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Aircraft Cost Considerations

in one class, decided by the airline. Even in the same class, airfare can vary depending on different promotions. Among airlines, the break-even LF varies: with deregulated airfares, ticket prices can vary by the hour depending on passenger demand. The standard fare is the ceiling fare of the class and it offers better privileges.

16.5.1 Formulation to Estimate DOC

The DOC formulation is presented in this section, based on the AEA ground rules [1]. The formulae compute the component DOC per block hour. To obtain a trip cost, the DOC per block hour is multiplied by the block time. Aircraft performance calculates the block hour and block time for the mission range (see Section 13.5.6). The next section works out the DOC values, continuing with the Bizjet example used thus far.

Normally, the DOC is computed for a fleet of aircraft. The AEA suggests a tenaircraft fleet with a 14-year lifespan and a residual value of 10% of the total investment; these values can be changed, as shown in the next section. Fuel prices, insurance rates, salaries, and manhour rates vary with time. Engine-maintenance costs depend on the type of engine; here, only the turbofan type is discussed. For other types of power plants, readers may refer to [1].

Aircraft Price

Total Investment = (aircraft + engine price) × (1 + spares allowance fraction)

Readers must be sure to obtain the Standard Study Price from the manufacturer. The AEA uses the total investment, which includes the aircraft delivery price, cost of spares, any changes in the order, and other contractual financial obligations. In the example, the aircraft and engine price are taken as the total investment per aircraft.

Outstanding Capital = total capital cost × (1 purchase down-payment fraction)

Utilization (per block hour per annum in hours/year)

3

,750

Utilization, U = × t

(t 0.5

+

where t = block time for the mission.

Fixed-Cost Elements

Depreciation = 0.9×total investment 14×utilization

Loan interest repayment = 0.053×total capital cost

utilizationInsurance premium = 0.005 × [ aircraftutilizationcost ]

Crew salary and cost

For the flight crew, the AEA uses $493 per block hour for a two-crew operation. For the cabin crew, the AEA uses $81 per block hour for each crew member.

Trip-Cost Elements

 

Landing fees

=

( 7.8×MTOW in tons )

 

 

t

where

t = block time for the mission

16.5 Aircraft Direct Operating Cost

547

 

 

 

 

 

0.5×range in km

 

MTOW in tons

 

Navigational charges = (

 

 

) ×

*

50

 

 

t

 

where

t

=

block time for the mission

 

 

 

 

 

 

100×payload in tons

)

 

Ground-handling charges = (

 

 

t

 

 

where

t = block time for the mission

 

 

The landing and navigational charges are MTOW-dependent and the groundhandling charges are payload-dependent. In practice, the crew salary is also MTOWdependent but the AEA has kept it invariant.

Airframe maintenance, material, and labor

(a) airframe labor

0.09

×

W

6.7

350

×

 

0.8

+

0.68 × (t 0.25)

 

×

R

(Wairframe + 75)

 

t

 

airframe +

 

 

 

where Wairframe = the MEW less engine weight in tons

R = labor manhour rate of $63 per hour at the 1989 level t = block time for the mission

(b) airframe material cost

4.2 + 2.2 × (t 0.25)

× Cairframe

t

where Cairframe = price of aircraft less engine price in millions of dollars

Engine maintenance, material, and labor

(a) engine labor

0.21 × R × C1 × C3 × (1 + T)0.4

where R = labor manhour rate of $63 per hour at the 1989 level T = sea-level static thrust in tons

C1 = 1.27 – 0.2 × BPR0.2 where BPR = bypass ratio

C3 = 0.032 × nc + K

where nc = number of compressor stages K = 0.50 for one shaft

=0.57 for two shafts

=0.64 for three shafts

(b)engine material cost

2.56 × (1 + T)0.8 × C1 × (C2 × C3)

where T = sea-level static thrust in tons

C2 = 0.4 × (OAPR/20)1.3 + 0.4

where OAPR is the overall pressure ratio; C1 and C3 are the same as before.

(c) direct engine maintenance cost (labor + material)

Ne × (engine labor cost + material cost

(t + 1.3)

(t 0.25)

where Ne = number of engines

Fuel charges = block fuel×fuel cost block time

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