ASE 451: Aeronautical Engineering

Design

Cost Analysis

Asst. Prof. Dr. Anna Prach

METU NCC
AEROSPACE ENGINEERING
 1 T E
Aircraft Cost Estimation
g
4 5 B U r i n
E R I e e
• A S
Several aircraft T
I S C i n
D C n g
design proposals are presented (by aircraft

E
manufacturers).

• O T N l h
N
All the proposals
T U
meet the
a
design requirements.
c a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
•
A
Which design
D ial
should the
b
customer
5
select?
4 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost Estimation
g
4 5 B U r i n
E choice of aR
I e e
A S
• The final
I S T i n
customer often depends on cost.
C
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost
g
4 5 B U r i n
E R I e e
S
• The operator
A I S T
(an airline), determines
i n
the value of purchasing
C
a particular
airplane by
—the cost of buyingC
considering
• Capital costD
five basic
the airplane.n
elements:
g
O T U
N l E h
N maintenance. E
• Direct
T
operating cost —the
i c a
cost of using
a c
the airplane, including
r
fuel

O
and
M u t . P
D in delivering service. na ign r. A
• Indirect operating cost —the annualized cost of utilizing the airplane

e ro
cost —the e s
sum of all y costs involved in providing TE
D
• Total operating
A D l b 5 1 U
service.
• Cost5 1 r i a
E 4 I B
of 4 t
per seat-mile —the cost of
a e S T R
moving a seat, full or not, per mile

S E route served.
M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost
g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost
g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost
g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost Estimation
g
4 5 B U r i n
I e
Boeing and Airbus aircraft prices in millions of $2012 are shown as a

E R
function of empty weight.
S T n e
A I S C g i
T D N lEC n
O U a c h
N E T t i c P r a
D O M a u n A .
n i g .
(1)

o s r
e r e y D
1
(2)

T E
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
I
Total cost of one aircraft:

S e M D
A (1)
r s T
C o u
N O
(2)

D O erf(x) is the error function

Dr. A. Prach
 1 T E
Aircraft Cost Estimation
g
4 5 B U r i n
E R I e e
A S I S T C i n
g
• Aircraft cost estimation involves a number of parameters:
• Technical D
T N C E n
• O
Financial
T U a l c h
N E t i c P r a
O• Political
M u
D based on the actual costnofaprior aircraft n A .
• Using statistical analysis,

with this approach. ro

the cost of

s i g
a new
. many difficulties
aircraft
— thererare
D
can be predicted

E
A e e
D ial b y
5 1 U T
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost Estimation: Difficulties
g
4 5 B U r i n
E R I e e
A S I S T C i n
two aircraftg
• It is difficult
T D
to compare
N lE
costs
C
for
n that are already in

O
production.
U a c h
NCurrent dollars ET tic
• Program cost comparisons can be made using two types of
P r a
money:
O M
D • Constant-year dollarsna ign r. A
• u .
e ro e s y D T E
A D ial b 5 1 U
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost Estimation: Difficulties
g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
•
T N lE h
Current dollars (“then year dollars” or “budget dollars”) are the

N O T U c a c
actual dollar figures in the budget associated with the stated date (past,
a
O E t i r
present or projected). For future program costs, an estimate of the

u P
D• M a
inflation rate must be made.
n A .
o n s i g D r.
E
r
Constant-year dollars measure the value of purchased goods and

e e y 1 T
services at price levels that are the same as the base or reference year.

A D ial b 5 U
4 B
Constant dollars do not reflect adjustments for inflationary changes that

5 1 e r E I
have occurred or are forecast to occur outside the base year.
R
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost Estimation: Difficulties
g
4 5 B U r i n
E R I e e
A S I S T C i n
•
D C n g
Establishing a cost baseline for a new aircraft constant-year dollars

T N lE h
should be used (the actual $$ spent, taking into account the inflation

N O T U
factor for a selected year).
c a a c
O E u t i P r
D • M a n A .
Government budget is set in then-year dollars.

o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost Estimation: Difficulties
g
4 5 B U r i n
E R I e e
S
A production I T
Squantity andC C effects theg i n
• Aircraft
T D N
rate

E n cost!

