actions to preserve its cash, including:

• Starting a hiring freeze across Boeing for all levels, and pausing any pay increases associated with internal executive and management promotions.
• Stopping any travel that is not for critical customer, program, regulatory or supply chain activity.
• Suspending nonessential capital expenditures and facilities spending.
• Suspending outside consultant spending and temporarily releasing nonessential contractors.

“… [W]e are planning to make significant reductions in supplier expenditures and will stop issuing the majority of supplier purchase orders on the 737, 767 and 777 programs,” West said in the memo. “We are also considering the difficult step of temporary furloughs for many employees, managers and executives in the coming weeks.”

Which Airlines Will Be Impacted?

Bloomberg Intelligence stated that airlines most affected by Boeing’s strike will be Ryanair, Southwest Airlines, United Airlines, and Alaska Airlines. While it’s not in the high-demand season, this is expected to predominantly affect U.S. air travel.

The report stated that the most-affected airlines in the near term appear to be Southwest, Alaska, Aeromexico, and Jin Air of Korea, all of which are expecting two deliveries in the remaining half of September. With vacation season waning in the U.S., Bloomberg estimates a minimized impact from delays.

Editor’s Note: This article first appeared on AirlineGeeks.com.

The post Boeing Freezes Hiring, Considers Furloughs as Strike Could Cost $3.5 Billion appeared first on FLYING Magazine.

The Chamblee, Georgia-based fractional charter jet operator had widespread employee layoffs after entering into an aircraft management services agreement with competitor flyExclusive (NYSE: FLYX) on September 3.

Thursday’s class action was filed by law firm Kwall Barack Nadeau PLLC and attorney Arthur Schofield in the U.S. District Court for the Middle District of Florida. In their complaint, prosecutors state Volato employed approximately 260. At least 233 of these employees were laid off August 30 after receiving an email notifying them of their termination.

The WARN Act mandates employers with over 100 employees provide a 60-day notice in advance of plant closings or mass layoffs. The complaint alleges that because these employees were let go as part of a plant shutdown or mass layoff, they were entitled to receive such written notice.

On its website, Kwall Barack Nadeau states that Volato’s actions have left the terminated employees without the compensation and benefits they were entitled to, creating financial distress for many. The plaintiffs seek to secure compensation for unpaid wages, accrued holiday pay, accrued vacation pay, accrued sick leave pay, and other benefits lost due to Volato’s failure to provide notice.

“This case is about holding Volato accountable for the harm it has caused its employees,” said Ryan Barack, lead counsel for the plaintiffs, in a statement on the law firm’s website. “Employers are required by law to provide notice before significant layoffs, and Volato’s failure to comply with the WARN Act has had a devastating impact on its workforce.”

Volato’s poor quarterly financials earlier this summer were reminiscent of issues that faced Jet It, another fractional charter jet operator that failed a year prior due in part to supply chain issues that rocked the industry in 2021 and 2022.

Volato did not immediately respond to FLYING’s request for comment.

The post Terminated Volato Employees File Class Action Lawsuit appeared first on FLYING Magazine.

The mission to return the spacecraft to Earth concludes a flight test to the International Space Station (ISS) that was unexpectedly extended to three months after Starliner experienced helium leaks and thruster malfunctions on June 6. 

The two astronauts aboard the Starliner—Barry “Butch” Wilmore and Sunita “Suni” Williams—have since been staying on the ISS alongside the Expedition 71 crew. After weeks of in-space and ground testing, technical interchange meetings, and agency reviews, NASA announced in August that Wilmore and Williams would be returning via the SpaceX Dragon spacecraft next February.

• READ MORE: A Brief History of Astronauts Stuck in Space

A news release from NASA on Friday stated that its Commercial Crew Program requires a spacecraft to fly a crewed test flight to prove the system is ready for regular flights to and from the orbiting laboratory. The goal of NASA’s Commercial Crew Program is safe, reliable, and cost-effective transportation to and from the ISS and low Earth orbit.

Following Starliner’s return, the agency will review all mission-related data.

