David J. Wyndham, VP & Co-Owner

Keeping Older Business Jets Flying

In our aircraft cost databases, we assume that all the business aircraft are maintained more or less the same way with new parts replacing old, worn out parts. As many operators of long-out-of-production aircraft are finding out, this is not the most cost effective way to keep these aircraft flying.

First off, availability of new parts for older aircraft is becoming harder to find. There are fewer of these aircraft flying fewer hours. Some manufacturers are no longer in business, or they have been acquired and merged into different entities. They do not keep production lines open year round or may only build spares as needed.

Overhauling of serviceable components is also getting harder to accomplish. Sure, you can overhaul a generator multiple times, but what about the holes for the mounting bolts? Over time, you can only use "oversize" bolts so often before the component case is no longer serviceable.

We use a guaranteed engine program cost in our basic cost database. But is that still a viable option for an older, first generation engine? Not just a Viper 522, but other early jet engines are becoming prohibitively costly to overhaul. The current value of a 20 - 30 year old business jet is likely close to the cost of its airworthy components. Vref shows the average value of a 1973 Sabreliner 40A at $190,000. Yet to overhaul the Sabreliner's JT12A engines would run over $400,000!

Second or third engine overhauls on these older aircraft are not cost effective alternatives when there are airworthy aircraft with several years' worth of time remaining on the engines. It can be more cost effective to park the old jet with run-out engines and use it for spares and buy another of the same aircraft with some time left on the engines than to overhaul the run-out engines. Of course a good Life Cycle Cost exercise will likely find even better alternatives!

Keeping these older business jets flying is becoming more of an exercise of scrounging and cannibalizing versus one of buying/overhauling.

Maintaining older aircraft like these requires time, and decreases the aircraft availability. You need to have two or three aircraft to keep one in flyable condition! It can be done, but it is better suited to a hobbyist or weekend flier that can live with low utilization and decreased availability.

In This Issue

·         Keeping Older Business Jets Flying

·         New Release: Life Cycle Cost

·         Fuel Price Update

·         Live And In Person

Related Reading from the Conklin de Decker Archives

·         Now Is The Time To Replace Your Aircraft

·         Communication: Pilot-Speak to Money-Speak

·         CO2 Calculator for Aircraft

Quick Links

·         Register Now

·         Newsletter Archive

·        

·         More About Us