Like any kind of “extended coverage” arrangement, engine maintenance programs (EMPs) are polarizing subjects. Some say they’re unquestionably worth the value they deliver, while others are just as sure that they’re worthless.

What do early color TVs have to do with first-gen turbine aircraft engines? Well, more than you might think. In the early days of “The Wonderful World of Color,” you’d be lucky if the old RCA would last through the show. Their cathode-ray and vacuum tubes weren’t very reliable, so manufacturers started offering extended coverage plans to help sell their TVs.

That’s pretty much the same story with the engines on first-gen business jets. Like the old TVs, many of those early engines had well-earned reputations for being unreliable. It was a coin-toss whether or not you’d get to fly that day.

“It was the unreliability of those early engines that gave birth to the modern-day Power-By-The-Hour programs. In the late 70s and early 80s, corporate jet use was rare, and the Garrett turbine-powered classic jets suffered from high failure ratings, so MSP (Maintenance Service Plan) was introduced,” said Jason Zilberbrand, president, VREF Aircraft Value Reference, Appraisal and Litigation Services. “These programs were put in place to give customers a level of protection against unforeseen maintenance events. That bit of extra coverage made it possible to sell airplanes.”

Of course, as Zilberbrand explained, those days are long, long gone. Today’s turboprop and turbine engines are as “bulletproof” as modern technology can make them. In-flight shutdowns are extremely rare. But, with that being said, engines will be engines, and stuff does happen.

“The engines are the most expensive liability on the airplane today. Major maintenance issues can easily run into the hundreds of thousands of dollars,” explained Sean Lynch, program coordinator for Engine Assurance Program (EAP). “The hot section for a Pratt & Whitney PW305 or a CZI on a Honeywell engine can run 700,000 to 800,000 per side. But those are scheduled events you can budget for. The thing about unscheduled events is you never see them coming.”

The ABCs of EMPs

While the legendary “Garrett Grenades” are long-gone, today’s owner/operators can still find a lot of added confidence and comfort in having their engines enrolled in some kind of engine program.

“One thing to remember is that EMPs are not insurance programs. That’s something owners need to understand upfront,” Zilberbrand said. “It’s a proactive program. Owners are obligated to stay current with the requirements of their program. They need to comply with all the engine manufacturer’s required inspections and operate the engines properly.”

“For most owners, the fundamental attraction of an engine maintenance plan remains peace-of-mind,” stated Alex Youngs, StandardAero’s director of sales and marketing, business intelligence, airframes and fleets. “They won’t have to worry about unscheduled maintenance events or the major, one-time capital expense of a scheduled hot-section inspection or overhaul.”

There’s also a secondary benefit that, in the majority of situations, is even more valuable than covering engine maintenance: Enrollment in an engine maintenance plan (EMP) will add value to your aircraft at resale time.

“Most resellers and brokers agree that enrollment in an EMP does benefit the aircraft’s value, though the actual percentage will clearly depend on a number of factors including how long the engines have been enrolled on the plan,” he says. “According to a former Rolls-Royce sales executive, the lack of EMP coverage can impact a mid-time, mid-size business jet’s value by up to 70 percent.”

“Turboprops are much more flexible when it comes to EMP enrollment. Overhauls are expensive, but nothing like jets,” Lynch stated. “With jets, short cycled engines are deal killers. Especially on older, lower value airframes. A good engine program basically gives the owner something to sell when the time comes.”

As Zilberbrand pointed out, enrollment in an established engine maintenance program doesn’t just protect the owner’s current and near-term investment; it also benefits any buyer who is going to finance the aircraft’s purchase.

“A fringe benefit to an EMP is that banks love them. Financial institutions gain a higher level of comfort knowing that their collateral is protected in the event that the borrower defaults,” he says. “Should the bank need to repossess the airplane, they know it’s value will be protected because the scheduled maintenance has been accrued for.”

Another side benefit to EMPs is buying into a group of experts who know everything about your engine and its components. They have a vested interest in keeping said engine(s) running smoothly.

“Anytime the engine goes in for maintenance, your EMP provider will be watching over everything,” Zilberbrand added. “They have an active incentive to help keep your bills down and the engine healthy. This is a huge value that most owners don’t think about.”

PistonPower Protection

While EMPs for turboprop and turbine engines have been around for decades, they’re new to the piston engine market. In fact, there’s only one available.

PistonPower is the first and only comprehensive “power-by-the-hour” protection program for piston aircraft engines. Enrollment eliminates the worry of costly overhauls and the ongoing costs of all of your engine’s inspections and maintenance.

“Our program was created by aviation professionals that introduced similar programs for turbine engines,” stated PistonPower’s VP Business Development, Remi Szymanski. “PistonPower brings stability to your maintenance budget and peace of mind to your business and personal flying.”

Along with covering all scheduled engine services, including inspections, oil changes and S.O.A.P. tests, PistonPower covers 100-percent parts and labor for all unscheduled maintenance for covered engine components and accessories. There are no out-of-pocket expenses.

“And, like with turboprop and jet aircraft programs, by minimizing the risk and cost of unplanned repairs, the program can significantly increase your aircraft’s resale value,” he added. “The best part is you can enroll any engine at any time during its life, and the program can be transferred to the next owner, furthering their coverage.”

Szymanski explained that the cost to enroll in the program depends on the engine. There’s a zero-dollar fee for new engines on new aircraft that are still under factory warranty. For aircraft that are out of warranty, there is a one-time enrollment fee of $2,500 per engine and required condition inspection.

“Once they’re enrolled, the hourly rate for someone flying 100 hours a year on the program including full engine and propeller coverage is around $150 an hour,” he said. “It’s money the owner should be putting away for maintenance anyway; this is just a more structured way to do it.”

Choosing an EMP

Today, between what the engine OEMs offer and what you can find from third-party providers like JSSI, StandardAero, and Engine Assurance Programs (EAP), nearly 40 different EMP programs are available. You can buy coverage for every possible situation from FOD, to ADs, on every LRU in or on the engine. Or you can just buy “end-of-life” coverages for major issues.

“The key is to find a plan that meets the owner’s specific needs. For example, will the owner want coverage that includes life-limited parts (LLPs), or mobile repair team (MRT) AOG support, or line labor for engine removal and installation?” Youngs said. “Likewise, does the owner want coverage to include foreign object damage (FOD) repairs or insurance shortfall protection?”

