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Power by the Hour Agreements and the Obligations of the Operator

Pete Woollacott

Civil Aviation Authority, Airworthiness

Propulsion, Components and Specialist Services

30 October 2014

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The Civil Aviation Authority

The CAA is the UK's specialist aviation regulator. Its regulatory activities

range from making sure that the aviation industry meets the highest

technical and operational safety standards to preventing holidaymakers

from being stranded abroad or losing money because of tour operator

insolvency.

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Power by the Hour Agreements

- What are they?

• Agreement between operator & overhauler • OEM often service provider • Cost of overhaul charged per flight hour • Pooled spares owned by service provider • Service provider defines workscope • Monitors operation on-wing performance • Increasing in popularity

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Power by the Hour Agreements

- Characteristics

• Growing trend towards power by the hour (PBH) • Now - PBH for Complete Aircraft Systems • Continuing airworthiness management considerations of non Part- MG approved parties • EASA Part-M Obligations of aircraft owner/operator under M.A.201 • Reduced visibility of ownership and operating history under PBH when parts removed from aircraft.

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Engine/Component Repair and Overhaul

Traditionally; • Components, Engines owned by operator • Workshop overhaul/repair – controlled by operator • High cost workshop input – time & material • Mods, SBs, AD embodiment control • Workshop scoping and strip reports

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Time & Material Engine Overhaul - Links

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Power by the Hour Agreements - Links

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Anonymity in the PBH Spares Pool

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PBH Issues – for the Continuing Airworthiness Management Organisation (CAMO)

PBH service providers are unapproved Operator/CAMO responsibilities in PBH environment

Increased awareness of PBH in CAMO environment Compliant Subcontractor contracts Technical oversight of subcontractor activities

Focus on a robust CAMO/PBH environment

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EASA Requirements Relevant to PBH

• Part-M.A.201(a) • “The owner is responsible for the continuing airworthiness of the aircraft…..”

• Part-M.A.201(a)4 •Part-M.A.201(h)…..

• Part-M.A.708(b) • AMC to Part-M: Appendix XI to AMC to M.A.708(c)

Owner/operator responsibilities for aircraft continuing airworthiness and reliability programmes.

Maintenance Contracts template

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Guidance Material for Hourly Usage Agreements (HUA)

• CAAIPs CAP 562 Leaflet 70-90 issued 31 Oct 2012 • Guidance material for HUA/PBH agreements • Applicable to Commercial Air Transport environment • Feedback any comments/issues

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Power by the Hour Agreements and the Obligations of the Operator

Any Questions?