Kenn Ricci Live on The VIP Seat

✈️ The VIP Seat Special Edition: Kenn Ricci Speaks Out

This week we're doing something different. Instead of our usual top 5 stories, we sat down with Ken Ricci, CEO of Flexjet, for one of the most important conversations in business aviation right now. If you operate aircraft, finance them, or work anywhere in this industry, you need to understand what's happening in this case—because it affects everyone.

Season 2, Episode 23 | November 4th, 2025 | Episode Companion

Listen now!

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Disclaimer: the views and opinions expressed in this episode and in this newsletter are those of the hosts and guests and don’t necessarily reflect those of The VIP Seat, its affiliates, or sponsors. This conversation includes discussion of ongoing legal matters involving a publicly traded company. Nothing here should be taken as a statement of fact, legal conclusion, or investment advice. All parties are presumed innocent unless proven otherwise, and listeners are encouraged to review public filings and court documents for official information.

🔍 Breaking Down Engine Programs: What You Need to Know

For those new to this world, here's the essential background:

The Evolution

• 1960s-70s: Early jet engines were unreliable, breaking every 1,000 hours. MSPs functioned as genuine insurance—you paid a predictable hourly fee, and when engines inevitably failed early, the manufacturer covered expensive repairs

• 1980s-90s: Engine manufacturers started using MSPs to recoup R&D costs for developing engines for specific aircraft platforms

• Today: Engines routinely run 5,000-10,000 hours without major events, but MSP costs haven't decreased proportionally

The Economics

• Cost: $300-500 per flight hour (on top of operating costs)

• On a small jet: That's potentially $30,000-50,000 monthly in MSP fees

• Industry-wide: Billions in annual revenue for engine manufacturers

• For operators: Often the second or third largest operating cost after crew and fuel

The Problem

Ken identified several key issues with current MSP structures:

1. Monopolistic Control: Once you're on a program, you can't service engines anywhere else without losing coverage

2. Service Limitations: Even enrolled customers face massive delays (18+ month waits cited)

3. Transferability Issues: Program benefits don't always transfer to new owners, complicating sales

4. Forced Bundling: Must use manufacturer's parts, even when alternatives exist

5. Financial Impact: Banks require MSP enrollment for financing, creating a captive market

💼 What This Means for Operators

If You're Currently on an MSP:

The Good:

• Predictable costs (you know what you'll pay per hour)

• No surprise six-figure repair bills

• Lender/buyer acceptance

• Theoretically guaranteed service

The Bad:

• Paying for insurance you may not need

• Limited service options even when delays exist

• Transferability complications

• Locked into single vendor

If You're Not on an MSP:

The Good:

• Only pay for maintenance you actually need

• Freedom to shop for competitive pricing

• Can use independent MROs

The Bad:

• Financing challenges (most banks require MSPs)

• Resale value concerns

• Risk of major unexpected expenses

• Potential warranty issues

Ken's Advice for Operators:

Know Your Daily Revenue Value: One of the best takeaways from this conversation was Ken's emphasis on understanding opportunity cost. If your aircraft generates $15,000/day in charter revenue (or time saved for your business), every day it's grounded waiting for Honeywell-approved service is a $15,000 loss. That math changes the equation on whether saving a few hundred dollars on a part is worth a two-day delay.

Question the "Must-Haves": While Ken is litigating against Honeywell's engine programs, he was nuanced about other components. For non-critical systems (starter generators, avionics, interior components), competitive gray market parts often make sense. The key is understanding what actually affects safety and value versus what's just manufacturer preference.

Plan for the Worst: Even if you're on an MSP, have backup maintenance options identified. The case highlights that enrollment doesn't guarantee prompt service.

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The VIP Seat Weekly is the companion newsletter to The VIP Seat podcast. We give you the business aviation hot takes for your commute.

Jessie’s Links:
Private Aviation Safety Alliance
FlyVizor
LinkedIn

Preston’s Links:
Prestige Aircraft Finance
Private Jet Insider (Newsletter)
LinkedIn
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