“Even more fundamentally, some low-time operators might want coverage that only addresses unscheduled maintenance events, without the obligation to save for scheduled maintenance events,” he added. “It is also important to know that the program will be backed up by a reliable MRO provider, whether it be the OEM or an established independent maintenance provider.”

“It can be quite confusing. Every owner/operator’s situation and needs are different, so I’d strongly suggest that you get with an experienced appraiser,” Zilberbrand said. “You need to know not only what the program will cover now, but what it will actually be worth to the next owner at resale time.”

The experts all agreed that while there are a lot of options if an owner/operator wants maximum benefits now and at resale time, their best choice is an EMP that provides 100-percent coverage of the engine and its components.

“Everything else being equal, enrollment in a 100-percent coverage program will get you the full retail value of the aircraft when it comes time to sell,” Lynch stated. “Unless you happened to be selling the airplane with freshly overhauled engines and components – and that rarely happens – any other program will require some type of deduction from the current market price.”

Is an EMP Right for You?

If you use your aircraft a lot and want to fix your engine maintenance budget and maximize the resale value, the answer is probably yes. But there are caveats. One of the more important bits of EMP “fine print” is a minimum annual utilization requirement.

“For most turboprop and turbine aircraft, there’s an hour-per-year minimum, depending on engine type and scheduled events (some turbine engines are calendar inspections, not hourly),” Zilberbrand explained. “That’s very important for the owner to understand before they sign up for any EMP.”

“If you’re only going to fly the minimum or less, you’re going to be paying for ‘coverage’ on all of those hours even if you don’t utilize them,” he added. “The only other negative is that if you, whatever reason, terminate the program early, then you lose any money accrued in that account. Sometimes it can’t be avoided, but it’s a shame to lose that money.”

www.twinandturbine.com

Dale Smith

Dale Smith has been a commercial, private and business aviation marketing and media communications specialist for nearly 40 years. He is an award-wining aviation journalist and aviation artist. Dale has been a licensed pilot since 1974 and has flown more than 40 different types of aircraft. Contact Dale at dalesmith206@comcast.net.

The market for Diamond DA 42 multiengine diesel-powered aircraft has matured now that the aircraft has been on the market since 2006. The aircraft and its powerplants have, like any groundbreaking and innovative product, experienced many iterations as the new diesel engine technology proved itself over time. Usually an airframer introduces a new airframe with a conventional, proven powerplant. With the introduction of the DA 42 Diamond broke with that tradition and introduced an entirely new airframe design along with dual FADEC controlled diesel engine power plants made by the German company Theilert. The goal was and is now to build aircraft free of Avgas limitations. Today there are hundreds of DA 42 aircraft in service flying with either Austro engines or Continental TDI engines. They sell for prices close to what they originally sold for over twelve years ago. So, the Diamonds have maintained their resale values better than many competitors. DA 42s under Piston Power programs sell for more than when they were new. The engines have always had a twelve-calendar year factory recommended replacement time regardless of hours. For this reason, in 2020 the topic of repowering these aircraft is front and center for many owners or potential buyers of these early airframes. There remains to this day misconceptions and confusion about the diesel engine choices for repowering these airframes. So, let’s take a trip down memory lane to best understand what options are available now.

The aircraft was introduced with two G1000 panels, dual FADEC controlled Theilert 1.7 liter 135 hp diesel engines based on a Mercedes Benz OM668 car engine. 1500 were built by the end of 2006. At the end of 2006, the engine was upgraded to the Mercedes Benz OM640 engine cylinder block and became the Centurion 2.0-liter 135 HP Theilert engine. The engine burns JET A burning only 12 gallons an hour (both engines) at cruise. The original Mercedes automotive block was cast iron. Theilert preferred to use an aluminum block to save weight. The engine has a reduction gear and is liquid cooled and is not designed to be overhauled. The original time between replacement (TBR) was 1000 hours. These 1.7 liter equipped early versions had expensive gear box inspections every 300 hours. Thus, the operating costs negated the low fuel costs. These early airframes were equipped with KAP 140 auto pilots.  Diamond was working through the early teething problems in 2006 and 2007 when lightning struck in April of 2008. Theilert went bankrupt leaving the early adopter owners with no engine warranties and had to find parts. This was the perfect storm as it unfolded at the start of the Great Recession.

To Diamond Aircrafts credit even in the face of the recession it stood up its own diesel engine manufacturing facility in Austria called Austro Engines to save the airframe and its superior technology. The new Austro AE 300 168 HP 2.0-liter engine is also based on the same Mercedes engine but uses the actual Mercedes engine block. This makes the AE300 an overhaulable engine. The AE300 currently has an 1800-hour TBO. Diamond upgraded to GFC 700 autopilots to pair with the AE300 diesel engines. Because the AE300 uses a cast iron block the engine is heavier than its aluminum block-based predecessor. The airframe was beefed up to carry the heavier higher-powered engine.  Over time the factory upgraded assembly line aircraft to the G1000Nxi panels and did an aerodynamic cleanup of the airframe. The latest version is the DA 42- VI. It has the same AE300 168 HP FADEC operated engines as was first introduced. In order to assist the early adopter owners, the factory converted several of the original 1.7 liter Theilert equipped KAP 140 autopilot aircraft to Austro AE300 GFC 700 equipped aircraft. These are marketed as DA 42NGs.

Theilert was eventually bought by Technify (Continental Motors) in Mobile Alabama. Continental improved the engine design by introducing a mass flywheel to replace the problematic clutch assembly. This reduced the inspections to 600 hours from 300 and the inspection itself is much less expensive. The latest version of the 135 HP aluminum block TDI engine has a 2100-hour Time Between Replacement.

While it I possible to convert a DA42TDI airframe to a DA 42 Austro equipped airframe few owners follow that expensive and labor-intensive path. The improvements Continental has made makes replacing TDI diesels with newer longer life TDI engines the most economically sensible thing to do with little difference in performance. Similarly, Austro engine equipped DA 42s universally have their engines replaced with new or overhauled Austro engines.

