DOUGLAS FOCUSES ON ACQUISITION COST OF LATE 1990S CIVIL TRANSPORTS

The commercial transports McDonnell Douglas will be delivering during the late 1990s will be similar to the aircraft the company is now offering, since emphasis today is on reducing the purchase price of derivative aircraft rather than developing new designs. The Douglas Aircraft Company division is focusing on new materials, technology and production techniques to drive down the cost of ownership of commercial transports for airlines faced with increased competition under deregulation. The cost of ownership has become the predominant factor in the direct operating cost equation for airlines, which also have experienced increased expenses for borrowing money and decreased fuel costs. Fuel, which made up 40% of direct operating costs 10 years ago, now accounts for 18%, while cost of aircraft ownership has increased from 28% to 42% since 1978, according to Douglas statistics. Operations expenses, the third major element of direct operating costs, have experienced a relatively minor increase, from 32% to 40%, during the past decade.

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  • Corporate Authors:

    McGraw-Hill, Incorporated

    330 West 42nd Street
    New York, NY  United States  10036
  • Authors:
    • SMITH, B A
  • Publication Date: 1988-11-21

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  • Accession Number: 00478000
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 31 1988 12:00AM