GRA, Incorporated

Economic Counsel to the Transportation Industry

ECONOMIC VALUES FOR

FAA INVESTMENT AND REGULATORY DECISIONS,

A GUIDE

Contract No. DTFA 01-02-C00200

FINAL REPORT

Revised Oct. 3, 2007

With: Prepared for:

Aviation Specialists Group, Inc. FAA Office of Aviation Policy and Plans

Data Base Products U.S. Federal Aviation Administration

Washington, DC 20591
NOTE

This report was prepared under a contract with the 

U.S. Federal Aviation Administration. While FAA and 

the Aviation Rulemaking Cost Committee provided 

input for this report, the contractor is responsible for 

the facts and accuracy of the analyses presented in 

the report. The contents of the report do not 

necessarily reflect the views of the Federal Aviation 

Administration or the sponsoring office.
Table of Contents i

TABLE OF CONTENTS

EXECUTIVE SUMMARY.............................................................................................. ES-1

AVIATION RULEMAKING COST COMMITTEE ......................................................... ES-2

NEW USER CATEGORIES AND AIRCRAFT GROUPS STRUCTURE....................... ES-2

SUMMARY OF ECONOMIC VALUES........................................................................... ES-2

SECTION 1: TREATMENT OF VALUES OF PASSENGER TIME IN AIR 

TRAVEL......................................................................................................................... 1-1

1.1 APPROACH................................................................................................................... 1-1

1.2 RECOMMENDED VALUES........................................................................................ 1-1

1.3 APPLICATION.............................................................................................................. 1-3

SECTION 2: TREATMENT OF THE VALUES OF LIFE AND INJURY IN 

ECONOMIC ANALYSIS............................................................................................ 2-1

2.1 APPROACH................................................................................................................... 2-1

2.2 VALUE OF LIFE........................................................................................................... 2-2

2.3 VALUE OF INJURIES.................................................................................................. 2-2

2.4 OTHER COSTS ............................................................................................................. 2-4

2.5 ICAO INJURY CLASSIFICATIONS ........................................................................... 2-5

SECTION 3: AIRCRAFT CAPACITY AND UTILIZATION FACTORS............... 3-1

3.1 INTRODUCTION.......................................................................................................... 3-1

3.1.1 User Group Concept and Definitions ............................................................ 3-1

3.1.2 Regulatory Structure ........................................................................................ 3-2

3.1.3 Aircraft Groupings............................................................................................ 3-4

3.2 AIR CARRIER AIRCRAFT.......................................................................................... 3-5

3.2.1 Air Carrier Aircraft Groups, Certification and Operating FARs ............... 3-6

3.3 GENERAL AVIATION AIRCRAFT.......................................................................... 3-11

3.3.1 Aircraft Categories.......................................................................................... 3-12

3.3.2 Flight Hours by Activity Type and Aircraft Age ....................................... 3-14

3.3.3 GA Capacity and Utilization......................................................................... 3-20

3.3.4 Alternate Estimate of Air Taxi Hours .......................................................... 3-21

3.4 MILITARY AIRCRAFT.............................................................................................. 3-22

SECTION 4: AIRCRAFT OPERATING COSTS......................................................... 4-1

4.1 INTRODUCTION.......................................................................................................... 4-1

4.1.1 Average Versus Incremental Cost .................................................................. 4-2

4.1.2 Change in Industry Structure and Implications for Airline Operating 

Cost Trends ........................................................................................................ 4-2

4.1.3 Direct and Indirect Costs ................................................................................. 4-2
ii Table of Contents

4.2 AIR CARRIER AIRCRAFT OPERATING COST DATA........................................... 4-4

4.2.1 Large Form 41 Passenger and All-Cargo Cost Per Block Hour ................. 4-7

4.2.2 Form 41 Passenger and All-Cargo Regional Carriers Cost Per Block 

Hour.................................................................................................................... 4-9

4.2.3 Alaska and Non-Alaska 298C Cost Per Block Hour .................................. 4-11

4.3 GENERAL AVIATION OPERATING COSTS.......................................................... 4-12

4.3.1 Data Sources for Operating Costs................................................................. 4-12

4.3.2 Depreciation..................................................................................................... 4-15

4.3.3 Fractional Ownership Operating Costs ....................................................... 4-18

4.4 MILITARY OPERATING COSTS ............................................................................. 4-19

SECTION 5: UNIT REPLACEMENT AND RESTORATION COSTS OF 

DAMAGED AIRCRAFT............................................................................................. 5-1

5.1 INTRODUCTION.......................................................................................................... 5-1

5.1.1 Replacement....................................................................................................... 5-1

5.1.2 Restoration ......................................................................................................... 5-1

5.2 AIR CARRIER AIRCRAFT.......................................................................................... 5-2

5.2.1 Replacement....................................................................................................... 5-2

5.2.2 Restoration ......................................................................................................... 5-5

5.3 GENERAL AVIATION AIRCRAFT............................................................................ 5-6

5.3.1 Replacement....................................................................................................... 5-6

5.3.2 Restoration ......................................................................................................... 5-9

5.4 MILITARY AIRCRAFT.............................................................................................. 5-12

5.4.1 Replacement..................................................................................................... 5-12

5.4.2 Restoration ....................................................................................................... 5-13

SECTION 6: ECONOMIC VALUES RELATED TO AIRCRAFT PERFORMANCE 

FACTORS...................................................................................................................... 6-1

6.1 INTRODUCTION.......................................................................................................... 6-1

6.2 APPROACH................................................................................................................... 6-2

6.2.1 Air Carrier Aircraft ........................................................................................... 6-2

6.2.2 General Aviation Aircraft ................................................................................ 6-2

6.2.3 Aircraft Performance Data............................................................................... 6-2

6.3 AIR CARRIER AIRCRAFT.......................................................................................... 6-6

6.3.1 Incremental Fuel Burn...................................................................................... 6-6

6.3.2 Flight Profiles..................................................................................................... 6-8

6.4 GENERAL AVIATION................................................................................................. 6-8

6.5 FUEL COSTS............................................................................................................... 6-10

SECTION 7: LABOR COST FACTORS........................................................................ 7-1

7.1 INTRODUCTION.......................................................................................................... 7-1

7.2 LABOR COSTS IN AIRCRAFT MANUFACTURING INDUSTRIES....................... 7-1

7.3 SALARIES, BENEFITS AND TRAINING COSTS FOR GA PILOTS....................... 7-3

7.4 AIR CARRIER FLIGHT CREW TRAINING COSTS ................................................. 7-4
Table of Contents iii

7.5 OTHER AVIATION-RELATED LABOR COST DATA........................................... 7-10

SECTION 8: AVIATION ACCIDENT INVESTIGATION COSTS........................ 8-1

8.1 INTRODUCTION.......................................................................................................... 8-1

8.2 DEVELOPMENT OF FEDERAL ACCIDENT INVESTIGATION COST 

ESTIMATES.................................................................................................................. 8-1

8.3 METHODOLOGY......................................................................................................... 8-2

8.4 FEDERAL GOVERNMENT ACCIDENT INVESTIGATION COSTS ...................... 8-3

8.5 PRIVATE SECTOR ACCIDENT INVESTIGATION COSTS .................................... 8-4

SECTION 9: ADJUSTMENT METHODOLOGY TO UPDATE ECONOMIC 

VALUES......................................................................................................................... 9-1

9.1 INTRODUCTION.......................................................................................................... 9-1

9.2 SECTION 1: VALUE OF TIME................................................................................... 9-1

9.3 SECTION 2: VALUE OF LIFE.................................................................................... 9-1

9.4 SECTION 3: AIRCRAFT CAPACITY AND UTILIZATION FACTORS ................. 9-1

9.4.1 Commercial Aircraft – Air Carriers................................................................ 9-2

9.4.2 Commercial Aircraft - Commuters................................................................. 9-4

9.4.3 General Aviation and Military Aircraft ......................................................... 9-4

9.5 SECTION 4: AIRCRAFT OPERATING COSTS ........................................................ 9-5

9.5.1 Commercial Aircraft – Air Carriers................................................................ 9-5

9.5.2 Commercial Aircraft – Commuters................................................................ 9-8

9.5.3 General Aviation and Military Aircraft ......................................................... 9-8

9.6 SECTION 5: UNIT REPLACEMENT AND RESTORATION COSTS OF 

DAMAGED AIRCRAFT............................................................................................... 9-9

9.7 SECTION 6: ECONOMIC VALUES RELATED TO AIRCRAFT 

PERFORMANCE FACTORS ..................................................................................... 9-10

9.8 SECTION 7: LABOR COST FACTORS .................................................................... 9-10

9.9 SECTION 8: AVIATION ACCIDENT INVESTIGATION COSTS.......................... 9-11

APPENDIX A: AVIATION RULEMAKING COST COMMITTEE (ARCC) ........A-1

BIBLIOGRAPHY............................................................................................................... B-1
iv Table of Contents

TABLES AND FIGURES

Table ES-1: Economic Values for Use in Analyses......................................................ES-3

Table 1-1: Recommended Hourly Values of Travel Time Savings (2000 U.S. dollars 

per person) ..................................................................................................................... 1-2

Table 2-1: Selected Sample of Injuries by the Abbreviated Injury Scale (AIS).......... 2-3

Table 2-2: WTP Values Per AIS Injury Level (2001 dollars)........................................ 2-4

Table 2-3: Per Victim Medical and Legal Costs Associated with Injuries 

(2001 dollars).................................................................................................................. 2-4

Table 2-4: Average Per Victim Injury Values for Serious and Minor Injuries 

(2001 dollars).................................................................................................................. 2-5

Table 3-1: Factors Presented by User Type .................................................................... 3-4

Table 3-2: Air Carrier Aircraft Categories ...................................................................... 3-5

Table 3-3: Summary Air Carrier Activity by Aircraft Certification and Operating 

Authority........................................................................................................................ 3-7

Table 3-4: 2002 Passenger Air Carrier Capacity and Utilization Factors ................... 3-8

Table 3-5: 2002 All Cargo Carrier Capacity and Utilization Factors .......................... 3-9

