Common use of ENGINE CONDITION Clause in Contracts

ENGINE CONDITION. (a) Upon return of the Aircraft, the Engines shall be in good operating and serviceable condition and ready for flight with all equipment, accessories and systems fully functional and operating within in-service limits and guidelines established by the relevant manufacturers, including any equipment, accessories or systems which would not otherwise be functioning due to an authorized deviation or variation. If the Maintenance Program for major overhauls and hot section inspections for the Engines is based on engine condition trend monitoring in accordance with the engine manufacturer's or an FAA-approved trend monitoring program, each Engine (or other engine returned with the Airframe) shall have satisfactorily completed, immediately prior to return, any boroscope inspection required under the trend monitoring program, and Lessee shall provide all trend data for each Engine (or other engine returned with the Airframe). If the boroscope inspection and the trend data indicate that any action (other than inspection and monitoring) should be taken in order to prevent serious engine deterioration or engine damage, Lessee shall complete or cause to be completed at its sole cost and expense all such action required, prior to return. (b) If the Maintenance Program is not based on engine condition trend monitoring, the Engines shall have individually 2,000 Flight Hours and in the aggregate 6,000 Flight Hours until scheduled overhaul, based upon the Maintenance Program at the time of return. (c) If, at the time of return, the Engines are subject to a Power-By-The-Hour Agreement under which Lessee (or Permitted Sublessee) is current on all payments and otherwise in good standing, in lieu of the foregoing requirements, Lessee shall return each Engine in such condition as shall make it eligible for continuous maintenance under a Power-By-The-Hour Agreement, in the hands of any U.S. air carrier. A "Power-By-The-Hour Agreement" is an engine maintenance program provided by the Engines' manufacturer or one of its affiliates or by another responsible maintenance provider, providing full maintenance (other than routine day-to-day maintenance; provided, that foreign-object damage, life-limited parts, line replacement units and abuse may be excluded or separately charged) for the Engines at no cost other than standard per-Cycle rates (I.E., excluding charges based on the current maintenance status of the Engines), all benefits of which program are generally available to qualifying U.S. air carriers.