The Costs and Benefits of Aircraft Availability
Final rept. Jan-Sep 1990
INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA
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This paper contains estimates of the effects of research and development costs through initial operational capability and unit procurement costs on the mission-capable MC rates of eleven tactical aircraft models. These estimates are transformed into estimates of the marginal cost of increasing MC rates through, respectively, increased development or increased procurement expenditures. The benefits of higher MC rates are also computed. One benefit is that, with more reliable aircraft, the procurement quantity may be reduced. A second benefit is that more reliable aircraft have lower operations and maintenance OM costs in the field. The magnitudes of these effects are also estimated. Finally, the costs and benefits are combined to compute optimal levels of investment in reliability, both for hypothetical aircraft models and for the eleven aircraft models used in the statistical analysis.
- Military Aircraft Operations
- Economics and Cost Analysis