An IO540 is some USD 70-80k new depending on variant (TIO540 can be 130k), and an overhaul by a good shop is about €30-40k. A factory overhaul is nothing special and arguably best avoided.
I know it’s aviation, but an old engine designed in the early 20th century should not cost $50+K. There is nothing special or technically remarkable about these lumps of iron. Am I the only one who thinks this is crazy?
It is what it is. If robots would punch out a few hundred thousand TSIO520s every year it’d probably be a tenth of the price.
Well, I would qualify my statement and say that a simple engine without turbos etc would perhaps be possible to install for overhaul cost + half the cost again. But a complex turbo engine will be roughly double. Because the O/H cost or factory man doesn’t include any accessories, oil, hoses, ignition, mags, pumps, turbos, wastegates etc. Unless owner is happy mounting back the ole stuff completely unattended, then all that stuff kind of adds up to almost as much as the engine. On top of this you have installation costs and most likely a NDT test of engine mount, respray of it and new rubber mounts and – voila – you’re there.
It was funny in hindsight (or not funny at all actually), when I rang the Aerostar Owner’s Association president and asked him how much it would cost to overhaul the engines, give or take. He said “it’ll be 60K/side”. I said “how is that be possible, an overhaul of the IO-540 is only $24K?”, “you’ll see”, he said. I laughed to myself – the old fool must be quoting some gold plated overhaul or factory reman or something, convinced I’d come away a lot cheaper than that. When my quotes came in at $23.6K for overhaul per side, I was even more convinced the man was a misinformed. In the end, he was totally right and I ended up being the fool – it was pretty much exactly $60K/side! 
How is the plane coming Adam.
When my quotes came in at $23.6K for overhaul per side, I was even more convinced the man was a misinformed. In the end, he was totally right and I ended up being the fool – it was pretty much exactly $60K/side!
This is because an overhaul of a turbo engine usually involves a new exhaust, as well as obviously a new (or OH) turbo. As one data point, the OH of a TB20 IO540 is about 60% of the TB21 TIO540. The turbo engines work a lot harder so at OH time one finds a lot more stuff which is shagged.
This is why a new owner, or an owner without great ground facilities (a friendly local A&P, being N-reg, etc) should stick to a good quality and relatively simple aircraft. I didn’t know this at the time but the TB20 proved to be exactly such. During my 17 years of ownership I have known a good number of TB21 owners who spent long periods grounded. It’s less bad in the US where there is a lot more expertise but here in Europe most people really struggle as soon as they get to anything less standard.
If robots would punch out a few hundred thousand TSIO520s every year it’d probably be a tenth of the price.
One big reason they don’t is because you can overhaul these engines and just keep rebuilding them.
Peter wrote:
This is why a new owner, or an owner without great ground facilities (a friendly local A&P, being N-reg, etc) should stick to a good quality and relatively simple aircraft
Very wise advice! Fixed gear, fixed prop, and a type that can be spannered by a Massey-Ferguson/International Harvester tractor mechanic.
Adam
this does not correspond to my own experience and probably, as Peter said, is probably a Turbo thing.
I decided to overhaul my engine in 2011. The quote was 23k, I ended up buying a used crankcase for $3k so the total overhaul cost was 26 k.
I drove the engine to the overhaul shop 250 km away myself. This nicely compensated for not having to ship it, saved me 2k in packing and shipping.The uninstallation and re-installation was around another 3-4 k and included an annual which is normal for an annual.
So a bog standard O360 does not have to be a cash disaster, even if a major defect is found like in my case a cracked crankcase. If the shop is acting in your interest, they will find you the parts you need. I was very happy with my shop.
I agree that these engines are extremely expensive, the reason is simple: The engine makers basically have a monopoly. Which means that engines can be produced at almost every price they can dream up, as owners need engines and most of the time need them now. For Overhauls it is really important to shop around and to get the full pic before comitting and also to make sure it is really needed. Lots of engines can be repaired without the need of tearing them to bits, but it is always a question of their total time since overhaul and general condition. For this, you need a mechanic who will act in your interest and who is savvy in these matters.
This is also the reason you can see a lot of planes sitting on airports because the owners can’ t afford an overhaul or repair. Basically, you need to have a budget and reserves which allows for an overhaul at any stage of ownership, otherwise you run that risk. And a plane without a workable engine is basically unsellable, even though, with the right people, you can find replacement engines with time left. But it takes time and is also not free.
The standard overhaul quotes are conditional on parts which are normally reusable are actually reusable.
In the case of a non-turbo Lyco engine, regularly run etc, you should find only the cylinders (and pistons etc) need chucking away and the whole bottom end is fine with the exception of the cam followers.
But if there has been corrosion then all bets are off. If the crankshaft is scrap, the OH is probably uneconomical and a “manufacturer remanufactured engine” (at ~ twice the quoted cost of the OH) is likely the most economic option. Unfortunately – as happened here – these issues may not be discovered until after extensive work has been done and you get billed for that too, so some choose the OH anyway.
