Then came subscribing to a service that updated your information on their computer, sending you forms thru mail regarding component changes, inspections, services, etc.

You filled them out (complied with) and returned them to the service provider and next month you received a new set with new criteria and maintenance requirements.

As personal computers and Windows blasted into almost all businesses, it made sense someone would try to put airworthiness and maintenance requirements in a program on their personal computer.

Jump forward 30 years and let’s look at the industry today. We have sophisticated computing and reporting equipment that should all but eliminate the worry of missing, avoiding, forgetting, or somehow not complying with any issue on an aircraft – but it doesn’t.

Many examples of shoddy paperwork have surfaced over the years – some resulting in catastrophes which could and should have been avoided. What amazes me in this day and age are the number of operations with computers using spreadsheets to do the job.

I love spreadsheets but when it comes to forecasting aircraft maintenance requirements, spreadsheets are inadequate – it’s just the nature of the beast.

One of the most under appreciated, under valued programs you get with Microsoft Office PRO is Access – a database management system.

Here you have a program paid for that most people never venture near say perchance a smart secretary creating the boss’s holiday card mailing lists in Microsoft Access.

Microsoft Access – a database that out of the box is the perfect cost effective solution to a multifaceted challenge tracking and forecasting aircraft maintenance.

Why would you want to use anything else? First of all the problem associated with forecasting and tracking aircraft maintenance is based on several criteria, for example – Time Between Overhaul, Time Since Overhaul, Time Since New,and Life Limit.

Looking at this closely, you need to trigger events in a database that if complied with will maintain and continually exceed your airworthiness requirements.

Now imagine capturing all the cost associated with running an operation simply with daily use of a good program operated by good people resulting in historical data used to easily forecast budgets… and any heavy maintenance?

I don’t sell Microsoft products however Microsoft Access is a very stable and cost effective solution to tracking any number of aircraft and maintenance requirements.

By the way, export data from your daily aircraft maintenance operations for use in Excel, PowerPoint, Word, Visio, and more… how easy is that? You already have one or more of the programs I listed right?

Hats off to all that actively use a database to track aircraft maintenance; the industry is better off for it.

As someone responsive to the needs for superb aircraft records for 30 years, I welcome your comments and questions.

No time like the present to take stock of items in your warehouse with shelf life.  Perhaps you do this during your annual inventory stock take but regardless, if you don’t have a system for ensuring this is done on a regular basis, let this be a reminder.

Problems encountered with shelf life are at times due to the complex part numbering and let’s take o-rings and life jackets for example where it is easy to miss assigning and tracking shelf life.

O-RINGS:

We have the part number, the part specification, maybe a previous part number, and material specification.  Then for a material specification you are confronted with knowing the exact specification, polymer and maximum storage life.

LIFE JACKETS:

Buy a new set for backup – easy to track all of them.  Need to take one out of the set for a replacement, now what do you do?  You need to have a system where you can track down to the item level and not loose track of any item.

For both o-rings and life jackets, usually a batch number will keep things straight but when in doubt, assign a unique identification to the item.  How you do this is up to the item and your ability to perform the task.

Don’t forget to add or update the data in your tracking program – a spreadsheet or better yet a database.

Keep your stock rotating – remember first in / first out for your shelf life items.

When setting a selling purchase price for something it is prudent to gather as much valuable information as is possible on each variable that may affect the valuation of an aircraft. Of course, this is important whether on the personal or the corporate level. Costly mistakes can be avoided through the use of a professional aircraft appraiser.

Improper valuations of aircraft by parties who are not qualified to make them, or by those who have their own agenda in pricing the subject aircraft, lead to trouble for the unsuspecting.  High values are far more common than low values.  No matter whether you are leasing, buying, selling, or are a banker, Leasing company, or insurance company executive, you have a major stake in ensuring that the amount paid for the aircraft is reasonable.  And how do you know what is reasonable unless an independent, objective, third party examines the aircraft and its records to verify that it is what is expected?

