Pre-purchase Inspection

The work scope associated with this type of inspection is very comprehensive. The content of the purchase offer or purchase and sale agreement generally drive the scope. This inspection involves a thorough technical inspection of all pertinent primary and secondary airframe structures, an inspection of all major aircraft systems, and a complete and thorough review of all of the aircraft records. The pre-purchase inspection also focuses on component traceability and compliance with all the pertinent inspection criteria and all applicable limitations as set forth in the specified aircraft’s maintenance manual. This type of inspection should also include an incoming and outgoing maintenance test flight, and a complete check of all ground and flight systems.

Off-Lease Inspection

The off-lease inspection is quite similar in scope to the pre-purchase inspection; the work scope is equally comprehensive. The scope of this inspection can be driven by the covenants contained in the lease documentation, and/or the content of a purchase offer or purchase and sale agreement. This inspection invol---s associated with the aircraft records.

Collateral Inspection

The “collateral inspection” involves a cursory physical inspection of an aircraft and the verification of the existence of the aircraft logbooks and records. This inspection typically takes between four and eight hours, exclusive of travel time. The collateral inspection is designed to assess the general condition of the aircraft and associated records and to identify any obvious anomalies. A “collateral inspection” does not involve any in-depth representations of the maintenance or inspection status of an aircraft. While certain circumstances may result in our rendering a conditional opinion of the general airworthiness of the aircraft, this type of inspection is not designed to conclusively establish the aircraft’s airworthiness.

Appraisal Inspection

The scope of an “appraisal inspection” is similar to that of a “collateral inspection,” however, the degree of examination is somewhat more extensive. This inspection consists of a preliminary inspection and review of the aircraft and records. The inspection process typically takes one to two days, exclusive of travel time. In some cases it may take more time, based on the age of the aircraft and the condition and completeness of the records. Although this inspection does not involve an in-depth review and verification of the maintenance and inspection status of the aircraft, there is an emphasis on identifying whether or not the aircraft has sustained any damage and whether any records are missing. Obvious anomalies are identified and a conditional opinion is rendered as to the general airworthiness of the aircraft as indicated by the owner’s representations.

Note about Inspections

The collateral, appraisal, and preliminary pre-purchase inspections although adequate for financing are not considered adequate for the purposes of acquiring an aircraft, obtaining a certificate of airworthiness, or conclusively establishing regulatory compliance. These inspections are designed to identify general conditions, as opposed to specific conditions. While they may reveal some initial indicators or specific circumstances associated with an aircraft and its records, we highly recommend that in all instances where we render a conditional opinion that a more formal and thorough inspection be performed to confirm any findings revealed by these inspections.

Aircraft Audits
When a comprehensive aircraft inspection is not practical or warranted, an audit can often suffice.

An Aircraft Audit:

• Consists primarily of a physical inspection of the aircraft and all associated logbooks and records
• Is generally driven by collateral, technical, operational or business issues

Common Reasons for Performing and Aircraft Audit

• Asset or collateral verification
• Portfolio evaluation or assessment
• Aircraft or equipment appraisal
• Regulatory compliance
• Preliminary pre-purchase inspection

Collateral Audit

• A cursory inspection which is typically employed to verify the general condition of the aircraft or equipment
• Often utilized as the basis for conducting an appraisal of an aircraft or equipment

Technical Audit

• A thorough inspection of the aircraft and associated records

Generally employed for verifying compliance with business, regulatory, maintenance and /or operating covenants