“LYCOMING ANNOUNCES MAJOR MID-YEAR PRICE HIKE” (Rotorcorp, a distributor):
On Friday, June 24th 2021 aircraft engine Manufacturer Lycoming announced a significant mid-year price hike to take effect next month on 24 July, 2021. The company cited “inflation costs associated with components, surcharge increases, and ongoing availability” as the primary drivers for the sudden increase which was made even more unexpected by the timing of the increase well ahead of the company’s usual annual price increases made each December. Communication from Lycoming attached below.
Rotorcorp has conducted a thorough analysis of the new prices on O-320-B2C, O-360-J2A, O-540-F1B5 and IO-540-AEA5 engines utilized in Robinson R22 and R44 helicopter models. It would appear that the July pricing will represent an additional 13% cost to owners and operators requiring Lycoming Factory new, rebuilt “zero time” and overhaul exchange engine options. It also appears that the price increase (roughly 13%) has been added to all small parts and cylinder kits. In real numbers an Lycoming Rebuilt “Zero Time” Exchange O-540-F1B5 Engine will spike by more than $5500 from the current retail price of $48,303 to $53,879.
The rest of the industry won’t be far behind, presumably. So order everything now if you think that you might need it within the next year or two!
(in the 20 years that I’ve been keeping up with aviation, this is the first time that I have seen this occur. Each manufacturer typically has a date on which the next year’s prices are announced. They don’t issue price increases at mid-points)
Still remember when the talking heads said the inflation was transient in 2020, 2019, 2012, 2007, 2003 & 1999. Last year, the 15% was all about the hording. They just can’t keep those daily transient price increases down.
Inflation is transient but in one direction – that of increase.