• For the Financial Institution or Risk Mitigation Agency - The Appraisal documents the value and general condition of the aircraft. The appraisal also supports the bank’s collateral position in the aircraft loan by verifying that the aircraft is what it is said to be.  Any Banker who does self-evaluations without any manner of verifying the collateral exists, or that the aircraft is equipped as represented, is putting his bank at risk for a major loss should the client default.  There is absolutely no reason to accept a risk of that magnitude when an appraiser can detail the value and general condition of the aircraft for you.
• For the Buyer or Lessee - The appraisal is an impartial, professional opinion as to the value of the particular aircraft being purchased/leased. But it is much more than that.  It is a thorough description and inventory of the aircraft that verifies the major selling points for the buyer and financing entity.  Further, the appraisal can assist in expediting the sale of the aircraft because the buyer and seller know the fair market value and relative condition of the aircraft through the independent appraisal.  .
• For the Seller or Lessor - The appraisal offers the confidence of knowing the general condition and current fair market value of the aircraft being sold/leased as seen through the eyes of an independent third party. The Appraisal is a great selling tool because it gives a potential buyer a solid “feel” for the aircraft in the words of the objective evaluator.  After reading the appraiser’s report the potential buyer will have more confidence in the condition and appearance of that airplane than he would another airplane where all that is available is the owner’s description.

An Aircraft Appraisal is an impartial opinion of the value of an aircraft, prepared by experts who know all the factors which make up the current behavior of the used aircraft market. It is an opinion of value based upon experience and repeated analysis of these factors.  It is an opinion of value which can be substantiated and justified. It is an opinion of value made by a professional aircraft appraiser.

An aircraft appraiser must acquire all the facts about the aircraft in question. The appraiser thoroughly examines the aircraft log books, inspects the exterior and interior surfaces of the aircraft, and pays close attention to the general condition as well as the maintenance history of the aircraft.

An Aircraft Appraisal provides the reader with:

• A detailed examination of airframe, engines, props and gearbox, instrumentation, avionics as well as all aircraft operating systems.
• A careful review of aircraft documentation, log books, yellow tags and associated records as well as conformity inspection compliance (if applicable).
• A computer analysis of relevant value data.
• A Certificate of Appraisal and the detailed computerized report submitted to the client.

What is the Purpose of an Appraisal?

• To obtain a professional opinion of the present fair market value on an aircraft.
• To obtain a professional opinion of the value on an aircraft to be retro-fitted, renovated or modified.
• To obtain a professional opinion of the value of an aircraft for documentation purposes.
• To verify damage claims resulting from fire, hail, windstorms, accidents and other disasters.
• To provide the basis for decision-making in the commitment of funds for aircraft acquisition.
• To provides persuasive, independent evidence of the condition of an aircraft.
• To assist a prospective purchaser in obtaining financing or insurance.
• To assist a financial institution in substantiating the nature and value of the aircraft as it relates to collateral.
• To assist a financial institution by supporting the loan portfolio for examination by the loan committee and/or bank examiner.
• To distinguishes sellers aircraft from others that may be listed for sale.

Aircraft Appraisal Cost Factors

Fees will vary depending on the type of aircraft, its year, make and model, and the length of time involved in completing analyses of all relevant data.

Time to Complete the Report

The client must allow sufficient time for the appraiser to do a thorough job. The appraiser may spend a short time actually inspecting the aircraft, but will spend considerable time researching data. The Certificate of Appraisal and Inspection Data Sheet Analysis of the appraisal is issued after the physical inspection of the aircraft has been completed.

Conclusion

Aircraft Appraisers provide a broad range of service to the aviation industry through a professional approach to aircraft valuations thereby setting the standard for aircraft appraisal. Bankers, insurers, purchasers, sellers, and owners immediately recognize the value of an independent aircraft appraisal.

Lease Basics

The details of individual leases can differ widely, but what is included in the basic structure of a lease and the reasons leasing might or might not be attractive is pretty standard.

