I Have Questions

  1. Why the ESP® program?
  2. What is the ESP® program?
  3. What are the benefits of joining the ESP® program?
  4. What is the hourly rate for my engine?
  5. If I enroll my engines when they are new, are there any advantages?
  6. What do I do to enroll?
  7. Who can enroll?
  8. What are the requirements for enrollment?
  9. Is there an enrollment fee? What if I elect to enroll at a later date?
  10. Why should I enroll before my normal warranty expires?
  11. If I terminate my plan, am I still entitled to my standard warranty?
  12. If my engine requires removal, is a replacement engine covered?
  13. Where can I take my engine for service?
  14. What is covered by the program?
  15. What is not covered by the program?
  16. Can I terminate my plan?
  17. Is there any provision for reimbursement?
  18. Can I transfer my plan if I sell my aircraft?
  19. Are there minimum charges required?
  20. Do I still need to buy insurance for my engines?
  21. How do I go about using my plan?
  22. What is my monthly payment?
  23. How do I make my payment to P&WC?
  24. What about engine trend analysis? Is it required? How is it done?
  25. If I have any further questions, where should I address them?

  1. Why The ESP® Program?

    In response to customer demand for an engine maintenance budget program, Pratt & Whitney Canada Corp. (P&WC) is pleased to offer the ESP® program (Eagle Service™ Plan). We listened to operators' experience with various engine service plans, and applied that experience to develop a program for you, which we believe is the most competitive, comprehensive engine service program available today.

    Others may claim to know everything about the engine maintenance and maintenance costs for all aircraft engines. As the engine manufacturer, we know better. No one knows your engine or the engine maintenance costs better than the engine’s manufacturer, which is why we focus on only our engines. We have the facilities, the parts, the rental engines and the experts to ensure your Pratt & Whitney Canada engine is provided with the premium service expected from the manufacturer.

    We know that flight departments work hard to establish respect and credibility in their organization. With the ESP® program, we have virtually eliminated the risk of high cost surprises, and engine maintenance expenses become much more predictable. There are other advantages too: transferability on resale to subsequent operators; renewability at the end of the contract term; enhanced aircraft resale value; "gold card" service from the maintenance facility.

    Want to know more? Read on. We hope to answer the most commonly asked questions. And if the ESP® program is not suitable for your operation, we want to take this opportunity to say "Thank you, for selecting P&WC's dependable turbine engines."

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  2. What Is the ESP® Program?

    The ESP® program consists of a number of optional engine maintenance budget plans for operators of selected P&WC engine models, where P&WC becomes responsible for expenses resulting from:

    • Scheduled Hot Section Inspection (HSI)/refurbishment
    • Scheduled engine overhaul/refurbishment
    • Basic unscheduled engine maintenance
    • Basic unscheduled LRU/accessory maintenance
    • Required product support improvements at engine shop visit

    The ESP® program now offers several plan options to suit individual operator's requirements. Among them, the ESP® Gold Plan offers the most comprehensive coverage, and includes:

    • All required engine parts for the aforementioned engine events, including Life Limited Parts (disks, rotors, impellers, etc.)
    • Engine shop labour
    • Mobile Repair Team (MRT) support for AOG (ESP® covered events)
    • Rental engine at current plan rates
    • Troubleshooting labour allowance
    • Removal and installation labour allowance for engines and line replaceable units/accessories
    • Freight for engine and engine parts

    For other plans, please refer to the chart in the section entitled "What is covered by the program?"

    Each plan has been designed to suit individual operator needs, and has been priced accordingly at a fixed rate per flight hour. On a monthly basis, the operator pays an amount based on the number of hours flown in a given month multiplied by the applicable dollar ($) rate per hour.

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  3. What Are The Benefits Of Joining The ESP® Program?

    For the operator, we think there are many. First, engine maintenance expenses are more predictable as they become stabilized to the level of aircraft utilization. Given the level of utilization, budgeting and forecasting for the engine maintenance portion of your flight operations becomes much easier.

