Aviation Acronyms

Commitment. Experience.

As lawyers, we use a plethora of acronyms in our day-to-day practice. However, the aviation industry is a different animal altogether with its use of acronyms. To most, it seems like an entirely new language. It is imperative that MROs hire an attorney who is well versed in aircraft parts sales and core exchange terms because entering into an agreement without understanding the meaning behind the acronyms (assuming they have not been properly defined in the document) can cause delays, misunderstandings, and generally, failed transactions.

Here are a several acronyms and the terms used in aviation part sales and exchange quotes:

ARO —After Receipt of Order: Part order must be placed prior to part being shipped. An ARO quote is good for a limited time only.

AOG—Aircraft On Ground: Aircraft On Ground.

AR—As Removed: The part is being sold in the condition it was in when removed from the aircraft.

Consignment Inventory: Parts are being sold on behalf of someone else. Consignment Inventory parts may not have traceability.

C—Core: Unit or part being returned from an exchange sale.

ETA— Estimated Time of Arrival: Estimated time when a part will arrive.

Exchange: A unit or part sold to a customer in exchange for the same core unit in return.

Late Fees: Additional charges for core returns being returned late. Most vendors give 14 or 21 days to return core units, after which extended use fees, late fees and even outright billing may apply.

LT—Lead Time: Amount of time until the unit or part is available for shipment.

OEM: Original Equipment Manufacturer.

Outright Sale: No core return is expected from the customer (i.e. not an  exchange unit).

OHC—Overhauled: A unit or part repaired per an overhaul manual.

RP—Repaired

SVC—Serviceable: A unit repaired to satisfy a declared squawk only. It is not an overhauled unit.

Squawk: Explanation or description of why a unit has failed.

WOR—Work Out of Repair: Unit needs repair attention before it is available for sale.

Always make sure to hire an experienced aviation attorney (specializing in MROs) to draft and/or review your Exchange Agreements.

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