Are you protected against this situation?

The data within logs comprises a significant portion of the overall value of your aircraft. Depending on several factors, the logs may represent up to 20% of total value. Yet many owners and operators either treat these records with a surprising degree of callousness or are simply unaware of their importance. In some cases it is not the owner, but rather the maintenance provider that doesn’t display an appropriate amount of caution with the logs. Regardless of whether they’re stolen, lost, or destroyed, your investment will still lose value.

Some time back, I received a call from an old client wondering how the loss of his logs would affect the value of his newly acquired aircraft. It seems his mechanic took the logs home to update. Tragically, that same night, the mechanics house burned to the ground. Of course, the owner was now without logs on his 20+ year old airplane. He wondered how this would affect the value of his investment. Unfortunately, I told him, it would have a significant impact because nearly all maintenance records were destroyed and there was really no way to reconstruct most of them. With any luck, recent maintenance would be documented elsewhere, but even this was not assured.

So how do you protect yourself against this? First, make copies of all logs, from day 1, and store these copies in a secure site such as a bank safe deposit box. Digital copies are even better. But, because of the concerns about the useful life of digital storage media, paper copies should still be made as a back-up. Do not store the copies in the same location as you do your originals. Another easy, and free, method of storage is to open a Yahoo! account and store your files online. Update your back-up files each time a new log is made. If you’re not up to the task, there are several companies that will back this data up for you.

The question of whether or not these copies will be accepted as true and accurate often arises. To completely ensure the integrity of your copies, a certified appraiser, mechanic or even a notary public should verify their authenticity.

At this point let’s assume you’ve lost your logs and have no back-ups. What, now, can you do to minimize the adverse impact? First, request a copy of your aircraft records from the FAA. You will receive a disk that includes Aircraft Registrations, Airworthiness Certificates, Forms 337 (Major Repair & Alteration), Supplemental Type Certificates, Bills of Sale, Changes of Address, Mortgages, and Lien Releases.

By working through these records you may be able to determine approximate airframe and engine times, modifications, damage history and the names of the shops and/or mechanics performing any work. With this data it may be possible to contact previous maintenance providers and obtain copies of maintenance records they may have on hand. While this should help to fill in most gaps, some holes may remain. Unfortunately, some information may have not been submitted to the FAA, intentionally or unintentionally. I routinely see logs that don’t list all details found in the FAA records and vice versa. Contacting previous owners may shed additional light on the subject aircraft as may searches through the NTSB’s accident database.

Following these simple, yet time consuming, recommendations should minimize your loss. The most important step, however, is to be a conscientious owner from the beginning. It’s the cheapest insurance you can buy.