The mission to break free from dependence on Avgas for multi engine aircraft has only been successful for two manufacturers. Diamond Aircraft with their DA 42 and DA 62 aircraft and Tecnam Aircraft with their P2006 four seat twin and also their eleven seat P2012 twin, both running on inexpensive and available conventional car gas. So it is easy to see why these multi engine aircraft have become preferred by flight training organizations and owners seeking to keep their operating costs low.

Written By Errol Bader

President Gulf States Aircraft Sales, LLC & PistonPower Board of Directors, Member.

Have you ever heard the term “Oil Analysis”? If so, do you have any idea as to what it means and why I’m asking you this question?

Oil analysis is a tool that should be used by your maintenance provider. In my personal experience on several occasions the use of oil analysis was instrumental in preventing the fleet of aircraft we maintained from having major engine failures. The reason I want to address this is the vast majority of the general aviation public has never heard of oil analysis or if they have, don’t understand this tool.

Oil analysis is not new; it’s been around for a long time. I first became acquainted with this when I was in the Air Force. We took a sample after each flight on our fighter aircraft to check our engines for any excess wear. This process came extremely late to General Aviation; but now is starting to be used more by General Aviation and is a major part of Piston Power Programs for your engines.  It is vital in helping us in determining the health of our engines.

Every time you do an oil change during the inspection on your aircraft; take a sample of the oil and send it to a lab for analysis. We have a partnership in this process with Blackstone Labs and when this sample is processed, and metal particles are found in the oil they are broken down and are listed in parts per million. This is based on the fact that all lubricated engines parts wear and deposit a certain amount of metallic particles in the oil. By analyzing the number of particles (parts per million, units of measurement) for each metal will help us determine the wear pattern for any particular engine. These samples are taken every 50 hours and over several inspections we will be able to build a trend line on your engine. This is a particularly important part of the process, wherein a sharp rise in any one metal will indicate abnormal engine wear and something is starting to fail.

During the analysis at the lab they are looking at eight different metals. So, if we see a rise or spike in a certain metal, we have a very good idea as to what part of the engine is wearing abnormally and could fail. Remember that several samples must be taken to determine the normal wear characteristics of that engine. A point that I also want to make, is new engines will show higher than normal wear patterns and then decrease over time as the engine “breaks-in”.

The last part of the oil analysis program we use is the oil filter inspection. At each oil change when the oil filter is removed; the filter can is cut open and the filter element is removed, and the paper element spread out to look for metal partials caught by the filter. We know that at each inspection we can see a few items. But were looking for larger amounts and if this happens, we will then determine if it is ferrous or non-ferrous (magnetic or non-magnetic). This will tell us if it is an iron/steel or aluminum particle. which will alert us as to what could be breaking down and wearing.

With the combination of these two procedures we can see abnormal wear, investigate to determine what’s wearing and do the appropriate corrective action to correct the problem, before we have a major failure. Below is a sample of an actual oil analysis report.

Jack Haun has been involved in aviation maintenance as a Jet Engine Technician a then was commissioned as an Aircraft Avionics & Maintenance Officer in the Air Force and Air National Guard, Retired after 22 plus years. He has worked as Aircraft & Avionics Technician, then General Manager of an FBO. For the past 33 years he has been employed at Embry-Riddle Aeronautical as Manager of simulator maintenance, Manager of Flight Operations with the last 22 years as Director of Aircraft Maintenance and Repair Station Manager. Jack has a vast ranger of experience from Airlines, Corporate jets to an extensive range of experience maintaining a broad range of GA aircraft and engines. Jack holds Airframe and Powerplant license, and IA certificate. College University of Alabama, Embry-Riddle Aeronautical. Academy of Military Science.

Jack is currently the Director of Global Fleet Management for PistonPower. If you have questions or comments, please feel free to contact him at jh@pistonpower.com

The above article is intended to provide an explanation and augment in pilots or technicians language, topics to introduce aircraft owners and operators with supplemental information for     our VREF subscribers. It is intended as guide. Contact your nearest FAA Flight Standards District Office (FSDO) or FAA.gov for additional information.  The data/information is obtained from numerous FAA and other industry sources. It is edited and believed to be accurate. VREF does not warrant the accuracy or the source material and assumes no responsibility to any person in connection with the use of this VREF article. Permission to reprint this article is granted, so far as the context of the information remains intact and appropriate credit is given to VREF Publishing.

The Federal Aviation Administration (FAA) regulations refer to the term “airworthy”, but you won’t find the term in the normal definitions section. Below you will see a couple of sources with the official definition.

First in PlaneSense- General Aviation Information (FAA-H-8033-19A):

Airworthiness

Two conditions must be met for a standard category aircraft to be considered airworthy:

• The aircraft conforms to its type design (type certificate). Conformity to type design is attained when the required and proper components are installed that are consistent with the drawings, specifications, and other data that are part of the type certificate. Conformity includes applicable Supplemental Type Certificate(s) (STC) and field-approval alterations.
• The aircraft is in condition for safe operation, referring to the condition of the aircraft with relation to wear and deterioration

Second Listed in FAA Order 8130-2F, Dated November 5, 2004:

INTERPRETATION OF THE TERM “AIRWORTHY” FOR U.S. TYPE-CERTIFICATED AIRCRAFT.

The term “airworthy” is not defined in Title 49, United States Code (49 U.S.C.), or in 14 CFR; however, a clear understanding of its meaning is essential for use in the agency’s airworthiness certification program. Below is a summary of the conditions necessary for the issuance of an airworthiness certificate. A review of case law relating to airworthiness reveals two conditions that must be met for an aircraft to be considered “airworthy.” 49 U.S.C. § 44704(c) and 14 CFR § 21.183(a), (b), and (c) state that the two conditions necessary for issuance of an airworthiness certificate:

1. The aircraft must conform to its TC. Conformity to type design is considered attained when the aircraft configuration and the components installed are consistent with the drawings, specifications, and other data that are part of the TC, which includes any supplemental type certificate (STC) and field approved alterations incorporated into the aircraft.
2. The aircraft must be in a condition for safe operation. This refers to the condition of the aircraft relative to wear and deterioration, for example, skin corrosion, window delamination/crazing, fluid leaks, and tire wear.

NOTE: If one or both of these conditions are not met, the aircraft would be considered unairworthy. Aircraft that have not been issued a TC must meet the requirements of paragraph (b) above.

