Aviation Warranty Solutions Limited

 It is our pleasure to introduce Aviation Warranty Solutions Limited.

Our aim is to provide a first class service to our customers with our
dynamic approach and highly trained and competent team of
warranty recovery specialists who have a combined experience of
over 50 years in Aviation maintenance and Engineering.

Aviation Warranty Solutions Limited

 Our success is built on our strong foundation of trust, reliability, integrity
and quality of service.

 We pride ourselves on our reputation and this is supported by our range

of customers and airlines for whom we have been successfully
recovering substantial amounts and continue to do so on a regular basis.

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Aviation Warranty Solutions Limited

Harish Shah MA

Founder and Director

• A specialist with over 20+ years experience in warranty/ guarantee recovery .

• Educated with a Master of Arts in Management Studies

• In depth knowledge of contract negotiations and administration of all aircraft

warranty and guarantee related matters

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Aviation Warranty Solutions Limited

Aviation Warranty Solutions conduct on-site visits and perform

audits of your existing warranty recovery process and review the
maintenance activities of your Aircraft, whose records are
maintained by the operator or the contracted MRO.

We perform audits upon defects, modifications embodied and also

recently installed modifications on the Aircraft to ensure that all
warranty recovery and Free Of Charge (FOC) modification kits as
well as vendor modification programs are managed and
administered.

This can in turn could improve the reliability of the Aircraft, which
benefits the operator and reduce the costs associated with such
programs.

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 Aviation Warranty Solutions Limited
•The world’s airlines are always under pressure to increase
profitability and growth

The challenges we face are:

1. Decrease overall maintenance costs.
2. Streamline the supply chain.
3. Minimise unscheduled maintenance and optimise scheduled maintenance.
4. Ensure regulatory compliance and tighten accountability over technical operations.
5. Focus on strengths by outsourcing and/or in sourcing maintenance activities.
6. Continue safe and efficient operations

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 Aviation Warranty Solutions Limited

One of the ways this is possible is by

taking maximum advantage of the
warranties and guarantees that are
offered when purchasing aircraft,
engines and components

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 Aviation Warranty Solutions Limited

What to ensure during negotiations

 Ensure warranty terms are clear, set time limits and conditions for acceptance of claims
and closure of the items. Make sure that if not responded within the set time then claim
must be deemed accepted. (This includes Contracts with MRO’s and OEM’s)

 Transfer of warranty rights must be in place within a certain timeframe and acknowledged
by the airframe manufacturer.

 Permission and full authority to negotiate all warranty / guarantee matters with the aircraft
manufacturers and vendors is granted.

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 Aviation Warranty Solutions Limited

What to ensure during negotiations

 Spares purchasing agreements and component repair records are available.

 Access to technical documents and /or on-line sites

 Access to third party maintenance organisations who maintain your fleet if not
accomplished in-house

 If contracted out ensure that the MRO/Agent reports credit and claims status
and conduct regular audits for efficiency of claims

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 Aviation Warranty Solutions Limited

Expected Savings
Reduced Maintenance Costs And Overheads
All costs associated through design deficiencies, material and workmanship errors are
pursued and recovered from manufacturers and vendors.
Reduced Component Repair and Overhaul Costs
All costs associated with warranty repaired items are recovered through efficient
administration of product support agreements.
Reduced Modification and Upgrade Costs
By ensuring all F.O.C service bulletins kits and upgrade programmes and chargeable
modifications are negotiated with the vendors for price reductions.

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 Aviation Warranty Solutions Limited

Primary Contractual Documents

Purchase agreement
(AGTA) Warranty Provisions

Detailed Specification
Exhibit A

Product assurance
document
Exhibit B or C

Customer support
document Customer service
Exhibit B or C General Terms
Agreement

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Aviation Warranty Solutions Limited

Standard Warranty Terms

Aircraft – Standard Warranty typically
36 or 48 Months.
Corporate fleet’s are generally 60 Months
Purchase Agreement Clauses and Contract Rules
Warranty cover is assured by:
The Aircraft Purchase Agreement (PA)
The Letter Agreements and amendments to the PA
(Commitment Letter)
For leased aircraft, the assignment of Warranties and Service Life
Policy (SLP), by the lessor to the lessee.

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Aviation Warranty Solutions Limited

Extended Warranties
Most aircraft manufacturers provide a 12 year service life policy

Service Life Policy

The Service Life Policy (SLP) is applicable to a selected list of items of
primary aircraft structure and provides a cost sharing that varies over a
period of time.

