29 Jan 2026, 07:12 [ UTC - 5; DST ]
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Post subject: Re: Legacy Citation vs Turboprop Posted: 27 Oct 2023, 16:54 |
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Joined: 12/03/14 Posts: 21167 Post Likes: +26655 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: Can Williams kick you out of the program? Yes. There are a number of contractual reasons they can kick you out of the program, the most obvious being non payment. Once out of the program for any reason, to get back in requires paying in a lump sum for all the prior hours EVEN IF those were covered by the program previously. The penalty for not staying in the program is SEVERE. They have no obligation to offer you a new contract when the present one expires. They expire every 5 years. The terms in the contract inexorably change to favor Williams. For example, the yearly rate increases used to be tied to CPI-W. The contract no longer has that clause any more. When you sign the contract, you may know the price for your engines for the first year, but for the other 4 years, they can raise it to anything they want, the contract has no limits. It is conceivable that Williams will decide that any engine older than some limit, say 30 years old, can no longer be enrolled. I'm not saying they are going to do that, but there is no legal barrier that prevents it. In such a case, all your payments for some future OH/HSI event, are lost. This would be a very sound business decision for Williams as it cuts their obligations to maintain old engines, devalues those old airframes so they get junked, and increases the sales of new engines on new airplanes. The oldest FJ44 engines are past 30 years now. Absolute power corrupts absolutely. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Legacy Citation vs Turboprop Posted: 27 Oct 2023, 17:05 |
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Joined: 12/03/14 Posts: 21167 Post Likes: +26655 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: I'm just shocked at how few people cover their engines when parked. That just blows me away (ha!) too. Planes sitting on the ramp and their N1 fans are just spinning going tink, tink, tink all hours of the day. That has to be causing some wear. And it is letting dust, debris, precip, birds, insects get into the engine. Whenever I will be parked outside, I put engine covers on unless it will be very short and the wind is not bad. For a quick fix, I will push in the rear exhaust plugs since that takes almost no time, and if you forget them, the start will blow them out harmlessly. Plugging the rear will stop airflow through the engine and prevents ingestion (mostly) and engine turning in the wind. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Legacy Citation vs Turboprop Posted: 27 Oct 2023, 17:15 |
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Joined: 12/03/14 Posts: 21167 Post Likes: +26655 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: Who supplies the STC's for extended TBO? Is it the manufacturer? If not how does the STC holder have the authority to extend the tbo? Where does that 220k go? Ask them yourself: https://skyaviationholdings.com/tbo-extension/I doubt they will tell you how they did it since that would give away secrets. My assumption is that they put together some sort of analysis that showed if you monitored certain parameters you could detect or predict failure before it happened. They may have some large cache of operational data, say from a time when these airplanes were in fractional use. They use that data to justify their STC. Then all they need is a willing FAA guy to sign off on it and presto, they have an STC. Also, they probably have some sort of data reporting requirement so they can use your history for their business purposes. That is, collect more data and maybe push the hour limits even further. This is how I suspect the MORE program eventually got to 8000 hours. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Legacy Citation vs Turboprop Posted: 27 Oct 2023, 17:35 |
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Joined: 11/07/11 Posts: 885 Post Likes: +492 Location: KBED, KCRE
Aircraft: Phenom 100
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Username Protected wrote: For a quick fix, I will push in the rear exhaust plugs since that takes almost no time, and if you forget them, the start will blow them out. Mike C. If it sounds like this thing I’m doing it every time. Chip-
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Last edited on 28 Oct 2023, 08:32, edited 1 time in total.
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Post subject: Re: Legacy Citation vs Turboprop Posted: 28 Oct 2023, 14:11 |
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Joined: 07/17/15 Posts: 581 Post Likes: +570 Location: KSRQ
Aircraft: C510
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Username Protected wrote: I would be super annoyed with Williams on TAP. You're basically forced to rent your own plane and submit all your flight hours to your aviation overlord. I'd take the MikeC approach just on principle.  I have a real problem with the 150 hour minimum.
_________________ Tony
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Post subject: Re: Legacy Citation vs Turboprop Posted: 28 Oct 2023, 18:27 |
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Joined: 12/03/14 Posts: 21167 Post Likes: +26655 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: Just a reminder for the 3rd time Pratt ESP is no different! And for the umpteenth time, it is different. You don't have to be on it. That's basically not true for Williams. If you aren't on TAP, they will burn you when your engine comes due. For the JT15D operators, they have choices and they do not have to be on any program if they don't want to be, and it is practical to make that choice. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Legacy Citation vs Turboprop Posted: 28 Oct 2023, 18:43 |
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Joined: 12/03/14 Posts: 21167 Post Likes: +26655 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: I have a real problem with the 150 hour minimum. Williams has a "low use plan" they came out with in 2021. It works like this: Pay up front every year for 135 hours at the base rate. You then can fly 150 hours without further payment. If you exceed 150 hours, you then pay 35%over the base rate for each hour over 150 you fly that year. Here is the effective rate per hour chart I made for that: Attachment: williams-analysis-1.png This chart was based on a rate of $165/hour per engine so upscale to about $200 per hour (which is what I expect 2024 rates will be). The basic shape won't change, the numbers on the left axis will just increase. The net result is that the low use program is cheaper if you fly 193 hours or less each year. This fails to account for the cost of money, however, since Williams got you money earlier. With cost of money, the cross over will be a little be less, say 190 hours. If you fly between 135 and 190 hours, you cost per hour will be less than the nominal base rate on the low use plan. If you fly less than 135 hours, you rate starts shooting up dramatically since you are paying for hours you aren't using. If you fly a lot more than 190 hours, then the stock plan would have been better. This is one other aspect and that is the standard 5 year contract allows for you to be under 150 hours *just one year* without penalty. It is the first year you fly less than 150 hours. So if you have a short year, you aren't penalized. You definitely don't want to fly 149 hours one year and then 100 hours the next, however. Make sure, if you are close, to reach 150 hours to avoid losing the short year forgiveness feature. The low use plan has no such clause as I understand it. So you are always paying for 135 hours even if you had a short year. A long avionics upgrade or paint/interior refurb might cause a short year. For owner flown, a health event might also do that. Williams used to have a plan where you could eliminate the minimum hours by keeping 300 hours banked at each annual renewal, but they got rid of that. As I said, the terms are constantly changing in Williams favor. Mike C.