Ken Bowersox, the associate administrator for the space operations mission directorate at NASA Headquarters in Washington, D.C., said in the release that he was proud of his team’s work during the flight test and Starliner’s safe return.

“I am extremely proud of the work our collective team put into this entire flight test, and we are pleased to see Starliner’s safe return,” Bowersox said. “Even though it was necessary to return the spacecraft uncrewed, NASA and Boeing learned an incredible amount about Starliner in the most extreme environment possible. NASA looks forward to our continued work with the Boeing team to proceed toward certification of Starliner for crew rotation missions to the space station.”

The flight on June 5 was the first time astronauts launched aboard the Starliner. It was the third orbital flight of the spacecraft, and its second return from the orbiting laboratory. The spacecraft will now ship to NASA’s Kennedy Space Center in Florida for inspection and processing.

“We are excited to have Starliner home safely,” said Steve Stich, manager of NASA’s Commercial Crew Program, in the release. “This was an important test flight for NASA in setting us up for future missions on the Starliner system. There was a lot of valuable learning that will enable our long-term success. I want to commend the entire team for their hard work and dedication over the past three months.”

Bringing Starliner Home

As scheduled, Starliner departed from the ISS at 6:04 p.m. EDT Friday evening. 

The spacecraft’s 59-second deorbit burn went off without a hitch just over five hours later at 11:17 p.m. EDT. Despite initial concerns around the mutch-scrutinized aft-facing thrusters, telemetry visualization on NASA’s broadcast showed they appeared to fire as needed.

The service module separated and performed its disposal burn, and Starliner was then set to reenter the atmosphere and touch down around midnight. 

Live video taken from the ISS and two NASA chase planes showed the craft streaking through the atmosphere for a little under an hour before the ship touched down at White Sands Space Harbor at 12:01 a.m. EDT. Landing and recovery teams followed NASA’s previously published mission timeline plans, and the spacecraft was then on its way to Kennedy Space Center.

Following the mission, NASA hosted a live post-landing press conference to answer questions from journalists. Officials answering questions were Joel Mantalbano, deputy associate administrator for the space operations mission directorate at NASA Headquarters; Steve Stich, Commercial Crew Program manager at NASA Kennedy; and Dana Wiegel, International Space Station manager at NASA Johnson.

Stich said during the conference that Starliner executed a nominal breakout sequence.

“[It’s] the first time we’ve used that to back away from the station,” Stich said. “We backed out to about five meters and then did a series of about 12 burns using the service module 4 jets. After that sequence of maneuvers, we ended up opening at about 22 kilometers per rev away from the space station. All those thrusters did really well through that SEP [Solar Electric Propulsion] sequence, no problems at all. [There were] no fail-offs or any problems at all.”

He further stated that all eight of the Starliner’s forward thrusters and the two aft thrusters worked well during a hot fire.

“We had great performance from the GNC system, the guidance navigation control [and] the Vesta system,” Stich said. “Last fight on OFT2, we had a little bit of trouble with what we call a ‘calibration maneuver’ to really make sure that the attitude is good for this space integrated GPS INS system, and that went really well. We had a deorbit burn that executed on time at 11:17 p.m. central. It was about 130 meters per second, a 58 second burn. It was a really good burn and the service module thrusters performed well for that burn [and] the OMAX performed well.”

During the deorbit burn, Stich stated that the team noticed temperatures being a little higher in the top and starboard “dog houses.” He said that one of the thrusters—S2A2—didn’t fail off but had a little higher temperature than expected.

Stich said that Starliner performed great during entry, but one of the 12 thrusters—an upfiring thruster—did not perform at all during a hot fire before entry. He also said that the SIGI-3 navigation system failed off temporarily during landing. The SIGI-2 also had a couple of hiccups during entry that Stich said his team would be looking into.

What’s Next for NASA and Boeing?

Despite the change in mission plans over the last several months, Mantalbano said he would not describe this test flight as a mission failure.

