A Methodology for Estimating the Economic Benefits of an Aircraft Engine Warranty.
Abstract
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)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1977
- Accession Number
- ADA047282
Entities
People
- Martin P. Dooley
- Richard E. Kells
Organizations
- Air Force Institute of Technology