I've been looking at some legacy Citations and some of them have been converted with Williams engines. The engines give them longer range, higher performance, and reduced fuel consumption. In some cases, they also come with a FADEC for simpler engine management.
As part of that process, I did some further research into the ownership experience of Williams engines. The majority of the Williams FJ44s out there are on their TAP program. However, this airplane is not:
https://www.controller.com/listings/air ... tation-siiThis is one of the 9 SII Williams conversion aircraft that I know about. Note the engines times, 1943 since new.
I contacted Williams and inquired as to the status of the engines on this airplane, what it costs to get it back on program, and what it costs to be on the program going forward, plus what it would cost to be off program.
To get this airplane back on program will cost $591,229 (given 1968 hours since new, figures Williams provided). This works out to $150/hour for each engine. This is essentially no break from the hourly price all the way back to zero time. Since part of the program is insurance for FOD or break downs, they are getting paid for risk in the past to some extent.
Also, the engines have to go through an inspection to be put back on the program. The inspection requires oil analysis, borescope of major sections of the engine, absence of certain issues (like high oil consumption), and not to have been in an accident or incident. If abnormalities are discovered in any of these steps, they have to be corrected before you can join the program, at your cost and to the liking of Williams.
Once you get past the inspection, and pay the catch up fee, then you sign a 5 year contract for hourly operation. In this case, that fee was $154/hour for 2017 if US registered and US operated. The contract allows Williams to adjust the rate on Jan 1st of each year. There is no defined maximum adjustment in the contract, they can raise the rate to anything they want. In essence, you sign the contract not knowing what more than 80% of the contract fees will be.
***If you get on the program and then stop paying or fail to renew, and then later wish to go back on, you have to pay a catch up fee all the way back to zero time.*** That's right, all the prior payments are canceled and disappear. So if the current owner had been on the program and stopped, all the money he paid in is gone. I found this highly surprising, and asked twice about this, each time having the above interpretation confirmed.
The contract requires a minimum of 150 hours per year. That is $46,200 per year just for the engine program minimum. The contract does allow 1 year out of 5 to be below the minimum without penalty. There is a way to reduce this and that is to prepay 300 hours at the start of each year. If you account has those 300 hours ahead of where you are, you don't get dinged for the minimum. For lower utilization operators, that sounds like the better path than paying the 150 hours per year even for non use. Another small advantage is that you are prepaying future hours at current year rates, so somewhat smaller numbers. Disturbingly, this option is not described in the contract, only told to me by the Williams sales person.
Note that the engines on the example airplane are near 2000 hours. If the engine is NOT on the program, then it has a 2000 hour HSI and a 4000 hour TBO (despite the fact the ad says the engine has 5000 hour TBO). If the engine is on the program, then times increase to 2500 and 5000 hours. How the engine knows to last longer if you send money is beyond me.
So this engine is near the HSI interval. I asked Williams what that would cost off program. The estimate for a clean HSI is $420,000 total for both engines. Williams is the only place that can do the HSI, and if anything is not up to snuff, they get to replace things at their discretion. You would be an idiot if you think the actual invoice will be $420,000. Given the program cost is $591,229, or only $171,229 more than an unrealistic clean HSI estimate, there is no viable option other than to go on program even if it is only JUST to pay for HSI. Of course, once on program, Williams doesn't have to do the HSI for another 500 hours when they are paying for it.
What about overhaul? The estimate for that is $1,100,000 *minimum* total cost for both engines. If off program, this is due at 4000 hours. The Williams sales person said off program HSI and OH costs a *minimum* of 30% MORE than being on program. The distinct impression if that the pricing scheme for off program HSI and OH is deliberately set to be that much higher than being on the program.
Given the above research, there are only three viable choices with regards to Williams engines.
1. Avoid
Do not get an aircraft with a Williams engine. Far more flexibility with the JT15 in who services it, good market of used engines, etc. The extra fuel cost is far less than the engine program costs.
2. Off program, airplane is disposable
The program costs are going to increase over time and you will spend the value of the airplane in fees to Williams. So simply buy the plane, don't pay the fees to Williams, and dump the plane on the market at the next engine event.
3. On program
Pay the $300+ hourly fee. When you go to market to sell the airplane, you won't get all of that money back. Don't get off program or all of your value paid in is lost!
I have attached the sample contract they provided to me. At every contract renewal, Williams can change the terms, or even elect not to provide a contract at all if they so chose. When I asked about what a customer can do if they don't like the new terms, I got the "we have the best program and everyone should be on it" answer. You really are totally at the mercy of Williams in this regard, they have your money, and they are sole source engine service, so if you don't like the deal, tough.
Mike C.