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AIRCRAFT APPRAISAL ENGINE TERMINOLOGY
AND DEFINITIONS
Aircraft Appraiser and FAA Standards for New, New Limits,
Remanufactured, Service Limits, Overhaul and More . . . .
If you are not sure of the meaning of such terms as normally aspirated, turbocharged, supercharged
or direct-drive engines, then perhaps you’ll want to read AERONUVO's simplified definition of them.
An aircraft appraiser must take into account the maintenance status of the aircraft engines. Vauation
of these engines is an important component of an aircraft appraisal.
AERONUVO, the Aircraft Appraisal and Valuation Company, will thoroughly review the engine log books
when conducting an appraisal.
The Normally Aspirated Engine is one that is not turbocharged or supercharged. If the airplane has
a manifold pressure gauge, at full takeoff power at sea level on a standard day, it would indicate an
MP reading of approximately 29" of Hg. Takeoff power at 5,000 ft. density altitude airport would read
about 24" MP. The normally aspirated engine uses atmospheric pressure and is thereby altitude
limited.
Direct-Drive Engines are those piston-powered engines where the propeller is bolted on the end of
the crankshaft, and the prop turns at the same speed as the crankshaft.
Geared Engines are usually the higher powered, more complex engines using a reduction gear on the
nose of the aircraft, and with the prop attached to it. As a result, the prop will turn somewhat slower
than the crankshaft, resulting in a lower prop noise level. Sometimes, when the engine is geared, the
engine designation is preceded with a “G.” Thus a geared, opposed (O) normally aspirated engine with
a 480-cubic inch displacement of the cylinders would be designated a GO-480 model.
Turbocharged Engines simply consist of a turbocharger unit with a small turbine wheel attached by a
common shaft to a compressor wheel, and utilizes the engine exhaust gas by directing it over the
turbine wheel to drive the compressor. The horsepower loss in operating the turbocharger is
negligible. Turbocharging can provide greater utility to the piston engine by providing sea-level
horsepower, in some models, as high as 20,000 feet; or it can be used to add horsepower to the
engine particularly for takeoffs. The faster the engine runs, the more air the turbocharger can pack
into the cylinder to compensate for the thin air of altitude, or to increase the horsepower. Although
this definition is somewhat oversimplified, it is a basic definition of turbocharging of General Aviation
power plants.
Supercharged Engines use a compressor wheel to pack air into the cylinders; but the compressor is
driven by the crankshaft through an intricate gearing system, which takes considerable horsepower
from the engine to operate. In comparison with a turbocharged engine, it is a medium altitude power
plant.
Although supercharged engines could be built today by Lycoming and Continental, new aircraft
designs during the past 20 or more years have used turbocharging instead of supercharging because
of the advantages that turbocharging offers.
Terminology and Standards of Aircraft Engine Overhaul Terms that are used and approved by the FAA
an the Aircraft Appraiser. Whether you are appraising or purchasing a used aircraft, the points of
concern are the items that affect the price. An Aircraft Appraiser must pay special attention to the
engines, as this is where a significant amount of the aircraft’s value lies. A full understanding of the
aircraft’s engines is crucial to determining its overall value. There are a great deal of other items that
determine the aircraft value and ending market value price that and each one carries its own
terminology. Being an expert in determining how these various parts of an aircraft appraisal influence
the price takes many years of experience but will ultimately get you the most out of your aircraft.
New Engine:
A new engine is one that has been manufactured from all new parts and tested by an FAA-approved
manufacturer such as Lycoming and Continental. The engine will have no operating history except for
test cell time when received. No FAA-approved manufacturer can approve another entity to
manufacture or assemble a NEW ENGINE.
New Limits:
These are the FAA-approved fits and clearances manufacturers adhere to with new engine. This may
be accomplished using standard or approved undersized and oversized dimensioned parts.
Service Limits:
The service limits are the FAA-approved allowable wear fits and tolerances to which a new limit part
may deteriorate and still be a useable component. This may also be accomplished using standard and
approved undersized and oversized dimensions.
Overhauled Engine:
An engine that has been disassembled, cleaned, inspected, repaired in accordance with manufacture
overhaul instructions and tested using FAA-approved procedures. The engine may be overhauled to
new limits or service limits and still be considered an FAA-approved overhaul. The engine’s previous
operating history is maintained and it is returned to you with zero time since a major overhaul and a
total time since new. Of course, the total time since new is the same as before the overhaul.
Rebuilt Engine:
This is an engine that has been overhauled using new and used parts to new limits by the
manufacturer or an entity approved by the manufacturer. The engine’s previous operating history is
eradicated, even though the engine may have used components installed that have many hours of
operating history, and it comes to you with zero hours total time in service.
