New aircraft order supervision — from factory slot to delivery

A new aircraft is bought differently from a used one. Between signing the contract and the first flight there is a year to three, and for all that time the aircraft exists only on paper. Someone has to make sure it turns out the way it was ordered.

How it works

• choosing the manufacturer and model for your routes and passenger load
• the place in the queue: the production slot drives the delivery date as much as the order itself
• specification: avionics, layout, range, options — every line costs money and some of them cannot be added later
• the contract with the factory: payment schedule, liability for delay, penalties
• build oversight: inspections at the key stages, seen with your own eyes
• interior completion: materials, furniture, entertainment system, sign-off on samples
• acceptance: ground and flight checks, a snag list and its clearance before signature
• registration, import and entry into service

Where money and time are lost

Three typical mistakes. The first is ordering the specification «like the neighbour's»: the configuration has to follow your flight profile, otherwise you pay for range you never use and skip what you would need on every flight.

The second is saving on oversight. The factory builds to the contract, but contracts are read by people, and discrepancies surface at acceptance, when fixing them costs the most.

The third is leaving import and registration until after delivery. The aircraft is ready but cannot fly: the paperwork and customs run alongside the build and have to start early.

I have run such builds myself: we completed two Mi-8 helicopters for the company's clients and ordered another machine from the Kazan plant. The type is different, the order of work is the same: slot, specification, oversight at the plant, acceptance. One detail from that practice: the Ulan-Ude plant's base warranty runs 300 flight hours or one year, and extending it to around five years costs less when the extension is ordered at the contracting stage.

What you end up with

The client receives an aircraft ready to work: with its documents, a registered tail number, crew and maintenance in place. And knows what every dollar of the specification paid for.

Frequently asked questions

New or pre-owned?

New gives you your own configuration, full warranty and fresh maintenance programmes. Pre-owned saves money and time. The line is drawn by how much you plan to fly and by how critical the configuration is for you.

Can the specification be changed after the contract is signed?

Up to certain build stages — yes, at extra cost and possibly a later delivery. After that — no. Which is why the specification is worked out before signature.

What if the factory slips the schedule?

Delays do happen on contracts like these, and the procedure is written into the contract itself. Look at three things: from which day the delay counts, how the factory compensates for it, and what happens to your payment schedule meanwhile. Plan separately for what you will fly during those months if the previous aircraft is already sold.

What to ask the factory before signing?

What the base price covers and what is an option. Up to which stage the specification can be changed, and at what price. What secures your place in the queue. Who does the interior completion and who is liable for that contractor's schedule. From which day the warranty runs and what it covers.

Alexander Filimonov — business aviation: selection, purchase and entry into service of aircraft.