“I would not call it a successful failure,” Mantalbano said. “We knew going in this was going to be a test mission. We learned a lot. The teams worked together, both the Boeing and the NASA team to understand the systems of the spacecraft and how they operated. The team worked together at White Sands to understand the analysis that was done. On the test mission, things don’t always go as you planned. And so we were prepared. The fact that this vehicle is home, we’re very happy to have the vehicle home. To me, [this was] a success. Clearly we [have] some work to do. The teams will understand that work and move forward.”

When asked if the next flight would be fully certified or another test flight, Stich said that it was too early to say.

“I think we wanna take the steps to go look at all the data,” Stich said. “Certainly our goal is to get to the rotation flight. Our goal all along has been to have one flight a year, one flight from Boeing Starliner, and another flight from SpaceX with Dragon. It’ll take a little time to determine the path forward. But today we saw the vehicle perform really well. We’ve got some things we know we’ve got to go work on, and we’ll go do that and fix those things, and then go fly when we’re ready.”

Stich said that one of the first things NASA will do when the Starliner is taken back to Kennedy Space Center will be analyzing the tracking data relay satellite to the ground from the recorded data onboard.

“With the test flight, we have a number of sensors across the systems that record data,” Stich said. “We’ll want to downlink all that high rate data and take a look at that data. And then it’s a series of analyzing all the data from the entry, the undocking and the deorbit across all the systems on the vehicle to just see if there’s anything that was off nominal. We’ll study the data at a little higher rate. So it will take a couple of weeks to get it back and a week or so to get the data off the spacecraft.

Several journalists present at NASA’s press conference asked why Boeing wasn’t in attendance to answer questions. Mantalbano answered that Boeing deferred to NASA because it represents the mission.

“I will tell you that Boeing has critical work that they do for NASA in the International Space Station Program, the Commercial Crew Program, and the Space Launch Systems Program,” Mantalbano said. “Their work is critical to our success, and we fully expect Boeing to continue all three of those programs.”

When asked again if the relationship between NASA and Boeing had been damaged, Mantalbano reaffirmed his previous statement.

“And I think from a human perspective, all of us feel happy about the successful landing, but then there’s a piece of us, all of us, that we wish it would have been the way we had planned it,” Stich said. “We had planned to have the mission land with Butch and Suni on board. I think there’s, depending on who you are on the team, different emotions associated with that. And I think it’s going to take a little time to work through that. For me, a little bit, and then for everybody else on the Boeing and NASA team.”

The post Boeing Starliner Returns Home Safely appeared first on FLYING Magazine.

This comes after a weeklong mission to the ISS extended into an eight-month nightmare for two astronauts after the Starliner experienced thruster malfunctions during the trip to space. Since their blastoff on June 5, NASA astronauts Barry “Butch” Wilmore and Sunita “Suni” Williams have been staying on the ISS alongside the Expedition 71 crew.

• READ MORE: NASA Explains Strange Noises Heard on Boeing Starliner

NASA announced in August that the crew would be returning via the SpaceX Dragon spacecraft in February. They won’t be the first astronauts returning to Earth in a separate spacecraft than the one they launched from, though missions extended from unforeseen factors are rare. 

Returning the Starliner

NASA’s mission timeline posted on Thursday states that safety and mission success remains top priorities for teams during the Starliner’s return.

As the first American capsule designed to touch down on land, the Starliner will use potential landing locations in the White Sands Missile Range, New Mexico; Willcox, Arizona; and Dugway Proving Ground, Utah. NASA said that Edwards Air Force Base in California is also available as a contingency landing site.

NASA said it analyzes weather predictions for the various landing sites, taking note of winds, ground temperatures, cloud ceiling height, visibility, precipitation, and nearby storms. When the teams start undocking, the Starliner will complete several departure burns. From there, the spacecraft is planned to reach its landing site in as little as six hours.

During this deorbit burn, a final weather check will commence.

• READ MORE: SpaceX—Not Boeing—Will Return Starliner Astronauts After Monthslong Mission

“Winds must be at or below 10 mph (9 knots),” NASA’s mission timeline said. “If winds exceed these limits, teams will waive the deorbit burn, and Starliner will target another landing attempt between 24 and 31 hours later.”