Table 3-6: 2001 Non-Alaskan Form 298-C Operators Capacity and Utilization 

Factors (Weighted by Block Hours) ......................................................................... 3-10

Table 3-7: 2001 Alaskan Form 298-C Operators Capacity and Utilization Factors 

(weighted by block hours) ......................................................................................... 3-11

Table 3-8: GA Survey Aircraft Classification Groups................................................. 3-12

Table 3-9: Relationship Between GA Survey and Economic Values Aircraft 

Groups ....................................................................................................................... 3-13

Table 3-10: Estimated Active General Aviation Aircraft and Hours Flown for 

FY 2002 ....................................................................................................................... 3-15

Table 3-11: GA Hours Flown by Operating Rule and Aircraft Type........................ 3-16

Table 3-12: Active Aircraft and Hours Flown by Age Category............................... 3-17

Table 3-13: Estimated Total Active Aircraft and Hours Flown for All Aircraft 

and Reported Air Taxi Aircraft................................................................................. 3-18

Table 3-14: Hours Flown Distribution of GA Aircraft by 5-Year Increments 

of Age ....................................................................................................................... 3-19

Table 3-15: GA Capacity and Utilization...................................................................... 3-20

Table 3-16: Alternate Estimate of Air Taxi Hours Flown........................................... 3-21

Table 3-17: U.S. Military Fleet and Utilization Levels (Average Weighted 

by Fleet) ....................................................................................................................... 3-22

Table 4-1: Major Carrier Costs – Direct and Indirect Costs Year 2002 ....................... 4-3

Table 4-2: Large Air Carrier Operating Expenses per Block Hour by Objective 

Groupings Year 2002 .................................................................................................... 4-4
Table of Contents v

Table 4-3: Summary Air Carrier Average Aircraft Operating Costs and Block 

Hours ......................................................................................................................... 4-6

Table 4-4: Large (Form 41) Passenger Part 121 Air Carrier Operating and Fixed 

Costs Per Block Hour.................................................................................................... 4-7

Table 4-5: Large (Form 41) Air Cargo Carrier Operating and Fixed Costs Per 

Block Hour .................................................................................................................... 4-8

Table 4-6: Regional (Form 41) Passenger Air Carrier Operating and Fixed Costs 

Per Block Hour .............................................................................................................. 4-9

Table 4-7: Regional (Form 41) Air Freight Carrier Operating and Fixed Costs Per 

Block Hour ................................................................................................................... 4-10

Table 4-8: Alaskan Form 298-C Operating and Fixed Cost Per Block Hour ........... 4-11

Table 4-9: Non Alaskan Form 298-C Operating and Fixed Costs Per Block Hour. 4-12

Figure 4-1: Geometric Depreciation – Annual Depreciation Amount Over Time . 4-16

Figure 4-2: Geometric Depreciation – Market Value Over Time .............................. 4-16

Table 4-10: GA and Air Taxi Operating and Fixed Costs (weighted by hours)...... 4-17

Table 4-11: GA Operating and Fixed Costs By Operating Rule Part (weighted by 

Part hours).................................................................................................................... 4-18

Table 4-12: Fractional Ownership Costs (averages weighted by the number of 

aircraft) ....................................................................................................................... 4-19

Table 4-13: Estimated Military Operating Costs Per Hour (FY2002) (average 

weighted by flight hour) ............................................................................................ 4-20

Table 5-1: Estimated Market Values of Air Carrier Aircraft ($2003) .......................... 5-3

Table 5-2: 2003 Passenger Air Carrier Fleet Sizes and Values..................................... 5-4

Table 5-3: 2003 Cargo Air Carrier Fleet Sizes and Values............................................ 5-5

Table 5-4: Restoration Costs – Air Carrier Passenger and All-Cargo Aircraft 

($2003) ......................................................................................................................... 5-6

Table 5-5: Estimated Market Values of General Aviation Aircraft ($2003) ............... 5-7

Table 5-6: Estimated Market Values of Pre-1982 General Aviation Aircraft 

($2003) ......................................................................................................................... 5-8

Table 5-7: Estimated Market Values – 1982 and Later General Aviation Aircraft 

($2003) ......................................................................................................................... 5-9

Table 5-8: General Aviation Restoration Costs, Current Dollars .............................. 5-10

Table 5-9: General Aviation Restoration Costs – Pre 1982 Aircraft .......................... 5-11

Table 5-10: General Aviation Restoration Costs – 1982 and Later Aircraft ............. 5-12

Table 5-11: Summary of Military Aircraft Values and Restoration Costs (FY2003) 

average weighted by fleet ($ millions)..................................................................... 5-13

Figure 6-1: Gulfstream IV Illustrative Performance Calculations 1,000nm Stage 

Length and 500 lb Weight Penalty*............................................................................ 6-5

Table 6-1: Large Commercial Aircraft – Incremental Fuel Burn ................................. 6-7

Table 6-2: Large Commercial Aircraft – Breakdown of Flight Profiles...................... 6-8

Table 6-3: General Aviation and Air Taxi Aircraft – Incremental Fuel Burn ............ 6-9
vi Table of Contents

Table 6-4: General Aviation and Air Taxi Aircraft – Breakdown of Flight Profiles 

Flight Segment Categories Limited by Available Data ......................................... 6-10

Table 6-5: Fuel Cost and Consumption—System-wide Operations U.S. Majors, 

Nationals and Large Regionals — All Services ...................................................... 6-11

Table 6-6: General Aviation Jet-A and Avgas Per Gallon Fuel Prices ($2003) ........ 6-12

Table 6-7: 2002 General Aviation Total Fuel Consumed and Average Fuel 

Consumption Rate by Aircraft Type Includes Air Taxi Aircraft; Excludes 

Commuter Aircraft ..................................................................................................... 6-12

Table 7-1: 2003 Aircraft Manufacturing Industry Labor Rates.................................... 7-2

Table 7-2: Average Hourly Earnings, Aircraft Industry Production Workers 

(2002) ......................................................................................................................... 7-2

Table 7-3: Types of Work Done Within Aerospace Engineering Fields..................... 7-3

Table 7-4: Disaggregated Flight Crew Compensation and Training Costs for 

Selected GA Operators................................................................................................. 7-4

Figure 7-1: Flight Crew Training Categories for Commercial Airline Operations... 7-6

Figure 7-2: Interaction of Regulatory Requirements for New Flight Crew and 

Flight Crew Seniority Ladder: Example 1 – 2,000 Current Flight Crew 

Members to be Increased by Two Percent, One Aircraft Type .............................. 7-7

Figure 7-3: Interaction of Regulatory Requirements for New Flight Crew and 

Flight Crew Seniority Ladder: Example 2—2,000 Current Flight Crew 

Members to be Increased by Two Percent, Two Aircraft Types ........................... 7-8

Figure 7-4: Interaction of Regulatory Requirements for New Flight Crew and 

Flight Crew Seniority Ladder: Example 3—2,000 Current Flight Crew 

Members to be Increased by Two Percent, Four Aircraft Types............................ 7-9

Table 7-5: Salary Data for Aviation Occupations ........................................................ 7-11

Table 8-1: Federal Accident Investigation Costs by Component (2002 Dollars) ...... 8-4

Table 8-2: Aviation Accident Investigation Costs (2002 Dollars)................................ 8-5
Executive Summary ES-1

EXECUTIVE SUMMARY

This report provides an update of economic values used in investment and 

regulatory decisions of the Federal Aviation Administration (FAA). This report follows 

previous guidance in this area but expands upon the number of economic values 

included and reflects greater industry participation in the development of specific 

values.1 The Aviation Rulemaking Cost Committee (ARCC)2 was established by FAA 

Order 1110.132, dated September 13, 2002. It resulted from recommendations of FAA’s 

Management Advisory Council (MAC) that standardized methods and costs to be used 

in all regulatory economic analyses to the extent possible. The objective of the ARCC 

was to recommend new standardized methodologies and cost assumptions that could 

be used in performing regulatory evaluations, including industry comment and update 

on those standardized methods and values that are already established by the FAA. 

Economic values, often referred to as “critical values,” are used in the conduct of 

benefit-cost and other evaluations of investments, including certain Airport 

Improvement Program (AIP) grants, and regulations subject to FAA decision-making. 

They are also used by others, including airports, in benefit-cost analysis of proposed 

investments. Application of these values to their corresponding physical quantities 

permits valuation of the physical quantities in dollars. Conceptually, they can be 

thought of as measures of the dollar sacrifice associated with each physical quantity 

outcome—avoided fatality, airframe damage, etc.—resulting from a potential 

investment or regulatory action that society and users should be willing to make to 

undertake that investment or regulatory action.

Values presented fall into three general groups: passenger related values, 

aircraft related values, and labor related values. Passenger related values consist of the 

value of passenger time, the value of an avoided fatality, and the value of avoided 

injury. Aircraft related values include aircraft capacity and utilization factors, aircraft 

operating and ownership costs, and aircraft replacement and restoration costs. 

Passenger related values are established by Department of Transportation policy, which 

is applicable to all Modal Administrations within the Department. Aircraft related 

values have been developed by the Office of Aviation Policy and Plans from public and 

proprietary data sources. Labor related values are now included in this publication. 

They were developed from a number of sources and will provide more uniformity in 

 

1 See Economic Values for Evaluation of Federal Aviation Administration Investment and Regulatory 

Decisions, FAA-APO-98-8 (June 1998)

2 See page A-1 of this report.
ES-2 Executive Summary

investment and regulatory analyses. This report also provides estimated accident 

investigation costs that are incurred by industry and government. 

AVIATION RULEMAKING COST COMMITTEE

One objective of the ARCC was to prepare a specific set of cost items and 

quantify the specific values it recommends that the FAA use in future regulatory 

evaluations. This report was developed through a consultative process involving the 

ARCC, FAA and its support contractor. In this update of the economic values 

guidance, additional values have been incorporated and existing values have been 

restructured to make them more relevant to investment and regulatory programs. For 

example, wage and salary information covering aviation industry employees has been 

included to provide input to those analyses requiring a value for additional labor 

expended. In addition, a number of special topics were investigated at the request of 

the ARCC. These include the costs of regulations that require removal of a passenger 

seat in terms of revenue foregone, the valuation of schedule disruptions, the valuation 

of aircraft down time and accident investigation costs to both industry and government. 

