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Self insuring versus third party insurance

I did a cost comparison of my overhaul cost (adjusting for cost-of-money) versus Pratt and Whitney's ESP (power by the hour) program. The ESP Gold rate (includes life limited components and engine removal and re-installation) for my engine is about $155 per hour (that is the 2012 PT6A-67P rate - could not find the 67B rate). To do the analysis completely correctly, I would need to find either a 2008 (when I bought the plane) or 2004 (when the plane was new) ESP rate, but I could not find a rate sheet that old. Perhaps use $130 per hour as a ballpark estimate for a 2004-2008 ESP rate? Not sure if that ESP rates cover "upgrades" like replacing the PT2 turbine early and the new rather than overhaul FCU or not. Also not sure if it covers overhaul related items (engine mounts, oil cooler overhaul, etc.). Assuming it covers all of that (which I doubt), my cost including a 4% return on my money is about $93 per hour assuming 290 hours per year (12 years until overhaul).  ...

Getting started

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Here is the update on my PT6A-67B overhaul. Engine arrived at the overhaul facility on May 18 and disassembly began. As of June 13, this is my engine in bits-and-pieces! Some of the pieces after being cleaned, inspected and repaired as needed... After the full tear down and analysis, I received a 10 page "engine condition report" detailing the condition of every major part of the engine and recommended repairs or replacements. Here is a sample of the report to give a sense of the information provided. Basically, they provide photos of anything needing replacement rather than repair. They said the engine was very clean and showed no evidence of operational mishandling. I was sure I had handled it properly, but I bought it with 1,200 hours so I could not be certain about the prior owner. The only somewhat unusual item needing replacement were 10 compressor turbine ("CT") blades (out of a total of about 45) that showed some e...

Removing the engine

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The surgery started today. The SC pilot picked up the plane in Austin yesterday afternoon and flew it to Thunder Bay (Canada). By 10a this morning the engine was almost off...  By early afternoon it was off completely and ready to be crated for shipment. Engine gets trucked to the overhaul shop tomorrow morning (or maybe this afternoon) which starts the 40 day clock running for completing the overhaul process. Re-installation and testing takes another 2-3 days. Fingers crossed they don't find anything unexpected.

Conservative life limits

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One more thing I have learned about Pratt's overhaul interval philosophy...they treat a part on a single engine plane a  lot  different than the same part installed on a twin.   Note these overhaul intervals for the second stage power turbine (PT2) for the 67A (King Air) and the 67B (PC-12). Same horsepower and same engine for all intents and purposes (except no back-up fuel control on the 67A). Same part number, but PT2 blades have a 12,000 hr TBO on the twin and 5,000 on the single. Plus, it is the part Pratt is offering a "campaign" to encourage me to replace at 3,500 hrs. They also require a lot more test stand time for engines going on singles as opposed to twins.  I like the conservatism this shows, even if it does increase cost (about $9/hr). 

Campaigns

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I will report one thing I have already learned...Pratt "campaigns."  From time-to-time Pratt offers discounts (they call them "campaigns" for some reason) to encourage owners to either replace certain parts earlier than required or replace parts with an upgraded version during the overhaul process.  In my case, Pratt is offering a campaign to replace my PT 2 (power turbine 2nd stage) blades with this overhaul at 3,500 hours rather than waiting until 5,000 hours when it is required in order to remain airworthy.  The PT 2 blades are highlighted below... They are offering about a 50% discount off the normal low-low price of [number which cannot be mentioned].  If my PT 2 blades pass inspection, it is not required that I change them now, but evidently Pratt has seen enough data on premature cracks that they want to encourage folks to go ahead and replace them (same part number) at 3,500 hrs rather than 5,000 hrs. While not technically a "campagin,...

Signing up

I just signed on the dotted line to get my PT6A-67B engine overhauled. Levaero Aviation (a Pilatus SC in Thunder Bay, Canada) will come pick-up my trusty bird on May 15 and, assuming no major unexpected problems, deliver it back to me on July 5. Standard Aero in Winnipeg will do the actual engine overhaul while Levareo handles the engine R&R, does an annual inspection, and handles the prop overhaul (the prop overhaul also happens to be due).  I am getting an exchange prop from the factory in Germany rather than doing the actual overhaul of my prop.  Being a first run engine and having taken good care of it (trend data has been rock solid for eight years), while I expect some surprises during the overhaul, I am hoping for nothing major.  But, we shall see. Levaero could have installed a loaner engine for a relatively modest cost, but we will be out of the country during that period anyway so I plan to use the opportunity to get a tail-wheel endorsement and do som...