03 Dec 2025, 18:17 [ UTC - 5; DST ]
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 20:08 |
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Joined: 05/23/13 Posts: 8637 Post Likes: +11204 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: You guys are comical! I like you chip but I spend my own money on these hots and am ATP type rated and fly every single airplane post engine work and know every single part number going into the engines by memory. I know a good engine from bad and have had great experiences doing what I’m doing. All shops are using the same repair providers not really sure why the name of the shop matters in reassembly.
Mike, I like you to… but DOF means “Designated Overhaul Facility” and its not a perception.
_________________ Recent acquisitions - 2019 King Air 350i - 2025 Citation M2Gen2 - 2015 Citation CJ3+
Last edited on 28 Oct 2021, 20:15, edited 1 time in total.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 20:26 |
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Joined: 05/23/13 Posts: 8637 Post Likes: +11204 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: There is absolutely no difference in a Dallas or Pratt or Standard hot section and a competent engine mechanic doing it in the field…except the price. I’ve seen similar failures and successes from all of them. There are several good independent JT15D overhaul shops and a few bad ones.
JT15Ds have lots of options. I’ve figured most of them out by trying what does and doesn’t work. Michael, That is not true. Resale value is absolutely effected if you do not use a DOFF shop to do overhauls.
To be fair, yes… there are a lot of great small shops who do excellent work. But, we can only use them on lower end airplanes because of the effect on resale value. We can’t allow the excusable sins committed in a seller’s market to dominate our decision making because when this market cools, and it will, saving $150k on a set of overhauls is going to be painful.
_________________ Recent acquisitions - 2019 King Air 350i - 2025 Citation M2Gen2 - 2015 Citation CJ3+
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 20:33 |
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Joined: 05/05/09 Posts: 5311 Post Likes: +5299
Aircraft: C501, R66, A36
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Username Protected wrote: For clarification, what type of aircraft?
A 501? A 550?
Who cares who did the overhauls.
A Citation V like Mike’s, an Ultra… needs to be DOF overhauls. I own a 560 also (actually on program) but I’ve had great luck with ITI and hit or miss luck with Hale on engine work and amazing luck with my hot section guy. I also have a plethora of log book evidence showing Pratt and vector/standard and Dallas don’t have any better luck guaranteeing their overhauls perform or last any longer than anyone’s else’s. That’s a myth. I’ve personally owned 50 plus legacy Citations. I invest wisely in engine work because it’s my own money and I fly what I invest in.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 20:58 |
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Joined: 12/03/14 Posts: 20785 Post Likes: +26301 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: Call Mike Borden at High Performance Aircraft 858-442-5000 ask him about the 560 he bailed me out of 8 years ago. Hale overhauls. For every story like that, we can find one that is a Pratt or Dallas overhaul. Most of the time, it is a part that gave out, not the labor to put them in. It is all perceived value, which means there will be buyers who pay more for it. I'm not one of those, and neither will be the guy who buys my airplane 10 to 15 years from now. At that time, Pratt overhauls with FSC maintenance will be worth very little on a 40 year old airframe. All I want is a plane that works, not one which has wasted money spent on virtual value. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 21:05 |
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Joined: 12/03/14 Posts: 20785 Post Likes: +26301 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: A Citation V like Mike’s, an Ultra… needs to be DOF overhauls. No it doesn't. When I reach TBO, it gets a HSI and keeps flying. No overhaul. I guarantee that if I do a DOF overhaul, I will not get my money back on sale. There just isn't any room for such a change in valuation. By the time I sell in 10-15 years, a pair of DOF overhauls will be $1.5M. The entire plane won't be worth that with fresh engines. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 21:19 |
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Joined: 05/23/13 Posts: 8637 Post Likes: +11204 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: A Citation V like Mike’s, an Ultra… needs to be DOF overhauls. No it doesn't. When I reach TBO, it gets a HSI and keeps flying. No overhaul. I guarantee that if I do a DOF overhaul, I will not get my money back on sale. There just isn't any room for such a change in valuation. By the time I sell in 10-15 years, a pair of DOF overhauls will be $1.5M. The entire plane won't be worth that with fresh engines. Mike C.
Mike… there might be 10% difference… 20% at the most between a DOF shop and a no name overhaul…
Your math doesn’t work.
_________________ Recent acquisitions - 2019 King Air 350i - 2025 Citation M2Gen2 - 2015 Citation CJ3+
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 21:23 |
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Joined: 05/05/09 Posts: 5311 Post Likes: +5299
Aircraft: C501, R66, A36
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You said DOFF. I understand DOF. No one gives a crap who overhauled or did the hot section on legacy (all of them) citations. It passes a Boroscope, it makes performance numbers. That’s it .
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 22:40 |
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Joined: 12/03/14 Posts: 20785 Post Likes: +26301 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: Mike… there might be 10% difference… 20% at the most between a DOF shop and a no name overhaul… You say a lot of things, without any evidence, that contradict my research. I spoke with a lot of overhaul shops and they don't agree with you, either. Until you start to provide hard specifics, I don't find your guidance very credible. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 23:08 |
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Joined: 05/17/10 Posts: 4020 Post Likes: +2048 Location: canuck
Aircraft: x23mouse
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Looks like showtime Username Protected wrote: I know people probably assume the opposite, but we actually agree on all of this. viewtopic.php?p=2973350#p2973350
_________________ nightwatch...
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 28 Oct 2021, 23:30 |
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Joined: 05/17/10 Posts: 4020 Post Likes: +2048 Location: canuck
Aircraft: x23mouse
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Haven't been paying close attention but i'm not getting the not much diff here. It seems to me that the way Williams operates alone speaks volumes about major diffs. Username Protected wrote: The only difference between Williams and the other guys is that Williams is the only option and with the other engines you have more, but still very limited options.
_________________ nightwatch...
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 29 Oct 2021, 03:16 |
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Joined: 05/23/13 Posts: 8637 Post Likes: +11204 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: Mike… there might be 10% difference… 20% at the most between a DOF shop and a no name overhaul… You say a lot of things, without any evidence, that contradict my research. I spoke with a lot of overhaul shops and they don't agree with you, either. Until you start to provide hard specifics, I don't find your guidance very credible. Mike C.
Well, I’m not going to win an argument with you because I’ve only been involved with one set of non-DOF overhauls and we saved about 10% and couldn’t sell the airplane. That’s what I was referring to when I said Mike Borden bailed us out.
My life for the last twenty years has been dealing with aircraft values, first working for stocking aircraft dealers where we purchased and resold airplanes and for the last seven years representing buyers. I look at everything from a value / resale perspective.
You look at everything from a research / direct expense perspective.
A good example is your assertion regarding what you will or won’t do with your airplane in 10 - 15 years… I’m looking at today’s market and today’s math.
If an owner doesn’t want to do overhauls on a $1.5M Citation, today… fine.
If you do, better do DOF overhauls, as I said this crazy market won’t last forever and an airplane with NBF motors will sell after the airplane with Standard Aero or Pratt motors. If there’s 20 comparable aircraft for sale, that means 19 might sell before yours. If you need to get rid of your airplane, that’s a problem.
This market causes people to make bad decisions. I can’t argue with the logic of not doing overhauls. I can argue with the logic of non-DOF overhauls. If you compare apples to apples the savings isn’t enough to justify the hit on resale.
_________________ Recent acquisitions - 2019 King Air 350i - 2025 Citation M2Gen2 - 2015 Citation CJ3+
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 29 Oct 2021, 08:07 |
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Joined: 05/23/13 Posts: 8637 Post Likes: +11204 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: You said DOFF. I understand DOF. No one gives a crap who overhauled or did the hot section on legacy (all of them) citations. It passes a Boroscope, it makes performance numbers. That’s it . Ohh, sorry. Fat thumbs! You are correct if you’re referring to 501’s and Citation II’s, obviously with Bravo, Encore and above it’s only Pratt and Standard (Dallas) that can do them. The Citation V and Ultra are the ones on the bubble. I think it is solid advice to do DOF overhauls on anything nice, with first or second run engines. The problem with overhauls is that anyone can quote anything they want. Just so anyone reading this knows, one major difference between a DOF and a regular shop is the parts they are allowed to use. The Designated Overhaul Facility will only install Pratt components. This is why it effects resale. If I buy an airplane with StandardAero motors, I know what went into the engines. If its NBF engines, I have to have an engine guy go over the workorders and see exactly what was installed. PMA parts, components that might not have cycles to make the next overhaul, etc.
