Can Maintenance Plans Save You Money?

Among the decisions you’ll need to make when you buy that new or used business jet is whether to sign up for a maintenance plan, sometimes referred to as “power by the hour” or maintenance agreements. Most aircraft, engine, and avionics OEMs offer some kind of maintenance plan, but there are also independent companies that provide competitive services.

The point of a maintenance plan is to help smooth the costs of the inevitable work that must be done to keep your aircraft healthy and, importantly, available for you to fly. An unexpected engine overhaul could cost from hundreds of thousands to millions of dollars and involve a significant amount of downtime. 

Maintenance plans are usually billed by the flight hour and are contractual agreements. By paying these costs upfront, you avoid the surprise bill that might come later. And many of these agreements cover rental engines, for example, so you can keep flying while your engine is serviced. There are other advantages, such as quicker access to hard-to-find parts and a team of product support people who are dedicated to your aircraft.

JSSI is the largest of the non-OEM providers of maintenance plans, and it offers engine-only plans as well as “tip to tail” coverage for the entire aircraft. This helps owners who don’t want to sign up for an engine plan with one OEM, an airframe plan with another, and an avionics plan with yet another company. Another prominent provider is EAP, which only covers engines. Both JSSI and EAP stock parts and employ experts who can help get your airplane back in the air quickly, sometimes even faster than the OEM, which has many varied commitments that it must fulfill.

Do maintenance plans save money? They can, but not necessarily. Not having coverage involves a certain amount of risk, and coverage is transferable to the next buyer, which helps preserve the value of your aircraft. In any case, the money you pay by the hour is held in safe escrow accounts, so you don’t have to worry about your provider being able to pay for a big event when needed.