The Iron Dragon's Daughter by Michael Swanwick

To be a pilot of an iron dragon, one must be at least a half human as humans can touch iron while fae cannot.  Caitlin of House Sans Merci is in training to be a pilot as she has fled her loveless home and the wicked woman who calls herself her mother.  All that remains in that place for her is her brother and that is not enough to live there.

But all is not well.  Caitlin has a mishap during a landing and her dragon is injured.  Not enough to worry about but there has to be an inquiry.  While she is awaiting that, she receives news that her father is ill and her presence is required at home.  She also finds that the routine inquiry has been escalated and she is in danger of being booted out of the Iron Squadron.

Returning home, she is there as her father dies and her brother is installed as the new Lord of Sans Merci.  Caitlin leaves there and soon is on the run when it turns out that after her departure, her brother has disappeared and she is wanted for his murder.  Aghast and desperate, she destroys her dragon and goes on the run to prove her innocence.

This is the second book in the faerie world Michael Swanwick created in his novel, The Iron Dragon's Daughter.  It is a cruel world, full of steampunk and cruel personalities whose true missions are shrouded in secrecy.  Caitlin meets many people on her quest, both friends and enemies although it is sometimes difficult to tell one from the other.  This book is recommended for science fiction readers.