16.3 Aircraft Cost and Operational Cost

1.Aircraft empty-shell structures

2.Bought-out vendor items

Individual component subassembly cost fraction.

Smaller aircraft engine cost fraction is higher (up to 25%).

Includes control linkages, servos, and undercarriage.

Cables, tubing, furnishing, and so on.

two-engine aircraft (four-engine aircraft are slightly higher). It is best to obtain actual data from the industry whenever possible.

Combat-aircraft cost fractions are different: The empty-shell structure is smaller but it houses sophisticated avionics black boxes for the complex task of combat and survivability. Typical cost fractions of various groups of combat aircraft components are listed in Table 16.2, in which the avionics cost fraction is separate. The table provides preliminary information for two-engine aircraft; it is best to obtain actual data from the industry whenever possible.

In the United States, military aircraft costing uses AMPR weight, also known as Defense Contractor’s Planning Report (DCPR) weight, for the manufacturer to bid. The AMPR weight represents the weight of an empty aircraft shell structure without any bought-out vendor items (e.g., engines, undercarriages, or avionics packages).

Operating Cost

Other costs arise during operation after an aircraft is sold – this is the operating cost (OC) and is the concern of airline operators. Military OC uses a different bookkeeping method. Revenue earned from passenger airfare covers the full expenditure of airline operators, which covers the aircraft price and support costs. The DOC is the measure of cost involved with an aircraft mission. Standards for DOC ground rules exist – in the United States, they are proposed by the ATA (1967) and in Europe by the AEA (1989) (medium range; see [1]); both standards are comparable. Aircraft designers must be aware of operational needs to ensure that their design meets the expectations of the operators. In fact, the manufacturers and operators are in constant communication to ensure that current and future products are fine-tuned to the best profitability for all. Major airline operators have permanent representatives

1.Aircraft empty-shell structures

2.Bought-out vendor items

(component subassembling, final assembling, equipping/installing, wiring, plumbing, furnishing, finishing, testing)

Individual component subassembly costs fraction.Single engine at lower cost fraction.

Includes control linkages, servos, and undercarriage.

Cables, tubing, furnishing.

onsite at the manufacturing plant to provide general support and dialogue for all aspects of the product line. Civil aircraft OC includes two types, as follows:

1.DOC: These are the operational costs directly involved with a mission flown. Each operator has its own ground rules depending on criteria such as the country, pay scales, management policies, and fuel prices. Standard ground rules are used for comparison of a similar class of product manufactured by different companies. In Europe, the AEA ground rules are accepted as the basis for comparison and provide a good indication of aircraft capability. A less expensive aircraft may not prove profitable in the long run if its OC is high.

2.IOC: The IOC breakdown in the United States is slightly different from European standards. Airline operators have “other costs” that involve training, evaluation, logistics support, special equipment, and ground-based resource management, which are not directly related to the aircraft design and mission-sector operation; they are independent of the aircraft type. These are the total costs of the operator, termed life cycle cost (LCC). Unlike the DOC, there is no standard for the LCC proposed by any established commercial-aircraft associations; each organization has its own ground rules to compute the LCC. Together with the DOC, they result in the total operating cost (TOC). Unlike military aircraft, the impact of other costs on the LCC in a commercial aircraft design application may be considered separately and then totaled to LCC – the DOC covers most of the design dependent costs. This book is concerned only with the DOC. The breakdown of LCC components is listed in Table 16.3. Most commercial aircraft operate beyond the design life span; hence disposal cost is considered as applicable.