S-70i Variable Direct Operating Cost
Project Status
Conklin and deDecker (C&D) update
June 10, 2017
SIKORSKY PROPRIETARY INFORMATION
C&D and their role in industry
Mission:
Conklin & deDecker enables general aviation industry to make more informed
decisions when dealing with purchase, operation and deposition of aircraft by
furnishing objective and impartial information. (1)
Importance to Sikorsky:
Customers use C&D data to compare our
cost versus our competitors
C&D obtains data from operators, manufacturers, maintenance facilities, dealers
and brokers. We put every aircraft on the same set of operating conditions and
assumptions so as to have a reliable set of relative operating costs.
1. Source C&D website: [Link]
C&D report for S-70A
SIKORSKY PROPRIETARY INFORMATION 2
Elements of Direct Operating Cost (DOC)
Commercial
Total DOC
DOC Elements
Depreciation
Crew
Commercial
Fixed Hangar DMC Elements
Fixed
Cost MMH
Scheduled/unscheduled
Cost maintenance
Insurance Repair Repair Price
Overhaul Price
Price
POL
Unit Price
Variable
Cost DMC
Unscheduled removals
Life limits
Removal Overhaul intervals
Variable
Rate
Cost
DMC = Direct Maintenance Cost
POL = Petroleum, Oil and
Lubricants
DMC Math
SIKORSKY PROPRIETARY INFORMATION 3
How do we calculate DOC?
S-70i baseline configuration
Inputs:
• R&M rates are observed metrics as reported to US ARMY in 2016
• Retirement/Overhaul intervals: Tech Manual June 2015
• Repairability: based on SM&R codes
• Scrap rates: actuals based on CCAD SM&R = source, maintenance and recoverability code s
• Unit/repair price based on SAP or escalation from Army OSMIS data OSMIS = US Army Operating and Support Management Information System
Outputs:
Unscheduled Scheduled
DMC is derived using bottom-up approach
SIKORSKY PROPRIETARY INFORMATION 4
S-70i vDOC vs. our competitors in C&D
S-70i is competitive in its weight class vs. competition
Variable DOC (less misc expenses) ($/FH) MGW =
34.3K LBs
$4,500
MGW = MGW = MGW = MGW = MGW = MGW = $4,089.23
22K LBs 22K LBs 18.9K LBs 14.1K LBs 18.9K LBs 24.2 LBs
$4,000
$3,500
$3,000 $2,859.52
$2,767.26
$2,556.51 $2,556.00
$2,428.01
$2,500
$2,000 $1,894.03
$1,500
$1,000
$500
$-
S-70A/C S-70i *New* H215L1 AW139 AW189 H225 AW101
Variable Direct Operating Cost (DOC) ~ or Variable Cost~ includes:
• Fuel
• Direct Maintenance Cost (DMC):
• Labor
• Parts w/ 15% margin applied
• Engine restoration
• Major periodic maintenance
• Miscellaneous expenses (landing, crew expenses, catering, etc)
SIKORSKY PROPRIETARY INFORMATION 5
S-70i (new) vs S-70A/C (C&D)
Variable DOC ($/FH)
$3,000 S-70i vs. S-70A/C
$2,500 $675.54 • Lower labor
hours (lower
$635.11 MMH/FH)
$2,000
$621.20
$1,500
$392.97 • Lower engine
$550.00 costs
$500.00
$1,000
$430.71 • Higher parts
$569.28
$500 costs, but lower
$561.80 major periodic
$311.60
$- maintenance
S-70A/C (published) S-70i (longer inspection
Labor Parts Airframe/Engine/Avionics intervals)
Engine Restoration Major Periodic Maintenance
Fuel
MMH = maintenance man hours
FH = Flight Hour
SIKORSKY PROPRIETARY INFORMATION 6
Aircraft Price
C&D vs Indicative
30
27.931
26
25
20 S-70i
20 18.36 18
S-70A/C
Price ($M)
15.25 15
15
13
11 10.5
10
0
H215 H225 AW189/149 AW139 S-70
C&D Utility Indicative
Baseline Aircraft Price
LOCKHEED MARTIN PROPRIETARY INFORMATION 7
Next Steps
• Provide 70i data to C&D for Aircraft Cost
Evaluator (ACE) for next publication Oct 2017
(yields the Aircraft Cost Summary)
vDOC (summary)
Fuel burn
Block speed data
Aircraft specs (AC dimensions, weight, payload)
Performance data (range, rate of climb, speed, ceiling)
Aircraft price TBD
• Evaluate C&D’s Life Cycle Cost (LCC) model
and part data requested for potential
submission (2017-18 publication)
• Evaluate the Aircraft Performance Comparator
(APC) module and assess value of tool (2017-
2018 publication)
• Implement C&D updates as standard work
SIKORSKY PROPRIETARY INFORMATION 8
S-70i (new) vs S-70A/C C&D
Variable DOC
S-70A/C S-70i
Costs (published) Comments
Variable Costs
