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Who Pays For Engine Damage?  
User currently offlineShany From Germany, joined Jul 2008, 113 posts, RR: 0
Posted (1 year 8 months 4 weeks 1 day 23 hours ago) and read 3182 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?

Any ideas?

Thx
Shany

[Edited 2012-10-28 12:17:36]


ETOPS - Engines Turn Or People Swim
5 replies: All unread, jump to last
 
User currently offlinedkswim From United States of America, joined Sep 2010, 30 posts, RR: 0
Reply 1, posted (1 year 8 months 4 weeks 1 day 22 hours ago) and read 3094 times:

Insurance, normaly pays for damaged engines.

User currently offlinetdscanuck From Canada, joined Jan 2006, 12709 posts, RR: 80
Reply 2, posted (1 year 8 months 4 weeks 1 day 22 hours ago) and read 3086 times:

Quoting Shany (Thread starter):
Who pays for an engine failure for example as a result of a bird strike or the ingestion of foreign object debris?

The owner of the engine (usually the airline).

Quoting Shany (Thread starter):
The airline? Insurance?

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).

Tom.


User currently offlineHAWK21M From India, joined Jan 2001, 31667 posts, RR: 56
Reply 3, posted (1 year 8 months 4 weeks 1 day 10 hours ago) and read 2838 times:

Insurance normally does, but then it depends on the contract signed between the insurer & the Airline concerned.


Think of the brighter side!
User currently offlineARFFdude From United States of America, joined Aug 2007, 151 posts, RR: 1
Reply 4, posted (1 year 8 months 4 weeks 1 day 5 hours ago) and read 2751 times:

If the damage occurs on an airport, the airport operator can potentially be held liable for at least a portion of the damages.

User currently offlineDocLightning From United States of America, joined Nov 2005, 19385 posts, RR: 58
Reply 5, posted (1 year 8 months 4 weeks 18 hours ago) and read 2539 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.


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