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FAA AD will scrap 100's of Biz jets.....

Discussion in 'FAA News, Opinion and Articles' started by Richard Wyeroski, Sep 25, 2018.

  1. Richard Wyeroski

    Richard Wyeroski Hangar Gold Member I

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    FAA will issue an AD the will ground and scrap hundreds of older Citation Hawker and Falcon business jets. Many companies that are operating these aircraft will find it economically unfeasible to up grade these aircraft.

    I often wonder is this a game to scrap older jets so that companies will buy newer models?

    Back in 2004 I was flying a Hakwer DH125 that was effected by the Reduced Verticle Separation minimums RVSM requireents.

    RVSM required aircraft owners to spend about $500,000 dollars to add new flight computers and rquired skin work to allow the aircraft to fly above 28, 000 feet. Many good aircraft were scraped and pilots lost their jobs all over the country!


    The boss laid us off and scraped the aircraft because it was not feasible to up grade the aircraft. Now they are about to do it again......

    >>>>>>>>>>>>>>>>>>>>>>>MORE<<<<<<<<<<<<<<<<<<<

    EAP: ADS-B, AD Could Lead to Mass Bizjet Retirements
    by Kerry Lynch
    - September 25, 2018, 11:09 AM

    [​IMG]
    A "one-two punch" consisting of ADS-B Out compliance and TFE730 engine Airworthiness Directive costs could lead to a mass retirement of older business jets, such as the Cessna Citation VII, in 2020, according to Engine Assurance Program. (Photo: Textron Aviation)
    AD 2012-17-05 will affect aircraft that have not already complied later that year, EAP said, expressing concern that the under the mandates, “business aviation could witness the largest mass retirement of older aircraft in its history.” Released in 2012, the AD calls for replacement of the LPT1 rotor assembly on certain TFE731-4- and -5-powered aircraft. These include the Falcon 20-5, 900B/C, Hawker 800A and 800XP, and Citation VII, EAP said, noting the AD will come due for many of the affected aircraft on Oct. 20, 2020.

    “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,” EAP said. “It all comes down to the math.”

    The engine provider estimates a value of around $800,000 for many of the affected models, yet an expected $90,000 cost of compliance for ADS-B coupled with a cost of $325,000 per engine for LPT1 replacement work, factoring that a major periodic inspection would typically be required. This combination could bring total costs of both mandates in the range of between $740,000 to $1.065 million.

    At the time of the release of the AD six years ago, the FAA had estimated that more than 1,500 engines were affected and the total fleet cost could top $35 million annually.

    “With the cost of compliance nearly equivalent to, or in some cases more than, the value of the aircraft, updates can very quickly become beyond economical repair,” EAP said, estimating that roughly 1,400 engines still have not complied.

    However, EAP, which launched two years ago to provide coverage for TFE731 and JT15D engine maintenance, said engine programs could prevent removal from service by preserving the equity in the engines and associated value of aircraft and ensuring the availability of funds to pay for the AD compliance.

    Enrollment in such programs now might be expensive, EAP acknowledged, given the lack of time for accruals to cover the shop visits. But paying out of pocket will become more costly and will not ensure the availability of rental engines, it added.

    “Most people think they are saving money by electing to fly without an engine program,” EAP said. “More often than not, the perceived savings are matched dollar for dollar in lost airframe value.”

    The provider cited as an example a Falcon 50 based in North Texas that had an estimated savings of $360,000 over a three-year period while on an engine program, yet sold at $400,000 less than retail after the owner had allowed the engine program to lapse.

    EAP was founded as aircraft residual values had dropped considerably. But aircraft enrolled in engine programs were able to maintain stronger values. “The Engine Assurance Program was created to make operating aging aircraft engines more economical,” the company said, adding it specifically focuses on older platforms, leveraging parts and services discounts to bring down overall cost of maintenance.

    The company's coverage includes scheduled and unscheduled engine maintenance, including life-limited parts, LRUs, R&R, shipping, rentals, line maintenance, and 24/7 AOG assistance.
     
  2. Richard Wyeroski

    Richard Wyeroski Hangar Gold Member I

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    BTW a large number of these aircraft could wind up in South America, Mexico and other countries at bargain basement prices where US Airwortiness directives are not required.

    Many US companies will pay the price.....!!!!!!
     
  3. Rotorruss

    Rotorruss Hangar Silver Member III

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    ...and yet with all the bells and whistles, you still can only take off and land so many airframes on the same concrete per minute. Noise, RVSM and ADSB are just an illusion of making aviation safer and neighbor friendly.
     
  4. Richard Wyeroski

    Richard Wyeroski Hangar Gold Member I

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    ......100's of older aircraft were scrapped because owners did not want to invest 500k to add RVSM capability. I could see RVSM over the Atlantic routes to Europe. However airspace over the US is vast and 1000 foot separation is causing problems with wake turbulence for smaller jets. There has been numerous incidents over the years.

    Flying a Citation to Florida we experience turbulence by an overflying 777. It could have been worse.
     
    Lord Leighton and Rotorruss like this.

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