NEW USER CATEGORIES AND AIRCRAFT GROUPS STRUCTURE

Another change made with this version of the report has been to restructure the 

user categories in the report to provide a closer relationship to FAA’s regulatory 

structure. For example, the air carrier and general aviation guidance now consider both 

operating regulations (Part 91, Part 121, Part 135, etc.) as well as aircraft certification 

regulations (Parts 23, 25, 27 and 29) in recognition that many regulatory changes 

involve these specific FAR parts. The ARCC recommended that, to the extent possible, 

cost and activity data be aligned along the dimensions of operating and certification 

regulations. This has resulted in changes to the aircraft groupings used in prior 

guidance (e.g., FAA-APO-98-8) and these are described more fully in the various 

sections of the report.

SUMMARY OF ECONOMIC VALUES

Summary values, applicable to benefit-cost analyses, are presented in Table ES-1 

below. These are summary values only. Analysts and other users should refer to the text of the 

report for further detailed values. The values reflect the considerable restructuring of the 

aviation industry and its cost levels that have taken place over the last few years. The 

table also identifies the base year of the data used in this study. Where appropriate, 

these values should be converted to current dollars using appropriate indices.
Executive Summary ES-3

For aircraft related values, detail for most measures is available by specific 

aircraft model, by generic aircraft classification (such as two engine narrow body, four 

engine wide body, or single engine piston) and by user profiles (such as scheduled 

commercial service, general aviation, or commuter). The various generic categories and 

user profiles have been constructed so as to anticipate the needs of analysts conducting 

investment and regulatory studies. Other measures can be developed from the 

underlying source data. Requests for assistance in developing information required for 

specific projects should be addressed to the Office of Aviation Policy and Plans. 

The values presented in this report can be expected to change with the passage of 

time because of price and income level movements, aviation industry changes, 

advances in theoretical and empirical research, and policy changes. The Office of 

Aviation Policy and Plans will provide periodic updates to these values to reflect such 

changes. Pending such updates, aircraft specific values may be adjusted using the 

methodology contained in Section 9. 

Estimates of labor costs can be summarized in a variety of ways and their use 

depends on the regulatory impact of interest. The analyst should refer to Section 7

when selecting the appropriate labor cost estimates.

Table ES-1: Economic Values for Use in Analyses

Physical Units Value Year

Air Carrier:

Personal $23.30 2000

Business $40.10 2000

All Purposes $28.60 2000

General Aviation:

Personal $31.50 2000

Business $45.00 2000

All Purposes $37.20 2000

Avoided Fatality $3,000,000 2001

Injury Value by AIS Category (per injury):

Minor (AIS 1) $6,000 2001

Moderate (AIS-2) $46,500 2001

Serious (AIS-3) $172,500 2001

Severe (AIS-4) $562,500 2001

Critical (AIS-5) $2,287,500 2001

Fatal after 30 Days (AIS-6) $3,000,000 2001

Other Costs by AIS Category (per victim):

Minor (AIS 1) $2,500 2001

Moderate (AIS-2) $7,100 2001

Serious (AIS-3) $21,200 2001

Severe (AIS-4) $111,600 2001

Critical (AIS-5) $300,000 2001

Fatal after 30 Days (AIS-6) $132,700 2001

Value of Passenger Time Per Hour

Avoided Injuries
ES-4 Executive Summary

Table ES-1 (continued)

Physical Units Value Year

Injury and Other Costs by ICAO Category (per victim):

Minor $42,900 2001

Serious $580,700 2001

Large (Form 41) Passenger Carriers:

Passenger Capacity 157 seats 2002

Crew Size 5 2002

Cargo Capacity 23.6 tons 2002

Passenger Load Factor 72% 2002

Cargo Load Factor 55% 2002

Daily Utilization 9.5 hours 2002

Average Block Speed 365 mph 2002

Large (Form 41) Cargo Carriers:

Crew Size 3 2002

Cargo Capacity 47.3 tons 2002

Cargo Load Factor 60% 2002

Daily Utilization 4.2 hours 2002

Average Block Speed 410 mph 2002

Form 298-C Non-Alaskan Carriers:

Passenger Capacity 38 seats 2001

Crew Size 3 2001

Cargo Capacity 4.5 tons 2001

Form 298-C Alaskan Carriers:

Passenger Capacity 11 seats 2001

Crew Size 2 2001

Cargo Capacity 1.5 tons 2001

General Aviation:

Passenger Capacity 4 seats 1982-2003

Passenger Load Factor 52.70% 1982-2003

Average Gross Weight 3,384 lbs. 1982-2003

Large (Form 41) Passenger Carriers:

Variable Operating Cost per Hour $2,096 2002

Fixed Cost per Hour $640 2002

Total Cost per Hour $2,736 2002

Large (Form 41) Cargo Carriers:

Variable Operating Cost per Hour $4,339 2002

Fixed Cost per Hour $1,583 2002

Total Cost per Hour $5,922 2002

Regional (Form 41) Passenger Carriers:

Variable Operating Cost per Hour $3,218 2002

Fixed Cost per Hour $1,008 2002

Total Cost per Hour $4,226 2002

Regional (Form 41) Cargo Carriers:

Variable Operating Cost per Hour $3,235 2002

Fixed Cost per Hour $702 2002

Total Cost per Hour $3,938 2002

Aircraft Capacity and Utilization Factors

Aircraft Operating Costs
Executive Summary ES-5

Table ES-1 (continued)

Note: Form 41 contains financial information on large certified air carriers, small certified air 

carriers (regionals), and some air taxis. Carriers reporting on Form 298-C operate at least five 

scheduled round trips per week and their entire fleet consists of aircraft of 60 or fewer seats.

Physical Units Value Year

Form 298-C Alaskan Carriers:

Variable Operating Cost per Hour $359 2001

Fixed Cost per Hour $108 2001

Total Cost per Hour $467 2001

Form 298-C Non-Alaskan Carriers:

Variable Operating Cost per Hour $622 2001

Fixed Cost per Hour $256 2001

Total Cost per Hour $878 2001

General Aviation:

Variable Operating Cost per Hour $362 2003

Fixed Cost per Hour $728 2003

Total Cost per Hour $1,090 2003

Military:

Total Cost per Hour $6,640 2002

Air Carrier - Passenger $11,460,000 2003

Air Carrier - Cargo $10,640,000 2003

General Aviation $361,943 2003

General Aviation (pre 1982 aircraft) $94,661 2003

General Aviation (1982 and later aircraft) $1,817,062 2003

Military $24,400,000 2003

Air Carrier - Passenger $3,700,000 1990-2003

Air Carrier - Cargo $2,900,000 1990-2003

General Aviation $35,070 Several years

General Aviation (pre 1982 aircraft) $25,508 Several years

General Aviation (1982 and later aircraft) $85,154 Several years

Military $700,000 2003

Air Carrier (including Air Taxi) $449,000 2002

General Aviation $35,100 2002

Aircraft Operating Costs (continued)

Replacement Costs of Destroyed Aircraft

Restoration Costs of Damaged Aircraft

Aviation Accident Investigation Costs
ES-6 Executive Summary

This Page Intentionally Left Blank
Treatment of Values of Passenger Time in Air Travel 1-1

SECTION 1: TREATMENT OF VALUES OF PASSENGER TIME 

IN AIR TRAVEL

1.1 APPROACH

This section addresses the treatment of the value of passenger time saved or lost 

as a result of investments in transportation facilities or regulatory actions. It is based 

upon guidance furnished by the Office of the Secretary of Transportation (OST).3

Time is a valuable economic resource that may be devoted to work or leisure 

activities. Because traveling consumes time, it imposes an opportunity cost equal to the 

individual’s value of time in the forgone work or leisure activity. Moreover, since travel 

may take place under undesirable circumstances, including waiting or riding aboard a 

crowded or uncomfortable vehicle, it can impose an additional cost on travelers. Travel 

time saved or lost as a result of investments or regulatory actions should be valued in 

benefit-cost analyses to reflect both the opportunity cost and discomfort, if any, people 

experience when traveling.

Simple economic theory postulates that individuals will adjust the amount of 

time they devote to work and leisure such that an additional small increment of either 

may be valued at the wage rate.4 More realistic models recognize that constraints on 

the ability of workers to alter work schedules or the conditions under which time is 

devoted to either work or leisure can cause the value people place on an incremental 

gain or loss of time to deviate, perhaps significantly, from the wage rate.5 Nonetheless, 

contemporary practice is to value travelers’ time as a proportion of the wage rate. 

1.2 RECOMMENDED VALUES

The Department of Transportation (DOT) recommended values for aviation 

passenger travel time, as derived from the wage rates, are presented by user type in 

Table 1-1. These values are used by the FAA and are not to be updated for changes in 

 

3 “Treatment of Values of Passenger Time in Economic Analysis,” Federal Aviation Administration, APO 

Bulletin, APO-03-1, March 2003; and “Revised Departmental Guidance—Valuation of Travel Time in 

Economic Analysis,” Office of the Secretary of Transportation Memorandum, February 11, 2003.

4 For a presentation of the conventional theory, see James M. Henderson and Richard E. Quandt, 

Microeconomic Theory-A Mathematical Approach, New York, McGraw-Hill, 1958, pp. 23-24.

5 Nils A. Bruzelius, The Value of Travel Time: Theory and Measurement, London: Croom Helm, 1979, and 

Kenneth A. Small, Urban Transportation Economics, Reading, Harwood, 1992, pp. 36-45.
1-2 Treatment of Values of Passenger Time in Air Travel

price levels. Data for the value of time for military aircraft operations are not contained 

in the DOT Guidance and are not included in this section.

