aibioPremier Air Charter says lessors terminated its CJ3 aircraft leases
Tickers PREM
The company did not cure asserted defaults, returned two Citation CJ3 aircraft on October 1, 2026, and lessors claim approximately $514,557 under the leases.
Key facts
- Company
- Premier Air Charter Holdings Inc. (OTC: PREM)
- News type
- Distress
- Primary source
- Premier Air Charter Holdings Inc. 8-K (2026-10-13)
Premier Air Charter Holdings Inc. disclosed in a Form 8-K filed October 13, 2026, that the lessors of its two Cessna Citation CJ3 aircraft terminated the leases and retook the planes. The filing describes events through October 8, 2026. The company said it did not cure the defaults the lessors asserted, and that it is in discussions with the lessors, with no assurance of an agreement.
The default notices
The filing says that on September 23, 2026, each lessor delivered a written notice of default under its CJ3 lease. The lessors are AB Jet Co I, LLC and AB Jet Co VI, LLC. The notices asserted that Premier had missed required rent payments and installments on a principal balance, and had not kept engine maintenance programs current. Each notice gave Premier five business days from receipt to cure.
The notices asserted that Premier owed AB Jet Co I, LLC approximately $249,416 and AB Jet Co VI, LLC approximately $265,141. They also asserted that approximately $129,797 was owed to Williams International and Textron Aviation under engine and parts programs for the aircraft designated N795KF, and approximately $137,044 was owed to Williams International under the engine program for the aircraft designated N973CG.
Both leases were amended on June 5, 2026, with a repayment schedule and forbearance. Under those amendments, a failure to cure within the five business day period allowed the lessors to end the forbearance and act on the defaults.
Termination and the amounts claimed
On October 1, 2026, the lessors terminated the CJ3 leases and retook possession of the aircraft. Premier returned the planes, and they were removed from its FAA Part 135 air carrier certificate effective the same day. The filing says termination does not relieve Premier of the amounts it owes, and that the lessors reserved all rights, including the right to declare the entire remaining principal balance, plus accrued interest, immediately due.
According to the accelerated-obligation disclosure in Item 2.04, the aggregate amount the lessors claim is approximately $514,557. That total includes the accelerated principal balance, accrued interest and the unpaid rent. The total excludes approximately $266,842 that the lessors say Premier owes to Williams International and Textron Aviation under the engine and parts programs. The company disputes that amount in part.
Premier had recorded the principal balance as a liability on its balance sheet. The filing says the CJ3 obligations are not guaranteed by Premier Air Charter Holdings and are not cross-defaulted to its other aircraft leases or indebtedness.
Workforce reduction and board change
Under Item 2.05, the company says it no longer operates any Cessna Citation CJ-series aircraft. On October 2, 2026, management committed to a reduction in force. Five of the company's ten Citation CJ-rated pilots will be separated, and the other five will be retrained for other aircraft types in its fleet. The workforce falls from 42 to 37 employees, or approximately 12%.
The filing also reports that Vincent Monteparte resigned as chairman of the board, and from the board and all other positions with the company and its subsidiaries, effective October 6, 2026. He ceased to be an employee, and his salary was discontinued on that date. On October 8, 2026, the board appointed Kyle McCollum as a director to fill the vacancy and elected him chairman. The filing says he currently has a consulting arrangement with the company under which he provides CFO advisory services.
What the company says comes next
The company said it is in discussions with the lessors to resolve the outstanding amounts and that no assurance can be given those discussions will produce an agreement.
The company's annual report on Form 10-K for 2025, filed April 15, 2026, reports revenue of $31.9 million for 2025, against $20.8 million for 2024. It reports a net loss of $3.9 million for 2025, compared with $2.2 million for 2024. Cash from operations was $1.2 million in 2025, against $3.1 million in 2024. Cash and cash equivalents were $156,504 at June 30, 2026, set against lessor claims of approximately $514,557 plus the disputed engine and parts amounts. The June 5 amendments had already granted forbearance, and the company still did not cure.