Assuming weather meets acceptable conditions, Starliner will execute its deorbit burn for approximately 60 seconds. This will slow it down enough to reenter earth’s atmosphere and land at its target site. Immediately after the deorbit burn, the spacecraft will reposition for service module disposal, which will burn up during reentry over the southern Pacific Ocean.

Reentry will see the capsule reach temperatures of up to 3,000 degrees Fahrenheit, which may interrupt communications with the spacecraft for approximately four minutes. After this, the forward heat shield on top of the aircraft will be jettisoned and several parachutes will be deployed at 30,000 feet.

• READ MORE: NASA: Starliner Astronauts May Not Return Until February

As the aircraft continues to slow down, the base heat shield will jettison at 3,000 feet and cause six landing bags to inflate. The spacecraft will travel at approximately 4 mph at touchdown.

Recovery After Landing

After touchdown, several NASA and Boeing landing recovery teams stationed near Starliner’s landing site will move toward the spacecraft in sequential order:

• The gold team will use equipment to “sniff” the capsule for any hypergolic fuels that didn’t fully burn off before re-entry. They also cover the spacecraft’s thrusters.

• The silver team will then electrically ground and stabilize the Starliner.
• The green team will supply power and cooling to the crew module since the spacecraft will be powered down.
• The blue team will then document the recovery for public dissemination and future process review.
• The red team, which includes Boeing fire rescue, emergency medical technicians, and human factors engineers, then will open the Starliner hatch.

The teams will begin unloading time-critical cargo from the Starliner. The spacecraft will then be moved to Boeing facilities at NASA’s Kennedy Space Center in Florida for refurbishment.

The post NASA Reveals Mission Timeline for Crewless Starliner Return appeared first on FLYING Magazine.

In a SEC filing on Tuesday morning, the AMS includes an option for Volato to merge into a wholly owned subsidiary of flyExclusive. This option expires one year from the date of the agreement and allows an option for flyExclusive to purchase Volato during that time.

This comes as Private Jet Card Comparisons reports widespread layoffs at Volato. A source familiar with the situation at Volato confirmed such layoffs and provided FLYING with a letter of termination they received from the company.

• READ MORE: Volato to Drop 5 Leased Jets, Furlough Pilots

“In light of market conditions this year, Volato has been actively seeking ways to improve its operating costs and increase efficiencies,” the letter stated. “As part of that, Volato has been undergoing talks with several private aviation companies and has recently signed a letter of intent (LOI) with flyExclusive. The LOI outlines an immediate move to combine certain operations through cooperative agreements. This strategic move is expected to strengthen our position in the market and provide new opportunities for growth. However, as we transition through this period, it has become necessary to adjust our workforce to better align with our current and future operational needs.”

The letter further stated that the step was part of Volato’s strategy to improve operational efficiency and reduce costs as the company anticipates the delivery of new aircraft and the successful completion of its merger with flyExclusive.

Terms of the AMS

Tuesday’s agreement will see flyExclusive manage flight operations, sales, and expenses of Volato’s fleet, which consists of 13 fully fractionalized aircraft, eight leased aircraft, and four managed aircraft. The goal under the AMS is to transfer aircraft to the flyExclusive certificate, which will occur over the coming months in coordination with the FAA.

“As a fully integrated operator, flyExclusive is well positioned to offer synergistic value to Volato’s clients and deliver enhanced value for our overall growing customer base,” said Jim Segrave, founder and CEO of flyExclusive, in a news release from the company. “Over the years, we’ve made strategic investments to remove industry bottlenecks and grow and maintain a leading, consistent customer experience. We’re proud to welcome Volato’s customers and look forward to offering them access to our growing fleet of light, midsize and super-midsize jets.”

In addition to managing Volato’s retail and wholesale business, flyExclusive will execute flights for Volato’s customer base of approximately 184 fractional customers and 265 block customers until they are moved over to FLYX agreements. 

