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Thu, Oct 13, 2016

AeroSports Update: Downline Ownership Of A Kit-Built Airplane

The Manufacturer Of An Airplane Kit Is Not The Manufacturer Of The Finished Airplane

ANN Assistant Editor, Earl Downs, attended the Zenith Aircraft 25th Anniversary Open House and Fly-in last month to share the camaraderie with other Zenith aircraft builders (Earl built and flies his own Zenith Zodiac 601XL-B), and to participate in the forum programs by presenting a forum about loss of control prevention. While there, he also attended forums and found one that was particularly interesting about what Zenith refers to as “Second Ownership.”

The Second Ownership forum was presented by Zenith Aircraft Company Owner and CEO, Sebastian Heintz, and his brother, Matt Heintz. Here are some thoughts about this subject that Earl brought back with him after attending that forum.

When the Zenith Company refers to a “second owner,” what they really mean is any owner of a homebuilt aircraft that was not involved in the original building of the aircraft. Of course, this could be beyond a second owner, so it could also be referred to as a “downline owner.” During the forum, the Heintz Brothers discussed the issue of downline ownership as it applies to coordination with the factory that actually produced the original kit.

As I listened to the presentation, it reminded me that owning a previously built homebuilt airplane involves obvious concerns such as the quality of the airplane. However, there is also the issue of support of the aircraft as its ownership moves further away from the original builder, who is not the kit manufacturer.

Zenith Aircraft provides outstanding customer support for the kits that they produce. However, it’s critically important that a downline owner understands that the manufacturer of the kit is not the manufacturer of the airplane. This gets into the issue of the obligation of support from the manufacturer of the original kit.

While the subject was being discussed at the Zenith Aircraft Company forum, it also applies to a much broader spectrum of aircraft kit manufacturers. Reputable kit producers, such as Zenith, want to do as much as possible to support their kits and downline owners of the completed airplanes, but there are practical limitations.

Zenith is working on a formalized Second Ownership program to make it easier for downline owners to work with the original kit manufacturer, but it’s also important for the buyer of a previously built homebuilt airplane to understand the obligations they are taking on. Remember, the kit manufacturer didn’t actually build the airplane. A downline owner should perform due diligence when purchasing a previously-built kit to acquire as much building information and background as possible.

There is no way a kit manufacturer can attest to the final quality, or compliance with the kit manufacturer’s construction recommendations, of the finished airplane. The kit manufacturer will be able to help when it comes to questions about the original kit, but they have no direct knowledge of such things as electrical subsystems, engine systems, and avionics. Also, a kit builder (AKA - the airplane manufacturer) is allowed to make any changes they want, even if the kit manufacturer doesn’t agree with the change.

Airplane kit manufacturers have reasonable concerns about helping second owners to the best of their ability, but there’s only so much they can do. Buying a previously-built homebuilt airplane can be a good experience, but it’s up to the new owner to make sure they know what they’re getting into.

We’ll keep you posted as Zenith moves towards a more formalized Second Owner program.

(Images from file)

FMI: www.zenithair.net/

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