    This plan virtually eliminates the possibility of high cost surprises, both scheduled and unscheduled, with the exception of expenses related to such things including, but not limited to, negligence, improper use or accident. A smooth, steady payment schedule should help to ensure that the budget remains on target.

    Since the plan is transferable on resale to subsequent owners or operators, it becomes a portable asset to enhance your aircraft resale value and improves the potential for buyer consideration. With ESP® program coverage, the operator is buying what we call VFR/IFR (Value For Reliability/Investment For Restoration). Future purchasers will be assured that engine maintenance has been performed in accordance with P&WC's requirements and that the plan is backed and supported by the engine's manufacturer.

    And last but not least, the ESP® card introduces you to the worldwide P&WC service centre network as a valued customer deserving special attention. The service centres will know that you are backed by the finest engine service program in the industry.

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  4. What Is The Hourly Rate For My Engine?

    The hourly rate established for each engine model is based on the expected cost of operating a mature engine. This assures enrolled operators that their operating costs will reflect those of a mature engine in a mature operation from day one.

    The rate takes into account the benefit of existing warranty and commercial support programs, and that the operator's payments begin when the engine's life begins.

    There are several basic hourly rates, depending on the plan selected.

    For more information on hourly rates, please contact the ESP® Program Office, or your local P&WC service representative.

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  5. If I Enroll My Engines When They Are New, Are There Any Advantages?

    Yes, for operators who enroll engines prior to 100 hours Total Time Since New (TTSN), the first 25 hours TTSN, or the total hours on the engines on the date of aircraft retail sale, whichever is greater, is subtracted from the total time on the engines when enrolled. In addition, for operators who enroll their new P&WC engines before 200 hours TTSN, an early enrolment New Engine Discount rate may be available for a specified period of time.

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  6. What Do I Do To Enroll?

    First, complete and send the Enrollment Application form along with copies of your engine and aircraft logbooks. Your aircraft sales representative can provide you with this form, and will be happy to complete and submit it for you. Alternatively, you may call us for assistance with enrolment. The Enrollment Application is for information purposes only and does not generate any contractual obligations.

    Upon receipt of the Enrollment Application, P&WC will prepare and send duplicate copies of the P&WC/Operator ESP® Agreement for review, and signature, by a duly authorized operator representative. The Enrollment Application form may also be used to submit a request for hourly rates or to obtain a quotation to enroll used engines.

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  7. Who Can Enroll?

    The ESP® program is offered to the owners or operators of new or used P&WC engines that are intended for normal passenger/freight transport operation. P&WC engines that have been maintained in accordance with all applicable P&WC Maintenance Manuals, Service Bulletins and recommendations are eligible for enrollment. Used engines may be required to meet certain minimum Service Bulletin standards prior to being enrolled.

    By enrolling the engines when new, the operator can ensure a smooth payment schedule, and preclude unforeseen maintenance expenses later in the life of the engine.

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  8. What Are The Requirements For Enrollment?

    In order to be eligible for ESP® enrollment, in-service engines must:

    1. have been maintained in accordance with all P&WC maintenance and overhaul manuals, service bulletins, service information letters and recommendations; and
    2. have complete trace-ability of prior engine maintenance and life cycle limited parts item sheet detailing hours and cycles; and
    3. if applicable, have been overhauled or repaired either by P&WC owned Service Centres or P&WC Designated Overhaul and Repair Facilities; and
    4. have recently completed an engine instrumentation verification and calibration (may be waived if engine is new or was recently overhauled or completed HSI).

    If the engine has previously been through HSI, repair or overhaul, and all required P&WC Service Bulletins (category 1 through 6) have not been incorporated, a buy-in may be required to pay for future incorporation of such bulletins.

    ESP® requires a buy-in payment for engine hours flown since new, or if applicable, since overhaul. If a plan which includes life cycle limited parts coverage is desired (e.g. Gold Plan or Silver Plan), then an additional buy-in payment for life cycle limited parts usage to date (or to last overhaul) may also be required and calculated.

