New vs Overhauled vs Serviceable Aircraft Parts: Which Condition Should You Buy?

Buying Guides · 8 min read · Published 2026-03-15

Aircraft parts are sold in several condition codes — New (NE), Factory New (FN), Overhauled (OH), Serviceable (SV), As-Removed (AR), and Prototype New (PN) — each with different price points, certification requirements, and appropriate use cases. Choosing the right condition directly impacts safety compliance, maintenance budgets, and aircraft availability. This guide breaks down every condition code so you can make an informed sourcing decision.

Key Takeaways

New (NE) and Factory New (FN) parts carry full OEM traceability and are the most expensive option, typically 3-5x the cost of serviceable equivalents.
Overhauled (OH) parts are restored to OEM specifications with zero-time documentation and offer the best balance of reliability and cost savings (40-60% less than new).
Serviceable (SV) parts are inspected and approved for return to service without full overhaul — ideal for budget-conscious operators with non-critical components.
As-Removed (AR) parts have no guaranteed condition and require inspection before installation — lowest cost but highest risk.
FAA regulations (14 CFR Part 43) govern which condition codes are acceptable for different aircraft categories and component types.

What Are Aircraft Part Condition Codes?

Aircraft part condition codes are standardized designations that describe the maintenance status, inspection history, and airworthiness of a component at the time of sale. These codes are used throughout the aviation industry by OEMs, distributors, MROs, and operators to communicate the exact state of a part.

Understanding condition codes is critical because they directly affect whether a part can be legally installed on your aircraft, how much documentation you'll receive, and what warranty protections apply. The Air Transport Association (ATA) Spec 2000 standard defines these codes, and they are recognized globally by FAA, EASA, and other civil aviation authorities.

New (NE) — Full OEM Parts

A New (NE) part has never been installed on an aircraft and comes directly from the Original Equipment Manufacturer (OEM) or an authorized distributor. It includes complete traceability documentation back to the manufacturer, including an FAA 8130-3 Airworthiness Approval Tag or equivalent EASA Form 1.

When to buy NE: Life-limited components, safety-critical systems (flight controls, landing gear actuators), or when your maintenance program mandates OEM-new parts. Airlines operating under Part 121 often require NE for specific component categories.

Typical cost: Full list price. NE parts carry the highest price point but also the longest warranty and most comprehensive documentation package.

Factory New (FN) — New Without OEM Trace

Factory New (FN) parts are brand-new and unused but may lack complete back-to-birth traceability to the OEM. This typically occurs with PMA (Parts Manufacturer Approval) parts or components produced under an FAA-approved Technical Standard Order (TSO).

FN parts are functionally identical to NE parts in terms of physical condition — they've never been used. The difference is in the documentation chain. PMA parts manufactured under FAA approval are fully legal for installation and often cost 30-50% less than OEM equivalents.

When to buy FN: When you want new-condition parts at a lower cost and your maintenance program accepts PMA components. Many Part 91 and Part 135 operators routinely use FN/PMA parts to reduce costs.

Overhauled (OH) — Restored to OEM Specs

An Overhauled (OH) part has been completely disassembled, inspected, repaired as needed, reassembled, and tested to meet the OEM's original specifications. The component receives zero-time documentation, meaning its time-since-overhaul (TSO) resets to zero.

Overhauls must be performed by an FAA-certified repair station (Part 145) or the OEM. The work is documented with an FAA 8130-3 tag and a detailed overhaul report listing all work performed, parts replaced, and test results.

When to buy OH: Overhauled parts offer the best value for major components like engines, APUs, landing gear assemblies, and avionics units. You get OEM-spec performance at 40-60% less than new pricing. Most airlines and MROs consider OH parts fully equivalent to new for operational purposes.

Serviceable (SV) — Inspected and Approved

A Serviceable (SV) part has been inspected, tested, and approved for return to service but has not undergone a full overhaul. The component may have been removed from a serviceable aircraft during a maintenance check, inspected per the Component Maintenance Manual (CMM), and tagged with an 8130-3 certifying it as serviceable.

SV parts retain their existing time-since-new (TSN) and time-since-overhaul (TSO) — there is no zero-timing. This means you need to verify that the remaining service life meets your operational requirements.

