Hourly cost contracts

Hourly Cost Contracts A new-wave maintenance approach comes of age By Greg Napert February 1998 If you spend any time at all around turbine aircraft, you've probably heard the term "power-by-the-hour®" mentioned at least once over...


• Allows the operator to do a certain amount of the hourly and calendar maintenance spelled out in Chapter 5 of the aircraft maintenance manual.
• Reimburses 60 percent of Gulfstream's labor rate for labor the operator performs themselves and Gulfstream's labor rate for maintenance performed at Gulfstream, at an authorized facility, or any other repair facility that does maintenance for the operator.
• Requires customers to purchase parts from Gulfstream. Gulfstream uses overhauled or repaired components for this program. It uses new only if they don't have overhauled or repaired parts available or if parts are beyond economical repair (BER).
• Program includes all consumables for normal aircraft operation.
• For engine parts and service, the program currently uses Rolls-Royce Canada for its preferred engine maintenance vendor.
• Pricing is based upon scheduled maintenance defined in Chapter 5 of the aircraft maintenance manual and unscheduled maintenance from GIV-SP historical data from the MTBF reports.

An independent hourly maintenance provider
JSSI® is the administrator of the Gulfstream ServiceCareSM program. In addition, the company has teamed with Dassault Falcon Jet Corp. to offer the Falcon FirstSM program which provides comprehensive nose-to-tail maintenance protection for newly purchased Falcon 2000, 50EX, 900B, and 900EX business jets. The program covers all costs associated with scheduled and unscheduled maintenance.

Although the Gulfstream ServiceCare and Falcon First are JSSI's first venture into nose-to-tail maintenance programs, the Chicago-based company has achieved an extensive track record in the managing turbine engine maintenance.

One of the unique characteristics of the JSSI hourly cost programs is their flexibility. JSSI provides coverage for virtually any turbine engine, regardless of age. This gives operators with mixed fleets one single program provider for all their engines.

Haskins says, "There really aren't any engines that we won't consider for the program. We have commercial engines such as JT8s and JT9s, as well as APUs."

Currently, the company offers four engine maintenance programs: JSSI® Complete (a comprehensive engine program for scheduled and unscheduled maintenance); JSSI® Select (comprehensive coverage of scheduled and unscheduled maintenance excluding accrual for life-limited components); JSSI® Unscheduled (100 percent coverage or unscheduled events only); and JSSI® Term (comprehensive coverage for a specific length of time.)

Another distinct aspect of the JSSI programs is that they have stationed maintenance professionals throughout the United States and Europe to oversee engine work and monitor customer accounts.

The company also allows complete flexibility when it comes to deciding who performs the maintenance work. Customers can choose virtually any maintenance facility, as long it is FAA or OEM authorized. "If the operator is qualified and approved by the manufacturer to do their own maintenance, we will also allow that and we will reimburse them for their expenses. Ninety-nine percent of our customers, however, have their work done at service centers," says Haskins.

JSSI also offers operators flexibility in how they enroll in the company's programs. After paying a fixed enrollment fee, a "Pre-induction Diagnostic Survey" - a thorough examination of each powerplant - is conducted. At that point, the operator can pay a lump-sum amount, to account for hours already flown prior to enrolling in the program, or they can enroll in the Pro Rata Program. Under this option, the operator shares in the cost of upcoming scheduled maintenance events as well as life-limited components.

Other features of JSSI's engine programs include:

• Allows flexibility for where the customer purchases parts and offers its services to help locate parts.
•Tries to arrive at a joint decision with the customer over which types of parts are used —new vs. overhauled, vs. repaired.

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