    The buy-in can be paid either:

    1. as a lump sum at enrollment; or
    2. half of the buy-in amount is paid up front at enrollment, and for the other half, the amount can be paid back in 3 equal monthly instalments, provided there are no upcoming major events.

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  9. Is There An Enrollment Fee?
    What If I Elect To Enroll At A Later Date?

    There is no enrollment fee other than to pay for hours flown since new, or if applicable, hours since overhaul, at the current applicable hourly rate or under our FLEX buy-in option, pay a smaller percentage of the Total Time Since New (TTSN) at enrollment and defer the remaining pre enrollment flight hours (see the FLEX buy-in option for details).

    For new engines enrolled under 100 hours TTSN, the first monthly payment required from the operator is calculated from the total hours on the engines on the date of the first retail sale of the aircraft, or 25 engine hours TTSN, whichever is greater. In other words, if you purchase your aircraft with 15 engine hours TTSN, your first monthly payment would be calculated from 25 hours TTSN as the starting point; however, if you are the first purchaser/operator of an aircraft with 30 engine hours TTSN on the date of retail sale, your first monthly payment would be calculated from 30 hours TTSN as the starting point. For engines enrolled beyond 100 hours TTSN, the payment for hours flown is based on TTSN or since overhaul.

    For an engine enroling at or beyond its first overhaul into a Gold Plan or Silver Plan, an additional fee will be required to account for usage of the cycle life limited parts not replaced at overhaul.

    If you are the purchaser of a new demonstrator aircraft with engines that have more than 100 hours TTSN, the payment for hours flown would be based on hours of operation since 100 hours TTSN. In other words, if you are the first purchaser/operator of a demonstrator aircraft that has accumulated 250 engine hours TTSN due to flight testing, ferry time and demonstration by a retail sales facility, an initial enrollment fee would be required to pay for 150 engine hours of operation since 100 hours TTSN.

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  10. Why Should I Enroll Before My Normal Warranty Expires?
    Isn't This Program Just An Extended Warranty?

    No. The ESP® program is much more than an extended warranty. Warranties typically cover defects in material and workmanship as expressly provided by each specific warranty, and do not include items such as normal wear and tear or Service Bulletin upgrades. With this plan, the major portion of your fee is really an investment toward the future scheduled restoration of your engine, which includes any required replacement or refurbishment of parts due to normal wear and tear and required Service Bulletin upgrades or rental engine shipping, intallation labor and rental utilization. During the normal warranty period, payments to ESP® are contributing on a smooth monthly basis towards the major maintenance events, such as hot section inspections and overhaul, which the engine will require at some time in the future.

    When establishing the hourly rate, the benefits of existing warranty coverage provided by P&WC, component suppliers and maintenance facilities are already taken into account, and the rate has been calculated accordingly. Only a small portion of the hourly rate goes towards coverage for a major unscheduled event outside the normal warranty period.

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  11. If I Terminate My Plan, Am I Still Entitled To My Standard Warranty?

    Upon termination of the agreement for any reason, the balance of the remaining engine warranty coverage, if any, is reassigned to the operator.

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  12. If My Engine Requires Removal, Is A Replacement Engine Covered?

    Whenever an engine requires removal for an ESP® covered overhaul or major engine shop repair, P&WC will arrange for a rental/lease engine for the period required to perform the "off-wing" maintenance (subject to execution by the operator of an appropriate rental agreement). The operator continues to pay the current ESP® program hourly rate for the rental engine; the program covers the hourly rental fee and any per diem charges. With the Gold or Gold Lite Plans, engine freight charges (surface, excluding insurance) and a removal and reinstallation labour allowance is also included for both the operator's engine and the rental engine.

    In certain repair or overhaul situations, P&WC may recommend an "exchange" engine to replace the operator's eligible engine. Operators who prefer this option, if recommended, will inevitably save removal and installation labour, as well as considerable aircraft down time.

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  13. Where Can I Take My Engine For Line Service?

    All work covered by the program must be authorized by our ESP® Administration or a P&WC service representative, and must be performed by a maintenance facility equipped and qualified (licensed and P&WC trained mechanics) as well as performing routine line maintenance of the eligible engine.

