ENGINES 4 JULY20.qxp_Finance 16/06/2020 13:56 Page 1

ENGINES

Which Engine Maintenance Program: OEM or Third Party?

Should you select an OEM-provided engine maintenance program, or go

with a third-party provider? Chris Kjelgaard discusses the merits of each… any business aircraft operators feel it makes sense to subscribe to hourly engine maintenance program coverage. Business aircraft brokers agree, says Brian Foley, founder of Business Aviation consultancy Brian Foley Associates. Not only does hourly engine coverage enhance your aircraft’s operational availability and dispatch reliability, but it makes MRO and operational budgeting more predictable. It can also enhance the aircraft’s resale value and often enables operators to sell their aircraft more quickly than if the engines weren’t covered. There can be other benefits, says Foley. For example, some programs allow specific serialnumber engines to retain the coverage when the aircraft is sold to a new owner as long as that buyer continues to subscribe to the program. Similarly, even if the engines aren’t covered when

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Vol 24 Issue 7 2020
AVBUYER MAGAZINE

an aircraft is sold, the new owner can begin having them covered—often by paying a pro-rated hourly amount based on the number of flight hours or cycles remaining before each engine’s next scheduled overhaul or inspection.

Which Program is Best?

An important decision remains, though. In many cases, both the engine manufacturer and one or more third-party plan providers offer coverage—so whose does it make most sense for owners and operators to choose? According to Foley, the answer often depends on two, sometimes competing factors: Plan cost, and perception of brand-name value. (Other factors can also influence an operator’s decision, such as where a choice exists between comprehensive coverage and a plan offering cost flexibility by making some services optional.) www.AVBUYER.com

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