O T U a l “learns” 
 ch
Naircraft can be produced
• The more
c a
aircraft produced, the more manufacturer

O
and
E t i
cheaper
u P r
(learning curve effect).
M
D • Each time the production a n A .
per aircraft goeso
n
down by ~20s
i
quantitygis
D
doubled,r. the labor cost
E
e r e %.
y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Production Learning Curve
g
5 B U
• Aircraft production4typically follows 75-80% learning curve. r i n
E R I e e
A S I S T C i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Aircraft Cost Estimation: Difficulties
g
4 5 B U r i n
E R I e e
A S S T i n
I curve effect,C g
• Due to
T
a
D
learning
C E
N just entering n
cost comparison are not

O
meaningful
U
between a new aircraft

T a l a production, and
c h
N E t i c
an old aircraft, already produced in large quantities.
P r a
D O M a u n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 Elements of Life-Cycle Cost
1 T E g
4 5 B U r i n
E R I e e
Operations & maintenance

S
A - IS T C
-
i n Fuel/oil

g
Production:
-
n
Crew personnel

D Airframe
C
N - l- E
- Ground personnel

O T
-
U
Engine
a c h
Maintenance:

N - T c a
Recurring

O E
Avionics

u t i
Ground -
P r Depot

D M -
n .
support

a
RDT&E Insurance (civil)

n g
equip.
-
. A
i
Special Indirect costs
r
Disposal

o
&

s
constru

D E
-
r
initial Deprecation (civil)

e T
ction

e y 1
spares

A D ial b
4 5 B U
5 1 Flyaway cost
e r E R I
E 4 a t
A S S T
I
Civil purchase price

S e M D
A
Military procurement cost

r s T
u O
Program cost

C o N Life cycle cost

D O Dr. A. Prach
 Elements of Life-Cycle Cost
1 T E g
4 5 B U r i n
E R I e e
•
A S I S T C i n
RDT&E (Research, Development, Test, and Evaluation) includes:

• D C n g
N lE
Technology research

• T h
N• O U
Design engineering
T c a a c
O E t
Prototype fabrication
u i P r
D M a n A .
•
n i g .
Flight and ground testing

o s r
•
e r e D
Evaluations for operational suitability
y 1 T E
• A D ial b
4 5
Certification cost (for civil aircraft)
B U
•5 1 e r E R I
4 t S T
Airworthiness, mission capability, compliance with MIL-Specs.

E a
(for military aircraft)
M A I S
A S s e T D
u r O
C o N
D O Dr. A. Prach
 1 T E
Elements of Life-Cycle Cost
g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
•
T N lE
RDT&E costs are fixed costs (non-recurring) regardless of
h
N• O U a
how many aircraft are produced.
T c a c
O E u t i P r
M .
The cost of aircraft conceptual design is included in RDT&E
D cost.
na i g n r. A
e ro e s y D T E
A D ial b 5 1 U
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 Elements of Life-Cycle Cost
1 T E g
4 5 B U r i n
E R I e e
• S T n
A • IS C
Flyaway (production) cost includes:
g i
•T
D
Labor cost
N lEC n
O U a
Materials cost to manufacture the aircraft:
c h
N • ET tic P r a
O
Airframe

D • M
a u n A .
g
Engines

o n s i D r.
E
•
r
Avionics
•
A e D e l by
5 1
Production tooling (fasteners, molds, etc.)
U T
5•1
r i a
E 4 I B
R
Manufacturer’s overhead

4 a t e S T
E
•
A I S
Administrative expenses.

S e M D
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
Elements of Life-Cycle Cost
g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
N lE
• Production costs are recurring — they are based on the

O T U
number of aircraft produced.
a c h
N E T t i c P r a
D O •
M a u n .
The cost per aircraft is reduced when larger number of aircraft
A
n i g r.
is produced due to the learning curve effect.

o s D E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 Elements of Life-Cycle Cost
1 T E g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
•
T N lE
Purchase price for a civil aircraft included RDT&E and production cost,

O U
including a fair profit.
a c h
• N
E T t i c P r a
O
For a military aircraft RDT&E costs are paid by the government.