Table 1-1: Recommended Hourly Values of Travel Time Savings

(2000 U.S. dollars per person)

For air carrier passengers, the time values are derived from the Air Transport 

Association of America Air Travel Survey, last conducted in 1998, adjusted for the 

increase in median annual income for U.S. households from 1998 to 2000 as reported in 

U.S. Census Bureau, Income 2000, Table 1. The value for business travel is 100 percent of 

the annual income category in the survey for “business” divided by 2,000 hours of work 

per year. The value for personal travel is 70 percent of the annual income category in 

the survey for “other” divided by an assumed 2,000 hours of work per year. When 

considering general aviation passengers as a separate category, a value of 70 percent of 

the median hourly income of Aircraft Owners and Pilots Association (AOPA) members 

is established for personal travel and 100 percent of median hourly income for business 

travel.

The fractions of 70 percent and 100 percent were recommended by a panel of 

transportation economists.6 High and low values representing a plausible range of 

values based on variation in panel member opinions are furnished for use in conducting 

sensitivity analysis.

 

6 Those consulted were: Don Pickrell (Volpe Center), Clifford Winston (Brookings Institution), Steven 

Morrison (Northeastern University), David Lewis (Hickling Lewis Brod), Ted Miller (National Public 

Services Research Institute), and Daniel Brand (Charles River Associates).

Low High

Air Carrier:

 Personal $23.30 $20.00 $30.00 

 Business $40.10 $32.10 $48.10 

 All Purposes* $28.60 $23.80 $35.60 

General Aviation:

 Personal $31.50 NR NR

 Business $45.00 NR NR

 All Purposes $37.20 NR NR

Sources: “APO Bulletin APO-03-1—Treatment of Values of Travel Time in Economic 

Analysis,” FAA Office of Aviation Policy and Plans, March, 2003, and “Revised 

Departmental Guidance—Valuation of Travel Time in Economic Analysis,” Office of 

the Secretary of Transportation Memorandum, February 11, 2003

Sensitivity Range

*The all purpose values have increased proportionally less relative to previously 

published values than the personal and business values because of an increase in 

the ratio of personal to total travelers.

NR: No recommendation.

Category Recommendation
Treatment of Values of Passenger Time in Air Travel 1-3

1.3 APPLICATION

General Applications: The values in Table 1-1 for air carrier passengers should 

be used when considering investments and regulations that impact aviation from an 

overall perspective. Depending on data availability, the separate values for business 

and personal travel can be applied to travel time savings or losses experienced. 

Composite averages can be developed using weights characteristic of the specific 

application, or the air carrier value for all purposes may be used.

General Aviation Values: Where the composition of air traffic affected by an 

FAA action can be shown to include an unusually large share of general aviation, the 

values for general aviation passengers in Table 1-1 may be used in appropriately 

weighted averages. In such cases, the weights should be selected so as to correspond to 

the proportion of time saved or lost by each user group as a result of the action under 

consideration. An analytically equivalent procedure would be to calculate time saved 

or lost separately for air carrier passengers and general aviation passengers and apply 

the respective hourly values for each.

Value of Small Time Savings or Losses: There has been significant discussion 

about whether small increments of time should be valued at lower rates than larger 

increments. Arguments for valuing smaller increments of time less than larger ones 

emphasize the difficulties of making effective use of smaller increments, particularly 

when unanticipated. However, the present state of theoretical and empirical 

knowledge does not appear to support valuing small increments of time less than larger 

ones. Therefore, the values in Table 1-1 should be used for all valuations, irrespective of 

the size of individual increments of time either saved or lost.

Sensitivity Analysis: Because uncertainty surrounds the recommended values, 

a range of values is also presented in Table 1-1. Analysts should test the sensitivity of 

analyses to the ranges of uncertainty specified. Should the outcome of an analysis 

change across the range of values, this should be identified and reported. 

Updating Values: Updates of the recommended values utilizing newly 

published source data upon which the recommended values are built will be provided 

periodically by OST. Pending such updates, analysts should not make interim 

adjustments using economy-wide measures of general price inflation.
1-4 Treatment of Values of Passenger Time in Air Travel

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Treatment of the Values of Life and Injury in Economic Analysis 2-1

SECTION 2: TREATMENT OF THE VALUES OF LIFE AND INJURY 

IN ECONOMIC ANALYSIS

2.1 APPROACH

This section addresses the treatment of the values of life and injury in economic 

analyses that support regulatory actions or investment decisions by the FAA. It is 

based on guidance furnished by the Office of the Secretary of Transportation (OST) via 

memorandum dated January 29, 2002. This guidance provides recommendations to all 

modal administrators on the treatment of the values of life and injury in economic 

analyses. It specifies that values of life and injury be based on the “willingness to pay” 

(WTP) by society for reduced risks of fatalities and injuries.7

WTP is the theoretically correct approach to valuing all benefits arising from 

public investments or regulatory actions including fatalities and injuries avoided as a 

result of aviation accident risk reduction. WTP values the risk of injury or loss of life 

because it is the maximum value of other goods and services that individuals would be 

willing to forgo and still be as well off after the introduction of an accident risk 

reduction as they were before it.

The basic approach taken to value an avoided fatality is to determine how much 

an individual or group of individuals is willing to pay for a small reduction in risk. 

Once this amount is known, it is necessary to determine how much risk reduction is 

required to avoid one fatality. The total willingness to pay for the amount of risk 

reduction required to avoid one fatality is termed the value of life or sometimes the 

value of a statistical life.8 For example, if people are willing to pay $3 to eliminate an 

incremental risk of a fatality with a one in one million chance of occurrence, this implies 

that they would be willing as a group to pay $3 million to prevent one fatality. From 

another perspective, $3 million represents the amount a group as a whole would be 

willing to pay to purchase the risk reduction necessary to avoid one expected fatality 

among its members. 

 

7 “Revised Departmental Guidance—Treatment of Value of Life and Injuries in Preparing Economic 

Evaluations,” Office of the Secretary of Transportation Memorandum, January 29, 2002. This 

memorandum establishes the specific value of life to be used in all DOT analyses. The original guidance 

establishing willingness to pay as the appropriate type of measure is contained in an OST memorandum 

dated January 8, 1993.

8 The terms value of life and value of statistical life are misleading at best in that they refer to the sum of 

payments associated with many small fatality risk reductions undertaken prior to the occurrence of a 

fatality. They have no application to placing a value on the death of any specific individual.
2-2 Treatment of the Values of Life and Injury in Economic Analysis

In theory, the same approach (assessing the willingness to pay to avoid various 

kinds of injury) could be used to value injuries. However, in practice it cannot currently 

be done because of data limitations. As will be indicated below, an alternative 

approach is used which values avoided injuries as a fraction of an avoided fatality.

2.2 VALUE OF LIFE

For the analysis conducted in 1993, OST guidance suggested that $2.5 million be 

used as the minimum value of a statistical fatality avoided. This value was based upon 

a survey of studies performed by Ted Miller and others at the Urban Institute, adjusted 

to 1993 dollars.9 The guidance also provided that OST would update this value early 

each year using the Gross Domestic Product implicit price deflator. Subsequently, OST 

updated the value of life for analyses to be conducted in 1994 to $2.6 million per fatality 

averted10 and in 1995 and 1996 to $2.7 million.11 The latest OST guidance establishes a 

minimum value of $3 million per fatality averted. This $3 million value (and the injury 

values based on it presented below) should be used in all FAA analyses until revised by 

OST.12

In addition, some recent studies have examined the value per fatality avoided, 

including a meta-analysis by Ted Miller and similar studies by Viscusi and Aldy and 

Mrozek and Taylor.13 These provide information on the range of values used in other 

applications.

2.3 VALUE OF INJURIES

The January 8, 1993 OST guidance also established a procedure for valuing 

averted injuries based on the current value of life and the Abbreviated Injury Scale 

(AIS). AIS is a comprehensive system for rating the severity of accident-related injuries 

that recognizes six levels of injury severity. It classifies nonfatal injuries into five 

 

9 Ted R. Miller et al., The Costs of Highway Crashes, (Washington, DC: Urban Institute, 1991).

10 “Update of Value of Life and Injuries for Use in Preparing Economic Evaluations,” Department of 

Transportation Memorandum, March 15, 1994. 

11 “Update of Value of Life and Injuries for Use in Preparing Economic Evaluations,” Department of 

Transportation Memorandum, March 14, 1995, and “Update of Value of Life and Injuries for Use in 

Preparing Economic Evaluations,” Department of Transportation Memorandum, 1996.

12“Revised Departmental Guidance, Treatment of Value of Life and Injuries in Preparing Economic 

Evaluations,” Office of the Secretary of Transportation Memorandum, January 29, 2002.

13 Ted R. Miller, “Variations between Countries in Values of Statistical Life,” Journal of Transport Economics 

and Policy Vol. 34 (May 2000): 169-188; W. Kip Viscusi and JosephE. Aldy, The Value of Statistical Life: A 

Critical Review of Market Estimates Throughout the World, National Bureau of Economic Research, February 

2003, Working Paper 9487; Janusz R. Mrozek and Laura O. Taylor, “What Determines the Value of Life? 

A Meta-Analysis”, Journal of Policy Analysis and Management Vol.21 (2002): 253-270.
Treatment of the Values of Life and Injury in Economic Analysis 2-3

categories depending on the short-term severity of the injury. A sixth category 

corresponds to injuries that result in death 30 or more days after the accident. The five 

nonfatal AIS categories are based primarily upon the threat to life posed by an injury. 

Table 2-1 gives an overview of the classification of different injuries by AIS level and 

their threat to life.

Table 2-1: Selected Sample of Injuries by the Abbreviated Injury Scale (AIS)

AIS Code Injury Severity Level Selected Injuries

1 Minor

Superficial abrasion or laceration of skin; digit sprain; first-degree 

burn; head trauma with headache or dizziness (no other 

neurological signs).

2 Moderate

Major abrasion or laceration of skin; cerebral concussion 

(unconscious less than 15 minutes); finger or toe

crush/amputation; closed pelvic fracture with or without

dislocation.

3 Serious

Major nerve laceration; multiple rib fracture (but without flail

chest); abdominal organ contusion; hand, foot, or arm 

crush/amputation.

4 Severe

Spleen rupture; leg crush; chest-wall perforation; cerebral 

concussion with other neurological signs (unconscious less than 24 

hours).

