Paperwork is often the last item done when conducting an aircraft sales transaction – and sometimes almost as an afterthought. In some cases, it isn’t the most important thing. Your expense account might not need it done immediately, but if you want your money back, you must get it done. However, with an aircraft they are critical.
Here are a few things you should keep in mind when crossing the t’s and dotting I’s of your aircraft records.
When it comes to such recordkeeping, paperwork should be high on every flight department’s priority list. This is not only for the legal proof the aircraft is legal to fly, but just as important, for the history of the aircraft being in airworthy condition.
During the buy-and-sell side, we often see issues with records that pop up during the pre-buy inspection. Many times, these missing pieces of documentation lead to delays, and it can even tank the purchase.
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On our initial review of records, we have passed on several aircraft due to the condition of the records. Inconsistent log entries, missing 8130s, CAMP or other tracking services not reflecting the logbook entries – these are just a few red flags we see. A red flag or two is not a deal breaker. However multiple red flags add up to questions on just how good the maintenance has been on the aircraft.
This advice applies to those with a director of maintenance as well as those pilots who are managing aircraft on their own.
It might not be the most fun job in the world, but make sure log entries are correct and properly entered into your maintenance tracking system. Data entry errors for the tracking system happen and they are easier to correct at the time they happen rather than several years later. Keep track of all the paperwork, STCs, 8130s, all of it. Place them either in a folder within the logbook or in a separate binder by year in sequential order for ease of reference.
To some, this might seem very elementary, but we have seen large flight departments where their records are not as impeccable as what they think of their first-class operations. One thing we see often is mistakes in the work and entries by the MRO. This includes the OEMs as well. Putting too much trust in your service provider to get the details right, and for you to leave with all the paperwork, is much too trusting of someone else’s work.
Recently, we purchased a plane that was excellently maintained.
However, they trusted their OEM far too much to get the paperwork right. Most of the items were just missing paperwork or incorrect maintenance tracking entries. However, there were a few that required the work or part to be replaced at the seller’s expense. The work was done, but the documentation was missing stating the work and part had been replaced.
Another example was a few years back doing research for an appraisal. We saw on a pre-buy where the nose gear for a Gulfstream had to be replaced due to missing paperwork stating it had been overhauled.
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It ended up the MRO had not done the paperwork for the overhaul, and they did the right thing and made it right. At the time that was around a $150-$200K cost that would have been hard to explain to your management team. They had proof in an invoice they had paid for the overhaul and luckily, they had that piece of paper or it would have been on them.
We advise our clients before they sell their planes to review their paperwork. Often, it is a good idea to hire a third-party person who is good with records to go through a review. It is much easier to track any items missing before you get into the heat of a pre-buy inspection with time constraints. These reviews are not expensive and are valuable insurance for a smooth transaction.
The bottom line is that good records add value to your plane. The best-maintained plane with poor records is not really the best-maintained plane.
