Avionics Maintenance Programs: Are They Worth It?

What are the benefits of business aircraft avionics maintenance programs, and who do they work best for? Dispatch reliability is a big deal for business aircraft operators. Unplanned downtime can impact the bottom line and present lost opportunities.

Flight departments use Minimum Equipment Lists (MELs), which prescribe each onboard aircraft item that must be operational and are based off the Original Equipment Manufacturer’s (OEM’s) Master MELs (MMELs), to authorize the dispatch of each trip.

Both avionics and aircraft OEMs provide warranties and maintenance service plans in support of the MEL, helping to provide operational assurance. Moreover, these programs reduce unexpected financial burden associated with urgent repairs. An MEL shortfall or other event can ground an aircraft (AOG) until the issue is resolved.

Specific to the mitigation of AOG events, aircraft and systems OEMs tend to strategically place resources where business aircraft frequent. These may range anywhere from a full service MRO center with hangars and ground equipment, to Mobile Repair Teams (MRTs), ready to respond at the disabled aircraft’s location. MRTs began as On-Wing engine support, but over the years have grown to add airframe and avionics capabilities.

The big question for variable costs associated with unscheduled maintenance is who pays. The answer to that question depends on the operator having a warranty, extended warranty or a maintenance service plan.

Typically, aircraft with less than five years of operating history are covered under warranty, while those beyond can elect a support plan or inherit the remainder of one (when they buy the aircraft pre-owned).

Business Aircraft Avionics Under Warranty

Manufacturers provide warranties based on a combination of time in service and hours flown since the aircraft was initially delivered. The hours flown clause in a contract serves to protect the OEM because they are pegged much higher than the air time experienced by most flight departments.

Within the delivered aircraft warranty are sub-sections for engines, airframe and APU, with avionics mostly falling under the umbrella of airframe.

If you are taking delivery of a factory new aircraft, it’s important to ensure all component times have been reset to zero. Moreover, you may find that third-party suppliers to the airframe have unique warranty conditions that are passed on to the customer via the total aircraft warranty agreement.

When entering a new aircraft into service, owners can add to their existing warranties in two ways. If available, and offering the same coverage they could opt for an extended warranty, or coming at different levels and costs, service plans provide additional coverage to standard warranty. Warranty coverage and service plans operate concurrently.

Avionics Maintenance Programs for New Business Aircraft

Because aircraft-OEM warranties include avionics under their airframe umbrella, look for that sub-section to learn more about new aircraft warranties from each manufacturer.

Websites and brochures promote new aircraft engine and airframe support in glowing terms, whereas avionics is often only mentioned in passing. So when researching a new aircraft purchase you should specifically address avionics coverage. For example:

• Are they passing through the avionics-OEM warranty ‘as is’, or extending the coverage in any way (including costs for troubleshooting, freight charges, and more)?
• Because avionics will come from several different suppliers, and in many cases a supplier may only have one product installed onboard, how does the aircraft-OEM juggle all the coverages to provide total avionics warranty and in-service support?
• While the cockpit avionics warranty may be straightforward, what is covered in the cabin and how?

(Notably, OEMs are now adding Wi-Fi coverage to both new aircraft warranty, and as part of their legacy aircraft service plans.)

All the aircraft-OEMs have dedicated areas of new and pre-owned aircraft support including:

• Scheduled maintenance and repair
• Unscheduled maintenance and AOG repair
• Procurement support
• Field service representation
• Operations support
• Modifications and upgrades
• Training.

Typically, the longer the range of the aircraft the more likely dedicated direct factory representation and services will be located further from an operator’s home base.

When considering a new aircraft transaction, it’s worth reviewing how the OEM supports the aircraft where you intend to operate it. What training is offered to pilots and technicians? And, specifically, how would you be supported during an unscheduled downtime.

Avionics Maintenance Programs for Pre-Owned Business Aircraft

If you own or are acquiring an aircraft that is out of warranty, there are options available to you. First, though, keep in mind that for any one aircraft warranties vary across different systems and components. So while some warranties may have expired others may still be active. Figure out which are still active.

Specifically, if the avionics warranty has expired, you may consider enrolling with an avionics maintenance service program. These can be provided in three ways: Via the avionics OEM, via the aircraft OEM, or via a third-party provider.

While avionics OEMs specifically support that equipage, aircraft OEMs and third party program providers will include avionics under the wider umbrella of their total airframe and engine support programs.

The latter may include labor and any transaction expended outside of the avionics OEM – for example a loaner or exchange component that is not directly sourced from the avionics OEM, or labor costs.

Avionics OEM Programs: For business jets and turboprops the major avionics providers and their programs are:

• Collins Aersopace: Collins Avionics Service Plan (CASP)
• Honeywell Aerospace: Avionics Maintenance Service Plan (MSP)
• Universal Avionics: FlightAssure Extended Warranty
• Currently, Garmin offers no service plans beyond existing warranties.

While operators may obtain specific avionics coverage from the avionics-OEM, owners of older ‘legacy’ aircraft which have undergone various upgrades and modifications over the years should keep in mind that their cockpit is likely to have a blend of avionics with the different warranties presenting a mixed bag of coverage and difficult to track and keep current.

Unless a special arrangement is in place, customers who enrol on avionics support programs through aircraft OEMs and third parties, are expected to address coverage through those entities and not from the avionics OEM.

Aircraft OEM Programs: By-and-large, aircraft OEM programs provided to new aircraft are also offered – at a cost – to operators seeking in service coverage for out of warranty pre-owned aircraft. These can include avionics coverage under the airframe umbrella.

JSSI (Third-Party) Programs: Completely independent of equipment and aircraft manufacturing is JSSI, which offers multiple Hourly Cost Maintenance programs, including the all-inclusive ‘Tip to Tail’.

