Shany From Germany, joined Jul 2008, 104 posts, RR: 0 Posted (6 months 4 weeks 1 hour ago) and read 2274 times:
Who pays for an engine failure for example as a result of a bird strike or the ingestion of foreign object debris? The airline? Insurance? What if the engine is leased or the airline has a "power by hour" agreement with an engine manufacturer?
If they have insurance for that particular failure then insurance would pay for it, but I don't think that's common. The costs of that kind of engine damage, relative to the financial resources of most airlines, wouldn't really support a good business case for insurance.
Quoting Shany (Thread starter): What if the engine is leased or the airline has a "power by hour" agreement with an engine manufacturer?
There is a lot of contract variation with power-by-the-hour but, I think, if you have power-by-the-hour the cost would generally be absorbed by the engine owner (usually the engine OEM but not always).
DocLightning From United States of America, joined Nov 2005, 16824 posts, RR: 57 Reply 5, posted (6 months 3 weeks 5 days 20 hours ago) and read 1630 times:
Quoting tdscanuck (Reply 2): There is a lot of contract variation with power-by-the-hour but, I think, if you have power-by-the-hour the cost would generally be absorbed by the engine owner (usually the engine OEM but not always).
And this led to an awful lot of friction between QF and RR when one of RR's engines decided to go all happy on QF's A380 a couple of years back. I believe that in QF's PBTH agreement, RR retains ownership of the engine, and so RR was responsible for fixing the aircraft and I think QF tried to hit them up for loss of use, too, especially since it affected a lot of the fleet.
Sponsor Message: 
From Germany, joined Jul 2008, 104 posts, 
From United States of America, joined Sep 2010, 29 posts, 
From Canada, joined Jan 2006, 12709 posts, 
From India, joined Jan 2001, 31201 posts, 
Sponsor Message: 
Printer friendly format