When to buy SV: Excellent for standard replacement parts, rotable components, and non-life-limited items where you need a reliable part at a competitive price. SV parts typically cost 50-70% less than new.

As-Removed (AR) — No Guaranteed Condition

An As-Removed (AR) part has been removed from an aircraft without any inspection or testing performed after removal. The seller makes no claim about the part's condition or serviceability. AR parts come with removal documentation but no 8130-3 airworthiness tag.

AR parts cannot be installed on an aircraft without first being inspected, tested, or overhauled by a certified repair station. They are essentially raw material for your shop's repair cycle.

When to buy AR: When you have an in-house repair station or a preferred MRO vendor who can inspect/overhaul the part. AR parts offer the lowest acquisition cost (often 70-90% below new) but require additional investment in inspection and certification.

Condition Code Comparison Table

Condition	Code	8130-3 Tag	Cost vs New	Install Ready	Best For
New	NE	Yes	100%	Yes	Life-limited, safety-critical
Factory New	FN	Yes	50-70%	Yes	PMA alternatives, cost savings
Overhauled	OH	Yes	40-60%	Yes	Major assemblies, engines, avionics
Serviceable	SV	Yes	30-50%	Yes	Standard rotables, non-critical
As-Removed	AR	No	10-30%	No	Repair shops, core exchange

How to Choose the Right Condition for Your Aircraft

Your choice of condition code should be driven by three factors: regulatory requirements, component criticality, and budget constraints.

Step 1: Check your maintenance program. Your aircraft's approved maintenance program (AMP) or Instructions for Continued Airworthiness (ICA) may specify minimum condition requirements for certain components.

Step 2: Assess component criticality. Life-limited parts, structural components, and safety-critical systems generally warrant NE or OH condition. Standard rotables and expendables can often be sourced as SV.

Step 3: Calculate total cost of ownership. An AR part at $500 that requires $2,000 in overhaul costs is more expensive than an OH part at $2,000. Always factor in the full cost to get the part installed and serviceable.

Frequently Asked Questions

What is the difference between New (NE) and Factory New (FN) aircraft parts?

New (NE) parts come directly from the Original Equipment Manufacturer (OEM) with complete back-to-birth traceability documentation. Factory New (FN) parts are also brand-new and unused but may be produced by a PMA (Parts Manufacturer Approval) holder rather than the OEM. Both are fully airworthy and come with FAA 8130-3 tags, but FN/PMA parts typically cost 30-50% less than OEM-new equivalents. The choice depends on whether your maintenance program accepts PMA components.

Can I install an As-Removed (AR) part directly on my aircraft?

No, As-Removed (AR) parts cannot be installed on an aircraft without first being inspected, tested, or overhauled by an FAA-certified repair station (14 CFR Part 145). AR parts have no guaranteed condition and do not come with an FAA 8130-3 Airworthiness Approval Tag. They must go through a certified inspection or overhaul process before receiving airworthiness certification and becoming eligible for installation.

How much can I save by buying Overhauled (OH) instead of New (NE) parts?

Overhauled parts typically cost 40-60% less than new OEM parts while meeting the same performance specifications. For example, a new hydraulic pump that lists at $15,000 might be available as overhauled for $6,000-$9,000. The savings are most significant on high-value components like engines, APUs, landing gear assemblies, and avionics units. OH parts receive zero-time documentation and full 8130-3 certification.

What documentation should come with a Serviceable (SV) aircraft part?

A Serviceable (SV) aircraft part should include an FAA 8130-3 Airworthiness Approval Tag (or EASA Form 1 for European operations) certifying the part has been inspected and approved for return to service. It should also include trace documentation showing the part's history, including previous installations, time-since-new (TSN), time-since-overhaul (TSO), and cycles-since-new (CSN) where applicable. Always verify the 8130-3 tag is properly filled out with the repair station's certificate number.

Are PMA (Parts Manufacturer Approval) parts safe to use?

Yes, PMA parts are fully FAA-approved and must meet the same performance, reliability, and safety standards as OEM parts. The FAA's PMA process requires extensive testing, analysis, and documentation before approval is granted. PMA parts are used extensively by major airlines, regional carriers, and Part 135 operators. The FAA has stated that approved PMA parts are equal to OEM parts in terms of safety and reliability. However, some OEM warranty programs may not cover damage attributed to PMA part usage.

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