Accession Number:

ADA485503

Title:

Why Has the Cost of Fixed-Wing Aircraft Risen? A Macroscopic Examination of the Trends in U.S. Military Aircraft Costs over the Past Several Decades

Descriptive Note:

Corporate Author:

RAND NATIONAL DEFENSE RESEARCH INST SANTA MONICA CA

Report Date:

2008-01-01

Pagination or Media Count:

119.0

Abstract:

In recent decades, cost escalation for military fixed-wing aircraft of all types has exceeded that of commonly used in inflation indices, including the Consumer Price Index, the Department of Defense procurement de deflator, and the Gross Domestic Product de deflator. A relatively fixed investment budget albeit one with cyclical variations means that the Services must somehow accommodate higher unit costs. This accommodation may mean buying fewer aircraft than in the past or it may mean reprioritizing budgets between acquisition and operations and support. This monograph explores the causes of this unit cost escalation, including both economy-driven factors that the Services cannot control and customer-driven factors that they can.

Subject Categories:

  • Aircraft
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE