Cost Analysis

Cost Analysis for the UltimateL39

We are just starting customer engine assembly deliveries and the overall cost to convert a plane to the UltimateL39 configuration are coming into focus. The following is a description of the major cost categories followed by an overall summary.

Motors - As with most large life limited items on jets, the value of a motor is heavily dependent on the life remaining. We try to source motors with significant time remaining when possible and strive to purchase motors that can be run on the pylon prior to our pickling and removing them. This lets us verify engine condition and insures the motor is properly preserved per the Light Maintenance Manual (LMM). The key is to find an airframe coming out of airworthiness for corrosion or other issues where the motors have been on MSP. This allows you to purchase the complete motor with accessories as opposed to purchasing from someone like White Industries where the motors are in their stripped condition. Buying all the necessary components without being able to supply cores can be cost prohibitive. If you are willing to put in the work and are willing to buy two motors at a time (or find a plane with only one motor with time remaining), costs can be controlled. We have tried to pick up motor pairs when we find them. Here is a list of our current inventory. For reference, I'll just $75,000 for a mid-time motor with Starter/Generator and other accessories included. I'm specifically leaving out the hydraulic pump at this point as we have only used electro-hydraulic pump packs to date. We are currently working on a purely engine driven solution but it is not final.

Conversion Kit - This package deals directly with the motor installation. The elements making up the kit are described here. For this analysis, I'll use $75,000 for the installation kit with Stainless Steel front motor mounts.

Conversion Support - The TFE731-3 is electric start and thus requires a Generator Control Unit (GCU), start and main contactors, Reverse Current Relay (RCR), batteries and associated wiring. Sourcing these components outright without cores can be very expensive. I've had great success using Ebay and similar sources for purchasing things like GCUs and RCRs. Any of a number of different components can be used as they all serve the same function. The conversion we are working on now will have a bespoke GCU and RCR along with currently available contactors in an effort to control these costs moving forward. I'll use $7,000 for this analysis assuming aggressive component sourcing and four aircraft batteries nose mounted.

Avionics - My estimate is that 75% of the UltimateL39's performance is attributable to weight reduction. The TFE731 allows for the removal of nearly every system in the L-39 except gear, flaps, trim, brakes and ACM. Removing all the Eastern Block inverters, supplies, wiring and instrumentation is a big weight savings but something must go in its place. We have used the Garmin G3X, GTN and G5 in a dual 10.5" touch configuration. Where possible, things like radios, transponders and audio panels are remote mounted so that both front and rear cockpits have access to as much functionality as possible. For the UltimateL39, I would budget $30,000 in equipment and $25,000 in installation.

Stripping - We have fully stripped two aircraft so far. I did the first one and a local airport resource hung around the shop and did the second. The total bill for the second aircraft was 100 hours at $10 an hour or $1000. This is what I mean by fully stripped.

Using the above numbers and NOT accounting for time to roll the motor in and sort the plane once completed, I come up with a little under $160k for the conversion part and $55k for the avionics support or $215k. This also does not include wing tips or seat replacement as we are still working through the cost structure on those items.

Setting aside the dramatic increase in performance, efficiency and safety for a moment, the question for me when considering a conversion would be (1) what are my take offs worth and (2) am I considering/interested in an avionics upgrade.

Any AI-25 and Sapphire removed during a conversion has value. If it is a fresh overhaul motor/apu, it is likely worth well over $150k. If both components are nearly timed out, the owner is looking at well over $200k to overhaul both items and the cores would be worth very little. The conversion costs that can be recovered are thus a function of the life remaining in the take outs. Of course, addressing an emanate overhaul has value as well.

The second item is important as well. The 731 requires certain instruments and the full weight reduction can only be realized by removing all the original electronics/avionics. If you were considering an avionics upgrade, the conversion approach provides the most robust upgrade possible. You end up with a fully glass cockpit with linked autopilot.

IF you are considering (or would consider) and avionics upgrade AND you are one of the early movers to place your AI-25/Sapphire on the market, your net cost of conversion can be dramatically lower than the initial $215K sticker shock. Now toss in the performance of the GXT, reduced cost per hour to operate (less fuel and less overhaul set aside) and the decision becomes much easier for me but then I've flow the UltimateL39 A LOT. If you have made it this far, I suggest you go for a flight.