Used Aircraft Industry Terminology

A&P Mechanic

An FAA-certified Airframe and Powerplant technician authorized to perform, supervise, and sign off most aircraft maintenance and inspections. Essential for transaction due diligence, maintenance verification, and return-to-service approvals.

Have your A&P review the logbooks before we proceed to PPI.|The seller’s A&P signed off the 100‑hour inspection yesterday.|We’ll station an A&P on site during the ferry flight for AOG contingencies.

AD (Airworthiness Directive)

A legally enforceable rule issued by a civil aviation authority (e.g., FAA/EASA) requiring corrective actions to address an unsafe condition in an aircraft, engine, propeller, or component.

All ADs are complied with through June 2025.|That pending AD could ground the fleet and impact values.|PPI must verify recurring AD intervals on the landing gear.

AFTT (Airframe Total Time)

Total hours the airframe has flown since new. A core metric in valuations, maintenance planning, fatigue analysis, and comparing market comps.

Low AFTT and cycles for the model year—good residual profile.|AFTT 6,200 hours; CSN 3,900—verify LLP remaining life.|We adjusted comps for higher-than-average AFTT.

AOG (Aircraft on Ground)

Industry shorthand indicating an aircraft is unserviceable on the ground and requires urgent maintenance or parts. AOG status drives expedited logistics and can affect deal timing and pricing.

We’re AOG in KLAX waiting on an 8130‑tagged actuator.|AOG support is included in the OEM program.|The buyer wants a price concession due to repeated AOG events.

Appraisal

Independent valuation of an aircraft by an accredited appraiser (often ISTAT), ranging from desktop to full physical inspections. Used for financing, insurance, tax, and transaction pricing.

Order an ISTAT desktop appraisal for the lender.|Physical appraisal needed to reconcile interior condition and mods.|Base value versus market value assumptions must be disclosed.

As-Is, Where-Is

A common sale condition meaning the buyer accepts the aircraft’s current condition and location with limited seller warranties (often only title), placing inspection and repair risk on the buyer.

Sale is as‑is, where‑is in Dubai—buyer handles export CoA.|As‑is pricing reflects deferred maintenance and run‑out engines.|No warranties of condition; title warranty only.

Avionics Suite

The integrated set of avionics hardware and software (e.g., Garmin, Collins, Honeywell) that determines capabilities, compliance (e.g., ADS‑B, RVSM), and upgradeability—all of which influence value.

Pro Line 21 with WAAS/LPV and ADS‑B Out—RVSM capable.|The G5000 upgrade is a major value driver.|Legacy avionics may limit Part 135 eligibility.

Back-to-Birth Traceability

Complete documentation of a part’s history from manufacture to present, including approvals and ownership. Critical for LLPs and high-value components to ensure airworthiness and remarketability.

We need BTB for all LLPs before closing.|The missing Form 1 breaks the BTB chain.|No BTB means lessors won’t accept the part.

Base Value (BV)

An ISTAT-defined value concept that reflects long-term, normal market conditions and average utilization, removing short-term volatility. Used in appraisals, leases, and financing models.

Our appraisal uses ISTAT base value, not short-term market value.|The lease uses BV for return conditions.|Gap between BV and market value widened this cycle.

Bill of Sale (FAA Form 8050-2)

The legal document evidencing transfer of ownership for U.S.-registered aircraft. Required for registration changes and title recording at the FAA Registry.

Escrow needs the executed 8050‑2 before funding.|Names must match the registration exactly on the 8050‑2.|We’ll file the Bill of Sale and Registration together.

CAMO (Continuing Airworthiness Management Organization)

An EASA-approved organization responsible for managing an aircraft’s continuing airworthiness, including maintenance planning, records, and compliance control.

We’ll transition CAMO oversight post-closing.|CAMO-managed aircraft usually have cleaner records.|Change of CAMO requires authority notification.

Cape Town Treaty / International Registry (IR)

An international legal framework and electronic registry for recording security interests and leases in aircraft objects, improving creditor protections and facilitating cross-border deals.

Register the international interest on the IR before funding.|Our counsel will run an IR search along with the U.S. title search.|Cape Town remedies reduce lessor risk and improve financing terms.

Certificate of Airworthiness (C of A)

An official certificate issued by a civil aviation authority confirming the aircraft conforms to type design and is in condition for safe operation.

Export CoA is required for import into the EU.|CoA won’t be issued until outstanding ADs are closed.|Post-repair inspection is needed to reinstate the CoA.

Certificate of Registration (C of R)

Document identifying the registered owner and nationality of the aircraft. Required for legal operation and often changes at closing.

The C of R must match the Bill of Sale buyer.|We’ll transition from N‑registration to 9H.|Trustee appears as the registered owner on the C of R.

C-Check / Heavy Maintenance Visit

A deep, scheduled inspection with significant disassembly, findings risk, and downtime. In business aviation, often referred to by calendar (e.g., 96‑/120‑month) or major phase checks.

C‑check due in 8 months—price reflects upcoming downtime.|We’ll deliver with the 96‑month inspection fresh.|Heavy visit is the best time to accomplish mods.

Conversion (P2F – Passenger-to-Freighter)

A major modification program (via STC) transforming a passenger aircraft into a freighter. Impacts structural limits, payload-range, maintenance, and market value.

P2F STC adds a main-deck cargo door and floor reinforcement.|We underwrote freighter lease rates post-conversion.|Feedstock scarcity is driving up P2F candidate values.

Cycles (Flight Cycles)

Count of takeoff–landing events. Key driver of fatigue, LLP life, and maintenance scheduling.

LLPs have 1,200 cycles remaining to limit.|High cycles relative to hours—lots of short sectors.|Cycle-driven checks will hit before hour-driven ones.

Damage History

Record of accidents, incidents, and structural repairs. Impacts valuation, insurability, and buyer confidence; documentation quality matters.

Hangar rash repaired per SRM—documented in logs.|Major repair history will narrow the buyer pool.|NDI reports support the quality of the repair.

Deferred Maintenance

Known discrepancies or required tasks not yet rectified. Often addressed during PPI negotiations or reflected in price adjustments/escrow holdbacks.

These squawks are deferred to the next check.|Buyer requests a price holdback for deferred items.|The MEL allows dispatch, but we won’t defer for delivery.

Delivery Condition

The contractually agreed configuration and status of the aircraft at closing (e.g., inspections fresh, AD/SB compliance, equipment list, cosmetic standards, spares).

Deliver with fresh 12‑month/100‑hour and no deferred discrepancies.|Include two complete sets of keys, covers, and manuals at delivery.|AD/SB status current as a delivery condition.

Direct Operating Cost (DOC)

Variable, usage-driven costs of flying the aircraft (fuel, maintenance, engine/APU reserves, some crew and trip costs), excluding capital costs and depreciation.

Engine program lowers DOC volatility.|We modeled DOC at $3,200 per flight hour.|Charter ops pass DOC through to clients.

Dry Lease

Lease of an aircraft without crew, maintenance, or insurance. The lessee has operational control and typically must hold necessary regulatory approvals.

It’s a dry lease; the lessee provides crew and AOC.|Dry lease rates exclude maintenance and insurance.|We structured a dry lease to a foreign operator for 36 months.

EASA (European Union Aviation Safety Agency)

Europe’s aviation regulator responsible for certification, airworthiness, ADs, and oversight of CAMOs and maintenance organizations.

We need an EASA‑issued Export CoA for import.|EASA AD differs from the FAA version—comply with both.|EASA-approved STC required for EU operations.

ECTM (Engine Condition Trend Monitoring)

Analysis of engine performance parameters over time to detect anomalies, optimize maintenance, and preserve residual value.

ECTM flagged a rising EGT margin trend.|Trend data supports skipping an early borescope.|Upload ECTM reports to the PPI data room.

