Accession Number:

ADA508850

Title:

Assessing the Cost-Effectiveness of Modernizing the KC-10 to Meet Global Air Traffic Management Mandates

Descriptive Note:

Corporate Author:

RAND CORP SANTA MONICA CA

Report Date:

2009-01-01

Pagination or Media Count:

83.0

Abstract:

The KC-10 Extender air refueling aircraft is approaching 25 years of service without undergoing significant avionics modernization. Without upgrades, the CNS capabilities of the KC-10 will not allow it to comply with various upcoming air traffic management ATM mandates around the world. Noncompliance with these mandates would prevent the KC-10 from flying the most fuel-efficient altitudes and routings in civil air traffic systems and cause delays both on the ground and in the air. A loss of access to optimal airspace and routings would increase operations costs and degrade the wartime effectiveness of the KC-10. For this study, we conducted a cost-effectiveness analysis to determine whether potential avionics modernization options are worthwhile. Our analysis shows that, overall, a KC-10 CNSATM upgrade would be cost-effective and result in net cost avoidance. That is, the projected net present value NPV of the operations cost avoidance from avionics modernization during the remaining life of the KC-10 fleet exceeds the upgrade cost of the modernization.

Subject Categories:

  • Military Aircraft Operations
  • Transport Aircraft
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE