Thursday, May 16, 2013

ADF cost per flying hour estimates from the 2013 budget

The chart below shows ADF cost per flying hour estimates from the recent 2013 budget. These dollars are not for aircraft upgrades and refurbishment. Those jobs are handled under different fund-sites. For example, the C-130J software upgrade or classic Hornet refurb fixes.

Not all ADF aircraft are included.

Again these are estimates. The real figure will be known at the next budget. Some aircraft may do better, some worse.

This chart took a few extra minutes to prepare compared to a previous year cost per flying hour estimate that was already pre-prepared by Defence.

Sustainment dollars for each aircraft type are shown in the DMO portion of the budget. Authorized flying hours are shown in the service budget.

The chart is interesting for any number of reasons. I suspect the C-17 looks so good because the Boeing sustainment model happens to be tight. The Wedgetail cost per flying hour is improving. Helicopters? Basket cases and overly expensive.


ADF Cost Per Flying Hour Estimate for 2013-14
source: DMO/Defence 2013 Budget

5 comments:

Locum said...

Tjakkka, a bath tub is split in 2 even pieces. If you take a side view,
you will have an idea how high life cycle costs will be at the beginning, middle and end-life.
The high part where the feet are, are the initial high costs. The part were the back rests, are the high end-life costs. MRH-90 and ARH are still in the initial stage of their life cycle.
So, the average cost per flight hour will come down considerably.
After the maintenance and logistics community have sorted out things.

Anonymous said...

Locum, I'm confused.

Don't operational costs typically INCREASE as the aircraft ages?

Oil leaks, fuel leaks, broken pieces requiring repair, inspections, etc?

That said, I'm curious how much the P-8's CPFH will be.

If it's anywhere near the C-17 costs that could spark some additional consideration in my opinion.

Such as; would it be possible to consolidate a portion of the legacy Hornet replacement force structure with enhanced P-8 instead? For example, consider perhaps 8-10x long range P-8+ substituting for one squadron of F-35? Arm with say, LRASM, Meteor, future airborne Stunner variant?

That said, I didn't know the Hornets were that cheap to operate? F-35 will be a b$tch to cough up such higher operating funds for.

Karo andossa said...

Some things jump out from the table of Estimated Flying Hour Costs.

Inevitably, the operating costs of the ADF are going to soar the more it goes down the unaffordable track of seeking all top end capabilities in accord with the Howard/Rudd philosophy, as still seems the intent with Defence White Paper 2013.

The obvious way to offset this problem is forces rationalisation to provide a more affordable balance of capabilities.

Consider the operating costs of F-18A:$12153, Hawk: $10400, PC-9: $2128.

The RAAF PC-9s apparently have significant corrosion problems due to a flawed cost-saving measure on acquisition and the Hawk is arguably a superfluous training luxury.

It would seem prudent to somewhat scale down F-18A operations to extend service life and acquire Super Tucanos to replace both Hawk and PC-9. Just guesswork, but the ST operating cost would likely be closer to the PC-9 than the Hawk and is a great close air support platform well suited for regional operations.

The operating costs for MRH90: $30250, Tiger ARH: $30952, Blackhawk: $12419, Seahawk: $18055 are condemning of DoD planners and operating cost for the super-expensive MH-60R will likely be close to MRH90/Tiger. The Helicopter Strategic Master Plan seemingly just rolls along as an out of control juggernaut without any apparent appreciation of downstream consequences.

Blackhawk and Seahawk should both be retained in service with consignment of MRH90 and Tiger to appropriate degrees of storage. Doing otherwise will just escalate operating costs. The Iroquois could also be reclaimed which has an operating cost below $5000 per hour.

Both of the major political parties are still mooting an unaffordable target of 2 percent of GDP for defence expenditure with Abbott & Co. intending to increase defence outlay by 3 percent annually. which is above the 2.4 percent average rate of inflation for the past 4 years.

I really wonder whether anybody in Canberra knows how to use a calculator!

Bushranger 71 said...

Anonymous; it does not seem smart to shed 18 x P-3C that can be cost-effectively refurbished (a la the RNZAF) with operating cost of $13924 and acquire fewer hugely expensive P-8 with operating cost likely to be similar to Wedgetail at $45277.

Admittedly, Triton (which will likely be acquired) should fulfil some of the LRMP surveillance function, but I have serious doubts whether the P-8 will adequately substitute for the obviously more cost-effective P-3C.

Anonymous said...

And the rewinging and structural work was done in Australia.