D M a u n A .
•
n i g .
Military aircraft procurement cost (“acquisition cost”) includes:

o s r
•
e r
Production costs
e y D
1 T E
A D ial b
4 5 B U
1 I
• Costs of the ground support equipment (flight simulators, test

5 e r
equipment, spare parts).
E R
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 Elements of Life-Cycle Cost
1 T E g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
T N lE h
O U
•
a
Program cost: the total cost to develop and deploy a new airplane into the

N T c
inventory (mostly military). 

a c
O E u t i P r
D• M a n A .
n i g r.
Some aircraft require special ground facilities for operational deployment. 

o s D E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 Elements of Life-Cycle Cost
1 T E g
4 5 B U r i n
E R I e e
• S T n
A• I S C
Operations and maintenance (O&M):
g i
•T
D
Fuel
N lEC n
O
Oil
U a c h
N •
E T
Aircrew costs
t i c P r a
D O • M
Maintenance
a u n A .
•
o n s i g D r.
E
r
Insurance (for civil aircraft)
•
A e e
D ial b y
Depreciation (for civil aircraft)
5 1 U T
•
5 1 Other indirect costs
r E 4 I B
4 a t e S T R
S E M A I S
D
• O&M cost is usually much higher than development and

A s e
production costs.

r T
C o u
N O
D O Dr. A. Prach
 Elements of Life-Cycle Cost
1 T E g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
•
T
Disposal
•O U
N l E h
N• T i c a r a c
Aircraft are “disposed” after their useful lifespan has ended.

O M E u t . P
Disposal cost is not large, and often ignored in life cycle
D na
cost estimation.
i g n r. A
•
e ro e s D
Civil aircraft may have negative disposal cost.

y T E
A D ial b 5 1 U
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1
Cost-Estimating Methods
T E g
4 5 B U r i n
E R I e e
A S I S T C i n
•
g
The cost-estimating methods are based on a detailed assessment of the

D C n
actual tasks to design, test, and produce and aircraft.

T N lE
•
O U a
Work Breakdown Structure (WBS) table is prepared.
c h
N E T t i c P r a
D•O•
a u
Cost estimation during conceptual design is mostly statistical.
M n A .
n i g r.
Cost Estimating Relationships (CER) for various elements
o s D E
are
prepared.
e r e y 1 T
• A D ial b
4 5 B U
Inputs to CER: aircraft weight, max.velocity, production rate.

5 1 e r E R I
•
E 4 t S T
Output of CER: either cost, or labor hours (cost = (labor hours) x (hourly
a A S
I
rate))

S e M D
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E
RDT&E and Production Costs

g
4
(DAPCA IV Model)
5 B U r i n
E R I e e
A S I S T C i n
• DevelopmentD C n g
O T U
N
and Procurement Costs
l E
of Aircraft Model (DAPCA)
h
N
• Is a cost
T
estimation relationship
i c a
model.
r a c
O M E u t . P
D engineering, tooling, manufacturing n
•
a
It estimates the hours required for RDT&E and production by the

n g . A
i r
and quality control groups.

e ro e s y D T E
• The hours are multiplied
1
by hourly rates to obtain costs.

support, flight D
• DevelopmentA l b 5 U
5 1 i a
tests, material
r 4
costs are estimated
E I B
directly.

4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 RDT&E and Production Costs

1 T E g
4 5 B U
(DAPCA IV Model)
r i n
E R I e e
• A
S I S T C i n
D C n g
Engineering hours: include airframe design and analysis, test

T N lE
engineering, configuration control and systems engineering. 

h
•N
O T U c a a c
O E t i P r
Tooling hours: includes preparation for production:

u
D • • M a n A .
Design and fabrication of tools and fixtures

o n s i g D r.
E
r
Production of molds
•
e e
D ial
Programming CAD/CAM tools
A b y
5 1 U T
•
5 1 4 I B
Development and fabrication of production test apparatus. 

r E
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1 T E
RDT&E and Production Costs

g
4 5 B U
(DAPCA IV Model)
r i n
E R I e e
A S I S T C i n
D C n g
O T hours: directN
U l E h
• Manufacturing
N T i c a
labor to fabricate
r a c
the aircraft; forming,

E t
machining, fastening, subassembly fabrication, final assembly, routing
O M u . P
n
(hydraulic, electric and pneumatic lines) and purchased part installation
D (engines, avionics,
n a
sub-sytems, etc.)
i


g r. A
ro e
• Quality control:eincludes receivings y D T E
A D ial b
inspection,
5 1
production
U
inspection

1
and final inspection.

