Net Jets And Msp

[hawker750]

Apparently NetJets have taken their Hawkers off MSP. Whilst I am sure they have a load of engines lying around doing nothing so they are not short of spares, I wonder if the "owners" of the Hawkers have been made aware that their asset has just been devalued by an enourmous amount. If they have been made aware of the situation do they now not pay the hourly MSP rate or are NetJets pocketing the cash? Maybe NetJets simply paid the owners the difference in value between an "MSP'd" aircraft and a "non MSP'd" one
Can anyone shed any light on this?

[No RYR for me]

MSP is useful when your aircraft is with any Tom, Dick and Harry operator as it will give you economy of scale and the manufacturer looks more closely at your maintenance. In return you pay a hefty "insurance" premium to the OEM to cover your butt and it looks good in the aftermarket.

Netjets has economy of scale, OEM reps on site and sells the aircraft with fresh engines at the end so what is the point of MSP? As long as the buyer knows the engine is maintained to MSP standards and they can enter it into MSP as soon as they buy it there is no value issue.

[No RYR for me]

This is what the manufacturer says about their MX

Pratt & Whitney Canada applauds NetJets Europe for achieving 500,000 flight hours milestone
May 4, 2010:

Pratt & Whitney Canada (P&WC) today presented NetJets Europe with a commemorative plaque celebrating its achievement of 500,000 flight hours using Pratt & Whitney engines. The presentation took place during the 10th annual European Business Aviation Convention and Exhibition (EBACE) in Geneva, Switzerland. Pratt & Whitney Canada is a United Technologies Corp. (NYSE:UTX) company.

"This is a tremendous milestone for the NetJets fleet in Europe," said Raffaele Virgili, Vice President, Customer Service, P&WC, in presenting the plaque to Steve Hughes, NetJets Europe Director of Aircraft Maintenance and Engineering. "Since more than half of NetJets Europe aircraft is powered by our engines, it is also one in which P&WC takes considerable pride. It attests both to the success of NetJets since introducing P&WC powered aircraft to their fleet in 1996 and to the outstanding reliability and dependability of our engines."

NetJets Europe is the leading business aviation company in Europe, based in Lisbon, Portugal. With over 150 aircraft, NetJets Europe operates four times as many aircraft as the next largest business aviation company and flies its 1,600 customers to more than 5,000 airports around the world. Under its fractional ownership model, owners are guaranteed an available aircraft within ten hours' notice.

NetJets Europe's fleet includes 97 aircraft powered by P&WC engines, ranging from various Cessna Citation planes to Hawker and Dassault Falcon models. Its most recent acquisitions include two Dassault Falcon 7X aircraft, each powered by three PW307A engines.

The P&WC engines are covered by a customized Fleet Management Program ®, with engine repair and overhaul provided by P&WC CSC Europe GmbH, a joint venture between P&WC and MTU Aero Engines, in Ludwigsfelde, Germany, and Pratt & Whitney Engine Services (PWES) in West Virginia. Engine heavy maintenance is provided by the P&WC (UK) Service Centre in Luton, England, while P&WC also has a dedicated Field Service Representative permanently stationed in Lisbon.

"NetJets Europe depends on the reliability of our engines as well as on excellent aftermarket support to keep its aircraft flying and satisfy its customers," said Raffaele. "We look forward to continuing to offer it flawless support to ensure continued growth in the future."

Pratt & Whitney Canada, based in Longueuil, Quebec, is a world leader in the design, manufacture and service of aircraft engines powering business, general aviation and regional aircraft and helicopters. The company also manufactures auxiliary power units and industrial gas turbines. United Technologies Corp., based in Hartford, Conn., United States, is a diversified company providing high technology products and services to the global aerospace and building industries.

[hawker750]

No RYR

Do not get me wrong I am not a great fan of MSP, it has become very expensive and the recent claim I made for altenative transportation was turned down because I "dipatched an engineer to site before notifying MSP".
No, the point is that an aircraft with paid up MSP has a higher intrisic value than one without. The majority of part owners would have paid a great deal of money into MSP only to discover that these payments amount to nothing toward the residual value of their aircraft.