5 Critical

Spinal cord injury (with cord transection); extensive second- or thirddegree burns; cerebral concussion with severe neurological signs 

(unconscious more than 24 hours).

6 Fatal Injuries, which although not fatal within the first 30 days after an 

accident, ultimately result in death.

To establish a valuation for each AIS injury severity level, the level is related to 

the loss of quality and quantity of life resulting from an injury typical of that level. This 

loss is expressed as a fraction of the value placed on an avoided fatality. The WTP to 

avoid an injury of a particular AIS level is estimated by multiplying the fractional 

fatality value associated with the AIS level by the value of life. AIS levels, their 

associated fractional fatality values,14 and the corresponding WTP value of each injury 

level (based on a $3 million value of life) are provided in Table 2-2.

Where specific information is available on separate injuries by AIS level, the 

Office of Aviation Policy and Plans (APO) recommends that the WTP to avoid each 

specific injury be separately valued according to Table 2-2. Often, more than one injury 

will be associated with a person injured in an aviation accident. If the valuation is 

presented on a per victim basis, the WTP values for each injury suffered by the same 

person should be aggregated. 

 

14 These values were derived from Ted R. Miller, Stephen Luchter and C. Philip Brinkman, “Crash Costs 

and Safety Investment,” Accident Analysis and Prevention Vol 21(4): 303-315, 1989.
2-4 Treatment of the Values of Life and Injury in Economic Analysis

Table 2-2: WTP Values Per AIS Injury Level 

(2001 dollars)

AIS Code Description

of Injury

Fraction of WTP

Value of Life WTP Value

AIS 1 Minor 0.20% $6,000 

AIS 2 Moderate 1.55% $46,500 

AIS 3 Serious 5.75% $172,500 

AIS 4 Severe 18.75% $562,500 

AIS 5 Critical 76.25% $2,287,500 

AIS 6 Fatal 100.00% $3,000,000 

2.4 OTHER COSTS

Costs other than WTP values are generally associated with transportation 

fatalities and injuries. These include the costs of emergency services, medical care, and 

legal and court services (the cost of carrying out court proceedings—not the cost of 

settlements). These other avoided costs should be considered as separate benefits, 

additional to the WTP value.

Because medical and legal costs of separate injuries to the same victim are not 

necessarily additive, APO advises that medical and legal costs be valued on a per victim 

basis. Table 2-3 provides direct per victim medical and legal costs classified according 

to the worst AIS injury sustained by each aviation accident victim. Thus, the values in 

Table 2-3 should be added only once to the aggregated sum of the WTP values for 

injuries suffered by any particular individual.15

Table 2-3: Per Victim Medical and Legal Costs Associated with Injuries 

(2001 dollars)

Total 

Direct Costs

AIS 1 Minor $600 $1,900 $2,500 

AIS 2 Moderate $4,000 $3,100 $7,100 

AIS 3 Serious $16,500 $4,700 $21,200 

AIS 4 Severe $72,500 $39,100 $111,600 

AIS 5 Critical $219,900 $80,100 $300,000 

AIS 6 Fatal $52,600 $80,100 $132,700 

Source: Economic Values for Evaluation of Federal Aviation Administration Investment and Regulatory 

Programs, FAA-APO-89-10, October 1989, Section 3, as adjusted for price level changes.

AIS Code Description of 

Maximum Injury

Emergency/ 

Medical Legal/Court

 

15 Similar direct costs apply in the case of fatalities. However, APO estimates that these direct costs are 

less than $50,000 per fatality--not enough to shift the $3 million WTP value after allowances for the 

rounding convention--to the nearest $100,000--used by OST.
Treatment of the Values of Life and Injury in Economic Analysis 2-5

2.5 ICAO INJURY CLASSIFICATIONS

Although the methodology specified above should be used when possible, 

aviation injury data are often incomplete and/or unavailable at the AIS level. Most 

frequently, aviation injuries are reported by the number of victims suffering "serious" 

and "minor" injuries as defined by the International Civil Aviation Organization 

(ICAO). Under this classification, serious injury victims are typically (but not always) 

those with at least one injury at AIS 2 or higher, whereas minor injury victims typically 

(but not always) have injuries at the AIS 1 level only.

To calculate economic values for the ICAO serious and minor injury categories, 

APO analyzed aviation injury data maintained by the National Transportation Safety 

Board (NTSB) that contain both ICAO and complete AIS injury codes. AIS values for all 

injuries sustained by accident victims in each ICAO category were summed and then 

divided by the number of victims in each category to determine per victim WTP 

values.16 These WTP values are reported in Table 2-4. Medical and legal direct costs 

reported in Table 2-4 reflect weighted averages of the values listed in Table 2-3.

Table 2-4: Average Per Victim Injury Values for Serious and Minor Injuries

(2001 dollars)

ICAO Code WTP Values Emergency/ 

Medical Legal/ Court Total Value

Minor (ICAO 2) $37,900 $2,300 $2,700 $42,900 

Serious (ICAO 3) $536,000 $31,300 $13,400 $580,700 

 

16 Eric Gabler, “Update of FAA Values of Avoided Injury,” Draft Working Paper, Office of Aviation 

Policy and Plans, February 1994.
2-6 Treatment of the Values of Life and Injury in Economic Analysis

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Aircraft Capacity and Utilization Factors 3-1

SECTION 3: AIRCRAFT CAPACITY AND UTILIZATION FACTORS

3.1 INTRODUCTION

Aircraft capacity and utilization factors apply primarily to the evaluation of FAA 

investment and regulatory programs that affect time spent in air transportation, system 

capacity and aircraft utilization. The utilization of available capacity affects the benefits 

and costs that accrue directly to aircraft operators and indirectly to users and society.

3.1.1 User Group Concept and Definitions

In this report, data are presented for four user groups together with the subgroupings shown below17: 

Group 1: Air carrier operations of passenger aircraft.

A: Form 41 large and regional air carriers18

B: Form 298 commuter air carriers 

Group 2: Air carrier operations of all-cargo aircraft.

A: Form 41 large and regional air carriers

B: Commuter data not available

Group 3: General aviation aircraft by the Federal Aviation Regulation (FAR) that 

the activity was conducted under:

A: General aviation only 

B: Air taxi only 

Group 4: Military aircraft

The overall user group structure is the same as that used in the prior report (FAA-APO98-8); however, some aircraft categories have changed to reflect the current fleet. 

Details are provided in the sections below. In addition, an effort was made to align the 

data with the certification category of aircraft and the operating regulations that apply 

to them. This was done to provide a better basis for the evaluation of investment or 

regulatory programs affecting portions of the aircraft fleet. 

 

17 In some cases, more disaggregate data are presented.

18 Form 41 and Form 298 refer to activity and financial data filed with the U.S. Department of 

Transportation by air carriers.
3-2 Aircraft Capacity and Utilization Factors

3.1.2 Regulatory Structure

Title 14 of the Code of Federal Regulations (CFR) covers Aeronautics and Space. 

There are two types of regulations in Title 14 with direct applicability to this report: 

aircraft airworthiness certification, and aircraft operations regulations. Aircraft may be 

grouped by the FAR Part under which they are certificated for one type of analysis, and 

by the Part (or Parts) under which they are operated for another, or both.19 These data 

also may be used in the analysis of investment and regulatory decisions not affecting 

aircraft certification or operating regulations.

3.1.2.1 Certification Part—In order for an aircraft to be flown in the United 

States, it must be considered airworthy.20 To obtain standard airworthiness certificate, 

an aircraft must conform to a type certificate and be in a condition for safe operation. A 

type certificate is a document issued by the FAA to an applicant who has proven that an 

aircraft meets the requirements of the pertinent FAR(s). The issuance of a type 

certificate approves the type design. There are four Parts under Title 14 which deal 

with airworthiness standards for aircraft21:

Part 23 covers “Normal, Utility, Acrobatic and Commuter Category Airplanes.” 

Normal, Utility and Acrobatic aircraft are limited to a maximum of nine passenger seats 

and a maximum takeoff weight (MTOW) of 12,500 pounds. Commuter airplanes, 

which must have two or more propeller-driven engines, are limited to a maximum of 19 

passenger seats and a MTOW of 19,000 pounds. 

Part 25 covers “Transport Category Airplanes,” which applies to all fixed-wing 

aircraft that do not meet the standards of Part 23. 

In general terms, piston-powered fixed-wing aircraft are certificated under Part 

23, as are turboprops with fewer than 20 seats. Larger turboprops and all jet-powered 

airplanes are certificated under Part 25.

 

19 These are the principal regulations affecting U.S. aircraft manufacturers and aircraft operators that are 

used to categorize the population of civil aircraft. For the purposes of presentation, we have grouped 

aircraft certified under the Civil Air Regulations (CARs) with the same size and category of aircraft under 

the current Federal Aviation Regulations (FARs). This distinction would likely only arise in a evaluation 

for a regulatory specific aircraft make-model at which point the exact certification basis could be 

determined.

20 There are exceptions to this for homebuilt and experimental aircraft. Such aircraft may not be sold or 

operated commercially. They are generally small, piston-powered aircraft that would otherwise be 

certificated under FAR Part 23 (fixed-wing) or FAR Part 27 (rotorcraft) regulations.

21 Some aircraft were certified to the regulations—Civil Air Regulations—that preceded the FARs. In this 

report, these aircraft are classified into the current regulatory structure. These account for a small part of 

aviation activity.
Aircraft Capacity and Utilization Factors 3-3

Part 27 covers “Normal Category Rotorcraft.” These rotorcraft are limited to a 

MTOW of 7,000 pounds22 and nine passenger seats. They may be piston- or turbinepowered, and have single or multiple engines.

Part 29 covers “Transport Category Rotorcraft,” which applies to all rotary-wing 

aircraft that do not meet the standards of Part 27.

3.1.2.2 Operating FAR—Standards for conducting civilian flights in the United 

States are contained in several parts of Title 14. 

Part 91 contains general regulations for the operation of powered aircraft 

(excluding ultralights). Part 91 regulations are sometimes referred to as “General 

Aviation” operations. It is the least restrictive category of operation for such aircraft. 

Operations that do not include activities that are regulated under one of the other parts 

operate by default under Part 91. 