5


r E 4 I B
4 a t e S T R
S E M A IS
A r s e T D
C o u
N O
D O Dr. A. Prach
 1 T E
RDT&E and Production Costs

g
4 5 B U
(DAPCA IV Model)
r i n
E R I e e
A S I S T C i n
D C n g
O T costs: all costsN
U l E h
• Flight test
a c
to demonstrate airworthiness and/or

N E T t i c
compliance with military standards except
r a
for the costs of the flight
P
test

O M
airplanes themselves.
D • Manufacturing materials:



a u n A .
o n s i g D r . hardware and
E
r e
raw materials and purchased

A e
equipment from which
Dsystems,
the airplane
l
is
b y
built (aluminum,
5 1 U
composites,
T
1
electric, hydraulic, pneumatic

5 r i a 4
fasteners, etc.)

E IB
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 RDT&E and Production Costs

1 T E g
4 5 B U
(DAPCA IV Model)
r i n
E R I e e
A S I S T C i n
D C n g
• T
Engineering
O
hours: H =4.86
U
NW V
l E Q 

0.777 0.894
h
0.163

a
e e

N T c a c
E tVi P r
D O•
M
Tooling hours: H =5.99
t W
a u e
0.777
Q
n

 0.696

A .
0.263

o n
H =7.37 s i g V DQ
r.
E
e r
• Manufacturing hours: e W
y 

0.82

1
0.484
T
0.641

D ial b U
m e

1 A 4 5 I B
5 e r E 

R
•
4
Quality control hours: H =0.076 H (cargo airplanes)
t S T
q m
Ha
S E M A
=0.133 H (all others)
q
I S
m

A r s e T D
C o u
N O
D O Dr. A. Prach
 DAPCA IV Model

1 T E g
4 5 B U
(cost in constant 2012 Dollars)
r i n
E R I e e
A S I S T C i n
D C n g
O T U
N C =91.3 l E 0.630 1.3
h
a
• Development support costs: W V , Include

N T c
D e

a c
test items.t
 i r


structural and otherE
fabrication of mockups, subsystem simulators,
O M u . P
D n a i g n r . A
• Flight test costs:rCo=2498 W s V D E
e e 

T
0.325 0.282 1.21
y
FTA
D ial 1
F e

A b 5 U
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1
DAPCA IV Model

T E g
4 5 B U
(cost in constant 2012 Dollars)
r i n
E R I e e
A S I S T C i n
D C n g
• Engine production
T N E
cost:

O U a l - 2228) h
c
N by 15-20% forETa turbofantiengine.
C =3112(0.043 T + 243.25 M + 0.969 T
c a
ENG max max turbine inlet

P r
O u
Increase
M
D • Manufacturing materialsa n A .
o n cost:
s i g D r.
E
C =22.1 W e Vr Qe y 1 T
D ial


A
0.921 0.621
b
0.799
5 U
4 B
M e

5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1
DAPCA IV Model

T E g
4 5 B U
(cost in constant 2012 Dollars)
r i n
E R I e e
A S I S T C i n
• W = EmptyD C n g
• V =O
e
T weight

U
N l E h
N T
max. velocity (in knots)
i c a r a c
O• Q = Production
M E
quantity
u t . P
D N = (Total production
• FTA = number of flight
n a
tests
g
(typically
i n
2-6)
r. A
• eng

e r o e s
quantity) x
D
(number
y
of engines per aircraft)
T E
• T
A
= Engine
D
max.thrust (lb)
l b 5 1 U
4 B
max
=1
r i a I
• M
• 4
5
max Max. Mach number

a t e S E T R
S E
T = turbine
turbine inlet inlet
M
temperature
A(Rankine)
I S
A • C e
= Avionics cost
avionics
r s T D
C o u
N O
D O Dr. A. Prach
 1
DAPCA IV Model