The release states that this agreement will significantly increase the FLYX direct-to-customer facing business in the United States. FlyExclusive expects approximately $75 million in revenues from Volato—excluding aircraft sales—to transfer to FLYX. FlyExclusive states in the release that it is confident these flights can be executed with minimal additional overhead. 

The AMS will also provide flyExclusive with access to Volato’s technology through a software license agreement.

“FlyExclusive is a proven operator with a robust platform and unwavering focus on the customer experience,” said Volato CEO Matt Liotta in the release. “This agreement provides mutual benefit to both of our companies and, most importantly, our customers benefit by increased flight and service options with the reliable and high-quality service they have come to expect from best-in-class operators.”

Volato did not immediately respond to FLYING’s request for comment.

The post Volato Lays Off Employees During Transition appeared first on FLYING Magazine.

A Form 10-Q—a quarterly financial report submitted to the Securities and Exchange Commission— filed by Volato on August 14 showed the company spiraling into the red, recording a net loss of $34.3 million for the six months ending June 30. The same form stated Volato has a negative working capital of $18.2 million and an accumulated deficit of $98 million as of June 30. Net cash used in operating activities for the six months was $7.4 million.

“These above matters raise substantial doubt about the company’s ability to continue as a going concern,” the form stated. “During the next [12] months, the company intends to fund its operations through a combination of issuing debt and equity as well as the sale of aircraft at a premium to cost.”

Additionally, the form stated that management believes that its current cash position will allow Volato to continue as a going concern and to fund its operations for at least one year from the date the financials were made available.

The filing also stated that on June 18 Volato received a notice from the New York Stock Exchange (NYSE) advising the company that it is not in compliance with NYSE American continued listing standards, requiring it to have stockholders’ equity of at least $2 million if it has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years.

Section 1003(a)(ii) of the Company Guide also requires a company to have stockholders’ equity of at least $4 million if it has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years.

Volato stated in the form that the company has submitted a plan to the NYSE American LLC on July 18, outlining actions the company will take to regain compliance by December 18, 2025.

“The notice does not affect [Volato’s] ongoing business operations or its reporting requirements with the United States Securities and Exchange Commission,” the form stated.

‘Rightsizing’

In a company letter from Volato CEO Matt Liotta obtained by FLYING, Liotta explained the decision to “rightsize” the company’s fleet and crew by removing five leased planes and furloughing some of its pilots.

“This is not a decision we take lightly, and it is the first time we have taken such a step,” Liotta stated in the letter. “However, I want to emphasize that this decision is based on our need to align with both the timing of new HondaJet deliveries, in which we have full confidence, and the pace of demand growth.”

In that statement, Liotta referenced Volato’s 2023 purchase of 25 HondaJets from Honda Aircraft company. These jets were slated to be delivered by 2025, but Liotta said delayed deliveries of the new aircraft and lower than expected sales have put financial pressure on Volato.

He also said demand for Volato’s services, while up, aren’t as high as anticipated.

“This situation requires us to make some difficult but necessary adjustments,” Liotta said.

He went on to say that Volato had been working closely with Honda to increase the availability and utilization of Volato’s fleet.

“…We’ve made substantial progress that allows us to fly individual planes more efficiently, meaning we can meet our flight hour needs with fewer planes,” Liotta said. “This not only strengthens our financial position but also benefits our fractional customers by delivering more revenue share to them—a true win-win.”

After attempts to renegotiate Volato’s more expensive plane leases, Liotta said that the company was unable to reach acceptable terms and decided to end those leases. By flying more hours per plane, he said the company aims to enhance its profitability and attract more interest in its fractional ownership program.

“This decision is about managing our business wisely and positioning Volato for long-term success,” Liotta said. “By rightsizing our fleet and crew now, we’re setting ourselves up to navigate these challenges effectively and prepare for future growth. Thank you for your continued dedication and resilience. We will get through this together and come out stronger on the other side.”

Volato lost over $17 million last quarter and currently has $5.8 million in cash. Volato did not immediately respond to FLYING’s request for comment.