    Engine AOG in a remote part of the world? No service centre in sight? With the Gold or Gold Lite plan, we will arrange for a Mobile Repair Team (MRT), tools, parts, or rental engine in order to return the aircraft into service.

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  14. What Is Covered By The Program?

    Coverage will vary depending on the type of plan selected. The following table provides an outline of the level of coverage provided.

    Coverage3 Silver Lite Silver Gold Lite Gold
    Overhaul/refurbishment, scheduled x x x x
    Engine repair, basic unscheduled (BUER) x x x x
    Hot Section Inspection (HSI), scheduled or required x x x x
    Service Bulletins, required2 x x x x
    Engine shop labour x x x x
    Troubleshooting labour1
    (Silver plans up to 10 hours; Gold plans, as required)
    x x x x
    Engine parts, excluding Life Limited Parts2 x x x x
    Engine accessories, P&WC supplied (overhaul, BUER) x x x x
    Rental/lease engine coverage (overhaul, BUER) x x x x
    Engine Condition Trend Monitoring (ECTM®) analysis x x x x
    Life Limited Parts2 (e.g. disks, impeller, etc.)   x   x
    Line removal/installation/access labour, engine and accessories1     x x
    Freight for engine, engine parts, accessories
    (surface, unless AOG, excluding insurance)
        x x
    Mobile Repair Team for unscheduled AOG2     x x

    1 Allocation in labour hours per engine event as described in the ESP® Agreement.
    2 Subject to provisions described in the ESP® Agreement.
    3 Actual coverage may vary depending on the workscope described in the ESP® Agreement.

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  15. What Is Not Covered By The Program?

    1. misuse, neglect, accident, ingestion of foreign material, or defects/causes outside P&WC's control;
    2. repair or replacement costs attributable to damage caused by corrosion, erosion, sulphidation, or use or inspection contrary to P&WC's current operating and maintenance instructions recommendations, including early HSI without cause;
    3. use, without P&WC's approval, of parts not originally manufactured or supplied by P&WC, or modifications to the engine not approved by P&WC;
    4. rental engine coverage for HSI or engine removal required due to any of the aforementioned exclusions;
    5. field level routine or periodic maintenance/inspection labour and consumables (eg. oil, fuel, filters, O-rings, items listed in Period Inspection table of the Engine Maintenance Manual);
    6. hangar fees, tooling fees or any such related airport charges;
    7. any expenses related to flying the aircraft;
    8. living or transportation expenses for crew, maintenance personnel or passengers;
    9. overtime premiums or call out charges; and
    10. all taxes, duties, tariffs.

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  16. Can I Terminate My Plan?

    Yes. Upon written request, the ESP® Agreement may be terminated at any time by the operator, provided the operator has fulfilled all of its obligations under the Agreement up to such date. In certain circumstances, a credit or reimbursement provision may be applicable, as described below.

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  17. Is There Any Provision For Reimbursement?

    A credit or cash reimbursement provision is available to the aircraft’s first enrolled operator, upon notification of termination, provided the engine has not been inducted for its first overhaul. The first enrolled operator is eligible for a non-reimbursable credit of 85% of the net positive account balance, for future expenditures at a P&WC facility, or for ESP® program payments on another aircraft. Alternatively, the first enrolled operator may opt for a cash rebate of 60% of the net positive account balance.

    Other reimbursement provisions are available for all enrolled operators who suffer a loss of the engines due to accident or theft. Other than those mentioned above, no other provisions for reimbursement are available. For more information on these provisions, contact the ESP® Program Office.

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  18. Can I Transfer My Plan If I Sell My Aircraft?

    Yes. The plan may be transferred to subsequent owner(s) or operator(s), provided the previous operator has not received the aforementioned credit or cash reimbursement, and the operator has fulfilled all of its obligations under the ESP® Agreement up to such date. A new agreement will be required for the new operator, and an adjustment to the hourly rate may be required if the new operator’s utilization will differ. An administrative fee to process this transfer will be required.

