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- Newsgroups: sci.space
- Path: sparky!uunet!hela.iti.org!aws
- From: aws@iti.org (Allen W. Sherzer)
- Subject: Re: Stupid Shut Cost arguements (was Re: Terminal Velocity of DCX?
- Message-ID: <1992Dec23.212100.18194@iti.org>
- Organization: Evil Geniuses for a Better Tomorrow
- References: <STEINLY.92Dec23102952@topaz.ucsc.edu> <1992Dec23.191306.6705@iti.org> <STEINLY.92Dec23121415@topaz.ucsc.edu>
- Date: Wed, 23 Dec 1992 21:21:00 GMT
- Lines: 81
-
- In article <STEINLY.92Dec23121415@topaz.ucsc.edu> steinly@topaz.ucsc.edu (Steinn Sigurdsson) writes:
-
- >A gliding body with no engines and no heat shield is comparable
- >to the operational system?
-
- It's called a structural test article. They are frequently built to test
- aspects of an aircraft design.
-
- >Really, did Boeing pay for the development of winglets (those little
- >dinky wingtip things the latest models have)? ...
-
- Look, if your trying to say that research has been done in the past and
- that research should be treated as a sunk cost, then you are partly
- correct. The concept is correct but the word is 'depreciated'.
-
- Sure there is lots of depreciated costs going into airliner development.
- Much of that does come from government funded research. I have no problem
- with that. You will note that I didn't say the money used to build the
- X-24, an important vehicle for Shuttle, should be charged to Shuttle.
-
- The fact remains however that we did spend $34 billion to develop Shuttle
- and that cost should be accounted for. If we are going to pick and choose
- what costs we include and which we don't then why not say Shuttle is
- free?
-
- >for the development costs of the basic jetliner airbody designs
- >or did they sink it to military contracts?
-
- To some extent I'm sure they did. This happens all the time however
- in the civilian world. The first signal processing chips where built
- for customers willing to pay development. They where then sold to
- whoever. The point is that unlike Shuttle, all costs where accounted
- for.
-
- >I thought you quoted a (Pike?) study saying $500 M per flight
- >charging all costs to shuttle, $750 M if (sunk) development costs
- >were included. Apologies if it was Dennis...
-
- That was Dennis misquoting Pike. Pike said that if you add up all the
- manned costs you get a figure of ~$750M. I claim the cost of a Shuttle
- flight to be $500M plus the then year development costs amortized over
- say, 20 years. I don't remember what that comes to but it is easially
- over a billion.
-
- This is the formula American uses to sell most tickets so I think
- Shuttle should do the same. I also insist on DC doing the same, I'm
- not giving it a free ride.
-
- > could amortize DC-Y development, DC-X development, and DC-1 development
- > and it STILL comes out cheaper than the operational costs of Shuttle
- > (~$6,000 per pound for DC vs $10,000 per pound for Shuttle). All three
-
- >Over how many flights??? At the moment, with zero flights the DC is
- >inifintely more expensive than the shuttle!
-
- Please let's be resaonable here. By your arguement every new vehicle
- is infinitely more expensive than existing ones and so shouldn't be
- built.
-
- >What flight rate and amortization period are you using?
-
- I just looked up the exact numbers. At 10 flights per year (roughly 80%
- the US MLV market) a DC-1 should (if it works) cost $2700 per pound. This
- is a third the cost of Shuttle and about 25% less than existing expendables.
- If flight rate goes to 12 a year then costs drop to about $2300 per pound.
- This assumes a $3B (twice McD's estimate) DDT&E cost over 10 years.
-
- Now if we amortize over 25 years we get $1890 (10 flights) to $1658 (12
- flights) per pound. Again, this compares to $3900 for Titan III and
- $10,000 for Shuttle. This still leaves plenty of room for error.
-
- After development is amortized (which can happen with the existing market)
- costs drop to $100 to $500 per pound.
-
- Allen
-
- --
- +---------------------------------------------------------------------------+
- | Allen W. Sherzer | "A great man is one who does nothing but leaves |
- | aws@iti.org | nothing undone" |
- +----------------------122 DAYS TO FIRST FLIGHT OF DCX----------------------+
-