Flyaway cost

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Flyaway cost is one measure of the cost of an aircraft. It values the aircraft at its marginal cost, including only the cost of production and production tools essential for building a single unit.[1] It excludes prior costs such as research and development (treating these as sunk costs), supplementary costs such as support equipment, or future costs such as spares and maintenance.[2]

There are other possible measures of aircraft cost:

  • Flyaway cost plus research and development cost divided by the number of aircraft.
  • Total cost over the lifetime of the aircraft program, including maintenance, divided by the number of aircraft.[3]

The flyaway cost can be meaningfully compared to another cost metric: the weapons system cost. The weapons system cost (often referred to as the procurement cost) is the total price of the aircraft. A good way of looking at the difference is the flyaway cost is the cost of making the aircraft, but the weapons system cost is the cost of buying the aircraft. Weapons systems costs may include ancillary equipment costs, one time non-recurring contract costs, and airframe, engine and avionics support costs. For example, the flyaway cost for the Boeing F/A-18E/F Super Hornet up to 2009 (for the 449 units built) was US$ 57.5 million per, but the weapons system cost was 39.8% higher, at US$ 80.4 million per unit.[4] Not surprisingly, advocates who want to minimize the costs of an aircraft will often report the "flyaway cost" as the purchase price. Conversely, the production cost of technologically complicated aircraft will always be higher during the low rate initial production period, and costs per units invariably drop as an aircraft is put into full production.[citation needed]