Under a “true lease,” also known as a tax lease, the lessor owns the airplane and gets to depreciate it. The operator, however, gets to expense the payments.

Leasing is gaining popularity in both the new and used aircraft markets. The prime reason companies opt to lease is that they don’t need, or can’t use, the depreciation expense they normally would get from the airplane.

For the leasing company, the reverse is true. They tend to be funded by people-or even large companies looking for a way to shelter some otherwise taxable income. They don’t necessarily want an airplane, but they do need depreciation. Lessors often talk about how leasing allows a company that needs depreciation to take the expense and then pass the benefits back to the lessee in the form of a lower monthly payment. That may be true to an extent-likely some of the depreciation does come back to the lessee but lessors take the lion’s share of the benefit themselves.

Another big attraction to leasing is that a leased aircraft usually doesn’t show up on the operator’s balance sheet, although some lease details and rental expenses do show up in footnotes to financial statements. (Balance sheet treatment is dictated by Financial Accounting Standards Board rules.) Keeping the airplane off the balance sheet can keep shareholders at bay, and also can enable a company to avoid running into problems with debt covenants that would otherwise prohibit them from borrowing money for an airplane.

Few leasing companies actually have a fleet of airplanes. Instead, flight departments figure out the kind of airplane and equipment they want and leasing companies buy it on their behalf. In general, there is no down payment involved in a lease.  The IRS allows the lessee to fund any part of the purchase. However, some leasing companies do charge a refundable security deposit.

Lease payments, which are usually monthly, are expressed in terms of a percentage of the total cost of an airplane. Although rates vary, a good current rule of thumb is approximately one percent per month on a seven-year lease, and 0.8 percent per month on a 10-year lease.

Some leases that don’t meet IRS requirements are accounted for like loans. That means for tax purposes, the operator is also the owner and is entitled to depreciation expenses. There are numerous of reasons why a lease might not meet IRS rules, but the most common issue is a bargain purchase option; the right to buy the airplane at a fixed price that is below market.

The FASB (Federal Accounting Standards Board) also weighs in on lease treatment and purchase options are again a test. Accounting rules will force the lease to be shown on the balance sheets if it has a bargain purchase option or if ownership is automatically transferred at the end of the lease.

To make matters even more confusing, leasing companies also offer what are termed “pseudo leases” or “synthetic leases.” Essentially, these products walk the fine lines between tax rules and accounting rules. For tax purposes, the lessee is considered the owner and is entitled to depreciation. However, for accounting purposes, the lease conforms to FASB rules for off-balance-sheet treatment. That means your company can buy an airplane, but not show the loan liability on its books.

Lease Documentation

With each aircraft leased the company will require the airline to document the following:

• FAA Part 121or 125 Air Carrier Certificate or Part 129 Foreign Air Carrier Authority.
• DOT 401C Certificate of Public Convenience and Necessity.
• FAA Conformity Inspection.
• Aircraft Appraisal Report.
• Certificate of Insurance acceptable to the US DOT with the following coverage limits:
  • $5 Million per passenger seat liability.
  • $2 Billion per occurrence liability.
  • Hull insurance in the amount of the appraised value of the aircraft as of January 1 of each year.
  • Reinsurance to bring the nominal $1Million deductible to a $100,000 per incident limit.
• Aircraft Lease Agreement and Assignment of Interest.
• FAA Approved Training Program.
• FAA Approved Maintenance Program.
• Aircraft Certification Workbook (to be turned in at lease termination).
• FAA Approved Flight and Operations Manuals.
• FAA Approved Operations Specifications.

In cases of an airline in the process of certification provisional documentation will be applied until approved documentation can be filed with the leasing company.

To get there you may already rely on a computer (especially in this day and age) assisting in tracking your operation.  How your work flows and you ensure airworthiness depends on a number of variables you have by now worked into a routine.

If you use a spreadsheet such as Microsoft Excel, I applaud your efforts but forecasting maintenance must be a chore.  There is a better way and that is… use a database.

What is a database?