Jet It Déjà Vu

Readers may recall FLYING parent company Firecrown owner and CEO Craig Fuller’s article last summer detailing the demise of Jet It, another fractional ownership charter jet operator. 

“Jet It generated revenue through several major sources— fractional-owner hourly fees; monthly maintenance fees; up-front selling of aircraft fractional positions; and off-network charter flights,” Fuller, who was also a Jet It fractional owner, wrote in the article analyzing its business model.

The flaws in this model emerged when Jet It—-contractually obligated to guarantee fractional owners aircraft availability within 72 hours advance notice—was required to go into the charter market and purchase aircraft time at the charter market’s clearing rate. Fuller stated that these rates were often five times the rate that the fractional owner was paying Jet It for the same service.

Additionally, a key driver of Jet It’s cash flow was in selling fractional aircraft positions—especially during the start of the pandemic.

“In the early days of COVID, as interest around personal aviation exploded, so did cash flow opportunities for Jet It,”  Fuller wrote. “In fact, it is likely that the company relied too heavily on this source of cash to fund its operations.”

Fuller wrote that in 2021, and 2022 supply chain issues started to impact Honda Aircraft Company, and Jet It could not source as many airplanes to sell to members. This caused cash flow from new fractional sales to dry up, severely impacting Jet It’s business model.

Jet It closed down on May 24, 2023.

The post Volato to Drop 5 Leased Jets, Furlough Pilots appeared first on FLYING Magazine.

A DOJ news release alleges Nader was arrested Tuesday in California for exporting the parts, including components used on military aircraft, to Iran in violation of U.S. economic sanctions and other federal laws. 

The indictment alleges that, beginning in 2023, Nader and other associates conspired to purchase and illegally export four types of aircraft components totaling nearly three dozen individual pieces from the U.S. to Iran. The release states that some of these components are used on military aircraft operated by Iran’s armed forces, including the F-4 fighter jet.

After allegedly receiving purchase orders from customers in Iran, the indictment claims Nader coordinated to buy the parts with business associates in Iran. Nader and his Iran-based associates would allegedly reach out to U.S.-based suppliers of these parts. 

The release states in several instances that Nader falsely identified himself and his company, California-based Pro Aero Capital, to the U.S.-based suppliers as the end user of the items. No additional information could be found regarding Pro Aero Capital, though a search of Nader’s LinkedIn profile shows his association with “Pro Aero Parts Inc.” The business’ Long Beach, California, location is listed as “permanently closed” on Google Maps.

After obtaining the parts, the indictment alleges he attempted to export the items on several occasions to the United Arab Emirates. The items were then to be shipped to the ultimate customer in Iran. These items, however, were detained by a special agent with the Department of Commerce, and none were successfully exported from the U.S.

“This action demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.” 

DOJ said the FBI Washington Field Office and the Commerce Department’s Bureau of Industry and Security is investigating the case, with assistance provided by the FBI Los Angeles Field Office.

The case is being prosecuted by Assistant U.S. Attorney Steven Wasserman for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section. 

The release stated that this prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement unit co-led by the departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nations.

“Iran has no business using U.S.-manufactured parts and components to keep their planes and drones in the sky,” said Matthew Axelrod, assistant secretary for export enforcement at the Commerce Department’s Bureau of Industry and Security, said in the statement. “Stopping these items before they get to our adversaries—like we did here—reflects the real-world impact we’re having through the Disruptive Technology Strike Force.”

The post California Man Indicted for Illegally Exporting Aircraft Parts to Iran appeared first on FLYING Magazine.

In a response letter to CrowdStrike attorney Michael Carlinsky, Delta attorney David Boies states that the software company has no basis to suggest the airline was responsible for the faulty software that crashed systems around the world.

“When the disaster occurred, dedicated Delta employees across the company worked tirelessly to recover from the damage CrowdStrike had caused,” Boies states in the letter. “Their efforts were hindered by CrowdStrike’s failure to promptly provide an automatic solution or the information needed to facilitate those efforts.”