    The transferability of the program should provide an enhanced future resale value of your aircraft, and may also increase potential for buyer consideration.

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  19. Are There Minimum Charges Required?

    No. The ESP® Program has eliminated the annual utilization requirement.

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  20. Do I Still Need To Buy Insurance For My Engines?

    Yes. The ESP® program does not cover loss or damage to the engine that is related to misuse, neglect, accident, ingestion of foreign material or any other defect or cause outside P&WC's control. It also does not cover loss due to fire, theft or consequential damages, and does not provide any liability insurance. The operator is required to carry insurance for all engine shipments, including rental engine shipments, both to and from the aircraft. Also, in the event of the installation of a rental engine, the operator is required to carry or obtain a specified minimum amount of aircraft liability insurance.

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  21. How Do I Go About Using My Plan?

    An ESP® identification card is issued to the operator. When engine maintenance is required, operators present the card to the service centre/FBO to identify themselves as an ESP® program member.

    The operator, or service centre, must then contact our ESP® Administration or a P&WC service representative by telephone, email or fax to obtain a required Work Authorization number prior to commencing maintenance services. 24-hour telephone instructions are provided on the back of the ESP® card. A Work Authorization number will be issued upon verification of the card, the selected facility, and the work to be performed.

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  22. What Is My Monthly Payment?

    At the end of each month, we request the operator report the actual number of engine operating hours and cycles for that month. The amount due for the monthly payment is calculated in the Monthly Report by multiplying the actual monthly operating hours by the applicable hourly rate.

    P&WC provides access to a web-based customer portal to facilitate the recording at hours flown. Alternately, a MS-Excel spreadsheet can be provided to record hours and produce the requisite report. An option also exists where we can provide a printed form to facilitate production and faxing the report of hours flown. Monthly payments are based on actual hours flown, or if preferred, we can also arrange for quarterly, semi-annual, or annual pre-payments based on average utilization, or pre-payments based on a block of hours.

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  23. How Do I Make My Payment To P&WC?

    Several options are available for making payment for engine usage (based on the Monthly Report). The operator can either mail a cheque payable to P&WC, or we can provide bank-to-bank wire transfer instructions. We can also set up payments utilizing Visa®, MasterCard® or American Express® cards. Whichever method is selected, the amount due is payable in U.S. funds and is due at P&WC within 15 days of the previous month end. Your FBO/dealer or management company may be willing to assist you with arranging these payments.

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  24. What About Engine Trend Analysis?
    Is It Required?
    How Is It Done?

    An Engine Condition Trend Monitoring (ECTM®) program is required for engines covered by the ESP® program. In the absence of an electronic ECTM® recording device on the engine, the data required to do ECTM® analysis must be recorded manually as obtained from cockpit instruments in flight. Manually recorded data is then submitted to P&WC or a Designated Analysis Centre for computer processing and analysis. Data recorded on an electronic engine diagnostic unit must be downloaded by the operator at least once per month and sent to P&WC or a Designated Analysis Centre for processing and analysis. The processing and analysis of your ECTM® data is included at no charge for operators enrolled in the ESP® program.

    By normalizing the flight data to a standard day condition and taking into account the power setting, we can compare the performance of the engine on a flight-to-flight basis. Early problem detection will help to lower maintenance costs, and consequently maintain reasonable hourly rates. Early problem detection may also improve maintenance planning (less down time), and reduce the possibility of an in-flight engine occurrence.

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  25. If I Have Any Further Questions, Where Should I Address Them?

    If you wish to enroll or to obtain more information about the ESP® program, please call our ESP® Program representatives (listed on the upper right of this webpage) or fill out the ESP application form.

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ESP® Program
Engine Support

North America: 1-888-479-2377
International:1-450-468-3771
esp@pwc.ca

ESP® Program
Product Manager Global Sales

Laura Babbitt
Tel: 1-501-766-8277
Fax: 450-647-9827
laura.babbitt@pwc.ca

ESP® Program
Product Manager
Contract Management

Wayne Petitpas
Tel: 450-647-2722
Fax: 450-647-9652
esp.admin@pwc.ca