Moreover, clients can elect for parts procurement-only options in place of full service coverage. Because of its independent and expanded services, JSSI can also provide aircraft maintenance tracking (via Traxxall) and Conklin de Decker’s Aircraft Operating Cost & Performance Program.

The JSSI suite of aircraft support programs is an especially good choice for flight departments responsible for multiple aircraft from different OEMs.

Its programs cover several makes/models of aircraft including multiple options for each. Meanwhile, the operator deals with a single provider and a common structure to the process for each of the programs.

5 Justifications for an Avionics Maintenance Program

Following are some of the common justifications for subscribing to an avionics maintenance program...

1. Predictability: Variable operating costs are by nature less predictable than fixed, but reducing the highs and lows of variable expenses eases budget planning and reduces surprises. Aircraft owners are not fond of unplanned maintenance. In-service programs offer peace of mind by spreading likely expenditure across set monthly payments.

2. Aircraft for Sale: During aircraft transactions, the biggest headaches can occur during the pre-buy inspection. OEMs and third-party comprehensive operation and maintenance support programs which include avionics maintain currency, minimizing the chance of a potential lack of oversight.

3. Less Vulnerability to Supply Chain Procurement Issues: Program participants have preferred access to repairs, loaners, exchanges and upgraded or replacement components. Repairs may take less time while the overall process and experience should be routine.

4. Skin in the Game: Avionics and aircraft OEMs have a vested interest in supporting their product. Avionics OEMs that provide standard cockpit packages to aircraft platforms need to maintain the special relationship they enjoy with the aircraft OEM. And, after aircraft delivery they both need to retain their loyal customers, in the hope they will return for the next aircraft.

5. Aircraft and Avionics Reset: For pre-owned aircraft, buyers can check the ‘Accept with issues resolved or repaired’ box on the Technical Acceptance Certificate as part of a pre-buy inspection/transaction process.

Here lies an opportunity to reset the aircraft warranty, either from the avionics or the airframe manufacturer. It is also a window to elect the continuation of existing warranties from the previous owner, if any.

Experiencing a clean-sheet reset on the aircraft’s avionics, including upgrades, repairs, software, databases and subscriptions, can be reassuring to flight departments who are about to enter potentially unknown territory as they operate a new or different aircraft.

Avionics Maintenance Program Precautionary Questions

Following are some questions to ask yourself as you decide whether an avionics maintenance program is the right way for you to go...

Do You Need It?

While having a service plan or extended warranty may be perfect for one flight department it may not be so necessary for another. There are factors that feed into the decision to take the plunge, including:

• The aircraft being placed for sale or a limited period of ownership.
• The avionics being close to redundancy or requiring an upgrade (include the cabin systems in this).
• How predictable is your aircraft utilization? Does it enable an effective cost analysis?
• What level of coverage is the program, and how likely are you to have additional out-of-pocket expenses?
• Avionics depreciate. The decision to enter a program (or not) can be a value proposition – especially if there are near-term upgrades to consider.
• Most equipment programs cover the primary electronic units and not antennas or wiring. Your operating environment can skew where failures are likely to occur.

What are Your Location and Operating Factors?

Where and how you operate the aircraft can make a big difference to the worth of an avionics maintenance program. For example:

• Flying across remote and oceanic regions could make it harder to access and use some programs in the way you need them.
• Flying more often increases the program liability, its coverage level and cost. Naturally high flying hours will mean greater aircraft/avionics utilization and more exposure to avionics failure risk.
• A location’s operating environment is huge when it comes to electronics. A corrosive environment – such as salt laden coastal air – can quickly destroy avionics and ancillary equipment. Other environmental conditions include desert sand, rodents, birds, high temperature swings, and areas of conflict or unrest. Is the aircraft hangared at each FBO when it’s out on trips? This can mitigate the impact of operating in extreme environments.
• Warranty and service agreements may preclude coverage of repairs resulting from extraneous factors, based on how and where you operate the aircraft. These must be taken into consideration.

In Summary...

As a simple rule for deciding on avionics maintenance programs, the newer the aircraft the easier the decision and greater the direct support of the aircraft and avionics OEM.

Out-of-warranty/pre-owned aircraft carry a greater risk and are more likely to have a mix of avionics installed.

The mixed avionics situation can make things really difficult. While the bulk of electronics may be covered under one avionics OEM, several significant systems may not be covered, or have a different coverage. Often occurring examples where separate   may be needed include:

• Traffic Collision Avoidance Systems (TCAS)
• Terrain Avoidance & Warning Systems (TAWS)
• Emergency Locater Transmitters (ELT)
• Wi-Fi Connectivity Systems
• Cabin Systems
• Recording Systems
• High Frequency Comms
• RVSM Equipment
• Satcom Systems
• Portable Pilot Carry-on Devices
• Head-Up Displays & Enhanced Vision Systems (HUD/EVS/EFVS).

That extensive list drives the recommendation to check with your OEM or third-party provider for precise and detailed coverage, based on your aircraft’s MEL and avionics equipment list.

You should also check all Supplemental Type Certificates and Form 337 (or equivalent) avionics upgrade records for equipment not on a list. Base your election of an avionics service plan or extended warranty on the following:

• Aircraft equipage covered or not covered
• How and where you operate
• Ease of access and interaction with the program
• Cost versus depreciation, usage and flight department priorities.

Lastly, an important consideration which can be difficult to quantify is: How will the program you choose be able to support an AOG in the locations where you mostly operate? After all, it is the proper handling of a single AOG event that that could fully justify an annual coverage fee for avionic failures and subsequent repairs.