Seno shares that operators with extensive operations might consider enrolling in a maintenance plan, but have argued that these plans might be costly. Instead, he says, some prefer to rely on their warranty to cover maintenance costs, overlooking the comprehensive benefits of a dedicated maintenance plan. But they may be missing the point. “A warranty doesn’t cover scheduled events,” Seno says. “All the warranty does is cover when it breaks.” Moreover, service providers have a shared understanding not to “double dip” when customers whose engines are enrolled in a program come in for maintenance. That means that if an engine is still under the manufacturer’s warranty, the maintenance program shouldn’t charge the full rate for services already covered by the plan. Even in cases where owners have low usage, flying less than 100 hours per year, Seno believes that enrolling in a maintenance program can still be a wise decision. This is particularly true when considering the resale value of the aircraft. Being part of a maintenance program offers peace of mind to potential buyers through the comprehensive maintenance history and data and adds value in transferable coverage. If an issue
MORE COMPETITIVE SPACE Accordingly, Seno points out that the marketplace has become very competitive. “We go head-to-head with the OEMs on every deal,” Seno says, “even though we don’t typically get a seat at the closing table.” So how do you compete? For one, Seno credits his company’s salesforce. “We compete because this is all we do,’ he says. “The OEMs are in business to build and maintain engines, but our product is a financial services product because we help you to manage your cash and flatline your budget. Today, when you go to pick up your aircraft, you can do things—you can go without, you can use the OEMs, or you can use a third party like us, JSSI.” Seno also maintains that while there is a proliferation of competitors who might be tempted to compete on price, the edge is in the value proposition. For customers, that might mean more troubleshooting hours and more nonroutine inspections. ABOUT WARRANTIES: DO THEY COUNT? Still, as many new business aircraft operators enter the space, there’s a lack of shared understanding.
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