The Pre-Purchase Inspection (often simply called the PPI), a standard item in an aircraft transaction, is the inspection where the buyer conducts a technical survey to make sure they are comfortable with the aircraft’s condition, history and upcoming maintenance. It is a key point of the sale and typically sets the tone for the entire deal. In our experience, no transaction has the same Pre-Purchase Inspection. The maintenance tasks included in the PPI are negotiable, and the timing can vary from a two day records review and engine run to a full blown multi-month inspection. The implications of the Pre-Purchase Inspection can be huge, affecting costs, final price realized and the total time of the transaction.
It is very tempting to view the inspection as a cursory event, but the results have a direct consequence on the transaction, both with regards to timing and costs. Typically, the purchaser will want to review the very expensive items in an effort to avoid costly part replacements in the near term future (i.e. landing gear, engines, windshields). Aviation suffers from a substantial amount of ‘group think’ mentality which is particularly true with regards to the pre-purchase inspection workscope. We frequently see the same work requests in each Pre-Purchase Inspection typically based upon recommendations from service facilities. A consequence of this is that the same “hot spots” are looked at in a large number of aircraft often leading to spare part shortages. For example, a common request during a PPI for a Citation Jet is to check the landing gear for corrosion. Frequently, corrosion is discovered and the gear is condemned and needs to be replaced. The landing gear on the Citation Jet series aircraft can sometimes have a delay of up to 6 weeks while a replacement landing gear is located. Because multiple Citation Jet aircraft undergo pre-purchase inspections, the demand for these parts can exceed the available supply. You can find that your aircraft transaction is put on hold for a period of weeks to months while you await the replacement parts. The resulting effect of this can be tremendous, as delays can place you outside the obligations of the purchase/sale contract, or a buyer can reject the aircraft based upon the delay. This leads to a grounded aircraft which cannot fly, regardless of the status of the transaction, until the new parts are found and replaced. The seller would have to pay for the part replacements to return the aircraft to service even though the buyer may have walked away.
As a buyer, the tendency is to ask for everything to be looked at in your Pre-Purchase Inspection. This is not a reasonable request as the Seller will be reluctant to incur that sort of exposure when a sale is not guaranteed. Be prepared that a seller may not accept every item you want in the PPI. Most importantly, remember that airplanes are incredibly complex machines, and there will be items to repair. Do not approach the PPI with the expectation of perfection. Just because some parts need to be repaired or replaced during a PPI does not mean it is a bad airplane.
In that same vein, for sellers, just because your aircraft is up to date with inspections and goes through regular maintenance does not mean you will be “squawk free” during the PPI. There will always be defects. This inspection is a part of the sale process, and the buyer wants to know what they are buying. Before the PPI starts, take a look at the workscope and talk to your broker, maintenance provider and inspection facility to find out if any of the proposed items may pose a problem with regard to timing and parts availability. Knowing up front what expenses or time commitments you may experience is always more beneficial than after your options have been limited because your aircraft is down for the inspection.
Blogs are written from real world experience by Colibri Aircraft’s individuals. If you have any questions or comments about the topic of this blog, please feel free to contact our team at enquiries@colibriaircraft.com