• READ MORE: GA, Private Aviation Dodge Worst of Cyber Outage Impact

Among several points addressed by Boies in his letter, he notably asserts that CrowdStrike showed no sense of urgency for the damage it caused, and the cybersecurity company’s offers to assist Delta were too late. Boies states that CrowdStrike’s offers of assistance during the first 65 hours of the outage simply referred Delta to CrowdStrike’s publicly available remediation website, which instructed Delta to manually reboot every affected machine.

“While CrowdStrike eventually offered a supposed automated solution on Sunday, July 21 at 5:27 pm ET, it introduced a second bug that prevented many machines from recovering without additional intervention,” Boies states.

As for CrowdStrike CEO George Kurtz’s offer to support Delta CEO Ed Bastian, Boies said that Kurtz offered this assistance on the evening of July 22, and it was unhelpful and untimely.

“When made—almost four days after the CrowdStrike disaster began—Delta had already restored its critical systems and most other machines,” Boies said. “Many of the remaining machines were located in secure airport areas requiring government-mandated access clearance. By that time Delta’s confidence in CrowdStrike was naturally shaken.”

• READ MORE: CrowdStrike Disputes Negligence Claims in Letter to Delta Attorney

Additionally, Boies addressed claims that Delta’s IT technology was not up to par for handling the disaster.

“Delta rejects CrowdStrike’s misplaced attempt to shift responsibility for its failures to Delta’s ‘IT decisions and response to the outage,’” Boies states. “First, those ‘decisions and response’ had nothing to do with the cause of the outage. Moreover, for the last several years, including prior to and following its recovery from the Faulty Update, Delta’s operational reliability and customer service has led the airline industry. Delta has achieved its industry-leading reliability and service due, in part, to investing billions of dollars in information technology.”

Boies ends the letter demanding CrowdStrike “accept real responsibility for its actions” and compensate the airline for damaging its business, reputation, and goodwill.

Delta Details Financial Impact

The letter comes after Delta detailed its previously reported $500M loss in revenue due to IT outages in an 8-K form published on Thursday.

The report states that the incident caused around 7,000 flight cancellations over the course of five days, leading to $380 million in customer refunds, $170 million in expense reimbursements and crew-related costs, and $50 million in estimated fuel expenses. This has impacted the airline’s projected year-over-year September quarter 2024 capacity growth by approximately 1.5 points.

“An operational disruption of this length and magnitude is unacceptable, and our customers and employees deserve better. Since the incident, our people have returned the operation to an industry-leading position that is consistent with the level of performance our customers expect from Delta,” said Bastian in a statement included in the 8-K form.

Bastian doubled down on previous litigation threats, stating in the form that Delta is pursuing legal claims against CrowdStrike and Microsoft to recover at least $500 million in damages caused by the outage.

Both CrowdStrike and Microsoft have denied Delta’s allegations of negligence for the software update that caused airline disruptions nationwide on July 19. Both companies also claimed that Delta had refused free assistance from their IT teams to help with the airline’s ongoing issues throughout the week of the outage.

Class Action Lawsuit

The U.S. Department of Transportation warned airlines were legally obligated to provide passengers cash refunds shortly after July’s IT outages. Law firms Sauder Schelkopf and Webb, Klase & Lemond filed a class action lawsuit this week on behalf of Delta passengers whose flights were canceled due to the outages.

The complaint alleges that nearly every airline had managed to recover and resume normal operations by the end of the week, except for Delta, which continued to cancel flights.

“On Monday, July 22, it was reported that Delta canceled more than 1,250 flights. These cancellations accounted for nearly 70 percent of all flights within, to, or from the United States that had been canceled on Monday,” Sauder Schelkopf’s website states. “No other U.S. airline had canceled one-tenth as many flights.”

Additionally, the class action lawsuit alleges that Delta failed to give some affected passengers automatic refunds for canceled flights and oftentimes conditioned its offer of partial reimbursements to passengers on a waiver releasing Delta of all legal claims passengers have against Delta.

Editor’s Note: This article first appeared on AirlineGeeks.com.

The post Delta, CrowdStrike Spar Over July Meltdown appeared first on FLYING Magazine.