For argument sake let’s get the definition out so we all know:

a database is a structured collection of records or data that is stored in a computer system.  The structure is achieved by organizing the data according to a database model.  The model in most common use today is the relational model.  Other models such as the hierarchical model and the network model use a more explicit representation of relationships.

Confused…?  Basically if you have established a master parts catalog for your operation, the way you have the part number, keyword, and description in that catalog will be used throughout your database.  This may seem obvious and yes you can achieve this level of control in a spreadsheet but forecasting maintenance requirements is another thing let alone purchasing and repair and controlling any number of hangars or warehouses of parts around the world.

The rules for a great aircraft maintenance and spare parts tracking program (software) are…  make it easy to use, be able to control user access (login), parts tracking with history, and most importantly… maintenance forecasting.

Assets or parts should be tracked from ‘cradle to grave’ from the first time an asset is entered in the system to the time it is scrapped or removed as (BER) beyond economical repair.  History must automatically accumulate when the asset is actioned in some fashion throughout its life, e.g. purchased, serviced, repaired, overhauled, or scrapped.

Forecasting, assigning, tracking, and accounting for man-hours, part cost[s], mark-ups, return-to-service, hot sheets, and part availability complete a great aircraft maintenance tracking program.  If this can be accomplished, not only will you have reliable real-time information at your fingertips but a wealth of historical data used for trend analysis and budget forecasting.

Your routine as mentioned above may look like the following flow diagram.  This example shows an operation with both aircraft maintenance and spare parts control under one roof.

Generally speaking based upon some criteria (TBO, Life Limit) a part is required to come off the aircraft and be replaced.  If that part is in inventory with a serviceable tag, it is issued to satisfy the need otherwise a purchase order request is generated.  To which you source and then create a PO to start the process of providing a replacement part.  In addition, invoice matching and approval with history continues to be captured and stored simply with day to day activity and the use of the software package.

Not to dwell on all the variations but if an Airworthiness Directive was due and it required compliance with a Service Bulletin which in turn needed an Inspection of a component that if out of calibration required replacement… well there you go.

Are you going to track your spare parts?

Did you know controlling and sourcing spare parts is two-thirds of the battle?  There is more activity in and around the process of purchasing, repairing, controlling shelf life, min/max and more then in the actual day to day aircraft maintenance operation.  This fact does not diminish the importance of both sides of the operation however.

Spare parts tracking needs to take into consideration the part type, e.g. rotable (tracked part) and consumable plus be able to keep Time Since New (TSN), Time Since Overhaul (TSO) and while one the shelf, shelf life if applicable.  You should be able to issue to aircraft using the first in, first out (FIFO) method where the program automatically brings up the oldest serviceable part for consideration.

You should be able to keep items in stock from ever reaching zero quantity using a MIN/MAX function that produces a stock reorder report upon request and alert you if you are below your minimum quantity – all by part number.

To bar code or not to bar code?

Bar coding is an advantage to an operation tracking more than 2,000 line items in spares in conjunction with controlling maintenance for three or more aircraft but this does not rule out bar coding for any size operation.  There are additional steps required when applying bar coding to your operation that should be accounted for in your procedures and weighed against the benefits.

What about computers, printers and internet connections?

Basically a laptop, wireless internet connection and portable printer would suffice.  More than likely you have a desktop and printer which might be tied into a local area network of several desktops or workstations running Windows or Mac OS operating system and networked printers, scanners and digital cameras along with high speed internet.

A color printer would be nice but not necessary.  Other recommended hardware would include backup power supplies, routers, firewalls and virus protection software among other items according to the size and scope of your operation.  In referring to computers, it is understood we are talking about present day processing speed and equivalent memory plus hard drive storage.

The overriding and most important factor is cost.  What am I going to get out of purchasing a program and what should I expect as a return on investment?

Ask yourself these questions…  “What is the value and status of your inventory?  Are you in compliance with all airworthiness items on your aircraft?  Would your records hold up to FAA or other regulatory agency audit?”

