A METHODOLOGY FOR ESTIMATING THE ECONOMIC BENEFITS OF AN AIRCRAFT ENGINE WARRANTY

Aircraft engine warranties are used extensively in the commercial airlines industry. If the Department of Defense hopes to use warranties as a method of reducing engine life cycle costs, the costs and benefits of each warranty must be carefully analyzed. The methodology developed in this study provides framework to assist analysts in estimating the economic benefits of an engine warranty. A test application of the methodology details the benefits of a hypothetical DOD engine warranty, and includes a sensitivity analysis of the key variables. The study concludes that the basic method can be used to estimate the economic benefits of a wide range of engine and equipment warranties. (Author)

• Corporate Authors:

  Air Force Institute of Technology

  School of Systems and Logistics, Wright-Patterson AFB
  Dayton, OH  United States  45433
• Authors:
  • Dooley, M P
  • Kells, R E
• Publication Date: 1977-9

Media Info

• Pagination: 135 p.

Subject/Index Terms

• TRT Terms: Aircraft; Benefit cost analysis; Components; Computer programs; Cost estimating; Economics; Engines; Estimates; Life cycle costing; Mathematical models; Methodology; Reliability; Savings; Theses; Warranty
• Uncontrolled Terms: Aircraft engines
• Old TRIS Terms: Cost benefits; Guarantees
• Subject Areas: Aviation; Economics; Finance; Vehicles and Equipment;

Filing Info

• Accession Number: 00174483
• Record Type: Publication
• Source Agency: National Technical Information Service
• Report/Paper Numbers: AFIT-LSSR-10-77B MS Thesis
• Files: TRIS
• Created Date: Mar 14 1978 12:00AM