Verijet Chapter 7 Bankruptcy: Private Jet Operator Liquidates After CEO Death

Private jet charter operator Verijet has filed for Chapter 7 bankruptcy, triggering complete liquidation of the company’s assets just weeks after founder and CEO Richard Kane’s sudden death. The filing marks a dramatic collapse for what had become the 13th-largest private jet operator in the United States, ranked by charter and fractional flight hours. Unlike Chapter 11 bankruptcy that allows for reorganization, Chapter 7 bankruptcy means the company will cease operations entirely while a trustee sells its assets to pay creditors.

Verijet’s Rapid Rise and Ambitious Vision

Founded in 2020, Verijet experienced explosive growth under Kane’s leadership, expanding from regional Florida operations to serving California, Texas, the Northeastern U.S., and Canada. The company’s unique business model centered on using the single-engine Cirrus Vision SF50 jet aircraft, which Kane believed could revolutionize private aviation through lower operating costs. The Vision Jet featured advanced safety technology including an auto-landing system that could land the aircraft automatically if the pilot became incapacitated.

Kane’s vision focused on making private flying more accessible with hourly rates as low as $2,500 for jet card buyers – more than 40% cheaper than competing very light jets like Embraer’s Phenom 100 or the HondaJet. The company positioned itself as an alternative to long drives and conventional business jet travel, despite the aircraft’s limitations of seating only 3-5 passengers and lacking bathroom facilities.

Funding Challenges and Legal Troubles

Verijet’s expansion was primarily funded through the sale of non-refundable jet cards, which offered guaranteed rates but not guaranteed availability. This financing approach eventually led to significant operational and legal challenges:

Consumer complaints about frequent flight cancellations
Lawsuits from aircraft leasing companies, employees, and trade vendors
Jet card holders claiming their purchases became unusable

According to additional coverage, the bankruptcy filing revealed approximately $10.5 million in outstanding jet card balances that customers may never recover. The company also faced allegations of internal turmoil, including claims of board member conflicts that complicated the company’s financial stability.

Leadership Instability and Failed Financing

Richard Kane’s tenure as chief executive officer was marked by significant instability throughout 2023. After temporarily leaving the company, Kane returned claiming to have secured substantial new funding. In February 2023, Verijet announced a non-binding letter of intent to merge with a SPAC led by former Boeing CEO Dennis Muilenburg, which would have made the company publicly traded. However, the deal collapsed when the SPAC’s shareholders decided to liquidate the fund instead.

Upon returning to leadership, Kane announced an $85 million investment from Solaino, describing it as “initial working capital” that would position Verijet for “accelerated development and market expansion.” Despite these promises, the funding failed to materialize in sufficient amounts to stabilize the company’s operations.

The Final Chapter: Bankruptcy and Kane’s Death

The Chapter 7 bankruptcy filing came less than a month after Richard Kane’s death at age 60 from an apparent heart attack. A receiver who had been appointed to oversee the company in June filed the bankruptcy petition, effectively ending Verijet’s operations. Under Chapter 7, Title 11, United States Code, the company’s remaining assets will be sold by a trustee, with proceeds distributed to creditors according to statutory priority.

The collapse of Verijet represents a significant setback in the ongoing effort to democratize private air travel through innovative jet aircraft technology and business models. For more context on the private jet industry’s challenges and opportunities, see our related analysis of market dynamics affecting charter operators.