Perhaps getting your records in order and on a computer is return enough but you will get much more out of your investment if what you choose works the way you do.  Here’s the point… although the FAA does not endorse any particular software package or computer program, if that program did not follow FAA guidelines, aircraft manufacturer and industry accepted maintenance procedures and common practices then no one would use it and it would disappear from the market.

You would shy away from a software program that couldn’t produce a due list or be able to control shelf life items in inventory for example because that would mean the program isn’t worth looking at.

Can what’s there be customized?

Let’s say you have researched three software packages that track aircraft maintenance and spare parts.  All perform about the same overall but none fit like hand and glove.  Now, is the vendor willing to make changes to the software?  What about incorporating your existing reports, invoicing, purchase orders, part labels, company logo, etc. to make the fit?  Will the vendor agree to provide you with a copy of the software in case something happens to them?

What to do before going to a vendor.  First some research on the vendor – how long have they been in business, perhaps a background check, get a list and talk to their current customers, ask a lot of questions; make sure to get a lot of answers.  I find it helpful if the person I am talking with have an aviation maintenance background first, then a good knowledge of computers, networks, etc. but aviation first.

Review the personnel you will assign to interact with the software program.  Although aviation maintenance methods and accepted practices are not a prerequisite for successfully using a program it is recommended they have some practical knowledge in aviation maintenance records keeping.

Another word on databases… there are a number of companies that have written database software such as Microsoft Access, SQL, Oracle, FoxPro, MySQL, Sybase.  You may recognize one or more of these names.  The point here is not to glorify or recommend any but you are going to need one to accomplish this task.

A side benefit from loading your records into a database is in doing so you perform a mini or informal audit during each segment of the process.  You’re going to do an inventory count by virtue of loading your stock room and
confirm along the way all your shelf life, you’re going to do some kind of aircraft records audit to get that information into the database correctly and remember garbage in – garbage out.  After loading your records, you should have a cleaned set of spare parts and aircraft maintenance records to begin using your software.  You could tie loading records in with a full safety audit as well.

Here is a common denominator to determine if a database you are considering is capable of doing the job… can it track 100,000 line items of spares, can it track 100 aircraft, engines, APU’s etc. and all the supporting purchasing, invoicing, and reporting?  Think this is too high – good then you will never be disappointed.

After you have selected a vendor, pulling this all together takes a little time and there are things you need to do before you start loading records.  If you have spare parts, what about a physical inventory?  Do you have easy access to the aircraft log books and are they up to date?

There is one final topic I would like to discuss and that is the ability to use the system over the internet, e.g. retrieve a current due list or update inspections while in Singapore when your maintenance office and computer[s] are in Orlando, Florida.  Obviously if you can get a due list or update an inspection while in Singapore, you could do anything else your login and password allows – from Singapore.

This process is easier and more cost effective then perhaps you believe.  Yes, you can within a very high level of security be at your desktop computer in Orlando while actually babysitting a “4C” check in Singapore.

In writing about spare parts and maintenance tracking, rest assured I have not touched on the entire scope and breath possible – not the purpose of this guide.  But don’t let anyone tell you things are impossible in a software program… you can get almost anything you desire in a program to make it fit like hand and glove.   Trouble is sometimes you don’t know the question[s] to ask.

Thank you for the time you took downloading and reading this guide on computerized aircraft maintenance tracking.

IcarusMRO is a software package for commercial aircraft maintenance operations including spare parts, purchasing and repair.

Designed by aviation professionals for aviation professionals to meet and exceed demands of any type operation where aircraft airworthiness, preparedness and transparency are required.

Performing in any size operation, IcarusMRO is the best cost effective solution for accurate and timely data collection instrumental in daily operations and decision making.

Assets are tracked from ‘cradle to grave’ or from the first time an asset is entered in the system to the time is it scrapped or removed as (BER) beyond economical repair.  History automatically accumulates when the asset is actioned in some fashion throughout its life.

IcarusMRO’s extreme dynamism is due to design criterion ensuring changes can be accommodated as business grows and operational demands evolve.

