Verijet Airlines has filed for Chapter 7 bankruptcy, halting operations and leaving hundreds of travelers with unused flight credits and unanswered questions. The filing came shortly after the sudden death of CEO Richard Kane, who spearheaded the Florida-based private jet operator’s push to make air travel faster, greener, and more accessible.
Court records show that Verijet’s liabilities are far greater than its assets, with tens of millions of dollars owed to creditors, including $10.5 million to jet card customers. The company’s shutdown underscores both the vulnerability of smaller aviation firms and the regulatory gaps in the private air travel sector.
Table of Contents
Verijet Airlines Files for Bankruptcy
| Key Fact | Detail |
|---|---|
| Bankruptcy Type | Chapter 7 (Liquidation) |
| Liabilities | $10–50 million |
| Assets | $1–10 million |
| CEO | Richard Kane (deceased Oct. 2025) |
| Customers Affected | 81 jet card holders (approx. $10.5 million in unused credits) |
A Rapid Rise and a Sudden Fall
Founded in 2019, Verijet Airlines aimed to revolutionize short-haul air travel using Cirrus Vision Jets, which are lightweight, efficient aircraft designed to lower costs and emissions. Kane, a veteran of the aviation technology sector, envisioned a “green jet taxi” service that could bring point-to-point travel to smaller airports across the U.S.
The company grew quickly during the pandemic, capitalizing on soaring demand for private travel as commercial airlines scaled back. By 2023, it operated more than 20 jets and offered service in Florida, the Northeast, and the West Coast.
But Verijet’s ambitious expansion came with growing costs. According to bankruptcy filings, the company had struggled with financing obligations, insurance expenses, and maintenance costs. By mid-2025, lawsuits and delayed payments to suppliers were mounting.
“This was a company with a compelling vision but thin margins,” said Dr. Helen Carson, an aviation economist at Embry-Riddle Aeronautical University. “Private aviation can scale fast, but it can also unravel quickly when financing or leadership falters.”
How the CEO’s Death Triggered a Crisis
The death of Richard Kane in early October shocked employees and customers alike. Kane had been a hands-on leader deeply involved in investor relations and strategic partnerships.
“His sudden passing created a leadership vacuum at a critical time,” said Mark Ellison, aviation attorney at Georgetown University. “In small to mid-sized companies, especially in private aviation, leadership transitions can be destabilizing.”
Internal documents reviewed by AeroTime suggest the company was already considering restructuring options. Kane’s death appears to have accelerated the decision to file for Chapter 7 bankruptcy — a liquidation rather than a reorganization.
Chapter 7 Bankruptcy: What It Means for Travelers
Unlike Chapter 11 bankruptcy, which allows a company to reorganize and continue operating, Chapter 7 involves liquidating assets to pay creditors. There is no expectation that Verijet will resume service.
Canceled Flights
All scheduled flights have been immediately canceled. No alternative travel arrangements are being offered.
Refund Uncertainty
Customers holding prepaid jet cards are now classified as unsecured creditors, meaning they will only receive payments if funds remain after secured creditors and administrative costs.
“The harsh truth is that most unsecured creditors recover only pennies on the dollar — if anything,” said Ava Brooks, senior analyst at the Aviation Consumer Rights Center. “Many Verijet customers may face substantial losses.”
Claims Process
The bankruptcy trustee will issue instructions for filing claims. Customers can submit proof of their unused balances, but legal experts warn that the timeline for payouts could stretch for many months or even years.
Real-World Impact: Stranded Customers and Lost Funds
Many of Verijet’s customers were business travelers or affluent families who relied on the company’s jet card program for frequent travel.
“I had $120,000 worth of flight hours left on my card,” said David Lang, a customer based in New York. “I found out about the bankruptcy on social media before I ever got an email from the company. I have no idea if I’ll see that money again.”
Consumer attorneys report a surge in calls from affected travelers. Some are considering lawsuits, though the bankruptcy process itself often limits individual legal remedies.
A Broader Industry Picture: Booming Demand, Rising Risks
Verijet’s collapse is occurring against the backdrop of a post-pandemic boom in private jet travel. According to the National Business Aviation Association (NBAA), charter flight demand rose by nearly 30 percent between 2020 and 2024. But many operators struggled with cost inflation, pilot shortages, and volatile fuel prices.