Airworthiness Certificate

An airworthiness certificate is issued by a representative of the Federal Aviation Administration (FAA) after the aircraft has been inspected, is found to meet the requirements of Title 14 of the Code of Federal Regulations (14 CFR) and is in condition for safe operation. The certificate must be displayed in the aircraft so that it is legible to passengers or crew whenever the aircraft is operated. The airworthiness certificate is transferred with the aircraft, except when it is sold to a foreign purchaser.

An airworthiness certificate is an FAA document that grants authorization to operate an aircraft In-flight. The FAA provides information regarding the definition of the term “airworthy” in FAA Order 8130.2 (as revised), Airworthiness Certification of Aircraft and Related Products, chapter 1.

Classifications of Airworthiness Certificates

The FAA initially determines that your aircraft is in condition for safe operation and conforms to type design or American Society for Testing and Materials (ASTM) International standards, then issues an airworthiness certificate. There are two different classifications of airworthiness certificates: Standard Airworthiness and Special Airworthiness.

Standard Airworthiness Certificate

FAA Form 8100-2, Standard Airworthiness Certificate is the FAA’s official authorization allowing for the operation of type certificated aircraft in the following categories:

• Normal
• Utility
• Acrobatic
• Commuter
• Transport
• Manned free balloons
• Special classes

A standard airworthiness certificate remains valid as long as the aircraft meets its approved type design, is in a condition for safe operation and maintenance, preventive maintenance, and alterations are performed in accordance with 14 CFR parts 21, 43, and 91.

Question:

Are you flying/operating an airworthy aircraft?

If VREF can help? contact:

Ken Dufour, ASA, MAM, ATP, CFI

VRef Publishing CEO

PistonPower, Director

ken@vref.com or 815-391-3153

or

Jason Zilberbrand, ASA, CAA, ISA AM, AOA AM, MRAeS

VRef Publishing President

Jason@vrefpub.com or 844-303-VREF ext. 700

The above article is intended to provide an explanation and augment in pilots or technicians language, topics to introduce aircraft owners and operators with supplemental information for     our VREF subscribers. It is intended as guide. Contact your nearest FAA Flight Standards District Office (FSDO) or FAA.gov for additional information.  The data/information is obtained from numerous FAA and other industry sources. It is edited and believed to be accurate. VREF does not warrant the accuracy or the source material and assumes no responsibility to any person in connection with the use of this VREF article. Permission to reprint this article is granted, so far as the context of the information remains intact and appropriate credit is given to VREF Publishing.

Reciprocating Engines

Engine First

Reading the “Aircraft for Sale” advertisements can be interesting and misleading. As aviation-oriented people, we are conditioned to look for certain bits of information which we believe will allow us to evaluate the product offered for sale. In the case of airplanes, this information can generally be segregated into three categories – airframe, avionics and engine. There does seem to be information on engines which cannot be emphasized too strongly.

Engine information is usually provided as hours of operation since new or from some major maintenance event. For example, 700 TTSN (total time since new) would indicate that this aircraft and engine have been flown for 700 hours since new from the factory. Other, but not all, engine related abbreviations include SMOH (hours since major overhaul, SPOH (hours since prop overhaul), STOH (hours since top overhaul) and SFRM (hours since factory remanufacture). Assuming that the recommended TBO (time between overhaul) of the engine being considered is 1800 or 2000 hours, it would appear that hours of use in the 400- to 800-hour range would automatically make this engine a very valuable commodity. Unfortunately this is not always true, and therefore an advertisement like those discussed earlier may state numbers and facts which are absolutely correct, but still misleading.

Consider this; A Lycoming IO-360 engine with less than 700 hours since new was reported to be using oil at the rate of two-thirds quart per hour and losing oil pressure during flight. On closer examination, it was determined that deterioration and wear had caused metal contamination throughout the engine. An engine overhaul was necessary, and it included replacement of items such as the camshaft, oil pump gears and pistons. Why should an engine with less than 700 hours since new be in this sad state?

It should be apparent that the number of hours the engine has operated is only part of the story. We need to know all the facts if we are to understand what may have happened to this normally reliable engine, and also if we are to determine the value of a low-time engine in a preowned airplane.

The engine with metal contamination and less than 700 hours of operation had been installed brand new from the factory – more than 12 years before. The engine logbook shows that during the first 10 years of service, this engine had averaged less than four hours of flight time each month. Chances are excellent that there were some months when the engine was not flown at all.

Lycoming Service Instruction No. 1009 states that the recommended TBO is based on the use of genuine Lycoming parts, average experience in operation and continuous service. Continuous service assumes that the aircraft will not be out of service for any extended period of time. If an engine is to be out of service for longer than 30 days, it should be preserved as specified in Lycoming Service Letter No. L180. Service Instruction No. 1009 also states that because of the variations in operation and maintenance, there can be no assurance that an individual operator will achieve the recommended TBO.

The point of this discussion is simple. A low-time engine may not add value to an aircraft, and the buyer should be aware of all factors which may affect the condition and value of the engine. An engine which is not flown frequently is subject to deterioration as a result of inactivity. When the engine does not achieve flight operating temperatures on a regular basis, the moisture and acids that form as a result of combustion and condensation are not vaporized and eliminated through the exhaust and crankcase breather. As moisture and acids collect in the engine, they contribute to the formation of rust on the cylinder walls, camshaft and tappets.

As the engine is run after rust has formed, the rust becomes a very fine abrasive causing internal engine wear, particularly to the camshaft and tappets. As these components wear, they make more metal which attacks the softer metals in the engine. Piston pin plugs are examples of parts that may wear rapidly when rust becomes an abrasive inside the engine. This wear could eventually lead to failure.

The infrequently flown engine is just one example of a low-time engine not meeting the expectations of a buyer or new owner. The term zero SMOH is always enticing since it indicates the engine has been overhauled, has zero hours since overhaul and now may be expected to fly happily on through a full manufacturer-recommended TBO. This will happen in some cases, but in others, there will not be a chance of this happening. It depends on the quality of the overhaul.

