Shany
Topic Author
Posts: 55
Joined: Mon Jul 07, 2008 8:30 pm

Who Pays For Engine Damage?

Sun Oct 28, 2012 7:12 pm

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]
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dkswim
Posts: 29
Joined: Thu Sep 09, 2010 9:28 am

RE: Who Pays For Engine Damage?

Sun Oct 28, 2012 8:14 pm

Insurance, normaly pays for damaged engines.
 
tdscanuck
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RE: Who Pays For Engine Damage?

Sun Oct 28, 2012 8:24 pm

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.
 
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HAWK21M
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RE: Who Pays For Engine Damage?

Mon Oct 29, 2012 7:53 am

Insurance normally does, but then it depends on the contract signed between the insurer & the Airline concerned.
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arffdude
Posts: 90
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RE: Who Pays For Engine Damage?

Mon Oct 29, 2012 12:48 pm

If the damage occurs on an airport, the airport operator can potentially be held liable for at least a portion of the damages.
 
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DocLightning
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RE: Who Pays For Engine Damage?

Tue Oct 30, 2012 12:16 am

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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