WINNING FORMULA FOR BOTH BUYERS AND DEALERS OF USED AIRCRAFT
P&WC’s new Certified Pre-Owned Engine program is about delivering greater value and peace of mind to potential customers of PT6A-and turboshaft-powered used aircraft as well as to help dealers differentiate their inventory.
ADDING VALUE TO USED AIRCRAFT ENGINES
Many aircraft customers are opting to buy used instead of new these days. In response, P&WC has launched a Certified Pre-Owned (CPO) Engine Program similar to that of the auto industry as a way to offer greater value and options to both used aircraft buyers and dealers alike.
Formally launched at NBAA-BACE in Las Vegas, October 2017, the CPO program is already gaining traction. Epic Aircraft, an Oregon based company, has recently sold a PT6A-powered aircraft with a P&WC CPO engine.
The program supports used turboprop and helicopter buyers and sellers by applying the CPO model for used cars to P&WC engines. Starting with PT6A, PT6C-67C, PW206C and PW207C engines, the program aims to increase buyer confidence through an engine that has been inspected and certified with a P&WC warranty of two years or 500 flying hours, whichever comes first.
“A lot of the inspiration came from the automobile industry,” explains Daniel Hogg, Manager, Commercial Business Development, P&WC. “There are a number of CPO programs out there for cars, and there’s a reason for that – it’s because they work. Customers are always looking for the best quality and price and if it can be certified with a warranty, then even better.”
A RIGOROUS INSPECTION
Dealers can have an aircraft engine certified either by conducting a P&WC-specified independent inspection or by having it done by a P&WC team directly.
The inspection involves several measures such as a review of the engine’s maintenance history, visual and borescope inspections, and a performance check. Engines must have been maintained at P&WC-owned or -designated facilities and have only genuine P&WC parts.
It also leverages P&WC’s innovative Oil Analysis Technology, an on-wing debris monitoring solution that detects tiny metal traces within engine oil enabling the identification of any deterioration of key oil-wetted components, such as gears, bearings and seals, well before a potential event occurs and without intrusive inspection.
HELPING MOVE USED AIRCRAFT ENGINES
For dealers, the CPO program can help differentiate their used aircraft inventory and decrease time on market.
A 2016 Cox Automotive study showed that certified pre-owned cars spent 14% less time on market. If the impact of certification translates to the used aircraft engine market, this could represent reductions of up to 60 days. Research has also shown that buyers tend to be more satisfied with their purchase—and therefore more likely to use the same dealer again.
Daniel is confident these benefits will carry over to the aircraft market.
“We believe the CPO Engine Program creates value and will help further increase trust and connections between buyers and sellers,” he notes.
All else being equal, people will want a used engine with a warranty. We expect the CPO program will help dealers sell aircraft faster. It’s an additional tool to help them shift their assets.
PEACE OF MIND AND MORE
Buyers, meanwhile, gain the security that comes with the warranty—not to mention genuine P&WC parts and maintenance history.
This program gives the customer peace of mind on a valuable asset that they may have little or no previous experience with.
And that’s not all. The CPO program also simplifies the purchasing process by saving potential buyers the hassle and the cost of arranging their own pre-buy engine inspection.
Customers will also benefit from a free six-month technical publications subscription, a rebate on engine training from P&WC’s global training provider, FlightSafety International, a credit of up to $10,000 USD towards enrollment in the company’s ESP program enrollment and preferential pricing on non-covered events.
The Certified Pre-Owned Engine program is one of many P&WC initiatives to support customers. Contact us at firstname.lastname@example.org to learn about this initiative.