In order to conduct operations on a commercial basis, an operator must have an 

air carrier or other operating certificate, issued under Part 119, Certification: Air 

Carriers and Commercial Operators. 

Part 121 contains standards applicable to the domestic and flag operations of the 

holders of air carrier or operating certificates under Part 119. Domestic and flag 

operations involve common carriage, the transportation of people or goods for 

compensation, in aircraft with more than nine passenger seats or a cargo capacity of 

more than 7,500 pounds. This is the structure under which most large airlines operate.

Part 125 regulates non-commercial operations conducted with fixed-wing aircraft 

with 20 or more seats, which do not fit into Parts 121, 129, 135 or 137. Part 125 applies 

when common carriage is not involved. 

Part 133 governs the operation of any rotary wing aircraft carrying an external 

load.

Part 135 covers commuter (using aircraft of nine seats or less and a maximum 

payload of 7,500 lbs or less) or on-demand operations by holders of air carrier or other 

operating certificates, which are required for certain activities: transportation of mail, 

certain sightseeing or air tour flights, air taxi (on-demand) flights, and commuter 

 

22 While the maximum certified takeoff weight for Part 27 is at 7,000 pounds, the weights assigned for 

aircraft in the GA Survey were developed through an analysis of secondary source data. Thus, it is 

possible that some rotorcraft with weights less than (but close to) 7,000 pounds are included in Part 29, 

which applies to larger rotorcraft. However, we do not believe that this has a large impact on the 

reported results. 
3-4 Aircraft Capacity and Utilization Factors

flights. Scheduled passenger carrying operations with turbojet aircraft having one or 

more seats must be conducted under Part 121.

Part 137 applies to all operations involving the aerial application of substances. 

This application may be in support of agriculture, firefighting, public health sprayings 

or cloud seeding.

3.1.3 Aircraft Groupings

Aircraft are placed into groups likely to be relevant to conducting regulatory 

analyses. Within each group, data are reported by generic aircraft classifications. 

Groupings are discussed in the following sections, and detailed in the tables. Finally, 

user profiles are constructed for selected user groupings. 

The factors in Table 3-1 are reported for air carrier, general aviation, and military 

user types, respectively, with differences based on data limitations.

Table 3-1: Factors Presented by User Type

The air carrier sub-groupings for passenger and freight are defined by type of 

aircraft. All cargo aircraft are those that report no passenger traffic. Passenger aircraft 

can produce both passenger and cargo services by using empty space in the aircraft 

divided into a number of compartments to carry air freight. Air cargo capacity on 

passenger aircraft is estimated as total aircraft capacity minus passenger capacity 

utilized. Commuter aircraft data do not allow for a ready distinction of all cargo 

aircraft operations.

General aviation capacity data are also divided into a number of subgroups 

depending on the type of operation. In this section, GA aircraft and activity are also 

categorized by the parts of aircraft certification and operating regulations that the 

activity falls under.

Factor Air 

Carrier

General 

Aviation Military

Aircraft seating capacity x x —

Number of crew (including flight attendants) x — —

Cargo capacity x — —

Passenger load factor x x —

Cargo load factor x — —

Aircraft utilization x (day) x (year) x (hours)

Average speed x — —

Total useful load — x —
Aircraft Capacity and Utilization Factors 3-5

Information on capacity and utilization factors for military aircraft are also 

presented in this section. From a regulatory or system investment standpoint, FAA 

actions will primarily affect military flight time; the costs of military operations are 

covered in Sections 4 and 5. 

Data limitations do not allow for complete analysis of each capacity factor for 

each aircraft type or classification. The most complete data are available for the large 

air carriers, while small commuter air carriers report less detailed data, and general 

aviation activity data are somewhat limited. The individual tables show specific 

definitions for each data element.

3.2 AIR CARRIER AIRCRAFT

One of the objectives in this economic values report was to align the aircraft 

group structure more closely to the FAA regulatory structure. Table 3-2 shows the air 

carrier aircraft categories used in this report, and how they relate to the categories used 

in the prior economic values report. The groups in this report cover both the operating 

and certification standards relevant for each category.23

Table 3-2: Air Carrier Aircraft Categories

1 Two-Engine Narrow-Body 1 Two-Engine Narrow-Body

2 Two-Engine Wide-Body 2 Two-Engine Wide-Body

3 Three-Engine Narrow-Body 3 Three-Engine Narrow-Body

4 Three-Engine Wide-Body 4 Three-Engine Wide-Body

5 Four-Engine Narrow-Body 5 Four-Engine Narrow-Body

6 Four-Engine Wide-Body 6 Four-Engine Wide-Body

7 Regional Jet under 70 seats 7 Regional Jet under 40 seats

8 Regional Jet 70 to 100 seats 8 Regional Jet with 40-59 seats

9 Turboprops under 20 seats (Part 23) 9 Regional Jet over 59 seats

10 Turboprops under 20 seats (Part 25) 10 Turboprops under 20 seats

11 Turboprops with 20 or more seats 11 Turboprops with 20 or more seats

12 Piston Engine (Part 23) 12 Piston

13 Piston Engine (Part 25)

Economic Values Category Economic Values Category

This Report Prior Report (FAA-APO-98-8)

 

23 Aircraft certified under Part 23 and Part 25 were recorded based on Jane’s All the World’s Aircraft

(various editions). If no certification part is listed in a table, they are assumed to be certified to Part 25 (or 

predecessor regulations).
3-6 Aircraft Capacity and Utilization Factors

3.2.1 Air Carrier Aircraft Groups, Certification and Operating FARs

Aircraft capacity and utilization factors for calendar year 2002 were obtained 

from data submitted by air carriers on Bureau of Transportation Statistics (BTS) Form 41 

for large air carriers and regional carriers, and for the year ending September 2001 on 

Form 298C for small (commuter) carriers.24 Data Base Products summarized the large 

air carrier data by aircraft type, group, and other appropriate cost categories using BTS 

quarterly data for calendar year 2002. The commuter airline data for the four quarters 

ending September 200125 were obtained from BTS, and analyzed by aircraft type, 

location of carrier (Alaska and non-Alaska), type of operating authority (Part 121 or Part 

135) and the certification basis (Part 23 or Part 25) for the aircraft operated. Data are 

summarized in following tables for aircraft classification groups and for the total fleet. 

Supporting data are available on the APO website. 

As noted above, air carriers were divided into those operating under Part 121 

and those operating under Part 135. The data source for aviation activity and financial 

information for large and some regional air carriers is BTS Form 41. Smaller carriers use 

BTS Form 298. Many of the carriers that file Form BTS-298 are located in Alaska. Table 

3-3 provides a summary of activity for all air carriers considered in this study. Data are 

reported for both block hours (gate-to-gate) and airborne hours (wheels-up to wheelsdown). The vast majority of hours are operated under Part 121. This is because 

scheduled passenger operations under Part 135 are restricted to aircraft with nine 

passenger seats or less.26 The table also notes those aircraft that come under Part 23 

versus Part 25. Aircraft without an aircraft certification basis noted are Part 25 aircraft.

 

 

24Form 41 Traffic and Financial Data, and Form 298-C-Commuter Airlines, (Washington, DC: Bureau of 

Transportation and Statistics, various dates). 

25 Data were incomplete for later periods, and reporting requirements changed in 2002, making it 

impossible to develop a consistent and useful source of Form 298 data for later periods. In addition, 

service was disrupted by September 11, 2001 terrorist acts, and made the period ending with the 

September quarter perhaps the least disrupted period to use for this study. While one quarter of the year 

chosen was affected, two or more quarters after the September 2001 quarter were seriously disrupted.

26 On-demand Part 135 activities are reported in Section 3.3, General Aviation Aircraft.
Aircraft Capacity and Utilization Factors 3-7

Table 3-3: Summary Air Carrier Activity

by Aircraft Certification and Operating Authority

Total

Block

Hours

Total

Airborne

Hours

Total

Block

Hours

Total

Airborne

Hours

Total

Block

Hours

Total

Airborne

Hours

Two-Engine Narrow-Body 11,512,852 9,599,796 NR NR 11,512,852 9,599,796

Two-Engine Wide-Body 2,191,418 1,968,223 NR NR 2,191,418 1,968,223

Three-Engine Narrow-Body 409,095 330,025 NR NR 409,095 330,025

Three-Engine Wide-Body 593,574 530,968 NR NR 593,574 530,968

Four-Engine Narrow-Body 92,510 78,669 NR NR 92,510 78,669

Four-Engine Wide-Body 437,135 405,655 NR NR 437,135 405,655

Regional Jet under 70 seats 1,683,830 1,291,866 790 601 1,684,620 1,292,467

Regional Jet 70 to 100 seats 102,049 77,911 NR NR 102,049 77,911

Turboprops under 20 seats (Part 23) 317,961 266,252 61,638 51,589 379,599 317,841

Turboprops under 20 seats (Part 25) 25,545 21,382 NR NR 25,545 21,382

Turboprops with 20 or more seats 1,012,411 807,962 6,902 5,777 1,019,313 813,739

Piston Engine (Part 23) 32,153 27,313 188,474 157,692 220,627 185,005

Piston Engine (Part 25) 14,891 12,266 133 111 15,024 12,377

Total 18,425,424 15,418,288 257,937 215,770 18,683,361 15,634,058

Source: GRA analysis of Form 41 and Form 298 data.

NR = none reported

Economic Values Category

Part 121 Part 135 Total

Air carrier data are provided in two tables for large air carriers. Form 41 air 

carrier passenger operations are shown in Table 3-4. There were 4,562 aircraft reported 

for these carriers (fractional aircraft result from less than full year operations.) The 

column dealing with crew size includes both flight crew and cabin crew. The number 

of flight deck crew for the aircraft in each grouping is identified by reference to the 

relevant editions of Jane’s All the World’s Aircraft.27 The number of flight attendants 

varies based on the size of the aircraft and staffing policy of individual carriers.28

Previous editions of this study recommend estimating flight attendants for aircraft 

groups using an average of one flight attendant per 45 seats (rounding up).29 This 

assumption has changed in this report to one flight attendant per 50 seats, reflecting the 

fact that most carriers now provide the minimum number of required flight attendants. 

