Ed McDonald wrote: Sat Oct 22, 2022 7:47 pm
The cost of the MSB is being borne entirely by Diamond/Austro, including the oil sampling. No owner is out of pocket on this including the core changes nor the replacement of the pistons, piston rings, and connecting rod assemblies.
First, you are correct in that while Austro has created enormous uncertainty for hundreds of owners, the exact impact is not known to all and probably will not be until the AD is issued. I personally dodged this bullet as my engine is not on the list.
Group 3 list over 400 DA40NGs. As of a year ago we estimated there were only 153 in DAI-C's region. Irrespective of where they are located, those airplanes just had their engine life cut in half. Some number of them should be grounded immediately.
Group 4 lists over 500 engines and 250 twin engine aircraft who have also had their engine life cut in half.
The impacts to those owners are considerably more than inconvenience.
I receive regular updates from Diamond/Austro tech pubs and I did not receive this draft MSB. I believe it was intended for fleet operators and DSCs, not private owners. They clearly were not expecting private owners to be on the video conference as they would not accept questions from private owners. What I read in the MSB is as follows:
Costs for labour and parts related to the applicability of this MSB will be covered by Austro Engine GmbH warranty under the limitations outlined in paragraph 3.2 and within the currently valid GTC. Additional fees for oil samples required by this MSB will be covered by Austro Engine GmbH warranty under its currently valid GTC only for oil analysis performed at Spectro or Oelcheck laboratories. For engine units affected by this MSB and approaching end TBO/TBR deadline pro‐rate solutions will be offered on a case to case basis.
GTC 3.2:
Costs of any modification requested by the Customer or caused by circumstances not known to DAI at the time of the conclusion of the Contract shall be priced separately and are under the sole responsibility of the Customer.
1) Would you please point me to the source of the assertion that Austro is bearing all the expense? If you are aware of a communication to private owners wherein Austro expanded the coverage described in GTC 3.2, I would appreciate seeing it posted.
2) Unless Austro is going to announce they've known about this for a long long time, thus opening themselves up to some pretty serious liability claims, then for many owners Austro will assert that the issue was not known to DAI at the "conclusion of the Contract" (the meaning of which is admittedly vague), and the owner will bear all the cost.
3)
"All measures must be carried out by a certified engine station and certified engine mechanics."
This is not a DIY thing. Hundreds of owners are going to be seeing their DSC twice as often as before this MSB. How many owners have a DSC on their home field, or even with 50nm? Just taking the oil samples is going to be a burden.
4) Even if Austro decides every engine with an AL > 8ppm will be replaced at their expense, we know they can't build them very quickly. Earlier this year we received notice that orders for new engines would need to be placed a full year in advance. Deliveries of new aircraft have repeatedly been blamed on Austro "supply chain issues". That notice also advised us that the cost of TBO's was prohibitive which is why Austro would no longer be performing them.
Now Austro is suggesting that DSCs are going to be rebuilding the 900 engines for 600+ aircraft in Tables 3 and 4? Last year we saw enormous delays and extended AOG time just to replace the HPP or oil pump. This is an entire engine disassembly and rebuild. I seriously doubt that most DSCs have the skills, facilities, or available labor to tear down, rebuild and bench test Austro engines.
5) A cloud has been placed over every aircraft with an engine in Tables 1-4. The first step by every broker, and every pre-buy is going to be to compare the engine(s) in the plane to the engines on the list. The resale value of those planes has been diminished until a new engine is installed. Austro won't be covering that loss of value.
6) Based on the webinar, Dan posted:
"The less expensive fix will be replacing just the pistons and some internal parts but they don't have any good ones available at this time. They expect to have new and improved pistons by February, 2023."
Is Diamond going to stop shipping new aircraft until April or May? Will the FAA, EASA or TC permit planes with a known engine defect to be certified for delivery? Are owners going to accept delivery of planes with a known defect?
I don't believe the comments here represent "an over reaction".