Information exchange and overall interoperability of an operation is further enhanced by the accurate and timely data collection as mentioned above in addition to exporting data in numerous formats.

Core aircraft maintenance requirements for tracking and reporting are centric to IcarusMRO’s functionality reducing learning time substantially.  Those with little or no computer experience are not overly taxed to get something accomplished.

IcarusMRO cost effectiveness stems from its database engine scalability starting with Microsoft Access up to Microsoft SQL and .NET framework.

Remote sites can run IcarusMRO at all levels of database engines.  IcarusMRO with Microsoft Access does not preclude remote sites from the advantages this system provides daily operations.

Since the greatest bandwidth for information to the brain is thru the eyes, data is displayed in various formats and colors denoting scalable criterion for fast and easy recognition, e.g. airworthy or immediate action items in red.

IcarusMRO is multi-user and multi-lingual with tracking for an unlimited number of aircraft, spare parts and users with encrypted access and user-rights within said access.

Forecasting, assigning, tracking, and accounting for man-hours, part cost[s], mark-ups, return-to-service, hot sheets, and part availability complete this aircraft maintenance package – IcarusMRO.

Client specific customization is encouraged and included in the pricing structure.  MIYO or Make It Your Own customization brings all your assets under control your way.

COMPUTER HARDWARE  REQUIREMENTS

Single User:

Personal computer running at a minimum Microsoft Windows XP with Microsoft Office Pro (2002 / 2003) with Access installed.

Internet access.

Label printer, color printer, bar code reader and other hardware with Microsoft certified drivers will work with IcarusMRO.

Multi User:

Personal computers running at a minimum Microsoft Windows XP with Microsoft Office Pro (2002 / 2003) with Access installed.

Office network with designated ‘server’ running software allowing users to share folders plus internet access.

Label printers, color printers, bar code readers and other hardware with Microsoft certified drivers will work with IcarusMRO.

General:

Other recommended hardware includes backup power supplies, WiFi routers, firewalls and virus protection software.

We use the best in high technology in our solutions and our clients are guaranteed seamless integration of future technologies and advancements thru our dynamic flow analysis customized to each client.

In addition we offer feasibilities studies for all facets of air operations and operational safety audits.

A qualified backup schedule with procedures for its execution is mandatory for any operation.  After spending two weeks updating information on your latest C check you walk in the next morning and your hard drive has been wiped out.  Did you make a backup right after you finished?

Options: Load your backup on a new computer – easy.  Take your hard drive to an expert and see if data can be recovered – expensive.

Backing up data does not mean to another hard drive but to some device or media (CD/DVD/TAPE) that can be removed from site and stored safely in case of fire for example.

Many computer programs exist that automate the backup process.  It is highly recommended if you have a program that you use it and if not you go out and get one.

Backup Routine:

The following is a recommended backup routine that we have found to be effective.

Begin by obtaining a set of 11 CD/DVD/TAPE (or setting up Folders on your removable media) and labeling the first 6 as Monday, Tuesday, Wednesday, Thursday, Friday, Saturday.  Label the remaining four CD/DVD/TAPE Sunday1, Sunday2, Sunday3, Sunday4, Sunday 5.

Each Monday, use the Monday CD/DVD/TAPE to do a backup.  Each Tuesday, use the Tuesday CD/DVD/TAPE, etc.

Each Sunday, use a different Sunday CD/DVD/TAPE and take it home (or someplace off site.)  Recycle the Sunday CD/DVD/TAPE after 5 weeks.

There are several good reasons for using this routine.  First, you have an off site backup in case there is a major problem in the gallery – Fire, Flood, Etc.

Second, and just as important, you have more than one CD/DVD/TAPE that you use for backups.  Suppose you come in on a Thursday morning and find that your computer died over night.  You go to a different computer and try to restore the Wednesday backup – but find that the Wednesday CD/DVD/TAPE is bad.  This can happen!  At least you have the Tuesday CD/DVD/TAPE.