Pre-Purchase Inspection: What Aircraft Buyers Need to Know 

A pre-purchase inspection (PPI) is a detailed technical examination of an aircraft and its records, carried out before the buyer accepts the aircraft. It is the point in an acquisition where the information provided by the seller is verified against the aircraft itself.

A well-run PPI protects the buyer from inheriting unexpected costs and gives both parties a factual basis for resolving the final terms. A poorly scoped one can leave significant issues undiscovered until after closing, when they become the buyer's responsibility.

Where the PPI fits in the transaction

The PPI usually follows the signing of a letter of intent and the placement of a deposit in escrow. The LOI typically defines the inspection location, the scope, who pays for the inspection itself, and how the costs of correcting discrepancies will be shared. These terms should be agreed carefully, because they govern much of what happens next.

Defining the inspection scope

There is no single standard PPI. The scope is negotiated and should reflect the aircraft's age, its maintenance status and the buyer's risk tolerance. Common elements include:

• A detailed review of maintenance records, logbooks and component histories.
• Verification of airworthiness directive and service bulletin compliance.
• A physical inspection of the airframe, systems, landing gear and cabin.
• Engine inspections, which may include borescope inspections and, where appropriate, oil analysis.
• APU inspection.
• Functional checks of avionics and systems.
• A check for corrosion and evidence of undocumented damage or repairs.
• A test flight to confirm the aircraft performs as expected.

Buyers may also choose to include inspection items that fall due shortly after closing. Completing them during the PPI can be more efficient than scheduling a separate maintenance visit soon after delivery, and it clarifies the aircraft's condition at the point of sale.

Choosing the inspection facility

The PPI should be carried out by a maintenance organisation that is appropriately approved and experienced with the specific aircraft type. Independence matters: buyers often prefer a facility with no existing relationship to the seller, although practical considerations such as location and availability also play a role.

Facility choice can also have practical implications for timing, cost of positioning the aircraft and, in some cases, tax and regulatory considerations related to where the aircraft is located during the transaction. These should be reviewed with the buyer's advisers.

The records review

Records are as important as the physical aircraft. Missing or incomplete records can affect airworthiness, insurability and resale value. The records review typically confirms traceability of major components, continuity of maintenance history, documentation of any damage and repairs, and accurate tracking of times and cycles. Many experienced buyers begin a preliminary records review before the PPI to identify concerns early.

Classifying and resolving discrepancies

Almost every PPI produces findings. What matters is how they are classified and resolved. Findings are commonly separated into categories such as:

1. Airworthiness items: discrepancies that affect the aircraft's airworthiness and are typically corrected at the seller's expense, subject to the LOI and purchase agreement.
2. Non-airworthiness items: issues that do not affect airworthiness but may affect function, appearance or value, which are often negotiated.
3. Buyer-requested work: upgrades or additional work the buyer chooses to perform, usually at the buyer's cost.

Resolution may involve the seller correcting items before delivery, a price adjustment, or a combination of both. The exact treatment depends on what was agreed in the LOI and purchase agreement.

Representation at the facility. Inspections generate decisions quickly. Having a technical representative present to review findings as they arise, request clarification from the facility and keep the buyer informed helps avoid delays and misunderstandings.

Timing and downtime

The duration of a PPI depends on its scope, the aircraft's condition, facility availability and how quickly findings are resolved. Parts lead times and the approval of corrective work can extend the schedule. Buyers and sellers should agree realistic timelines in the LOI, and buyers who need the aircraft by a particular date should build in a margin for findings that require more time than expected.

Clear communication between the buyer, the seller and the facility matters throughout. Daily or regular updates on progress and findings allow decisions to be taken promptly and reduce the risk that the inspection stalls while parties wait for information.

Technical acceptance

Once agreed work is complete, the buyer conducts technical acceptance. This confirms that corrective work has been performed and documented, that the aircraft meets the agreed delivery condition, and that the records are complete. Acceptance is usually a defined step in the purchase agreement and a condition for moving to closing.

Common PPI mistakes

• Reducing scope to save time or cost on an older or higher-time aircraft.
• Relying solely on the seller's maintenance provider.
• Skipping the test flight or treating it as a formality.
• Starting the records review only once the aircraft is in the hangar.
• Leaving discrepancy-sharing terms vague in the LOI.

How ATSJETS supports the inspection process

ATSJETS can coordinate the pre-purchase inspection on the buyer's behalf: helping define the scope, liaising with qualified inspection facilities, reviewing records, following findings during the inspection and supporting the negotiation of discrepancies through to technical acceptance. The inspection and any maintenance work are performed by the approved maintenance organisation.

Preparing for an inspection? If you are approaching a pre-purchase inspection or reviewing an LOI, we are available for a confidential discussion about scope, timing and how to protect your position.