As can be seen, the 4,562 aircraft accounted for 6.9 million departures in 2002. These 

aircraft are utilized for 9.5 hours per day on average and have an average capacity of 

157 passenger seats. The average passenger load factor is 72 percent. 

 

27 Jane’s All the World’s Aircraft, (Alexandria, VA, Jane’s Information Group Limited, various years).

28 FAR 121.391(a) general: requires a minimum of one flight attendant for each 50 installed seats in an 

aircraft, for aircraft above 9 seats (depending on aircraft weight).

29 Economic Values for Evaluation of Federal Aviation Administration Investment and Regulatory Programs, 

FAA-APO-98-8 (Washington, DC, 1998).
3-8 Aircraft Capacity and Utilization Factors

Table 3-4: 2002 Passenger Air Carrier Capacity and Utilization Factors

Table 3-5 shows capacity and utilization figures for all cargo aircraft reported on 

Form 41. In 2002, 800 all cargo aircraft were reported by these carriers. As can be seen, 

these aircraft have much lower levels of daily utilization (4.2 block hours per day on 

average) than the passenger aircraft. 

1 2 3 4 5 6 7 8 9 10 11

Economic Values Category

Number 

of

Aircraft

Departures Passenger

Capacity 

Passenger

Load

Factor

Capacity

(Tons)

Capacity

Load

Factor

Crew

Size

Block

Hours

Average

Block

Speed

(MPH)

Daily

Utilization

(Hours)

Fuel

Burn

Per

Hour

Two-Engine Narrow-Body 3,329 5,272,091 142 70% 18.7 55% 5 11,396,083 361 9.4 863

Two-Engine Wide-Body 471 366,849 226 75% 42.8 54% 7 1,880,513 455 10.9 1,743

Three-Engine Narrow-Body 90 94,192 139 67% 19.2 55% 6 186,857 338 5.7 1,238

Three-Engine Wide-Body 90 44,826 278 75% 49.5 54% 9 264,759 466 8.1 2,484

Four-Engine Narrow-Body NR NR NR NR NR NR NR NR NR NR NR

Four-Engine Wide-Body 90 44,325 368 82% 66.2 63% 10 321,888 429 9.8 3,466

Regional Jet under 70 seats 288 650,860 49 65% 6.0 51% 3 933,530 283 9.0 380

Regional Jet 70 to 100 seats 40 76,248 79 62% 10.1 49% 4 102,049 296 7.1 540

Turboprops under 20 seats (Part 23) NR NR NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 25) NR NR NR NR NR NR NR NR NR NR NR

Turboprops with 20 or more seats 165 306,837 33 60% 3.8 51% 3 370,523 168 6.2 136

Piston Engine (Part 23) NR NR NR NR NR NR NR NR NR NR NR

Piston Engine (Part 25) NR NR NR NR NR NR NR NR NR NR NR

All Aircraft 4,562 6,856,228 157 72% 23.6 55% 5 15,456,202 365 9.5 1,008

Col 9: "Revenue Aircraft Miles" divided by "Block Hours Flown."

Col 11: "Gallons of Fuel" divided by "Block Hours Flown."

Col 10: "Block Hours Flown" divided by "Aircraft Days Assigned to Service."

Col 5: "Available Ton Miles" divided by "Revenue Aircraft Miles."

Col 6: "Revenue Ton Miles" divided by "Available Ton Miles."

Col 7: Pilot Flight crew from Jane's All The World's Aircraft. Flight Attendants are estimated as one for each 50 passenger seats above 19 seats.

Col 8: "Block Hours Flown" are calculated from the elapsed time from gate to gate.

Col 3: "Available Seat Miles" divided by "Revenue Aircraft Miles."

Col 4: "Revenue Passenger Miles" divided by "Available Seat Miles." 

Col 1: "Aircraft Days Assigned to Service" divided by the number of days in the period reported.

Col 2: "Revenue Departures Performed."

Source: Form 41 Data, Year End 2002.

NR = none reported
Aircraft Capacity and Utilization Factors 3-9

Table 3-5: 2002 All Cargo Carrier Capacity and Utilization Factors

With the exception of some larger commuter operators, who report results on 

Form 41, smaller air carriers generally report on Form 298-C. The actual reporting 

requirements vary for air carriers based on size. Limited information on capacity and 

utilization by aircraft type is reported on Form 298-C. The form does not report the 

number of aircraft so factors such as fleet size or average daily utilization cannot be 

calculated. Most aircraft operated by carriers filing Form 298 operate mostly smaller 

aircraft. Data on capacity and utilization for non-Alaskan operators filing Form 298 are 

reported in Table 3-6. The average aircraft had 38 passenger seats. These aircraft 

accounted for almost 1.7 million block hours in the year examined.

1 2 3 4 5 6 7 8

Number 

of 

Aircraft

Departures

Cargo

Capacity

(Tons)

Cargo

Load

Factor

Crew

Size

Block

Hours

Average

Block

Speed

(MPH)

Daily

Utilization

(Block

Hours)

Two-Engine Narrow-Body 90 63,655 35.3 49% 2 116,769 393 3.6

Two-Engine Wide-Body 157 119,590 51.9 61% 2 310,905 404 5.4

Three-Engine Narrow-Body 261 130,265 25.6 53% 3 222,238 358 2.3

Three-Engine Wide-Body 112 90,744 78.6 63% 3 328,815 466 8.0

Four-Engine Narrow-Body 82 37,451 45.4 46% 3 92,510 382 3.1

Four-Engine Wide-Body 55 20,971 101.6 61% 3 115,247 465 5.7

Regional Jet under 70 seats 19 5,620 3.0 20% 2 8,842 300 1.3

Regional Jet 70 to 100 seats NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 23) 1 1,717 1.4 34% 1 1,482 177 3.3

Turboprops under 20 seats (Part 25) NR NR NR NR NR NR NR NR

Turboprops with 20 or more seats 5 3,804 23.7 34% 3 9,076 330 5.0

Piston Engine (Part 23) 7 4,299 1.6 58% 1 5,375 148 2.1

Piston Engine (Part 25) 11 8,166 15.0 55% 2 14,653 190 3.6

All Aircraft 800 486,282 47.3 60% 3 1,225,912 410 4.2

Col 1: "Aircraft Days Assigned to Service" divided by the number of days in the period reported.

Col 2: "Revenue Departures Performed."

Col 3: "Available Ton Miles" divided by "Revenue Aircraft Miles."

Col 4: "Revenue Ton Miles" divided by "Available Ton Miles."

Col 5: Pilot Flight crew from Jane's All The World's Aircraft.

Col 6: "Block Hours Flown" are calculated from the elapsed time from gate to gate.

Col 7: "Revenue Aircraft Miles" divided by "Block Hours Flown."

Col 8: "Block Hours Flown" divided by "Aircraft Days Assigned to Service."

Economic Values Category

Source: Form 41 Data, Year End 2002.

NR: none reported

Note: The following aircraft types were reported in Form 41, but are not included due to incomplete filings: L-188A, DC-9-30 

and DC-10-40.
3-10 Aircraft Capacity and Utilization Factors

Table 3-6: 2001 Non-Alaskan Form 298-C Operators Capacity 

and Utilization Factors (Weighted by Block Hours)

1 2 3 4 5

Economic Values Category Seats Crew

Size

Cargo

Capacity

(Tons)*

Total

Block

Hours

Total

Airborne

Hours

Two-Engine Narrow-Body NR NR NR NR NR

Two-Engine Wide-Body NR NR NR NR NR

Three-Engine Narrow-Body NR NR NR NR NR

Three-Engine Wide-Body NR NR NR NR NR

Four-Engine Narrow-Body NR NR NR NR NR

Four-Engine Wide-Body NR NR NR NR NR

Regional Jet under 70 seats 49 3 6.1 739,853 575,982

Regional Jet 70 to 100 seats NR NR NR NR NR

Turboprops under 20 seats (Part 23) 18 2 3.0 272,093 227,743

Turboprops under 20 seats (Part 25) 19 2 2.4 25,545 21,382

Turboprops with 20 or more seats 33 3 4.0 614,451 514,297

Piston Engine (Part 23) 8 1 1.1 5,510 4,612

Piston Engine (Part 25) 4 1 NR 133 111

Non-Alaskan Total 38 3 4.5 1,657,585 1,344,127

Source: Analysis of 4 quarters ending September 2001 Form 298C data.

Col 3: Jane's All The World's Aircraft , op. cit., and Form 41 (available ton miles divided by revenue aircraft 

miles).

Col 4: Block hours from Form 298-C

Col 5: Block hours from Form 298-C multiplied by ratio of airborne hours/block hours

for similar aircraft from Form 41.

NR = No data reported

*Cargo capacity weighted averages refer only to aircraft with known cargo capacity. Because of this, the 

number of hours used in computing weighted cargo capacity averages may be lower than total block 

hours. 

Col 1: Jane's All The World's Aircraft (various issues) op. cit.

Col 2: Standard flight crew complements per analysis of Jane's All The World's Aircraft , op. cit.,

plus one flight attendant per each 50 passenger seats.

The results for Alaskan Form 298-C carriers have been separated from other 

Form 298-C carriers to provide information on the unique operating environment in 

Alaska. Table 3-7 shows capacity and utilization factors for Alaskan air carriers who 

file Form 298. These represent about 20-25 percent of the activity for all Form 298 

operators. Most of the activity is with small Part 23 aircraft. The average aircraft has 11 

seats. These aircraft accounted for 343,662 block hours in the year reported.
Aircraft Capacity and Utilization Factors 3-11

Table 3-7: 2001 Alaskan Form 298-C Operators Capacity and Utilization Factors

(weighted by block hours)

1 2 3 4 5

New Economic Values Category Seats Crew Size

Cargo 

Capacity 

(Tons)*

Total 

Block 

Hours

Total 

Airborne 

Hours

Two-Engine Narrow-Body NR NR NR NR NR

Two-Engine Wide-Body NR NR NR NR NR

Three-Engine Narrow-Body NR NR NR NR NR

Three-Engine Wide-Body NR NR NR NR NR

Four-Engine Narrow-Body NR NR NR NR NR

Four-Engine Wide-Body NR NR NR NR NR

Regional Jet under 70 seats 8 2 3.5 2,395 1,821

Regional Jet 70 to 100 seats NR NR NR NR NR

Turboprops under 20 seats (Part 23) 15 2 2.3 106,024 88,741

Turboprops under 20 seats (Part 25) NR NR NR NR NR

Turboprops with 20 or more seats 34 3 3.6 25,263 21,146

Piston Engine (Part 23) 6 1 0.9 209,742 175,492

Piston Engine (Part 25) 28 3 3.8 238 199

Alaskan Total 11 2 1.5 343,662 287,399

Col 3: Jane's All The World's Aircraft, op. cit., and Form 41 (available ton miles divided by 

revenue aircraft miles).

