Here’s what you need to know about these critical aircraft insurance plans
Anyone who owns an airframe can tell you it’s a major financial responsibility. Jet owners need a comprehensive lifecycle plan to ensure their investment makes economic sense and their craft remains safe to operate.
A key part of these lifecycle plans is ensuring the craft’s engines receive routine maintenance and are covered in case of unexpected
damage. This is why engine programs are essential for every aircraft.
The jet maintenance experts at GMX routinely perform engine overhauls and inspections. We can tell you from experience that not having your craft on an engine program is all but guaranteed to be a catastrophic financial mistake.
Here’s an overview of engine programs and how they work. Contact us anytime to learn more about keeping your craft and its financial plan in the best possible shape.
What Are Engine Programs?
Engine programs are essentially an insurance plan for your craft’s most critical component. These plans cover the cost of engine repairs, overhauls, replacement parts, labor, inspections, and scheduled maintenance.
The original equipment manufacturer administers some of these plans. We often interface with Rolls Royce CorporateCare because we specialize in servicing its BR710 engines on Gulfstream aircraft. Third-party providers also offer engine programs. Jet Support Services, Inc. and Engine Assurance Program are two of the most common third-party plans we see.
How Do You Enroll in an Engine Program?
We always suggest to prospective jet buyers to ensure the craft comes with a transferable engine program. Not all programs are transferable between owners and plan providers will require a significant buy-in fee if there’s been a coverage gap. This fee will be at least equal to the sum of payments that would have been made during the gap.
In that case, the owner must submit comprehensive data about the engines, including the number of cycles, flight hours, and their maintenance history, before the plan provider can offer a quote. For heavy jets, this figure may reach millions of dollars per engine.
How Much Do Engine Programs Cost?
The cost of these programs depends on how often your craft is in the air. A jet owner pays into an engine program every month on a fixed 
rate per flight hour. You might hear the phrase “power by the hour” to describe these fees.
The hourly rate depends on the aircraft and engine models, the age and condition of the engines. The rates vary between providers, but often total multiple hundreds of dollars per flight hour per engine.
Third-party engine program providers offer a wide range of customizable programs. They may present options for maintenance coverage beyond the engines (“tip to tail” programs) and the ability to transfer the equity paid into the program to another aircraft. As you might expect, these options come with additional costs.
What Are the Benefits of Engine Programs?
Ensuring engines receive scheduled maintenance is critical to the safe operation of your aircraft. Jet maintenance is a costly affair, so having a robust engine program in place makes your operating costs more predictable. The cost of an unexpected engine overhaul can be millions of dollars — or enough to completely turn the value of your investment underwater.
The value of an aircraft is significantly diminished without an engine program, which is critical if your lifecycle plan for the craft ends in resale. The only alternative to an engine program is paying out of pocket for maintenance as you go. And if you have that kind of money, there’s no reason not to be on an engine program in the first place.
Contact Global MX with All Your Engine Maintenance Questions
Our goal at GMX is to make every aircraft owner feel confident in the safety and viability of their craft. Contact our experts anytime with all your engine maintenance and aircraft life cycle questions.