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Brian Jacobson |
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| About the Author ... |
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Brian Jacobson has over 12,000 hours
in all types of general aviation aircraft from trainers to jets. He has been
flying since 1970, and earned most of his certificates and ratings on the East
Coast in the early 1970s.
His first aviation employment was as sales manager at Air Worcester, Inc.,
an FBO in Massachusetts. Through the years, he worked for several FBOs selling
airplanes and flying charters. For nine years, he was chief pilot for a division
of ITT based in Providence, Rhode Island, and later was a bizjet captain for
Textron, Inc., out of Providence, Augusta, Georgia., and Pontiac, Michigan.
During those years, he flew real-world IFR in all sorts of weather and some of
the most congested airspace in the world.
Since 1988, Jacobson has been a member of
the National Aircraft Appraisers Association, and owns and operates a firm
called Great Lakes Aircraft Appraisal, appraising airplanes for buyers, sellers
and financial institutions. He also helps individuals and businesses buy
aircraft by evaluating their needs, recommending the type of aircraft they
should purchase, and helping them locate and procure those aircraft.
Jacobson is also a professional aviation writer. He is a contributing
editor for AVweb, Aviation Safety, and IFR
Refresher; a contributor to Plane &
Pilot; and can be heard on Belvoir Publications' Pilot Audio
Update.
In October 1996, he published his first book,
Flying on the
Gages, in which he discusses his experiences flying IFR. In May, 1997, his
second book was published: Purchasing & Evaluating Airplanes. His books are available from Odyssey Aviation Publications.
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Part of my job as an aircraft
appraiser is to research the logbooks of each aircraft I inspect. It's amazing how much,
or how little, you can tell about a particular airplane by what's in the maintenance logs.
Some airplane records detail every nut and bolt that has ever been tightened, while others
tell little or nothing about the maintenance that has been done over the years.
Should the lack of information in an aircraft's logbooks make a potential buyer
suspicious that perhaps it has not received the care that is required to keep it in a safe
and airworthy condition? Before I answer that question lets discuss what should or should
not be in a set of logbooks when you look at them.
What must be logged? Not much!
Each light aircraft used for non-commercial civil
purposes must be inspected annually unless it is on an alternative approved inspection
program. Some manufacturers offer FAA-approved "progressive" inspection
programs, usually tied to the number of hours an airplane flies. Such programs generally
make sense only for aircraft that fly at least several hundred hours a year, and consist
of a series of phased inspections to be performed usually in increments of 25, 50, or 100
hours.
When you look through a set of logbooks, you should see an annual inspection signoff
for each year (or an entry for each phase inspection if the airplane is on a progressive
inspection program). The problem with such entries is that many mechanics don't take the
time to include a summary of the work that was completed. They will stamp the next page in
the airframe or engine log with an entry saying that they have completed the annual or
phase inspection, sign it, but offer little detail about what preventative or corrective
maintenance was done.
There's nothing illegal about such de-minimus logbook entries, by the way. The FARs
don't say anything about how long-winded an A&P must be when logging his work.
Sometimes there will be an accompanying entry that refers the reader to a work order
number that is on file at the shop that did the work. But those records are not always
easily located, especially if the shop has gone out of business or enough time has passed
that the records have been relegated to the company's "archives." FAA-approved
repair stations are required to retain such records for only two years, and other shops
don't even have that requirement.
Telling the full story
Other mechanics write down every little detail of the work they did on the aircraft.
Though it takes time to read through these entries, you can often get a good feel for how
the aircraft has been maintained. The entries themselves can tell an interesting story,
though most pilots looking to buy an airplane don't understand the implications of
everything that is written down, and often skip over much of the detail. They figure that
because there is a lot of detail in the logbooks, the airplane must have been well cared
for. That's sometimes true, but not always.
The devil is often in the details. Recently I was looking through the books of a Dakota
that had come back to the U.S. from Canada. In a 1983 entry there was a one liner. It
simply said, "repairs made to aircraft." After a lengthy research period it
turned out that the airplane had been severely damaged in a landing accident. The Canadian
equivalent of the FAA Form 337 (Major Repair or Alteration) had been removed from the
aircraft maintenance records, and anyone who did not take the time to study the books
carefully would have missed the reference to the damage altogether.
Logbooks that have more detail in them can give a buyer a clue as to how thorough the
maintenance on the aircraft has been. But the lack of detail does not necessarily mean the
aircraft was neglected. Some FAA-certified repair stations that are known for their
thoroughness put little detail in the books. They prefer to keep the original inspection
forms in their files and don't take the time (for which they would have to charge the
customer) to transcribe the detail in the logbooks.
Unfortunately, some mechanics who want to cover up a cursory annual inspection make the
same kind of minimal logbook entry. That makes it tough on a prospective buyer of an
airplane with skimpy logbook entries, who has no recourse but to do a very thorough
pre-purchase inspection to make up for the lack of detailed maintenance records.
The case of the missing logbook
Every so often someone will hand me only the "current" logbooks for the
airplane I am to look at when I have specifically requested that all logs and
records be present. Of course, it is impossible to get a good feel for the airplane
without having all the logbooks, and sometimes it turns out that part or all of the
records have been lost.