Fuel Lbs./Hr. $ 675.54 $ 635.11 Per Raffi/pilots' office: 120 kts, 17,000 lb GW, 2000PA and ISA (15°C) = About 925 LBS/[Link] to $552.27/hr
Fuel Additives n/a $ - $ -
Lubricants n/a $ 20.27 $ 19.05 3% of Fuel
Maintenance:
Labor MMH/FLT Hr. $ 561.80 $ 311.60 $76/hr, 4.1 mmh/ft hr (sched and unsched)
Parts Airframe/Engine/Avionics $/FLT Hr. $ 430.71 $ 569.28 includes replenishment, depot repair and on-aircraft repair (SAC model)
Engine Restoration $/FLT Hr. $ 550.00 $ 500.00 estimate provided by GE 04/2017
APU Allowance $/FLT Hr. $ - $ -
Major Periodic Maintenance $/FLT Hr. $ 621.20 $ 392.97 includes retirement and overhaul
Miscellaneous Expenses: n/a
Landing/Parking n/a $ 27.20 do not include
Crew Expenses (accommodations, transportationn/a and meals) $ 49.57 do not include
Supplies/Catering (passenger related supplies) n/a $ 9.00 do not include
Carbon Offset n/a $ - $ - do not include
Other n/a $ - $ - use C&D estimates
Total Variable Cost per Hour $ 2,945.29 $ 2,428.01
Variable cost per hour, less misc expenses $ 2,859.52 $ 2,428.01
SIKORSKY PROPRIETARY INFORMATION 10
S-70A/C vs S-70i VDOC Cost differences ($/FH)
Labor Engine Restoration
$600.00 $560.00
$550.00
$500.00
$540.00
$400.00 $250.20 $530.00
$50
$520.00
$300.00
$510.00
$200.00 $500.00
$490.00
$100.00
$480.00
$- $470.00
S-70A/C (published) S-70i S-70A/C (published) S-70i
Parts Airframe/Engine/Avionics
Major Periodic Maintenance
$600.00
$700.00
$500.00 ($138.57) $600.00
$400.00 $500.00
$228.23
$300.00 $400.00
$300.00
$200.00
$200.00
$100.00
$100.00
$-
S-70A/C (published) S-70i $-
S-70A/C (published) S-70i
SIKORSKY PROPRIETARY INFORMATION 11
Methodolgy
The data is based upon the 70i baseline utility
configuration and DOC historical repair pricing
w/escalation, fuel cost, parts consumption (across the
60M/70i fleet), maintenance, etc.
SIKORSKY PROPRIETARY INFORMATION 12
ESTIMATED VARIABLE COSTS - Per Hour (Published C&D V17.1) (New **To Be Added to C&D**) Comments
Aircraft S-70A/C S-70i
Type of Operation Corporate Utility
Fuel 675.54 635.11C&D requested
Fuel Additives 0 0part data to perform
their own
Lubricants 20.27 calculations
Maintenance Labor 561.8 311.6
Parts Airframe/Engine/Avionics 430.71 586.65
Engine Restoration 550 500
Thrust Reverser Allowance 0
Propeller Allowance 0
APU Allowance 0
Major Periodic Maintenance 621.2 395.73
Miscellaneous Expenses - Landing/Parking 27.2
Crew Expenses 49.57
Supplies/Catering 9
Carbon Offset 0
Other 0
Total Variable Cost per Hour 2945.29
Total Variable Cost per Nautical Mile 23.38
Average Speed-Kts. 50-NM trip 126
SIKORSKY PROPRIETARY INFORMATION 13
(Published C&D V17.1) (New **To Be Added to C&D**) Comments
Aircraft S-70A/C S-70i
Type of Operation Corporate Utility
Cabin-Height (FT) 4.50 4.52
Width 7.00 7.00
Length 12.60 12.58
Cabin Volume (CU-FT) 399.00 396.00
Cabin Door Height (FT) 4.50 4.52
Width 5.75 7.00
Baggage -Internal (CU-FT) 0.00
External 20
Typical Crew/Passenger Seating 2/9 2/2/11
Weight-Max Take-Off (LBS) 22,000 22,000
Maximum Landing 0
Basic Operating 12,345 11,600 Empty weight?
Usable Fuel 2,412
Payload-Full Fuel (LBS) 7,243
Maximum 9,655 9000?
Certified/IFR Restricted/Restricted
Price - New (Corporate) / 1,000 13,000
Pre Owned Range / 1,000
Years Produced 1988-1998
SIKORSKY PROPRIETARY INFORMATION 14
PERFORMANCE COMPARISON (Published C&D V17.1) (New **To Be Added to C&D**) Comments
Aircraft S-70A/C S-70i
Type of Operation Corporate Utility
Range-NBAA IFR Reserve (NM)
Seats Full 0
Ferry Range 0
Range-30 Minute Reserve (NM)
Seats Full 270
Ferry Range 270
Balanced Field Length (FT) 0
Landing Field Length - FAR 91 0
Landing Field Length - FAR 121 0
Landing Field Length - FAR 135 0
Rate of Climb (FT/MIN) 2,200 2,020
One Engine Out 400
Cruise Speed-Maximum (KTAS) 149 160
Normal 0
Long Range 132
Stall Speed (IAS) 0
Ceiling - Certified MTOW (FT) 0
Service 13,200 15,000
Service OEI 3,700 6,780
Hover IGE (Helicopter Only) 9,000 10,270
Hover OGE (Helicopter Only) 4,300 6,200
SIKORSKY PROPRIETARY INFORMATION 15