T E g
4 5 B U
(cost in constant 2012 Dollars)
r i n
E R I e e
S T i n
•AThe hoursIS C g
T D of aluminiumC
estimated by DAPCA
N n
are based
E
on design and

factors”:al
manufacturing aircraft.
•O U c h
N • Aluminum: T
Recommended “fudge
E t i c P r a
D O M 1.0
a u
1.1— 1.8 n A .
n
• Graphite-epoxy:
o 1.1 — 1.2s
i g D r.
E
e r
• Fiberglass: e y 1 T
• A D ial b
4 5 B U
1 I
Steel: 1.5 — 2.0

5 e r E R
E 4 • Titanium: 2.0
a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 DAPCA IV Model

1 T E g
4 5 B U
(cost in constant 2012 Dollars)
r i n
E R I e e
A S I S T C i n
D C n g
•
T
Average “wrap rates”
N lE
(employee salary + employee benefits +
h
O
overhead

N• e U
+ administrative costs):
T c a a c
O
R = $ 115 / h
E t
(engineering)

/ h (tooling) u
i P r
D M a n A .
•
n g .
Rt = $ 118

• Rm = $ 108 r/ ho(manufacturing)
s i D r
E
• Rq = $A
e
98 / h (qualityD
e
control) l b y
5 1 U T
5 1 r i a
E 4 IB
4 a t e S T R
S E M A IS
A r s e T D
C o u
N O
D O Dr. A. Prach
 DAPCA IV Model

1 T E g
4 5 B U
(cost in constant 2012 Dollars)
r i n
E R I e e
A S I S T C i n
D C n g
• TAvionics costs: C N l Eflyaway cost h
= 5-25% of
O U a
avionics

N T c a c
O E u t i
or $4000–8000/lb

P r
D M a n A .
• Initial sparesr=o
n
• Investment cost factor
s i g
= 1.1-1.4 * predicted
price. D
r.
flyaway cost
E
A e e
D ial
10-15% purchase
b y 

5 1 U T
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1
DAPCA IV Model

T E g
4 5 B U
(cost in constant 2012 Dollars)
r i n
E R I e e
A S I S T C i n
D C n g
• O T U
N l E h
N
RDT&E + production
= H R + H R +H E T
costs

c a
R +H R +Ci +C +C +C N +C r a c
O M u t . P
D a n
e e t t m m q q D F M eng eng avionics

n g . A
ro s i D r
E
A e D iale b y
5 1 U T
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1 T E
Operational and Maintenance Costs (O&M)
g
4 5 B U r i n
E R I e e
S aircraft: T
A • Fuel costs
I S 15% CC i n
• Military
D n g
O T• Crew salaries U
N l E h
N • Maintenance T
35%
50%. i c a r a c
O M E u t . P
D • Civil aircraft: na ign r. A
e r o e s y D T E
1
• Fuel costs 38%

A D ial b
4 5 B U
1 I
• Crew salaries 24%

5 • Maintenance 25% er E R
E 4 a t
A S S T
S • DepreciationM
e
12%
D I
A •
r s
Insurance 1%.
T
C o u
N O
D O Dr. A. Prach
 Operational and Maintenance Costs (O&M)
1 T E g
4 5 B U r i n
E R I e e
Cost per gallon of Jet A fuel in constant $/gal as a function of calendar quarter

A S I S T C i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1
Crew Salaries: Civil
T E g
4 5 B U r i n
E R I e e
•
S T i n
Cost for civil aircraft crew (pilots and cabin crew) is estimated using
A I S C
yearly “block hours”.
D C n g
T N lE h
O
•
U a
Block hours: the total time the aircraft is in use, from when the blocks

N T c a c
i r
are removed from the wheels at the departure airport to when they are

O M E u t
placed on the wheels at destination.
. P
D • na i g n r. A
ro s D
Block speed: trip distance/block time << Vcruise

e e y T E
•
A D l b 5 1 U
4 B
Additional distance between two airports:

1 r i a I
•
•45 e
= 2 % if D>1400 miles,

a t S E T R
S E A
= (0.015+7/D) if D < 1400 miles. 