Remedies (Material costs only)

A pro-rata formula gives the credit to be applied under this policy. This
formula takes into account the partial use already made by the relevant
part over the agreed duration.
Within the duration of the standard warranty, 100 percent coverage is
applied.

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Aviation Warranty Solutions Limited

Additional Warranty Information may be found in the

following documents:

• Letter Agreements to the Purchase Agreement

• Aircraft Delivery Exception and Commitment Letters
• Service Bulletins and Service Letters
• Program Letters

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Aviation Warranty Solutions Limited

Nature of warranty
Each aircraft and all warranted parts shall be free from defects:
in material
in workmanship
in design, having regard to the state of the art at the date of design
arising from failure to conform to the specification

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 Aviation Warranty Solutions Limited

Exclusions
The standard warranty does not apply to:
•·Performance, estimates, approximations or design aims;
•·Buyer furnished equipment (BFE) which is equipment fitted that has been purchased by the
Customer according to their specific needs. (Warranty coverage is negotiated by direct
contracts with the relevant suppliers;)
•·Propulsion System as this coverage is provided directly by the Engine Manufacturer selected by
the Customer;
•Components, accessories, parts purchased by the manufacturer, and not bearing their P/N.
• All Supplier Furnished Equipment (SFE). These are covered by the transfer of Vendor warranties
(PSAA)

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 Aviation Warranty Solutions Limited

Exclusions Continued
The standard warranty does not apply to:
•·All standard parts
• All consumable material, as well as raw or bulk material.
• Nevertheless
installation of Vendor items (either BFE or SFE), integration of systems and units are to be
considered under workmanship and design warranties.

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Aviation Warranty Solutions Limited

Warranty Conditions
Administrative time limits
Claim submission. Within the authorized contractual delay
(90 days is generally acceptable).
Claim determination. Currently, claims are usually settled within 30 days.
Airline should retain failed parts (60 days minimum) for possible inspection.

Aircraft on Ground (AOG)

Warranty settlement cannot be made available for an AOG delivery as an on-
the-spot is in contradiction to the spirit of the warranty procedures.
Therefore no AOG will be delivered FOC.
A warranty claim should be filed after the fact.

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Aviation Warranty Solutions Limited

Warranty Conditions
Free of Charge (FOC) classification and Industry Support
Responsibility in a production error or design defect.
Service Bulletins issued to correct design defects becoming apparent within the
warranty period and items that are clearly unsuitable in operation (not fit for their
intended use) are the main candidates for this classification.

Mandatory Service Bulletins

There is no relationship between FOC statement and Mandatory classification.

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Aviation Warranty Solutions Limited

Components/Rotables
Coverage is by means of preliminary negotiations with each vendor, most of
which is conducted by the aircraft manufacturers

The terms of contract are provided to the Customers by means of the

following publications:
SUPPLIER PRODUCT SUPPORT AND ASSURANCE AGREEMENTS
(PSAA and GTCP)
(Provides specific warranty and guarantee terms including MTBU
and MTBR commitments)
Coverage, definition, time limits are similar to those provided by both
Airbus and Boeing for Warranted parts.
Vendors are offering up-graded conditions for each new aircraft model.

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Aviation Warranty Solutions Limited

Warranty recovery expectations

Airframe warranty

Service Life (pro rata

parts only)
11%
Rotable
warranty(transportation
and labour)
FOC Kits and
21% SB's(Airframe only)

52% Engines Warranty(On

wing)

16%
0%

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Aviation Warranty Solutions Limited

On site data
collection

Closure and Analyse data for

reporting warranty claims
The warranty
process
Credit recd by
Airline Customer Claim preparation
& submission

Negotiation and
administration

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Aviation Warranty Solutions Limited
Unscheduled
Defects
Keep removed Consumables

SBs , SLs, Sil

Challenge warranty
for those correcting design deficiencies Savings and credits recd by
The operator or designated MRO

FOC Kits/parts
Always order within time limits

In Service problems
repetitive defects.
Always mark communications to vendors
with “Warranty claim to follow”
Component repairs and
Modifications
Ensure transportation and labour
are claimed for

Copyright ©Aviation Warranty Solutions Limited

Aviation Warranty Solutions Limited

Our contact Details:

Head office
Aviation Warranty Solutions Limited
Mr Harish Shah
CEO and Managing Director
5 Greenhill Avenue,
Luton,
Bedfordshire,
LU2 7DN,
UK
Tel: 44 (0)1582 511614,
Mobile: 44 (0)7779 497773
E-Mail: [email protected]
Website: www.aviationwarranty.com

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