If you’ve ever purchased an aircraft part, you may have noticed a fee referred to as a core charge on your invoice. And if you’re wondering what a core charge is, why is it required, and if there’s a way to get your money back, you’ve landed in the right place. In this article, we’ll help explain how core charges work, and why understanding them allows for better- informed purchasing decisions for aircraft owners, maintenance professionals, and aviation parts buyers.
What Is a Core Charge?
A core charge is a refundable deposit that is paid when buying particular aircraft components on an exchange basis. It can motivate customers to return their old or unserviceable parts to their trusted supplier (like Flyparts.com) after they’ve received a replacement.
Some aviation components that are subject to core charges include:
- Aircraft starters
- Alternators
- Fuel pumps
- Other components that can be repaired or overhauled
The returned component is referred to as the core. It has the potential to be inspected, repaired, or overhauled and then subsequently returned to service once it meets all relevant requirements.
How Does a Core Charge Work?
The process of a core charge is pretty straightforward:
- Purchase a replacement part: When ordering an overhauled or repaired component, you pay the purchase price in addition to a core charge.
- Receive the replacement: The parts supplier sends the replacement component, and you proceed with maintenance.
- Return your old component: You ship the original part back to your supplier within a pre-determined timeframe.
- Core inspection: The supplier inspects the returned component, determining if it meets the acceptance criteria.
- Receive your refund: If the core passes inspection, your deposit is refunded/credited according to the supplier’s terms.
What Happens If You Don’t Return the Core?
Failure to return the original component will likely mean losing your core deposit or being charged the full core amount.
Furthermore, if the returned part is damaged, missing pieces, or beyond economical repair (BER), the supplier may lower or refuse the refund, depending on the exchange agreement.
Be sure to review the supplier’s core return policy prior to placing an order.
Are Core Charges Required by the FAA?
Core charges are not an FAA-mandated fee, rather, they are a commercial practice used by aviation parts suppliers.
That said, the FAA does regulate aircraft maintenance and component airworthiness. According to 14 CFR § 43.2, the FAA clarifies what classifies a component as overhauled or rebuilt.
It’s interesting to note that returning a core does not automatically mean it is airworthy. Any part meant for aircraft installation must meet strict maintenance, approval, and documentation requirements.
Final Thoughts
Understanding core charges can help buyers avoid unexpected expenses when purchasing aircraft parts. Before placing an order, confirm the deposit amount, return deadline, acceptable core condition, and be sure to review the refund policy.
Getting to know exchange pricing and core return requirements, makes for more effective management of aircraft maintenance costs, and can mean overall smarter parts purchasing decisions.