M I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 Crew Salaries: Civil
1 T E g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
• Crew
T
cost/block hour (2012 N lE
prices):
h
O
N • Two man crew T U
= 70.4(Vic
a r a c
O M E u t
c
5 0.3
W /10 ) +168.8,
o
. P
D n a i g n r. A
o
• Three man crew 

s
= 94.5(V W /10 ) 5 0.3
+237.2.
r D E
c o

A e D iale b y
5 1 U T
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 1 T E
Crew Salaries: Military
g
4 5 B U r i n
E R I e e
A S I S T C i n
• Crew ratio: #Dof aircrews/aircraft C n g
T N lE h
O
•NFighters: 1.1 T U c a a c
O E u t i P r
D • M a n A .
Transports: 3.5.

o n s i g D r .
E
e r e y 1 T
D ial
•
b U
Crew cost/year = 2080*engineering hourly wrap rate

1 A 4 5 I B
5 e r E R
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 Maintenance Expenses
1 T E g
4 5 B U r i n
E R I e e
• A S I S T C i n
Unscheduled
D
maintenance
C
expenses
n
depend
g on how often

T
an aircraft
N lE
breaks and how expensive it is to fix it.
h
O
•NScheduled maintenanceT U c a a c
O E u t i
expenses depend on the
r
number
P
of

M a ign r. A
D cost of the schedulednmaintenance.
items that required regular maintenance,
.
and frequency and

e r o e s y D T E
•
A
Maintenance is usually
D ial
scheduled
b
by accumulated
5 1
flight hours.
U
5 1 r E 4 I B
4 a t e S T R
S E M A I S
A r s e T D
C o u
N O
D O Dr. A. Prach
 Maintenance Expenses
1 T E g
4 5 B U r i n
E R I e e
• A S I S T C i n
g
Maintenance Man-hours per Flight Hour (MMH/FH) is a

D
primarily measure
T N lEC n
of how “good” or “bad” aircraft is w.r.t. the

O
maintenance cost.
U a c h
N E T t i c P r a
D O • MMH/FH
M
ranges from

a u
under 1.0 for small

n
private
.
aircraft

A
to

n g .
over 100 for special-purpose aircraft.

r o s i D r
E
•
A e Design
e
D ial
goal: reduce
y
MMH/FH.
b 5 1 U T
5 1 r E 4 I B
4 a t e S T R
S E M A IS
A r s e T D
C o u
N O
D O Dr. A. Prach
 1 T E
Maintenance Expenses
g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 Maintenance Expenses
1

T E g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 Depreciation and Insurance
1 T E g
4 5 B U r i n
E R I e e
A S I S T C i n
•
operating life D
Depreciation is the allocation
C
of the
n g
purchase price over the

O T
of an aircraft.

U
N l E h
• Generally
N T i c
aircraft assets are depreciated
a a c
over 15 to 25 years with
r
O
residual values of

M E
between 0 to
u t
20 percent.
. P
D • If the resale value is 10%
• The straight-line method
n
of
a
depreciation

i g nis the most

r A
commonly used:
. the depreciation
period is 12 years:r
 o s D E
of the purchase price and

A e D iale b y
5 1 U T
4 B
– Yearly depreciation = airframe cost*0.9/12

5 1 e r E R I
4
• Insurance ~= 1% of operational cost.

E a t
A S I S T
S e M D
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E g
4 5 B U r i n
E R I e e
A S I S T Airbus A
C
380
i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 Airbus A 380
1 T E g
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
T N lE h
N O T U c a a c
O E u t i P r
D M a n A .
o n s i g D r.
E
e r e y 1 T
A D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach
 1 T E g
Challenges and Problems:
4 5 B U r i n
E R I e e
A S I S T C i n
D C n g
T
• Aircraft size
N lE h
N O T U c a a c
i r
• Materials

O
• Wing design

M E u t . P
D• High lift devices
na ign r. A
• Flight control systemso (increased s redundancyD E
e r e y
and safety standards)

1 T
A
• Passenger comfort D ial b
4 5 B U
5 1 e r E R I
E 4 a t
A S S T
S e M D I
A r s T
C o u
N O
D O Dr. A. Prach