The Importance of the Initial Aircraft Reivew

The Importance of the Initial Aircraft Reivew

February 25, 2015

When selling or acquiring a private jet, there are many steps to go through before the transaction closes. One of these steps is called the Initial Aircraft and Log Book Review. This should occur towards the beginning of the sale process when the buyer reads through the aircraft log books and maintenance records to see how the aircraft has been maintained and review its history. This is not a Pre-Purchase Inspection; that happens deeper into the transaction process.

The initial review is a chance to take a good look at the paper work and also inside the aircraft at the carpet, side panels, leather etc. to see if anything needs to be replaced.

Usually your broker, maintenance manager or operator (or all together) will perform this review. Certain items they will be looking for include damage or incidents that have occurred to the aircraft, proper maintenance records, any STC or 337 modifications, avionics installed, and any other item that seems out of the ordinary in the records and log books. They will be looking for any big red-flag items that the buyer needs to be aware of such as corrosion, equipment or condition that is not as advertised, and major maintenance inspections coming due. The Initial Review also provides a chance to discuss the aircraft with the current engineers who have been maintaining it.

Seventy percent of major deal killers can be found during the Initial Review, which is why it is so important.

It is much cheaper and easier to walk away from an aircraft at this phase of the transaction than in the later stages when a full Pre-Purchase Inspection is underway.

All of these factors affect the future ownership and expectations of the aircraft and are good to be aware of from the onset before moving further with the transaction. The Initial Aircraft and Log Book Review will help the buyer understand the aircraft they are considering and to what extent their Pre-Purchase Inspection needs to encompass based on the actual maintenance status. This review is important in order to determine your course of action before having invested too much money into the transaction process.


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