How to Understand Your Jet’s Modernization & Refurbishment Costs

When they’re well cared for, business aircraft can have very long, productive lives. To help keep your aircraft in optimal condition, you will need to allocate a budget for modernization and refurbishment.

Included within the area of aircraft modernization are updates to the aircraft that enhance or expand its capabilities beyond its original equipment. This includes avionics and communication systems.

Closely related is refurbishment which covers the care, upkeep, and upgrade of the aircraft’s paint and interior hard and soft goods.

Aircraft Modernization

The instrumentation installed in aircraft built in the early 2000s was far less capable than what is available today.

At the turn of the millennium, analog or steam gauges showed single or limited pieces of information to the pilot. Today’s avionics have evolved to offer computerized, high-resolution screens combining multiple data in easier to scan and understand graphics.

Now, instead of six to ten separate dials, each of which need repeated scanning, a single screen suffices. In the aircraft cockpit, ‘easier and faster’ essentially equates to higher levels of safety.

Through modernization, a 25-year-old business jet can have all the advantages of a modern cockpit. But changes in avionics do not need to be so revolutionary. Individual instruments could be retrofitted and upgraded on an as-needed basis, supporting specific elements of your operational needs.

Better resolution displays that use less energy, touchscreens that replace or supplement keyboards and cursors, and lighter equipment freeing up payload are all available for retrofit, modernizing the flight deck compared to what was installed previously.

Similarly, cabin electronics solutions have come along in leaps and bounds in recent years. Clunky In-Flight Entertainment (IFE) technology and In-Flight Connectivity (IFC) solutions offering low bandwidth and high latency have evolved into highly efficient, streamlined solutions that offer passengers an experience akin to what they enjoy in the home or office.

The once distinct areas of IFE and IFC have also converged into IFEC as passengers are able to use their carry-on devices to accomplish much of what they need in flight. Again, today’s IFEC solutions (hardware and antennas) have shrunk in size and weight, freeing up payload, and becoming accessible for a much wider range of smaller aircraft.

The Cost of Modernization: The amount an aircraft owner spends on modernization is largely controlled by them and directly relates to their mission requirement. How often cockpit and cabin electronics will be upgraded depends on the owner’s willingness or need to equip with the highest level of technology.

(If you’re buying a poorly equipped pre-owned aircraft, you may need to allocate a budget for any required upgrades and negotiate an acquisition price accordingly.)

The cost of modernization will vary, depending on aircraft size and the nature of the project. While a piston airplane owner might be looking at spending a few tens of thousands of dollars on upgrades, a large cabin business jet owner may be looking at hundreds of thousands.

This is where owners having an accrual in the budget can better prepare for the expense. A simple ‘modernization’ estimate might be $500k at Year 10. In which case you should either budget $50k per year in ‘savings’ or plan on taking the ‘full hit’ in Year 10.

Similarly, if you anticipate that a change in mission will necessitate an upgrade in avionics and/or cabin electronics in the next approximately three years’ time, then it’s worth considering whether you want to budget to accrue over three years towards that cost, helping spread the cost, or simply pay when the need arises in Year 3.

Business Aircraft Refurbishment

As elegant as it makes an aircraft look, paint is not just for aesthetics. The paint protects the exterior skin of an aircraft from corrosion while providing a smooth finish which improves the airflow over the aircraft, reducing drag.

As with your automobile, washing and waxing prolongs the paint’s life. Aircraft that spend a lot of time sitting outside will see a more rapid paint deterioration than one that is regularly hangared. Similarly, aircraft flown or based in corrosive environments, such as coastal locations, or flown in heavily polluted skies will also see faster paint wear.

So, how often should you budget to repaint your aircraft? As highlighted, this is a variable based on the aircraft’s paint condition. The rule of thumb is that a repaint is necessary approximately every 10 years.

If it is easy to spot the paint degradation, then you should assume your aircraft’s repaint is overdue. The cost of repainting the aircraft will be based on its size and how elaborate a paint scheme you want. As with modernization, an annual budget accrual can help you as the aircraft’s owner to prepare for the event.

But don’t overlook the aircraft’s interior which needs plenty of care, too. Routine cleaning, carpet shampooing and surface polishing should all be part of a regular care and upkeep plan. Adherence to this can help avoid the need for an earlier-than-expected refurbishment.

When considering a budget, refurbishment can be looked at in two parts: soft goods and a full refurbishment.

Soft goods are the carpeting, seat coverings and some trim areas. The carpet at the top of the entryway sees a lot of wear, while areas exposed to sunlight will see some fading. If there are a couple of favorite seats that are almost always occupied, you can expect to see greater wear on those, too.

The soft goods need routine attention and tend to last less time than hard surfaces like cabinetry and doors. So it’s worth budgeting for a more frequent cost of repair, replacement, or professional cleaning of soft goods.

And when costing refurbishment items (hard surfaces or soft goods) keep in mind that fire blocking requirements are much more stringent in an aircraft, while not adding weight to the interior is also critical. Adding 200 pounds to the interior is the same as limiting yourself to one less passenger.

Finally, when looking at interior work – particularly a full interior refurbishment – this is a good time to look at the cabin electronics, including the IFC and IFE equipment. 

Upgrading the satellite communications or the Wi-Fi/cable hookups often require access to ceiling and floor areas that are usually not easily reached otherwise. Doing so while the interior is already removed is likely to keep the cost of the project down.

In Summary

Aircraft modernization and refurbishment are infrequent but high-cost items. How frequent these costs are incurred may depend on whether your mission requirements change, where and how your aircraft is stored, and how comprehensive your preventative maintenance procedures are.

The point is that at some stage, as an aircraft ownership you are going to need to pay out for these. Whether you pay in one hit or accrue a budget over a period of years is down to you. But the benefits are clear – modernization and refurbishment add to the value, safety and life of your aircraft.

Read more articles in this series from David Wyndham on AvBuyer.