Accession Number : ADA134446

Title :   Determining the Boeing 747 Conversion Costs for the Civil Reserve Air Fleet Enhancement Program.

Descriptive Note : Master's thesis,

Corporate Author : AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF SYSTEMS AND LOGISTICS

Personal Author(s) : Orr,James C

PDF Url : ADA134446

Report Date : Sep 1983

Pagination or Media Count : 87

Abstract : The Civil Reserve Air Fleet (CRAF) Enhancement Program provides a contractual arrangement between the Air Force and major U.S. airlines for modifying Boeing 747 and DC-10 passenger aircraft for use as convertibles--aircraft capable of carrying military cargo in an emergency, while providing commercial passenger service in peacetime. The airlines will incur several costs as a result of modifying these aircraft, each of which must be reimbursed by the Air Force. The costs incurred by the airlines include: net revenue lost during the eight week modification period; the modification cost: increased operating costs for 16 years due to the higher weight and increased value of a convertible aircraft; and the opportunity cost of retaining a modified aircraft for 16 years. Each of these costs were calculated for the Boeing 747, with the following results: $3,014,564 net loss of revenue during modification; $14,300,000 modification cost; 46,637,015 increased operating costs for 16 years; and no opportunity cost. These costs total $23,951,579, and represent the amount of reimbursement from the Air Force for each Boeing 747 conversion. (Author)

Descriptors :   *Convertible planes, *Modification, *Air Force planning, *Airlift operations, Emergencies, Military equipment, Cargo, Peacetime, Commercial aviation, Passenger aircraft, Costs, Augmentation, Theses

Subject Categories : Civilian Aircraft
      Administration and Management
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE