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Variations in engine prices



 
 
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  #1  
Old January 13th 04, 01:21 PM
Nathan Young
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Default Variations in engine prices

Why do prices for different variations of the same engine vary
significantly? For example, factoryengines.com lists about 200
different variations of the TSIO520 for many different airframes.

Many datapoints between the high and low costs can be found, and of
course, you generally pay more for the higher HP engines.

For example:
The TSIO520B15B (285hp for C310P/Q/R) weighs in at $27k rebuilt.
The TSIO520BE3B (310hp for Malibu) is $51.7k rebuilt.
The TSIO520WB3F (325hp for B58TC/P) is $49k rebuilt.
The TSIO520VB6F (325hp for C402) is $29.3k rebuilt.

So the question is why is the Malibu engine 80% more expensive than
the C310 engine?

Is the difference in pricing volume driven? Accessory costs?
Fundamental differences in the engine design? Are the TBOs different
(1200hrs vs 2000?) that might make a significant difference in what
I'd pay for an engine.

A comment: Given that the C402 engine is $20k cheaper than the B58
engine, it seems someone should develop an STC that allows installing
the C402 engine on the B58 airframe. I know STCs are expensive to
obtain, but the margins seem very high on this deal, so I would think
it is a business opp for the right person.

-Nathan

  #2  
Old January 13th 04, 04:48 PM
Aaron Coolidge
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Default

Nathan Young wrote:
snip

: A comment: Given that the C402 engine is $20k cheaper than the B58
: engine, it seems someone should develop an STC that allows installing
: the C402 engine on the B58 airframe. I know STCs are expensive to
: obtain, but the margins seem very high on this deal, so I would think
: it is a business opp for the right person.

Nathan, this is most likely volume driven. Just about every C402 is used
in "commuter" airline service (see www.flycapeair.com). The airplanes
use up engines quite quickly, because each airplane flies several hours
a day. The engines must be replaced at TBO (usually this is stated in
the airline's 135 operating certificate). The C402 engine's TBO is 1400
hours, so each plane probably gets a pair of engines each year. That's
a lot of engines!

--
Aaron Coolidge (N9376J)

  #3  
Old January 16th 04, 01:05 PM
CriticalMass
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Default

Nathan Young wrote:

Why do prices for different variations of the same engine vary
significantly?

For example:
The TSIO520B15B (285hp for C310P/Q/R) weighs in at $27k rebuilt.
The TSIO520BE3B (310hp for Malibu) is $51.7k rebuilt.

So the question is why is the Malibu engine 80% more expensive than
the C310 engine?



IMO, actual costs to produce all these engines doesn't vary anywhere
near the variances of the cost to buy. I'm certain a big part of these
differences is based on a pricing policy heavy on a "charge what the
market will bear" philosophy. We all know, the Malibu owner has a lot
more ability to pay than the C310 owner, right?

It's the same deal we're all painfully aware of in general, in
aviation. Buy a part for our automobile, and pay $X for it. Buy a very
similar part for our flexible flyer and pay $X times 10 for it.

Everyone knows, pilots are rich. RIGHT.

 




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