Engine Maintenance Program (EMP)

An hourly-cost program (e.g., Pratt ESP, RR CorporateCare, Honeywell MSP, JSSI) that covers specified engine/APU maintenance events, reducing cost volatility and improving marketability.

Both engines on Pratt ESP Gold.|CorporateCare coverage transfers at closing.|No EMP—buyer will discount for risk.

Escrow

A neutral third party that holds purchase funds and critical documents, manages filings, and releases assets upon satisfaction of closing conditions.

Funds and documents go to escrow until IR and title are clear.|Escrow will coordinate FAA filings at closing.|Use escrow holdbacks for post-closing discrepancies.

Export Certificate of Airworthiness

A document from the exporting authority stating the aircraft conforms to applicable regulations for export, often required for re-registration in another country.

Seller to obtain Export CoA from FAA.|Import authority requires Export CoA with specific statements.|Export timing drives the delivery schedule.

FAA (Federal Aviation Administration)

U.S. aviation regulator overseeing certification, airworthiness, operations, and the civil aircraft registry. Its regulations and data drive many global transactions.

File the 8050‑1/8050‑2 with the FAA Registry.|FAA AD 2020‑18‑01 applies.|The FAA DER approved the repair.

FBO (Fixed Base Operator)

Airport-based service provider offering fuel, hangar, parking, and ground support; often hosts inspections, viewings, and deliveries.

Delivery will occur at the FBO’s hangar.|The FBO can support de‑registration and export.|Stage the PPI tooling at the FBO.

Form 8130-3 / EASA Form 1 (Airworthiness Approval Tag)

An approval tag for parts/components signifying airworthiness release and traceability. Critical for installation eligibility and value of spares.

We need 8130‑3 tags for the rotable spares.|No Form 1—part can’t be installed in EASA land.|Parts without tags will be valued as cores only.

Fractional Ownership

Shared ownership model where multiple owners hold fractions of an aircraft, typically managed by an operator. Influences utilization patterns and resale appeal.

Ex‑fractional aircraft often have high utilization but great records.|We’re selling a 1/8 share with guaranteed hours.|Fractional fleet maintenance can bolster buyer confidence.

Green Time

Remaining hours/cycles before a major maintenance event (e.g., HSI or overhaul). Often monetized in valuations when components approach limits.

Engines have 500 hours of green time to HSI.|We’re buying for green-time harvesting before part‑out.|Green-time strategy reduces near-term shop visit risk.

Hard Time vs On-Condition

Maintenance philosophies: hard-time items are serviced at fixed intervals; on-condition items are serviced based on inspections, performance, or trends.

The pumps are hard‑time at 2,400 hours.|On‑condition items require trend and borescope data.|Lease return conditions specify hard‑time compliance.

HSI (Hot Section Inspection)

Mid-life inspection of the turbine’s hot section (compressor turbine, combustor). Key event for engine health, cost planning, and value.

HSI due in 300 hours—buyer wants it fresh.|Borescope at HSI showed minor FOD.|We modeled value drop approaching HSI.

IRAN (Inspect and Repair As Necessary)

A maintenance scope to inspect and repair only what’s needed to restore serviceability, short of complete overhaul. Common for components and sometimes engines.

Quote is for IRAN, not full overhaul.|IRAN of the prop will clear that vibration.|We authorized IRAN during the SV to control cost.

ISTAT (International Society of Transport Aircraft Trading)

A global association of aircraft trading professionals. Sets widely referenced appraisal definitions, ethics guidelines, and education standards.

Use ISTAT definitions for base value.|We want an ISTAT-certified appraiser.|ISTAT ethics guide broker conduct.

Lien Search

Due diligence to identify recorded security interests, judgments, or tax liens against the aircraft, engines, or seller. Necessary to deliver clean title.

Escrow will run domestic and IR lien searches.|A tax lien surfaced—closing is paused.|Provide lien releases from prior lenders.

