Premier Air Charter says lessors claim $514,557 after terminating CJ3 aircraft leases

Premier Air Charter Holdings Inc. disclosed in the 8-K filed on 13 October 2026 that lessors AB Jet Co I, LLC and AB Jet Co VI, LLC terminated two Exclusive Aircraft Lease Agreements covering Cessna Citation CJ3 aircraft N795KF and N973CG on 1 October 2026 and repossessed the aircraft. The filing states that on 23 September 2026 each lessor had issued a notice of default asserting Premier owed approximately $249,416 under the N795KF lease and approximately $265,141 under the N973CG lease, and that Premier did not cure the defaults within the five business day period specified.

The filing states that, as of the report date, the aggregate amount claimed by the lessors to be due and payable, including the accelerated principal balance, accrued interest and unpaid rent, is approximately $514,557. It adds that this figure does not include approximately $266,842 asserted to be owed to Williams International and Textron Aviation under engine and parts programmes applicable to the aircraft, an amount the company says it disputes in part. The filing states that Premier's obligations under the CJ3 leases are not guaranteed by the company and are not cross-defaulted to its other aircraft leases or indebtedness.

The same filing discloses that, following the return of the CJ3 aircraft and the termination of a separate CJ2 management arrangement, Premier no longer operates any Cessna Citation CJ-series aircraft. On 2 October 2026 the company committed to a reduction in force under which five of Premier's ten Citation CJ-rated pilots will be separated from employment, cutting the workforce from 42 to 37 employees, approximately 12 percent, with separations expected to be completed by October. The filing does not say when the dispute over the engine and parts programme amounts will be resolved or what terms, if any, the company is discussing with the lessors.