Aircraft Selection for TTB (Transport-Tanker-Bomber) Aircraft: Lease versus Buy Decision.

reportActive / Technical Report | Accession Number: ADA167150 | Open PDF

Abstract:

This thesis was accomplished to determine the best alternative for Air Training Command to pursue for procurement of the Transport-Tanker-Bomber trainer aircraft. The study focused on the two alternative forms of financing leasing and buying and the four aircraft to select from. The calculations were made through cost-benefit analysis where the determining factor was the net present value of costs. Current OMB guidance on lease vs. buy analysis was discussed and generally followed. The government perspective as directed by OMB was taken through the analysis to ensure proper accounting of tax impact and depreciation allowances. The results of the study indicate that the buy option is always more favorable from the government perspective, and the lease option more favorable when the service perspective is taken. Further study should be accomplished as more information becomes available. Keywords Fixed wing aircraft T-37 aircraft T-38 aircraft T-43 aircraft. Author

Author(s):
Reid, Timothy W.
Author Organization(s):
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF ENGINEERING
Descriptive Note:
Master's thesis,
Pagination:
0094

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release

RECORD

Collection: TR
Identifying Numbers
Report Number(s):
AFIT/GOR/ENS/85D-16
 Subject Terms
Joint Capability Areas:
JCA_5_Command and Control; JCA_5.3_Planning; JCA_1_Force Support; JCA_1.2_Force Preparation; JCA_1.2.1_Training; JCA_5.3.1_Analyze Problem; JCA_5.4_Decide; JCA_4.2_Supply; JCA_4.2.3_Manage Global Supplier Networks; JCA_5.6.4_Assess Guidance; JCA_5.6_Monitor; JCA_6.4.1_Secure Information Exchange; JCA_6.4_Information Assurance; JCA_6_Net Centric; JCA_5.4.3_Establish Rule Sets; JCA_4.1_Deployment and Distribution; JCA_4.3_Maintain; JCA_3.2_Engagement; JCA_3_Force Application; JCA_1.2.5_Lessons Learned; JCA_1.2.6_Concepts
Modernization Areas:
Directed Energy
Communities of Interest:
Air Platforms
Descriptor(s):
*COST ANALYSIS, *JET TRAINING AIRCRAFT, *AIR FORCE PROCUREMENT, *LEASING, IMPACT, ACCOUNTING, THESES, COSTS, JET BOMBERS, TANKER AIRCRAFT, JET TRANSPORT AIRCRAFT, VALUE, FIXED WING AIRCRAFT, BENEFITS, SELECTION, TAXES
Field(s)/Group(s):
Administration and Management, Economics and Cost Analysis
Keyword(s):
T 37 aircraft, T 43 aircraft, T 38 aircraft, Depreciation
Report Date:
1985 Dec 01