Lycoming Service Bulletin No. 240 recommends parts to be replaced at overhaul regardless of the apparent condition of the old parts. The number of these new parts used in the engine at overhaul will probably determine the possibilities of achieving a full TBO. Consider that most overhaulers install reconditioned cylinders on the engines they overhaul. These cylinders are not traceable. There is no requirement to maintain a record of their previous history. They may have only 2000 hours of operation, but they could just as easily have 5000, 7000 or more hours of operation. Those cylinders may have been cracked and repaired by welding – a procedure that Lycoming metallurgists do not recommend because the strength of a repaired cylinder head may be significantly less than that of a new head. There is no requirement to let a prospective engine buyer know if cylinders have been welded, and this cannot be determined even by close examination. The possibility of finding a reconditioned cylinder with cracks after a few hundred hours of operation is very real. Should this happen, it will be a costly experience.

The lesson to be learned here is a very old one – “Buyer Beware.” Whether you are looking at those “Aircraft for Sale” advertisements or looking for a replacement engine for an aircraft you already own, consider carefully what you are about to buy. What do you really know about the engine other than the low-time number? How much validity does that number really have? What questions can you ask which may help you ensure this engine will meet your expectations?

Perhaps, simply rereading the paragraphs you have just read may help you to formulate questions you want answered before taking the plunge. In the case of a low-time engine with a history of infrequent flight, borescope examination of the cylinders and an inspection of cam and tappet surfaces by a competent and knowledgeable A & P technician would be a very wise move. Always remember that low numbers in the hours of operation records do not guarantee reaching TBO with many long hours of trouble-free operation. The buyer must investigate every detail of engine history as closely as possible, and be satisfied that the product does have the value which the low hours of operation number suggests.

Overhauls

Be careful of the terminology used to describe engine condition. Do not confuse a top overhaul with a major overhaul, or a major overhaul with a factory remanufactured “zero-timed” engine. A top overhaul involves the repair of engine components outside of the crankcase. A major overhaul involves the complete disassembly, inspection, repair, and reassembly of an engine to specified limits. If an engine has had a top or major overhaul, the logbooks must still show the total time on the engine if known and its prior maintenance history. A “zero-timed” engine is one that has been overhauled to factory new limits by the original manufacturer and is issued a new logbook without previous operating history.

Airframe and Avionics

Although the engine may be considered the heart of an aircraft, similar consideration should be given to the airframe and installed avionics. VREF Aircraft Value Reference should be consulted to determine average airframe time.

• VREF has included an average airframe time for each aircraft in the database. If the airplane in question has more time on it than the average Airframe Total Time (AFTT) listed, deduct using the $/Hr. number (dollar per hour) to the right of AFTT. If it is lower time aircraft, add value using the $/Hr. number. Some good judgement is in order for this exercise. If an aircraft has extremely low time, it is possible that it has gone long periods without flying. In some of these cases, seals may be leaky or rust may have accumulated on engine parts.
• At the other extreme, if an airplane has flown a lot, but has also been professionally maintained, it might be in better condition (ready to go) than an airplane that has been inactive. A general rule of thumb on airplanes with extremely high or low airframe time is in add or deduct about 20% to 25% of its value.

Avionics should also be reviewed as to when they were installed or upgraded.

Considerations to review;

1. The altimeter/static system check
2. Transponder and encoder checks
3. ELT Battery check
4. VOR checks
5. Vacuum filters checks
6. The aircraft station license

Factors That May Affect Resale Value

Know the major factors that affect resale value. Generally speaking they are:

• Engine hours—perhaps the most common influence on resale value. The closer an engine is to its recommended time between overhaul (TBO), the lower the value. There are many factors that affect engine health, and a high-time engine is not necessarily bad. Regular use helps keep seals and other engine components lubricated and in good shape.
• Installed equipment—such as avionics, air conditioning, deicing gear and interior equipment. The most valuable equipment is usually avionics, which can easily double the value of some older aircraft. The newer the technology, the higher the value of the aircraft.
• Airworthiness directives (ADs)—issued by the FAA for safety reasons. Once issued, owners’ are required to comply with the AD within the time period allotted. It is important to look at the AD history of an aircraft and ensure the logbooks show compliance with all applicable ADs.
• Damage history—it may be difficult to locate a complete damage history for an aircraft. Any aircraft with a damage history should be closely scrutinized to ensure it has been properly repaired in accordance with the applicable Title 14 of the Code of Federal Regulations (14 CFR) parts and recommended practices.
• Paint/Interior—as is the case with homes, paint can be used to give “tired” aircraft a quick face-lift. Check new paint jobs carefully for evidence of corrosion under the surface. Interior items should be checked for proper fit and condition.

Sources for additional reading and reference

Continental Aerospace Technologies: Tips on Engine Care

Lycoming Flyer- Key Reprints

PlaneSense (General Aviation Information) FAA H-8083-19A

VREF Aircraft Value Reference: Current Volume 2020/Volume 2 or www.vref.com

For additional information in reference to engine maintenance plans, questions or if we can assist you with valuing your engine or aircraft, contact:

Ken Dufour, ASA, MAM, ATP, CFI

VRef Publishing CEO

PistonPower, Director

ken@vref.com or 815-391-3153

or

Jason Zilberbrand, ASA, CAA, ISA AM, AOA AM, MRAeS

VRef Publishing President

Jason@vrefpub.com or 844-303-VREF ext. 700

The above article is intended to provide an explanation and augment in pilots or technicians language, topics to introduce aircraft owners and operators with supplemental information for     our VREF subscribers. It is intended as guide. Contact your nearest FAA Flight Standards District Office (FSDO) or FAA.gov for additional information.  The data/information is obtained from numerous FAA and other industry sources. It is edited and believed to be accurate. VREF does not warrant the accuracy or the source material and assumes no responsibility to any person in connection with the use of this VREF article. Permission to reprint this article is granted, so far as the context of the information remains intact and appropriate credit is given to VREF Publishing.

 

Aircraft records that have been lost or destroyed are a highly debated subject. Some say that 30% to 50% of the value of an aircraft resides with the maintenance records. Whether this is accurate or not, they represent value and should be treated with care and respect their value and impact on your aircraft.

Occasionally, the records for an aircraft are lost or destroyed. In order to reconstruct them, it is necessary to establish the total time in service of the airframe. This can be done by reference to other records that reflect the time in service; research of records maintained by repair facilities; and reference to records maintained by individual technicians, etc. When these things have been done and the record is still incomplete, the owner/operator may make a notarized statement in the new record describing the loss and establishing the time in service based on the research and the best estimate of time in service.

a. The current status of applicable ADs (Airworthiness Directives) may present a more formidable problem. This may require a detailed inspection by maintenance personnel to establish that the applicable ADs have been complied with. It can readily be seen that this could entail considerable time, expense, and in some instances, might require the AD being performed again to establish compliance.

b. Other items required by section 14 CFR 91.417(a)(2), such as the current status of life-limited parts, time since last overhaul, current inspection status, and current list of major alterations, may present difficult problems. Some items may be easier to reestablish than others, but all are problems. Losing maintenance records can be troublesome, costly, and time consuming. Safekeeping of the records is an integral part of a good record keeping system.

Additional guidance can be reviewed in FAA Advisory Circular AC-43-9C, Chg-2, dated May 8, 2018

For additional information or to determine value of your lost and/or destroyed records, contact:

Ken Dufour, ASA, MAM, ATP, CFI
VRef Publishing CEO
PistonPower, Director
ken@vref.com or 815-391-3153

or

Jason Zilberbrand, ASA, CAA, ISA AM, AOA AM, MRAeS
VRef Publishing President
Jason@vrefpub.com or 844-303-VREF ext 700

The above article is intended to provide an explanation and augment in pilots or technicians language, topics to introduce aircraft owners and operators with supplemental information for     our VREF subscribers. It is intended as guide. Contact your nearest FAA Flight Standards District Office (FSDO) or FAA.gov for additional information.  The data/information is obtained from numerous FAA and other industry sources. It is edited and believed to be accurate. VREF does not warrant the accuracy or the source material and assumes no responsibility to any person in connection with the use of this VREF article. Permission to reprint this article is granted, so far as the context of the information remains intact and appropriate credit is given to VREF Publishing.

The purchase of an aircraft represents a major commitment that should be approached carefully and cautiously, especially when buying a used aircraft. For many aircraft owners, it represents the largest single lifetime investment next to buying a home. Quite often, the purchase price of an aircraft approximates or exceeds the price of a new home.

Particularly when buying a used aircraft, it is wise to have the selected aircraft inspected by a qualified person or facilities before you complete the transaction. The condition of the air-craft and the state of its maintenance records can be determined by persons familiar with the particular make and model. Pre-purchase inspections should be performed by a Federal Aviation Administration (FAA) certificated airframe and powerplant technician (A&P) or an approved repair station. The Buying an Aircraft Checklist found at the end of this article is a suggested list of items to consider when purchasing an aircraft.

Selecting the Aircraft

One of the most common mistakes in purchasing an aircraft is to make a decision too quickly. Take the time to analyze your requirements carefully and be realistic. Consider the typical flight loading, trip distance, and conditions of flight, then compare aircraft.

If possible, rent the type of aircraft that interests you to determine how well it meets your requirements. Keep in mind that the biggest expense of owning an aircraft is not always the initial purchase price.

Where to Look

Once you have chosen the type of aircraft that will fit your needs, shop around and do some pricing. For retail and wholesale price information, check with an aviation trade association, bank, other financial institution, Fixed Base Operator (FBO) or the latest edition of VREF Aircraft Value Reference & Appraisal Services. There are several good publications available that advertise aircraft for sale. Your local FBO can be very helpful as you look for the right aircraft.

Factors Affecting Resale Value

Know the major factors that affect resale value. Generally speaking they are:

• Engine hours—perhaps the most common influence on resale value. The closer an engine is to its recommended time between overhaul (TBO), the lower the value. There are many factors that affect engine health, and a high-time engine is not necessarily bad. Regular use helps keep seals and other engine components lubricated and in good shape.
• Installed equipment—such as avionics, air conditioning, deicing gear and interior equipment. The most valuable equipment is usually avionics which can easily double the value of some older aircraft.

The newer the technology, the higher the value of the aircraft.

• Airworthiness directives (ADs)—issued by the FAA for safety reasons. Once issued, owners are required to comply with the AD within the time period allotted. It is important to look at the AD history of an aircraft and ensure the logbooks show compliance with all applicable ADs.
• Damage history—it may be difficult to locate a complete damage history for an aircraft. Any aircraft with a damage history should be closely scrutinized to ensure it has been properly repaired in accordance with the applicable Title14 of the Code of Federal Regulations (14 CFR) parts and recommended practices.
• Paint/Interior—as is the case with homes, paint can be used to give “tired” aircraft a quick face-lift. Check new paint jobs carefully for evidence of corrosion under the surface. Interior items should be checked for proper fit and condition.

Overhauls

Be careful of the terminology used to describe engine condition. Do not confuse a top overhaul with a major overhaul, or a major overhaul with a factory remanufactured “zero-time” engine. A top overhaul involves the repair of engine components outside of the crankcase. A major overhaul involves the complete disassembly, inspection, repair, and reassembly of an engine to specified limits. If an engine has had a top or major overhaul, the logbooks must still show the total time on the engine, if known, and its prior maintenance history.

A “zero-time” engine is one that has been overhauled to factory new limits by the original manufacturer and is issued a new logbook without previous operating history.

Aircraft Records

Aircraft records maintained by the FAA are on file at the Mike Monroney Aeronautical Center in Oklahoma City, Oklahoma.  Copies of aircraft records are available for review in CD format or paper. For information on ordering and costs, contact the FAA Civil Aviation Registry Aircraft Registration Branch (AFS-750). Copies of aircraft records may also be requested online. Visit www.faa.gov and select the “Aircraft Registration” link.

There may be other records on file at federal, state, or local agencies that are not recorded with the FAA.

Make sure the following documents are available and in proper order for the aircraft:

• Airworthiness Certificate
• Engine and airframe logbooks
• Aircraft equipment list
• Weight and balance data, placards
• FAA-approved Airplane Flight Manual (AFM) and/or Pilot’s Operating Handbook (POH)

CAUTION: Missing documents, pages, or entries from aircraft logbooks may cause significant problems for the purchaser and reduce the value of the aircraft.

Aircraft Title

The Federal Aviation Act requires the FAA to maintain a recording system for aircraft bills of sale, security agreements, mortgages, and other liens. This is done at AFS-750, which also processes applications for, and issues, aircraft registration certificates. The two systems are linked together because you must prove ownership in order to be entitled to register an aircraft.

