NBAA Orlando, FL / October 15, 2018 – Business aviation could witness the largest mass retirement of older aircraft in its history as the ADS-B (Out) implementation deadline of December 31, 2019, nears. The loss will be most acute for the TFE731-4 and TFE731-5-powered aircraft—Falcon 20-5, Falcon 900B/C, Hawker 800A, Hawker 800XP, Citation VII—not currently enrolled on an engine program and having yet to comply with AD 2012-17-05, which requires replacement of the LPT1 rotor assembly prior to October 2, 2020.   

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For TFE731-4 and TFE731-5-powered aircraft, ADS-B (Out) and AD 2012-17-05 will be the one-two-punch likely to remove at least 20 percent of older, less expensive airframes from service. It all comes down to the math:
 

Hawker 800A/XP, Falcon 20-5, etc.

Aircraft Value -$500,000 to $800,000

ADS-B (Out) - $90,000
AD 2012-17-05 - $325,000 per engine  (an MPI is typically required to replace the LPT1 disk)
Cost of Compliance - $740,000 - $1,065,000 (depending on the number of engines)

 

With the cost of compliance nearly equivalent to, or in some cases more than, the value of the aircraft, these mandatory updates can very quickly become Beyond Economical Repair (BER). If a large airframe inspection also is due, an even greater portion of these aircraft will find their way to a local boneyard by 2020. There are roughly 1,400 engines that still have not complied with AD 2012-17-05, and compliance may not be financially feasible, or even possible, for operators who have elected to forego engine maintenance programs.    
 

This situation will result in many solid, viable aircraft being removed from service. This loss could have been prevented by enrolling the engines on an engine program. An engine program preserves the equity in the engines, and thus the value of the aircraft, by making sure there are funds available to pay for AD compliance. Engine Assurance Program’s Comprehensive Coverage plan pays for AD compliance for ADs that arise during the term of coverage.

For operators not currently enrolled in a program, compliance with AD 2012-17-05 may not be financially viable depending on the value of the airframe. Re-enrolling in an engine program now will be expensive as there won’t be enough time for the accruals necessary to cover expensive shop visits.

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About EAP

The Engine Assurance Program (EAP) was formed to provide an affordable hourly engine maintenance program option for operators of TFE731-2, TFE731-3, TFE731-5, JT15D-4 and JT15D-5 -powered aircraft. The Honeywell TFE731 and Pratt and Whitney JT15D power more than 3,000 business jets. Using EAP’s oversight, the engines can be operated more economically. EAP is headquartered in Dallas, Texas.

 

For more information, contact Sean Lynch by email or call +1.214.350.0877.

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