“Private aviation saw unprecedented demand, but many companies scaled up too fast,” said Dr. Carson. “The economics can be fragile. When you lose a key executive or hit cash flow problems, the whole structure can crumble.”
Other operators have also faced financial strain. In the past 18 months, at least three smaller charter companies have quietly shut down or merged to survive.
Regulatory Gaps and Consumer Protection Concerns
Unlike commercial airlines regulated by the U.S. Department of Transportation (DOT) and the Federal Aviation Administration (FAA), private jet operators are subject to fewer consumer protection rules.
- There is no federal requirement to escrow customer funds.
- Refund obligations are often dictated by contract language, not regulatory mandate.
- Jet card holders typically have little recourse if a company fails.
“This is the gray zone of aviation,” said Lisa Hendricks, senior policy analyst at the Consumer Federation of America. “You’re buying into a luxury service with limited legal protection. When something goes wrong, customers bear the risk.”
Consumer advocates are now urging regulators to consider requiring financial safeguards for prepaid jet card programs, similar to protections applied to travel agencies or tour operators.
Future of the Private Jet Industry After Verijet
Verijet’s collapse has already prompted discussions within the aviation community. Some larger charter operators are exploring ways to acquire Verijet’s assets or routes, while others may benefit from picking up stranded customers.
“This could be a short-term opportunity for competitors,” said Dr. Liu, senior fellow at the Center for Aviation Policy. “But it also raises questions about trust. High-net-worth customers will think twice before prepaying large sums.”
Experts predict that regulatory scrutiny could intensify, especially if the number of affected customers grows.
Timeline of Events Leading to Verijet’s Bankruptcy
| Date | Event | Significance |
|---|---|---|
| 2019 | Verijet founded by Richard Kane | Launch of eco-focused jet taxi concept |
| 2020–2022 | Pandemic surge | Demand for private flights skyrockets |
| 2023 | Fleet expands to over 20 jets | Peak operational scale |
| Mid-2025 | Mounting legal and financial pressure | Warning signs emerge |
| Oct. 3, 2025 | CEO Richard Kane passes away | Leadership vacuum |
| Oct. 12, 2025 | Chapter 7 bankruptcy filed | Operations officially cease |
What Customers Can Do Next
Affected customers have limited but important options:
- File a bankruptcy claim as soon as the trustee announces deadlines.
- Contact credit card providers to explore chargebacks for recent purchases.
- Review travel insurance policies to see if cancellations are covered.
- Consult legal counsel to understand individual rights and timelines.
The DOT has issued guidance encouraging affected travelers to document all communications and receipts to support any future claims.
Industry Calls for Reform
The Verijet case has sparked renewed debate over consumer protections in private aviation. Some lawmakers have signaled interest in exploring new rules.
“We’re seeing a growing number of consumers affected by opaque financial practices in private travel,” said Rep. Linda Thompson (D–CA), a member of the House Transportation Committee. “It’s time to examine whether safeguards are needed.”
Trade groups are divided. Some larger operators support escrow or insurance requirements to build trust, while others warn that new regulations could raise costs and limit flexibility.
Looking Ahead: Lessons From the Collapse
The downfall of Verijet serves as a cautionary tale. It highlights both the promise and peril of jet card programs and the financial fragility of fast-growing operators.
“This won’t be the last bankruptcy in this space,” Dr. Carson said. “The question is whether regulators and consumers will adapt before the next one.”
For now, Verijet’s customers face a long road of legal proceedings and uncertain recoveries, while the private jet industry braces for increased scrutiny.
FAQ About Verijet Airlines File for Bankruptcy
What is Chapter 7 bankruptcy?
Chapter 7 involves the liquidation of a company’s assets to pay creditors. There is no reorganization or resumption of service.
Will customers get refunds?
Refunds are uncertain. Most customers are unsecured creditors, meaning they are among the last to be repaid.
How can customers file claims?
The bankruptcy trustee will provide instructions and deadlines. Customers should document their balances and file promptly.
Can another airline take over Verijet’s bookings?
No. There is no automatic transfer of flights. Other operators may offer new services, but at additional cost.
Could new regulations follow this case?
Experts say yes. Lawmakers and consumer groups are already calling for financial protections for jet card holders.