“Clear title” is a term commonly used by aircraft title search companies to indicate there are no liens (e.g., chattel mortgage, security agreement, tax lien, artisan lien) in the FAA aircraft records. Title searches for the aviation public are not performed by AFS-750; however, the aircraft records contain all of the ownership and security documents that have been filed with the FAA.

AFS-750 records acceptable security instruments. In addition, some states authorize artisan liens (mechanic liens). These also need to be recorded. Be sure to check your state’s statutes regarding liens.

CAUTION: Federal liens against an owner (drug, repossession, etc.) may not show up on your title search. State law determines lien and security interests. Although there is no federal requirement to file lien or security instruments with the FAA, the parties to these transactions can file their qualifying documents with AFS-750.You may search the aircraft records, or have this done by an attorney or aircraft title search company.

CAUTION: FAA registration cannot be used in any civil proceeding to establish proof of ownership. There is no substitute for examining the aircraft’s records to secure an ownership history and to determine if there are any outstanding liens or mortgages. This procedure should help avoid a delay in registering an aircraft.

Maintenance Records

The previous owner of the aircraft should provide the aircraft’s maintenance records containing the following information:

• The total time in service of the airframe, each engine, and each propeller;
• The current status of life-limited parts of each airframe, engine, propeller, rotor, and appliance;
• The time since last overhaul of all items installed on the aircraft that are required to be overhauled on a specified time basis;
• The identification of the current inspection status of the aircraft, including the time since the last inspection required by the inspection program under which the aircraft and its appliances are maintained;
• The current status of applicable ADs, including for each the method of compliance, the AD number, revision date, and if the AD involves recurring action, the time and date when the next action is required; and
• A copy of current major alterations to each airframe, engine, propeller, rotor, and appliance.

Pre-Purchase Inspection

Before buying an aircraft, you should have a mechanic you trust give the aircraft a thorough inspection and provide you with a written report of its condition. While a pre-purchase inspection need not be an annual inspection, it should include at least a differential compression check on each cylinder of the engine and any other inspections necessary to determine the condition of the aircraft.

In addition to a mechanical inspection, the aircraft logbooks and other records should be carefully reviewed for such things as FAA Form 337, Report of Major Repair or Alteration, AD compliance, the status of service bulletins and letters, and aircraft/component serial numbers.

Buying an Aircraft Checklist

This checklist is intended to provide a suggested list of items to consider when purchasing an aircraft. It is not an all-inclusive list, and if you have any questions, you should consult with an experienced aviation professional prior to purchasing an aircraft.

For additional information in reference to buying an aircraft contact:

Ken Dufour, ASA, MAM, ATP, CFI

VRef Publishing CEO

PistonPower, Director

ken@vref.com or 815-391-3153

or

Jason Zilberbrand, ASA, CAA, ISA AM, AOA AM, MRAeS

VRef Publishing President

Jason@vrefpub.com or 844-303-VREF ext 700

The above article is intended to provide an explanation and augment in pilots or technicians language, topics to introduce aircraft owners and operators with supplemental information for     our VREF subscribers. It is intended as guide. Contact your nearest FAA Flight Standards District Office (FSDO) or FAA.gov for additional information.  The data/information is obtained from numerous FAA and other industry sources. It is edited and believed to be accurate. VREF does not warrant the accuracy or the source material and assumes no responsibility to any person in connection with the use of this VREF article. Permission to reprint this article is granted, so far as the context of the information remains intact and appropriate credit is given to VREF Publishing.

How Do AD’s Effect your Aircraft Operation?

An Airworthiness Directive (AD) is an important tool used by the Federal Aviation Administration (FAA) to communicate unsafe operating conditions relating to aircraft and aircraft equipment to aircraft owners. A primary safety function of the FAA is to require the correction of unsafe conditions found in an aircraft, aircraft engine, propeller, rotor, or appliance when such conditions exist or are likely to exist or develop in other products of the same design. These unsafe conditions can exist because of a design defect, maintenance, or other causes.

Title 14 of the Code of Federal Regulations (14 CFR) Part 39, Airworthiness Directives, defines the authority and responsibility of the Administrator in requiring the necessary corrective action to address unsafe conditions. ADs are used to notify aircraft owners and other interested persons of unsafe conditions and to specify the conditions under which the product may continue to be operated.

Definition of Airworthiness Directives

FAA’s airworthiness directives are legally enforceable rules that apply to the following products: aircraft, aircraft engines, propellers, and appliances.

When does FAA issue airworthiness directives?

FAA issues an airworthiness directive addressing a product when we find that:

• An unsafe condition exists in the product; and
• (b) The condition is likely to exist or develop in other products of the same type design.

What is the legal effect of failing to comply with an airworthiness directive?

Anyone who operates a product that does not meet the requirements of an applicable airworthiness directive is in violation of this section.

What if I operate an aircraft or use a product that does not meet the requirements of an airworthiness directive?

If the requirements of an airworthiness directive have not been met, you violate §39.7 each time you operate the aircraft or use the product.

What actions do airworthiness directives require?

Airworthiness directives specify inspections you must carry out, conditions and limitations you must comply with, and any actions you must take to resolve an unsafe condition.

Are airworthiness directives part of the Code of Federal Regulations?

Yes, airworthiness directives are part of the Code of Federal Regulations, but they are not codified in the annual edition. FAA publishes airworthiness directives in full in the Federal Register as amendments to §39.13.

Note: For a complete list of citations to airworthiness directives published in the Federal Register, consult the following publications: For airworthiness directives published in the Federal Register since 2001, see the entries for 14 CFR 39.13 in the List of CFR Sections Affected, which appears in the “Finding Aids” section of the printed volume and at www.govinfo.gov. For citations to prior amendments, see the entries for 14 CFR 39.13 in the separate publications List of CFR Sections Affected, 1973-1985, List of CFR Sections Affected, 1964-1972, and List of CFR Sections Affected, 1986-2000, and the entries for 14 CFR 507.10 in the List of Sections Affected, 1949-1963. See also the annual editions of the Federal Register Index for subject matter references and citations to FAA airworthiness directives.

Does an airworthiness directive apply if the product has been changed?

Yes, an airworthiness directive applies to each product identified in the airworthiness directive, even if an individual product has been changed by modifying, altering, or repairing it in the area addressed by the airworthiness directive.

