It is anticipated that cost reduction will become an increasingly important factor in the future of the gas turbine engine. Therefore, it is considered to be necessary to establish a research program aimed at gas turbine engine cost reduction. The objectives of this program were to identify high-cost engine components and to examine the changes in their cost with increasing production. Cost data were solicited from all major gas turbine engine manufacturers relative to total engine cost and major component cost at various engine production levels. The data indicate that the compressor, turbine, and accessories are the highest cost components and that they represent, on the average, 88 percent of the total engine cost. Results also indicate that the accessories experience less cost reduction with increasing production than do any other engine components. In the compressor and turbine area, the most promising means of cost reduction appears to be simply reduction of the number of stages through advances in compressor and turbine technology. The results of this program further indicate the need for a more detailed study in the compressor, turbine, and accessory areas.