Jet Support Services Inc. (JSSI) is the largest independent provider of maintenance support and financial tools to the business aviation industry. Its Hourly Cost Maintenance (HCM) Programs provide flexible options for virtually any make and model of business aircraft, designed to stabilize maintenance budgets, maximize aircraft availability, and enhance residual value.
David Caporali, vice president of business development for Latin America at JSSI, offers his insight into JSSI’s HCM program.
Caporali shares a few key benefits to having an HCM Program with JSSI:
- Provides budget stability for maintenance;
- Helps maximize aircraft availability; and
- Enhances the residual value of the aircraft at the time of sale
Caporali describes JSSI’s maintenance programs in its simplest form as a comprehensive piggy bank – setting funds aside for future maintenance events. This is especially important for engines, where major events are very expensive. In addition, as an HCM program client, you gain a partner in managing those maintenance events in a cost effective and timely manner through technical expertise and event oversight, including securing (MRO) slots, bringing in required parts, and ensuring the aircraft can return to service.
Maintenance programs protect the aircraft owner from both expensive scheduled events (i.e., engine overhauls) and the unscheduled ‘surprise’ events and AOG (‘aircraft on ground’) situations that can easily disrupt a maintenance budget. In addition, aircraft with an HCM program sell at a higher price than those without one, as the coverage transfers to the next owner.
Caporali stresses the difference between an HCM Program and aircraft warranty – warranties will help you in the event of an unexpected engine failure, and only covers you through the warranty term which is typically five years. HCM Programs are complimentary to your warranty and can actively accrue funds for large maintenance events down the road. HCM programs provides cost predictability to owners and operators, limits exposure to unexpected costs, and eliminates the risk of high expenses due to premature failures. Thus, the program adds complimentary coverage to the warranty.
Additionally, maintenance programs help maintain the residual value of the aircraft (resale value = asset value + program value – see example above). Buyers of preowned aircraft are becoming increasingly knowledgeable about the variability of maintenance costs from one engine to another and are often less inclined to take those risks. Similarly, the adoption of programs among private operators of new medium and large-sized business aircrafts is on a strong upward trend, and over 80 percent of such new aircrafts delivered in the last five years are on programs today.
One piece of advice Caporali has for every airplane owner? Explore your program options and educate yourself before you buy. There are a lot of complexities to aircraft maintenance – especially for large cabin and mid-sized aircrafts. The costs of events can vary widely, emphasizing the importance of technical expertise, support, and event oversight.
Aircraft are assets that require substantial investments in both acquisition and operational aspects, making it extremely important to find the right team to take care of the asset. Maintenance programs are designed to support the work of the in-house maintenance and management team. Operators who invest in a program with the right coverage and technical support enjoy increased availability and safety while maximizing the residual value of their jet.
Caporali recommends always seeking specialized advice when choosing an engine maintenance program. With so many factors to account for (ie., aircraft type, condition, cycles), working with a program provider can help determine which aspects are most important to the operator and should be included in a plan. A program provider should be able to demonstrate how their specific program generates value for an individual user and help find the most suitable program with the right coverage.
JSSI is the only single-source provider to offer Tip-to-Tail® protection for your aircraft. Covering all-OEM airframes, engines, APUs, and avionics systems, JSSI’s HCM programs offers flexibility for virtually all aircrafts, making the program exactly what you need it to be.