_________________ Recent acquisitions - 2019 King Air 350i - 2025 Citation M2Gen2 - 2015 Citation CJ3+
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 29 Oct 2021, 09:17 |
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Joined: 12/03/14 Posts: 20785 Post Likes: +26301 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: The Citation V and Ultra are the ones on the bubble. I think it is solid advice to do DOF overhauls on anything nice, with first or second run engines. There are basically no Citation Vs with first run engines any more and precious few with second run. Ultra would have more. By the time I would sell, 10 to 15 years from now, they won't be on the bubble. You can't plan based on today's situation, but on the future. Quote: PMA parts, components that might not have cycles to make the next overhaul, etc. This is an important distinction and where MAJOR savings can occur just from "policy". My impellers are 3030939, list price $347,000 each. These are the 12,000 cycle impellers versus the 9,000 cycle ones the engines originally came with. If I bought a lower time airplane, say 6,000 hours, I would still have the original impellers and at ~7,000 hours, when due for second overhaul, the 2,000 cycles left are not enough to make the TBO cycle, so new impellers would be needed at a total outlay of about $700,000 EXTRA at overhaul. The fact that I bought a plane with HIGHER time meant I had BETTER engine parts! Counter intuitive, no? Now I have ~9,500 cycles left on those expensive impellers. I was looking at an airplane where, at engine overhaul time, the impellers would have about 3600 cycles left. Both Pratt and Dallas said no go, they require 4,000 cycles left on the impellers before they would reuse them in an overhaul, company policy. They also would not let me find used impellers on the open market. So I would be spending $700,000 extra to throw away 3,600 cycle life remaining impellers if I choose their shop. Meanwhile an independent shop would happily reuse those impellers, still an official Pratt part, and leave me with an engine that had 3600 cycles on them and 0 SMOH. My typical use is a little over 1 hour per cycle, which means I will time out slightly before I cycle out. Perfect! In just that ONE instance, the policy of the premium shops would have cost me $700,000 more than the independent shops. That ain't no 10%, Chip. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 29 Oct 2021, 10:03 |
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Joined: 05/23/13 Posts: 8637 Post Likes: +11204 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: The Citation V and Ultra are the ones on the bubble. I think it is solid advice to do DOF overhauls on anything nice, with first or second run engines. There are basically no Citation Vs with first run engines any more and precious few with second run. Ultra would have more. By the time I would sell, 10 to 15 years from now, they won't be on the bubble. You can't plan based on today's situation, but on the future. Quote: PMA parts, components that might not have cycles to make the next overhaul, etc. This is an important distinction and where MAJOR savings can occur just from "policy". My impellers are 3030939, list price $347,000 each. These are the 12,000 cycle impellers versus the 9,000 cycle ones the engines originally came with. If I bought a lower time airplane, say 6,000 hours, I would still have the original impellers and at ~7,000 hours, when due for second overhaul, the 2,000 cycles left are not enough to make the TBO cycle, so new impellers would be needed at a total outlay of about $700,000 EXTRA at overhaul. The fact that I bought a plane with HIGHER time meant I had BETTER engine parts! Counter intuitive, no? Now I have ~9,500 cycles left on those expensive impellers. I was looking at an airplane where, at engine overhaul time, the impellers would have about 3600 cycles left. Both Pratt and Dallas said no go, they require 4,000 cycles left on the impellers before they would reuse them in an overhaul, company policy. They also would not let me find used impellers on the open market. So I would be spending $700,000 extra to throw away 3,600 cycle life remaining impellers if I choose their shop. Meanwhile an independent shop would happily reuse those impellers, still an official Pratt part, and leave me with an engine that had 3600 cycles on them and 0 SMOH. My typical use is a little over 1 hour per cycle, which means I will time out slightly before I cycle out. Perfect! In just that ONE instance, the policy of the premium shops would have cost me $700,000 more than the independent shops. That ain't no 10%, Chip. Mike C.
StandardAero will source used Pratt parts, they did it for the last set of engines we had overhauled there.
_________________ Recent acquisitions - 2019 King Air 350i - 2025 Citation M2Gen2 - 2015 Citation CJ3+
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