Aircraft Selection for TTB (Transport-Tanker-Bomber) Aircraft: Lease versus Buy Decision.

Abstract

This thesis was accomplished to determine the best alternative for Air Training Command to pursue for procurement of the Transport-Tanker-Bomber trainer aircraft. The study focused on the two alternative forms of financing (leasing and buying) and the four aircraft to select from. The calculations were made through cost-benefit analysis where the determining factor was the net present value of costs. Current OMB guidance on lease vs. buy analysis was discussed and generally followed. The government perspective (as directed by OMB) was taken through the analysis to ensure proper accounting of tax impact and depreciation allowances. The results of the study indicate that the buy option is always more favorable from the government perspective, and the lease option more favorable when the service perspective is taken. Further study should be accomplished as more information becomes available. Keywords: Fixed wing aircraft; T-37 aircraft; T-38 aircraft; T-43 aircraft. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1985
Accession Number
ADA167150

Entities

People

  • Timothy W. Reid

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Air Platforms
  • Biomedical

DTIC Thesaurus Topics

  • Air Force
  • Budgets
  • Classification
  • Congress
  • Contracts
  • Cost Benefit Analysis
  • Costs
  • Economic Analysis
  • Flight Simulators
  • Flight Training
  • Governments
  • Jet Training Aircraft
  • Law
  • Maintenance
  • Procurement
  • Students
  • Training Aircraft

Fields of Study

  • Business

Readers

  • Aviation Science / Aeronautics.
  • Government Contracting/Procurement.