Engine Reserves

Category: aviation

Funds set aside per flight hour to cover the massive cost of engine maintenance and major overhauls.

Jet engines have a "life cycle" measured in hours. At the end of those hours, they must be pulled off and completely rebuilt. Owners set aside "reserves" (e.g., $300/hour) so that when the overhaul bill arrives, the money is already sitting in an account.

Common Examples

• A significant portion of the variable hourly cost is the engine reserve, ensuring we are prepared for the mandatory 5,000-hour overhaul.
• Owners who neglect to build engine reserves often face a multi-million dollar capital bill that can lead to an immediate aircraft grounding.