A Hierarchical Aircraft Life Cycle Cost Analysis Model

This paper presents an exploratory study for identification and quantification of the economic benefits or implications associated with wing cost variations. A hierarchical cost model structure is used to determine life cycle effects of design and manufacturing alternatives for the major structural components of the wing of a High Speed Civil Transport aircraft concept. Preliminary results are presented relating the effects of up to a 25% variation in wing cost to overall manufacturing and operational returns on investment. It was discovered that a 25% reduction in wing costs, relative to a baseline wing, results in approximately a 3% increase in return on investment for the manufacturer. In addition, deviations in wing cost of 10% and 25% yielded acquisition price differences of 2.25% and 6.0% respectively. These relatively small percentage differences in acquisition costs produced no significant changes in operational costs of the aircraft. Small changes were evident in the costs of financing and depreciating the aircraft, but these minor differentials had a negligible effect on the airline return on investment.