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_________________ Email mikec (at) ciholas.com
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Post subject: Re: Legacy Citation vs Turboprop Posted: 29 Oct 2023, 00:22 |
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Joined: 11/08/12 Posts: 7889 Post Likes: +5222 Location: Live in San Carlos, CA - based Hayward, CA KHWD
Aircraft: Piaggio Avanti
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Username Protected wrote: ... If the vast majority of private jet owners didn’t want to be on programs, the industry would adjust and engine programs would not be a thing.
The vast majority of owners don’t have much of a choice.
_________________ -Jon C.
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Post subject: Re: Legacy Citation vs Turboprop Posted: 29 Oct 2023, 01:32 |
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Joined: 12/03/14 Posts: 21167 Post Likes: +26655 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: If the vast majority of private jet owners didn’t want to be on programs, the industry would adjust and engine programs would not be a thing. The vast majority of concert goers don't want to pay Ticketmaster fees. So where is this free market correction you speak of and why has it not happened to Ticketmaster? The vast majority of operators don't want to pay Signature prices. How is that working out these days? Your theory is flawed in exactly the same way as the above examples because it assumes a balanced power between operators and OEMs that does not exist. The regulatory environment gives the OEM almost all the power and operators are weak. The OEMs abuse this power in numerous ways, Williams is just one such case, Cirrus with the SF50 is another, and Textron with the 441 SIDs is yet another. Whenever one side has unchecked power to force money from the other, the situation always gets worse. Quote: I even have a theory as to why in the beginning Citations weren’t on programs Because the OEMs had not figured out how to exercise their power fully at the time. Now they know how. This is why new planes cost more and more to operate, the OEMs are milking them for cash as the create financial obligations on the operators. People want new airplanes to avoid an "expensive" old one, only to be trapped in programs that make it more expensive than the old one. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Legacy Citation vs Turboprop Posted: 29 Oct 2023, 06:51 |
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Joined: 05/23/13 Posts: 8873 Post Likes: +11623 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: If the vast majority of private jet owners didn’t want to be on programs, the industry would adjust and engine programs would not be a thing. The vast majority of concert goers don't want to pay Ticketmaster fees. So where is this free market correction you speak of and why has it not happened to Ticketmaster? The vast majority of operators don't want to pay Signature prices. How is that working out these days? Your theory is flawed in exactly the same way as the above examples because it assumes a balanced power between operators and OEMs that does not exist. The regulatory environment gives the OEM almost all the power and operators are weak. The OEMs abuse this power in numerous ways, Williams is just one such case, Cirrus with the SF50 is another, and Textron with the 441 SIDs is yet another. Whenever one side has unchecked power to force money from the other, the situation always gets worse. Quote: I even have a theory as to why in the beginning Citations weren’t on programs Because the OEMs had not figured out how to exercise their power fully at the time. Now they know how. This is why new planes cost more and more to operate, the OEMs are milking them for cash as the create financial obligations on the operators. People want new airplanes to avoid an "expensive" old one, only to be trapped in programs that make it more expensive than the old one. Mike C.
You are ignoring two facts, one people do have choices, you don’t understand that people are content with the programs, Williams does get pushback on price increases, a lot of pressure. However, the program overall makes sense. It doesn’t for you and we all get that, but for the owner of a late model airplane, they don’t want the exposure of a potential unplanned six figure engine event and they understand that they’re going to pay for engine time used, one way or another. I know this is my world and I see it on a daily basis and I know it’s foreign to you, I understand why you think the way you think. But, you’ve got to drop the “I’m right and everyone else is stupid” theology.
As I have said before, Williams is a benevolent dictator.
I’m not so much defending them as I am saying your perception doesn’t create reality.
The second is that MSP and Garrett engines go back a long way, I don’t think the “OEM’s hadn’t figured it out yet” is accurate, I’ve been familiar with the term “Money Sent to Phoenix” for 30 years.
Regardless of your droning on about programs, it is what it is, complaining about fills up the pages of Beechtalk and that’s about the extent of it.
We pay a premium for all things aviation because of low production volumes and high liabilities. I heard a rumor the other day that Textron refused to sell a new jet to one of the attorneys who made his money suing them for airplane crashes.
Curious what you think Mike, should there be greater limitations of liability for aircraft and engine OEM’s? GM doesn’t get sued every time there’s a car wreck.
_________________ Be kind. You never know what someone is going through.
Last edited on 29 Oct 2023, 07:57, edited 3 times in total.
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