Plane Sense 2 March_FinanceNov 19/02/2013 12:22 Page 2
GARMIN’S G1000 PANEL IN A KING AIR
OVERHAULS & INSPECTIONS
327 engine was going through), and when I had the engine stripped down it became apparent that someone had filled the crankcase with oil treatment. There was a three-inch layer of sludge on the bottom of the oil pan. The sludge explained my original false opinion of the engine along with its rapid decline that eventually saw me driving around in a haze of blue smoke. Had I known about the real condition of the engine, my ego would have still forced me to buy the car, but I am sure I would not have paid the full $1,700 for it.
IT’S THE INSIDE THAT COUNTS I admit to this impulse purchase to illustrate a point: You cannot tell the condition of any engine, car or aircraft, by its outside appearance. Hiding the actual condition is rather harder to do with an aircraft, but it can be
done. Research and examination of past maintenance documentation will help determine the value of the aircraft engines, which are major factors to consider when placing a value on the aircraft. Overhauls, Mid-Point Inspections (MPI), Life Limited Component (LLC) replacements, and scheduled inspections are the most important aircraft records to review when determining engine value.
“You cannot tell the condition of any engine, car or aircraft, by its outside appearance.“
First, check the Overhauls and MPI over the life of the engine. Is the history of the intervals changing? Many engines have their overhaul interval requirements extended over the years, so check to see if the latest overhaul coming due has been determined using the latest interval specified in the maintenance manual. Review the Service Bulletins or other maintenance options that can be performed prior to, or during the next Overhaul or MPI that will extend the Overhaul interval. If extensions are available, then the value of the engines could be increased. It is also important to look for reductions of interval or additional inspections that may be required. Some engine manufacturers have calendar interval inspections that are determined by the number of years since the last Overhaul or MPI, regardless of the hours or cycles flown. If you are looking at an aircraft with a history of low hours and cycle usage, it may sound good but could have a calendar engine Overhaul coming due that could reduce the value of the engines. There could also be inspections required due to the low utilization of the aircraft. These inspections can be required if the aircraft has not flown a certain amount of hours over a specified length of time. If this kind of inspection is required, then the engine value could be reduced. Borescope inspections can also reduce the value of an engine… A borescope inspection is usually hourly specified and requires a look inside the engine to determine the condition. If I could have only done a borescope inspection on that Impala, I would have seen all of the wear and sludge in the engine, so my purchase price would not have been the dealer’s asking price. This is why it is always a good idea to comply with the recommended borescope inspection during a pre-buy inspection.
LIFE LIMITED COMPONENTS If, at the last Overhaul, the owner was looking at obtaining an Overhaul or MPI at a lower cost, the components could have been reinstalled. Maintenance and Overhaul manuals do not require replacement of these components until they have reached an hourly or cyclic limit, even when an Overhaul is being accomplished. It is possible to have an LLC reach its maximum life prior to the Overhaul or MPI. This allows for two options; the LLC being replaced without the inspection, or the Overhaul and MPI happening at the same time. Either way, the additional cost will effect the value of the engine.
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WORLD AIRCRAFT SALES MAGAZINE – March 2013
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