Do lost logbooks impact the value of an airplane? Yes, but not necessarily to the
extent you might expect.
Several years ago I received a call from a gentleman who said that his local FBO had
lost one of his airframe logbooks during the recently completed annual inspection of his
Piper Cherokee. The FBO agreed to pay for an objective appraisal so that the amount of
diminished value could be determined. I looked at the airplane and examined the remaining
logbooks. The owner and the mechanic both knew that the aircraft had never been damaged,
and the engine log verified the airframe time for the few years that had been lost. I
determined that the diminished value for the loss of one airframe log came to $1,700.
The aircraft owner was perplexed because someone had told him that a missing logbook
could reduce the value of his aircraft by 50%, and he'd asked for my appraisal in the
expectation that he'd get a check for half the value of his airplane. But in this case,
there were other ways of arriving at most of the information contained in the lost
logbook, so the impact on value was minor. As it turned out, the whole problem became moot
a year later when the mechanic found the missing logbook in the folder of another airplane
he had worked on at the same time.
Lost or missing logbooks result in a much higher diminished value claim when what is
left does not provide sufficient information to verify the airframe time, engine time
since major overhaul, or the status of AD compliance and other important components that
are subject to time or life limitations. If those times can be verified independently by
going back to the shop that overhauled the engine, or by recreating events from the
records kept by a shop that did the majority of the maintenance on the aircraft, the loss
is not as great.
If there are no logbooks, as there might be in the case of an
aircraft that is repossessed or seized by a government agency, there is a considerable
loss of value. I remember an old Cessna 172 that was seized by the IRS due to the owner's
failure to pay his income taxes. The agency auctioned off the airplane amidst rumors that
the former owner was offering to sell the logbooks to the new owner. In another case an
East Coast bank repossessed a Cessna 402 many years ago only to find that most of the
remote mounted avionics were missing. The former owner's pilot told the bank that he would
sell them back the equipment for the amount of money he was owed for his services.
Eventually some kind of agreement was reached and the gear was returned to the bank. So,
if you are interested in a repossessed or seized airplane be sure you know the status of
all the equipment and records of the airplane before you bid on it.
Damage history and FAA 337 forms
One problem with our system of record keeping is that some mechanics feel they do not
need to make a logbook entry when an FAA Form 337 has been filled out and added to the
aircraft's paperwork. What they don't realize (or perhaps some do) is that it is very easy
to remove that piece of paper from the aircraft records. If that is done, as was in the
case of the Canadian Dakota, the aircraft can be represented by the seller as undamaged
while in fact it may have a considerable damage history. Some repairs are done so well
that it is difficult to tell the airplane has been damaged during a pre-purchase
inspection, while other repairs are done so poorly they are obvious from half way across
the hangar.
If the repairs were so well done as to be difficult to detect, why should it matter?
Well, perhaps it shouldn't, but it does! The problem with damaged airplanes is not the
quality of the repair work (unless it is poor), it's the psychology of the market. Some
buyers simply won't buy a damaged airplane at all, while others will insist on a
substantial price adjustment. It's just a fact of life.
Sellers know this, and all too often they remove the FAA 337 forms from the aircraft
records in an effort to cover up damage history. However, copies of each 337 are kept on
file at the FAA Aircraft Registry in Oklahoma City and are not difficult to obtain. You
may order them from the firm that does your title search, or you can call the Aircraft
Registry (405-954-3116) and order them yourself.
Logging engine overhauls
Engine overhaul shops often issue a new logbook for an
overhauled engine, and the lack of old logs confuses some purchasers. Several years ago I
had a Cherokee 160 for sale, and its engine had been overhauled by a very well-known shop.
That shop retained the old logbooks and issued a new one that carried forward the engine's
total time with the first entry showing the current engine time as 0 hours since major
overhaul.
Two foreign pilots who were living in the United States came to look at the airplane.
They had with them a book on how to buy airplanes that insisted that all aircraft and
engine logs had to be present. I tried to explain to them that all that was required of
the engine shop was that they carry forward the engine's total time in the new book, but
they kept referring to the paragraph in the book they had with them. They thought I was
trying to cover something up by not showing them the rest of the logbooks, and finally
they went away thinking I was some kind of shyster salesman.
The logbook entry for a major engine overhaul should include a list of the parts that
were replaced, and there should be yellow tags for various engine components that indicate
that they have been inspected and certified. A handwritten entry that does not detail the
complete overhaul, but merely states that it was done in accordance with the
manufacturer's overhaul manual, might well mean that the engine received an el-cheapo
service-limits overhaul that has little chance of making it through another TBO period.
Logbooks and other maintenance records are much more important than most people who are
looking to buy airplanes realize. The entries in those logbooks constitute a history of
where the aircraft has been and how it has been maintained. Sometimes they are not clear
and easy to read, but as a prospective buyer you must try your best to decipher them
(possibly with the help of a trusted mechanic or appraiser) in order to assure yourself
that you're paying a fair price for the aircraft and that there won't be any nasty
surprises down the road.