NetJets has elected to adopt an age-70 limit for its fractional-share (Part 91K) pilots and has removed these older crewmembers from its schedule, according to a note from the NetJets Association of Shared Aircraft Pilots (NJASAP) legal department. The move affects fewer than 100 pilots, and they were no longer on the NetJets schedule as of Wednesday, according to a lawsuit filed by a group of pilots seeking to overturn the age cap. 

NetJets gave notice to its pilots and NJASAP on Jan. 10, 2023, that it intended to implement the age-70 limit. The notification came after Congress’ omnibus spending bill was adopted in December 2022. The bill included language that allows Part 91K and 135 operators that logged at least 75,000 annual jet operations in 2019 or any subsequent year to implement an age-70 ceiling. This is not mandatory for these operators, but once they elect to adopt the age ceiling, that becomes permanent and they can’t reverse the decision.

According to the notice to members from NJASAP’s legal team, an arbitrator recently issued a draft decision regarding a grievance that the union had filed after NetJets notified pilots of the age cap. NetJets denied the original grievance, and NJASAP and NetJets agreed to arbitration; the arbitrator denied the grievance. In fact, NJASAP supported the age cap when it first was proposed in 2018.

It is hardly a secret that the U.S. Federal Reserve Bank has cranked up the federal funds rate to tame inflation. These rate moves, which raised interest costs, spared no industry, including aircraft lending and leasing. Then the Fed signaled last month that it might cut the federal funds rate a few times in 2024, setting off rampant speculation of when and how many rate cuts might occur.

Did the Fed announcement mean that aircraft lenders and lessors (financiers) can expect aircraft lending and leasing transactions to take off? No one knows, but even if rate cuts occur and financing shows the potential to soar to new heights, continuing challenges abound for financiers.

The notion that “cash is king” resonates with buyers, and cash still dominates the way many buyers purchase aircraft despite sensible reasons to finance aircraft purchases. Although aircraft lenders seem mostly past the 2023 regional banking crisis, many banks have imposed stricter lending standards, increased loan pricing, experienced heightened regulatory scrutiny, and constricted available funds for aircraft lending.

As a consequence, some lenders will not or cannot seriously entertain aircraft lending transactions without a stellar creditworthy borrower, a bulletproof guaranty, or a strategy to win the purchaser’s business at a higher but acceptable risk.

Daher deliveries in 2023 inched up by one unit over 2022’s total to 74, the company reported today. At the same time, last year’s orders matched the previous year’s record tally of 100. This pushed its aircraft backlog into early 2025.

The TBM family led deliveries with a total of 56 split between Model 960 and 910. The TBM 960 was the predominant model delivered, and the largest percentage was delivered into the North American market. Forty-three went to the U.S. and another two to Canada. Three TBMs were shipped to Latin American customers and another seven to Europe. The final model went to a customer in Central Asia.

Meanwhile, some 18 Kodiak 100s and 900s were handed over in 2023. North America also was the leading market for these aircraft, with customers representing a mix of private owners and multi-mission operators and including North Carolina Forest Service’s Aviation Division as a new Kodiak operator.

“These figures reflect the market’s stabilization as we continue to see a strong demand for TBM and Kodiak aircraft, although challenges persist in affecting our industry—including employment and supply chain issues,” said Nicolas Chabbert, senior v-p of Daher’s aircraft division.

As of the end of last year, 1,187 TBMs and 339 Kodiaks had been delivered worldwide, and the fleet had accumulated nearly three million flight hours.

Financially beleaguered Cirrus Vision Jet operator Verijet is accusing an initial investor and former board member of trying to bankrupt the company. In a lawsuit filed last month in Florida's Dade County Circuit Court, Verijet charges that Mark Kahan, a Washington, D.C.-based attorney—and the former vice chairman, COO, and general counsel of Spirit Airlines—created “obstacles” that “diverted its path.”

They allegedly included failure to disclose pecuniary interests in half a dozen aircraft leases to Verijet, imposing predatory “take it or leave it” terms for those leases that were “dramatically skewed” and only agreed to “under extreme duress.” These actions allegedly demonstrated Kahan’s failure to fulfill his fiduciary responsibility to the company as a board member.

Verijet also alleges that Kahan dissuaded potential clients from purchasing Series A memberships from the company and instead encouraged them to enter into deals with him to lease more aircraft to Verijet. He is charged with colluding with other board members to attempt to remove founder Richard Kane and former COO and CFO Steve Wagman and advising Cirrus that those individuals “were incompetent and not trustworthy.”

Verijet has seen its operating fleet of Cirrus SF50 jets shrink from a high of 23 to three. It is currently being sued for nonpayment of aircraft leases and maintenance services. The company’s attempt to go public via a special-purpose acquisition company failed earlier last year.

The FAA is taking “new and significant actions” to immediately increase its oversight of Boeing production and manufacturing in reaction to the January 5 incident in which a 737 Max 9 lost a passenger door plug while in flight. This notification today comes one day after the FAA formally notified the manufacturer that it has launched an investigation into the company’s compliance with requirements outlined in Part 21 regulations.

The actions include an audit involving the 737 Max 9 production line and its suppliers to evaluate Boeing’s compliance with its approved quality procedures. The results of the FAA’s audit analysis will determine the necessity of more audits.

Further actions include increased monitoring of Boeing 737 Max 9 in-service events and an assessment of safety risks around delegated authority and quality oversight.

"It is time to re-examine the delegation of authority and assess any associated safety risks," FAA Administrator Mike Whitaker said. "The grounding of the 737-9 and the multiple production-related issues identified in recent years require us to look at every option to reduce risk. The FAA is exploring the use of an independent third party to oversee Boeing’s inspections and its quality system."

Thursday’s letter to Boeing notified that the agency launched an investigation to determine whether Boeing failed to ensure that completed products conform to their approved design and were in a condition for safe operation.