Results 1 to 4 of 4
  1. Username Protected
    Member

    Posts
    2 Posts
    Thanked 0 times
    Aircraft Broker
    Join Date
    Joined Mar 2023
       #1  

    Question Hours:Cycles Ratio <1.0 on ESP Program

    We are in the process or trying to acquire a Phenom 100 for a client. There are a few options on the market that have more cycles than they do hours. I know that EEC charges a sliding scale if the ratio drops below a certain amount, but I've heard through the grapevine that Pratt charges an additional fee or something associated with this ratio being less than 1.0 per segment, but can't get any firm information on what it looks like. Does anybody have any experience with this? We have reached out to our PWC rep and they have been very slow to respond in the last few weeks.

    Thanks in advance!
  2. Username Protected
    Frequent Poster

    Posts
    79 Posts
    Thanked 34 times
    Phenom Pro Pilot
    Join Date
    Joined Oct 2020
    #2  
    I checked our contract and I don’t see anything that says there will be an automatic escalation of the hourly rate if it drops below a certain average within a quarter like you’ll get with EEC. The contract signature page is where you’ll find the “Hourly Rate Validity Criteria” specified. Ours states 0.1 to 1.0 engine cycles per operating hour. We have some quarters where we drop to 0.8-0.9 per cycle, but have never had a rate escalation other than the typical annual increase in January.
  3. Username Protected
    Frequent Poster

    Posts
    106 Posts
    Thanked 44 times
    Phenom 100 Owner & Pilot
    Join Date
    Joined Feb 2021
    #3  
    And to add on to that I believe EEC is done monthly as last month we were doing shorter flights and our rate went to 1.2 vs our normal .9.

    (Username Protected)-
  4. Username Protected
    Member

    Posts
    2 Posts
    Thanked 0 times
    Aircraft Broker
    Join Date
    Joined Mar 2023
       #4  
    In case anyone refers to this thread later, here was the answer I finally got from a different PWC rep after he did a little bit of digging....

    The cycles that the aircraft currently has wouldn’t be impacted at transfer. It would only be at new enrollment (meaning aircraft wasn’t on ESP and then goes on) or based on what the new operator fly’s over a rolling 12 month period. In essence, we should have already been charging the previous owner the higher cycle rate although that likely isn’t the case either.

    Sounds like during/after COVID they stopped charging a premium for high cycle airplanes, and they still haven't really gotten back around to enforcing it.?

Tags for this Thread

Posting Permissions