Suggestion: Diamond AOG Subscription Service

[VickersPilot]

There are two frequent complaints on DAI:

(1) G1000 legacy / slow Garmin software releases
(2) Lack of Service/Service Centers

A possible suggestion for the second point would be for Diamond to launch an "AOG Subscription Service", perhaps anywhere in USA/Europe where there is a critical mass. It would operate like Textron does with the Citation programs, when a plane goes AOG, DAI roll a truck or local mechanic to get it back in the air - regardless of location.

The benefits to the owners are:

(1) Peace of Mind
(2) Cost smoothing (flat monthly fee vs lumpy AOG costs)
(3) Expedited service like Textron offer
(4) Better resale value (yes, someday we won't be in a bubble and things like this will matter again!)

The benefits for Diamond are:

(1) Recurring Revenue - recurring revenue is so much easier to build a business around than once off revenue, that's just hard work. Added income + better valuation multiple on the business.
(2) More product sales - now people who don't live near a service centre won't be afraid to buy a Diamond/Austro solution.
(3) Better reputation - service issues slowly go away if parts supply in order (or at least an option exists for owners for premium service).

Diamond simply price it at cost + 20% so they are effectively guaranteed to make a profit. Two tiers of pricing - one for in-warranty aircraft (the parts are already paid...) and a second for out of warranty aircraft (parts are covered). I would only sign up for this if it was a Textron level service - immediate truck roll & no owner involvement with the logistics.

It would be great to keep this thread to positive suggestions, many other threads list problems but not solutions.

[CFIDave]

How does what you propose compare to this: https://pistonpower.com ?

[VickersPilot]

Good question CFIDave, I read the PP contracts first. If my understanding serves correct,

(1) Piston Power is a "cost insurance" company and not a "service" company.
(2) Piston Power explicitly exclude offering this kind of service (extract below)
(3) Piston Power leave it upto the owner to find and go to the shop etc, it's not an end-to-end solution like the Textron AOG program.

"Exclusions. In no event shall AEPC™ be responsible for:
1. Costs incurred to remedy or repair any loss or damage to an Airframe or Engine
in any way attributable to Abuse;
2. Costs incurred for repair logistics expenses related to remote/on-site maintenance activities, including, but not limited to, rental equipment, travel, meals, lodging"

[CFIDave]

OK, how about comparison with Mike Bush's company Savvy Aviation service: https://www.savvyaviation.com/savvybreakdown/ ?

[VickersPilot]

Savvy offer telephone advice, a shoulder to cry on so to speak and make a few calls on your behalf to a SC. They don't "sort" the problem like Textron and spread out the financial responsibility across all the users, like car insurance. Whereever I am, I just want the problem "sorted" so I can go flying again.

Here is some information on the Textron service:
https://txtav.com/en/service/aog-support

Diamond won't be able to do something as extensive just by way of scale, but no doubt a bit of innovation and a solid AOG Program is possible.

[Boatguy]

I totally agree that Piston Power is just a financial instrument, there is no service. A friend who used the Savvy service on a Cirrus pre-buy was quite disappointed that it was just a few phone calls, no direct help.

You make an interesting suggestion. But this could be considered a bandaid to the lack of Austro engine shops, but they could be complimentary. Would this remove the incentive for Diamond to develop more Austro shops? Would it allow them to monetize their lack of effort in developing more Austro shops?

DAI in the U.S. has a roving AOG support person who, after nine weeks, finally came to my plane and got it back in the air last week. It remains to be seen who is paying for what in that experience.

It's not black and white as such as service would be useful, but what does it mean for those who don't buy the service? Does the service become de facto a requirement and implicit cost of operation?

[VickersPilot]

Russ, your point is absolutely correct but given the market dynamics (lack of scale, lack of competition), I believe a solution we propose to DAI needs to be profitable to them in the near term. It's doubtful management have the liberty to lose money in the short term to build a better brand. My focus is on benefiting both partners in the marriage rather than asking one to give more. I don't expect "Diamond OneCall" to show up next day with 99.6% of parts immediately available (Textron published stat) without being paid well for the same. Nobody needs to buy the service, but in finance we say "no option has a negative value". My suggestion is just that and very much open to the floor to improve upon but this is the truck I want guaranteed next day when I go AOG:

[Boatguy]

Ok.

1) Willingness to pay. How much is 1Call?

2) There will be a truck within a couple hours of my randomly chosen AOG location? Really?

[Colin]

I had Savvy's AOG service. I did like having someone to call and text. They were *amazing* for the DA40. The DA42 they seemed to have a pretty shallow knowledge base and I stopped after a year of management and same on the AOG service. The one time I called them, I think, AOG was for a G1000 issue. After five days they got a shop on the field to say they could pull the LRU's and slide them back in, but that was it.