OneJet suspends all flights amid tax lien, lawsuit, scrutiny

September 23, 2018

OneJet has halted all flights while the embattled startup airline grapples with a $600,000-plus federal tax lien and a nearly $800,000 lawsuit tied to failing to grow as it had planned.

The carrier posted a news release on its website Wednesday announcing the suspension of flights amid a transition expected to take about eight weeks.

“During this transition, we will be suspending scheduled services on current routes,” OneJet said in the statement. “Please accept our apologies for any inconvenience caused by this disruption; the result of this transition will be a more robust and reliable operation for our customers from the fourth quarter forward.”

The airline expects to resume business sales Oct. 1 and will provide more details then, the statement said.

Also Wednesday, Allegheny County Controller Chelsa Wagner asked for county Executive Rich Fitzgerald to seek the resignations of two members of the Allegheny County Airport Authority board who invested in OneJet.

Robert Lewis and Jan Rea both invested in the company, the Trib reported this month.

The authority has sued OneJet for flying to only two cities instead of the 10 it promised when it received a $1 million incentive to operate out of Pittsburgh International Airport.

The lawsuit argues the carrier owes the authority $763,000.

The authority paid the carrier $1 million in state gambling tax revenue in June 2016 in exchange for the carrier to launch 10 routes. At the time, it was the largest incentive the airport had ever given an airline. OneJet was required to fly each new route five days a week for at least five years, the lawsuit said.

Two weeks ago, the carrier only flew to two cities from Pittsburgh -- Indianapolis and Hartford, Conn.

Last week, the Pittsburgh Business Times reported that OneJet is facing a $622,000 federal tax lien.

Update hourly