Life-Limited Parts (LLP)

Parts with mandated life limits (cycles/hours/calendar) requiring removal at expiry. Traceability and remaining life are central to valuations and lease returns.

Fan disks have 2,000 cycles remaining.|LLP BTB records are complete.|Cycle limits drive shop visit timing.

LOI (Letter of Intent)

A non-binding term sheet outlining the principal commercial terms of a deal (price, deposit, PPI scope, delivery condition, timing, exclusivity), used to guide definitive agreements.

LOI includes price, deposit, and exclusivity.|Define the PPI scope clearly in the LOI.|LOI sets delivery condition and timelines.

Logbooks

The maintenance and operational records of the aircraft, engines, and components. Completeness and accuracy are critical to airworthiness and value.

Missing logbooks are a deal-breaker.|Scan all logs and upload to the data room.|Records conversion needed for import.

Maintenance Reserves

Per-hour payments (usually under leases) to fund heavy maintenance events (engines, APU, airframe). Protects lessors from maintenance cost timing and credit risk.

Lessee pays $350/hour into engine reserves.|Reserves reconcile at redelivery based on LLP remaining life.|PBH programs can obviate reserves.

MEL (Minimum Equipment List)

Operator-specific list of equipment that may be inoperative for dispatch under defined conditions and time limits, derived from the Master MEL.

Dispatch under the MEL with placards installed.|Part 135 MEL requires stricter relief.|MEL deferrals won’t be accepted at delivery.

MRO (Maintenance, Repair, and Overhaul)

A maintenance provider that performs inspections, repairs, component overhauls, and modifications. Capacity, certifications, and slot availability influence scheduling and cost.

Choose an MRO with model-specific expertise.|The MRO can bundle the avionics upgrade with the C‑check.|MRO slots are tight—book early.

N-Number

The U.S. registration mark (tail number) assigned by the FAA. Used in filings, title searches, and regulatory compliance.

We’ll reserve a vanity N‑number.|Change of N‑number triggers new markings and paperwork.|Confirm the N‑number matches the C of R.

OEM (Original Equipment Manufacturer)

The aircraft or component manufacturer (e.g., Gulfstream, Bombardier, Embraer, Airbus, Boeing; Honeywell, Collins, Garmin). OEM support, SBs, and parts availability affect value.

OEM SB compliance can improve reliability.|OEM support program adds resale value.|Non‑OEM parts may impact eligibility.

Overhaul

A comprehensive restoration to service limits for an engine or component, including disassembly, inspection, repair/replace, and test. Distinct from IRAN.

Prop overhauled at 2,000 hours.|Full engine overhaul resets TSO.|Overhaul shop quotes a 60‑day TAT.

Part 91 vs Part 135

U.S. operating rules: Part 91 covers private operations; Part 135 covers commercial on-demand charter. Regulatory regime influences maintenance, record-keeping, and marketability.

Part 135 requires stricter maintenance and MEL.|Part 91 utilization patterns affect residuals.|The aircraft is currently on a Part 135 certificate.

PPI (Pre-Purchase Inspection)

A buyer-commissioned inspection to verify condition, records, and compliance. Findings drive price adjustments, repairs, or walk-away decisions.

PPI scope includes borescope and gear swing.|Seller to remedy airworthiness findings from the PPI.|We’ll piggyback the PPI on the upcoming phase check.

STC (Supplemental Type Certificate)

Regulatory approval for a major change to the type design (e.g., avionics upgrades, winglets, cargo conversions). Proper documentation is essential for value and airworthiness.

Winglets installed under an FAA STC.|EASA validation of the STC is pending.|STC documentation goes in the delivery package.

Title Search

A review of ownership records and encumbrances at the FAA Registry and, where applicable, the International Registry, to confirm clean, marketable title.

Run FAA and IR title searches before deposit release.|Chain of title shows a gap—request missing Bill of Sale.|Escrow won’t close without a clean title search.