What must I do if a change in a product affects my ability to accomplish the actions required in an airworthiness directive?

If a change in a product affects your ability to accomplish the actions required by the airworthiness directive in any way, you must request FAA approval of an alternative method of compliance. Unless you can show the change eliminated the unsafe condition, your request should include the specific actions that you propose to address the unsafe condition. Submit your request in the manner described in §39.19.

May I address the unsafe condition in a way other than that set out in the airworthiness directive?

Yes, anyone may propose to FAA an alternative method of compliance or a change in the compliance time, if the proposal provides an acceptable level of safety. Unless FAA authorizes otherwise, send your proposal to your principal inspector. Include the specific actions you are proposing to address the unsafe condition. The principal inspector may add comments and will send your request to the manager of the office identified in the airworthiness directive (manager). You may send a copy to the manager at the same time you send it to the principal inspector. If you do not have a principal inspector send your proposal directly to the manager. You may use the alternative you propose only if the manager approves it.

Where can I get information about FAA-approved alternative methods of compliance?

Each airworthiness directive identifies the office responsible for approving alternative methods of compliance. That office can provide information about alternatives it has already approved.

May I fly my aircraft to a repair facility to do the work required by an airworthiness directive?

Yes, the operations specifications giving some operators authority to operate include a provision that allow them to fly their aircraft to a repair facility to do the work required by an airworthiness directive. If you do not have this authority, the local Flight Standards District Office of FAA may issue you a special flight permit unless the airworthiness directive states otherwise. To ensure aviation safety, FAA may add special requirements for operating your aircraft to a place where the repairs or modifications can be accomplished. FAA may also decline to issue a special flight permit in particular cases if we determine you cannot move the aircraft safely.

How do I get a special flight permit?

Apply to FAA for a special flight permit following the procedures in 14 CFR 21.199.

What do I do if the airworthiness directive conflicts with the service document on which it is based?

In some cases an airworthiness directive incorporates by reference a manufacturer’s service document. In these cases, the service document becomes part of the airworthiness directive. In some cases the directions in the service document may be modified by the airworthiness directive. If there is a conflict between the service document and the airworthiness directive, you must follow the requirements of the airworthiness directive.

Types of ADs issued

The FAA issues two categories of ADs:

• Normal Issue
• Emergency Issue

Standard AD Process

The standard AD process is to issue a Notice of Proposed Rulemaking (NPRM), followed by a Final Rule. After an unsafe condition is discovered, a proposed solution is published in the Federal Register as an NPRM, which solicits public comment on the proposed action. After the comment period closes, the final rule is prepared, taking into account all substantive comments received, with the rule perhaps being changed as warranted by the comments. The preamble to the Final Rule AD provides response to the substantive comments or states there were no comments received.

Emergency AD

In certain cases, the critical nature of an unsafe condition may warrant the immediate adoption of a rule without prior notice and solicitation of comments. The intent of an Emergency AD is to rapidly correct an urgent safety of flight situation. This is an exception to the standard process. If time by which the terminating action must be accomplished is too short to allow for public comment (that is, less than 60 days), then a finding of impracticability is justified for the terminating action, and it can be issued as an immediately adopted rule. The immediately adopted rule will be published in the Federal Register with a request for comments. The Final Rule AD may be changed later if substantive comments are received.

Superseded AD

An AD is no longer in effect when it is superseded by a new AD. The superseding AD identifies the AD that is no longer in effect. There are no compliance requirements for a superseded AD.

Compliance with ADs

For purposes of compliance, ADs may be divided into two categories:

• Those of an emergency nature requiring immediate compliance before further flight, or
• Those of a less urgent nature requiring compliance within a relatively longer period of time.

ADs are the “final rule” and compliance is required unless specific exemption is granted. Aircraft owners are responsible for ensuring compliance with all pertinent ADs. This includes those ADs that require recurrent or continuing action. For example, an AD may require a repetitive inspection each 50 hours of operation, meaning the particular inspection must be accomplished and recorded every 50 hours of time in service.

CAUTION: Aircraft owners are reminded that there is no provision to overfly the maximum hour requirement of an AD unless it is specifically written into the AD

Amateur-Built Aircraft

For help in determining if an AD applies to your amateur-built aircraft, contact your local Flight Standards District Office (FSDO)

Summary of ADs

14 CFR Part 91, section 91.417, requires a record to be maintained that shows the current status of applicable ADs, including:

• Method of compliance;
• AD number and revision date;
• Date and time when due again, if recurring;
• Certified mechanic’s signature;
• Type of certificate; and
• Certificate number of the repair station or mechanical performing the work

For ready reference, many aircraft owners keep a chronological listing of the pertinent ADs in the back of their aircraft and engine records. Generally, a summary of ADs contains all the valid ADs previously published. Figure 9-1is a sample form of summary of ADs.

Obtaining ADs

Both AD categories (small and large aircraft) are published in biweekly supplements. All ADs are available on the FAA website at www.faa.gov. Advisory Circular (AC) 39-7 (as revised), Airworthiness Directives, provides additional guidance and information for aircraft owners and operators about their responsibilities for complying and recording ADs. For more information, contact the FAA Regulatory Support Division, Delegation and Airworthiness Programs Branch (AIR-140). AIR-140 contact information is available in the FAA Contact Information appendix on pages A1–A2 of this handbook.

For additional information in reference to aircraft airworthiness or if we can assist you with valuing your engine or aircraft, contact:

Ken Dufour, ASA, MAM, ATP, CFI

VRef Publishing CEO

PistonPower, Director

ken@vref.com or 815-391-3153

or

Jason Zilberbrand, ASA, CAA, ISA AM, AOA AM, MRAeS

VRef Publishing President

Jason@vrefpub.com or 844-303-VREF ext. 700

The above article is intended to provide an explanation and augment in pilots or technicians language, topics to introduce aircraft owners and operators with supplemental information for     our VREF subscribers. It is intended as guide. Contact your nearest FAA Flight Standards District Office (FSDO) or FAA.gov for additional information.  The data/information is obtained from numerous FAA and other industry sources. It is edited and believed to be accurate. VREF does not warrant the accuracy or the source material and assumes no responsibility to any person in connection with the use of this VREF article. Permission to reprint this article is granted, so far as the context of the information remains intact and appropriate credit is given to VREF Publishing.