O.E.M. and Aftermarket:
When an engine is overhauled or rebuilt, the new parts that are used during the repair process can
come from a variety of sources. An Original Equipment Manufacturer or “O.E.M.” part is a new part
that is manufactured by the original engine manufacturer to stringent FAA standards. An
“aftermarket” part is a new part that is manufactured by someone other than the original engine
manufacturer and meets or exceeds the same stringent FAA guidelines as a new OEM part.
Save for factory remanufactures, all overhauls are permitted by the FAA to be performed to either
new or service limits.
Service Limit Overhaul:
By definition, an aircraft engine overhaul involves cleaning, carefully inspecting, and repairing or
replacing parts to meet service limits. It is therefore entirely legal to placea used part that meets only
service limits into an overhauled engine as a replacement.
This type of overhaul is known as a service limit overhaul, and is commonly seen in factory engine
overhauls. Unfortunately, this practice allows manufacturers to reinstall a part that checks out during
inspection with a service limit reflecting considerable wear before that part is considered to be out of
service limits. For this reason, service limit overhauls aren’t very likely to reach TBO without requiring
further maintenance down the road.
New Limit Overhaul:
While in some special cases installing a service limit part might be acceptable, given the expense and
time cost of performing an overhaul, it’s usually a good idea to request that parts used in the
overhauled engine meet new limits. This type of overhaul is known as a new limit overhaul and will
help you to establish a baseline of wear that is consistent with a new engine, extend the life of your
engine, and preserve the resale value of your aircraft. If you’re looking for your engine to reach TBO
and have reliability and longevity, a new limit overhaul is usually your best choice.
When Time Before Overhaul or "TBO" time rolls around, it’s important to remember that new engines
made it there because of the new limit requirements of the engine manufacturer. So when you make
your decision on aircraft engine maintenance, the safest bet is to stick with the limits that got your
engine this far in the first place. Anything less could result in more costly maintenance down the road.
Facts About Banks and Asset
Based Lenders
Knowing the Value of an Aircraft by
Make and Model is Not Sufficient
Each year members of the National Aircraft
Appraisers Association assist financial
institutions as billions of dollars in new
loans are originated involving the purchase,
re-financing, and/or maintenance and
updating of aircraft. In addition to
appraising these airplanes for the original
financing or refinancing NAAA members are
often instrumental in helping bankers track
their portfolio of collateral during the terms
of their loans.
National Aircraft Appraisers Association
members independently appraise aircraft
and give advice to lenders concerning
escrow reserves for maintenance and other
sensitive areas which affect the aircraft
being used as collateral. Operating under
the Uniform Standards of Professional
Appraisal Practice (USPAP) our Senior
Certified Aircraft Appraisers with a USPAP
Endorsement write comprehensive reports
that detail subject aircraft thoroughly for
the purpose of collateral definition at the
time a loan is made.
Knowing the value of an aircraft by make
and model is not sufficient to establish fair
market value, collateral value, or other loan
parameters. Lenders need information
about the general condition of the aircraft,
its maintenance schedule, avionics
inventory, and its support systems which
materially affect the value. Only a complete
appraisal, which always includes a visit to
the aircraft by an NAAA member, will insure
that the aircraft is indeed what the banker
has been led to believe it is.
Our Portfolio of Services
AERONUVO, The Aircraft Appraisal and
Valuation Company provides competent,
impartial, objective and independent
valuation for buyers, sellers, banks,
financing, leasing, underwriters, insurance
adjusters, corporate flight departments,
domestic and foreign corporations and
individual owners. Our services also
determine aircraft fair market property value
to support purchases, sales, financing, legal
proceedings and charitable contributions.
Our portfolio includes single engine pistons,
light and cabin class twins, single and twin
engine turboprops, business jets with 10
seats or less and vintage aircraft. Our fees
include IRS Form 8283 for Noncash
Charitable Contributions, if requested.
AERONUVO Aircraft Appraisals are
sometimes requested in divorces, business
loans, estate evaluations, partnership buy
outs, or other situations.
AERONUVO can deliver a professional
opinion and appraisal report of the present
market value price on an aircraft, the value
on an aircraft to be renovated or modified
and the value of an aircraft as a prudent
safeguard against excessive tax assessments,
capital gains and other taxes.
Our Premier and Certified Aircraft Appraisal
Services include Aeronca, Aero Commander,
American Champion (ACA), American
General, Aviat Husky and Pitts, Beechcraft
(Beech), Bellanca, Citabria, Cessna, Cirrus,
CubCrafters (Cub Crafters), DAHER SOCATA,
Diamond, Ercoupe, Glasair, Great Lakes,
Grumman American, Lancair, Luscombe,
Maule, Mooney, Piper, Rockwell Commander,
Stinson and More.
AERONUVO provides its customers with our
unique and customized aircraft appraisal
services at many airports in some instances
with no added cost in the states of Virginia
(VA), West Virginia (WV), Pennsylvania (PA),
Maryland (MD), Delaware (DE), North
Carolina (NC) and New Jersey (NJ).
Contact us to arrange your consulation
today.
The Aircraft Appraisal
and
Valuation Company