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]
ETOPS - Engines Turn Or People Swim
 
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
Posts: 8572
Joined: Wed Jan 11, 2006 7:25 am

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.
 
User avatar
HAWK21M
Posts: 29867
Joined: Fri Jan 05, 2001 10:05 pm

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.
I may not win often, but I damn well never lose!!! ;)
 
arffdude
Posts: 90
Joined: Sat Aug 04, 2007 5:07 am

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.
 
User avatar
DocLightning
Posts: 19586
Joined: Wed Nov 16, 2005 8:51 am

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.
-Doc Lightning-

"The sky calls to us. If we do not destroy ourselves, we will one day venture to the stars."
-Carl Sagan

Who is online

Users browsing this forum: No registered users and 16 guests