Col 4: Form 298-C

Col 5: Block hours from Form 298-C multiplied by ratio of airborne hours/block hours

for similar aircraft from Form 41.

NR = No data reported

*Cargo capacity weighted averages refer only to aircraft with known cargo capacity. Because 

of this, the number of hours used in computing weighted cargo capacity averages may be lower 

than total block hours. 

Col 1: Jane's All The World's Aircraft (various issues) op.cit.

Col 2: Standard flight crew complements per analysis of Jane's All The World's Aircraft, 

op.cit., plus one flight attendant per each 50 passenger seats.

Source: Analysis of 4 quarters ending September 2001 Form 298C data.

3.3 GENERAL AVIATION AIRCRAFT

Data from the 2001 GA Survey by FAA’s Office of Aviation Policy and Plans 

(APO-100) was used to estimate the number of active aircraft and annual utilization.30 

The actual sample size for the 2001 GA Survey was 30,472.31 There were 16,432 

responses received, of which 11,666 indicated that the aircraft was active (flew at least 

once) during 2001. Using the GA Survey’s weighting methodology, these 11,666 

records represent 211,446 U.S.-registered active GA aircraft. 

 

30 General Aviation and Air Taxi Activity Survey. (Washington, DC: Federal Aviation Administration, 2003).

31 Data provided by PA Consulting.
3-12 Aircraft Capacity and Utilization Factors

3.3.1 Aircraft Categories

The GA Survey puts each aircraft into one of 19 aircraft types based on criteria 

such as engine type and number of seats. The aircraft type groups used in the GA 

Survey are shown on the left hand side of Table 3-8. However, an objective of this 

report was to disaggregate information based on the aircraft certification and operating 

regulations. For purposes of the Economic Values report, new categories were created 

to align with the aircraft certification regulatory structure, and which consider factors 

like engine horsepower (for piston-powered aircraft) and aircraft weight (for jets and 

rotorcraft).32 

Table 3-8: GA Survey Aircraft Classification Groups

GA Survey Group Aircraft Description

1 Single-Engine Fixed Wing - Piston: 1 - 3 seats

2 Single-Engine Fixed Wing - Piston: 4+ seats

3 Twin-Engine Fixed Wing - Piston: 1 - 6 seats

4 Twin-Engine Fixed Wing - Piston: 7+ seats

5 Other Fixed Wing - Piston

6 Single-Engine Fixed Wing - Turboprop

7 Twin-Engine Fixed Wing - Turboprop: 1 - 12 seats

8 Twin-Engine Fixed Wing - Turboprop: 13+ seats

9 Other Fixed Wing - Turboprop

10 Twin-Engine Fixed Wing - Turbojet

11 Other Fixed Wing - Turbojet

12 Piston-Engine Rotorcraft

13 Single-Engine Turbine Rotorcraft

14 Multi-Engine Turbine Rotorcraft

15 Gliders

16 Lighter-than-air

17 Amateur

18 Exhibition

19 Other

Source: FAA General Aviation and Air Taxi Activity Survey CY 2002.

The mapping of the GA Survey categories to those used in this report is 

illustrated in Table 3-9. Aircraft were also grouped into categories based on year of 

manufacture: pre-1982, and 1982 and later. The categorization was performed as 

follows:

GA Survey records were grouped by Make-Model-Series, which allowed 

comparison among identical aircraft.

 

32 The expansion of the GA Survey sample to groups not included in the original sample design may 

reduce the level of reliability of some estimates. However, the provision of detailed data by aircraft 

certification regulation and type of operating authority provides data more relevant to regulatory 

evaluations. Readers should be cautious when using data from strata with few active aircraft.
Aircraft Capacity and Utilization Factors 3-13

The GA Survey included a Horsepower field. However, many respondents 

left this field blank. For piston-powered aircraft, blank horsepower responses 

were filled in based on comparison with other aircraft of the same MakeModel-Series or from aircraft reference sources.33

The GA Survey included a Year of Manufacture field. However, many 

respondents left this field blank. Blank Year of Manufacture responses were 

classified as pre and post 1982 based on comparison with other aircraft of the 

same Make-Model-Series or from aircraft reference sources, when these 

methods indicated that a particular MMS was made only before or after 1982. 

If the production run of an MMS spanned the 1982 dividing year, no Year of 

Manufacture fields for that MMS were assigned.

Jet aircraft and rotorcraft were grouped into weight categories based on data 

in the aircraft reference sources cited above.

The GA Survey aircraft type categories, as shown on the right hand side of 

Table 3-9, were used to develop the 18 Economic Values aircraft groups. 

Table 3-9: Relationship Between GA Survey and 

Economic Values Aircraft Groups

Economic

Values 

Category

Aircraft Type Certification

1 Piston engine airplanes 1 to 3 seats (<=200hp) Part 23 1

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 1

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) Part 23 2

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 2

5 Piston engine airplanes 4 to 9 seats multiengine Part 23 4 3

6 Piston engine airplanes 10 or more seats Part 23 4 5

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 6

8 Turboprop airplanes 1 to 9 seats multiengine Part 23 7

9 Turboprop airplanes 10 to 19 seats Part 23 6 7 8

10 Turboprop airplanes 20 or more seats Part 25 8 9

11 Turbojet/Turbofan airplanes <=12,500 lbs Part 23/25 10

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000lbs Part 25 10 11

13 Turbojet/Turbofan airplanes >65,000 lbs Part 25 11 10

14 Rotorcraft piston <=6,000 lbs Part 27 12

15 Rotorcraft turbine <=6,000 lbs Part 27 13 14

16 Rotorcraft piston >6,000 lbs Part 29 12

17 Rotorcraft turbine >6,000 lbs Part 29 13 14

18 Other 15 16 17 18 19

GA Survey Groups

Source: GRA analysis

 

33 Jane’s All the World’s Aircraft, various editions. The Complete Encyclopedia of World Aircraft, New York: 

Barnes and Noble, 2002. Various on-line sources, including Aircraft Identification Library at 

http://iat.nifc.gov/aircraft_library/index.asp.
3-14 Aircraft Capacity and Utilization Factors

3.3.2 Flight Hours by Activity Type and Aircraft Age

The GA Survey asked respondents how many total hours the aircraft flew during 

2001, and the percentage of hours that were flown in each of 15 activity types. GRA 

grouped these activity types into the operating regulation parts that cover them to 

produce the percentage of time each aircraft flew under each part.

The following GA survey categories were assigned to the operating authorities to 

develop the following groups34: 

Part 91—Personal, business, instructional, corporate, sightseeing and work

Part 125—Airplanes (not rotorcraft) 20 or more seats and not Part 135 or 137

Part 133—Rotorcraft hours reported as external lift

Part 135—Air taxi, air tours and medical

Part 137—Aerial application in agriculture and forestry and other aerial 

application

The GA Survey provides a weighting factor for each record, which allows 

projection of the sample data to the aircraft population. The reported hours flown were 

multiplied by the weighting factor, and the percentages calculated for each of the above 

groups to produce the number of hours flown by the population under each operating 

regulation. In addition to the regulatory structure above, selected aircraft and hours 

flown information was tabulated from the GA Survey responses and FAA Registry, and 

reported for the following categories35:

Fractional Ownership—Aircraft reported in FAA Aircraft Registry but not 

additive with above

Public—Aircraft reported as public use

Air Taxi—Reported air taxi aircraft and hours of usage on survey36

Table 3-10 shows the active general aviation aircraft by aircraft category. The 

211,244 estimated active aircraft accounted for 27.0 million flight hours in 2002. It also 

shows the number of aircraft that reported air taxi usage as well as those that were 

reported as public aircraft. There were 13,311 aircraft that reported some air taxi use 

and almost 8,000 public aircraft in FY 2002. The listing for fractionally owned aircraft 

was taken from the FAA Aircraft Registry because the survey responses to this question 

did not appear reliable. Also shown are the average annual hours flown for each 

 

34 All assignments based on reported actual use in GA Survey. While the categories used in the GA 

Survey do not exactly correspond to the operating regulations, this allows a reasonable estimate of the 

activity levels under each part.

35 The aircraft or hours reported are not additive with other aircraft data in the GA Survey.

36 Assignments based on definition of activity and FAR regulatory requirements. 
Aircraft Capacity and Utilization Factors 3-15

aircraft category. Overall, general aviation aircraft averaged 128 hours of flight time in 

2002. The more sophisticated aircraft have much higher levels of utilization. 

Table 3-10: Estimated Active General Aviation Aircraft 

and Hours Flown for FY 2002

1 2 3 4 5 6

Certification All

Aircraft

Air Taxi

Aircraft

Public 

Aircraft

FractionallyOwned

Aircraft

GA Survey

Total Hours

Average

Annual Hours

All Aircraft

1 Piston engine airplanes 1 to 3 seats (<=200hp) Part 23 33,050 1,252 548 7 2,947,937 89

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 6,079 261 263 1 1,026,415 169

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) Part 23 54,352 2,428 1,230 15 6,776,608 125

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 49,993 2,858 1,624 15 5,569,662 111

5 Piston engine airplanes 4 to 9 seats multiengine Part 23 16,783 1,616 977 2 2,399,533 143

6 Piston engine airplanes 10 or more seats Part 23 801 204 122 166,266 208

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 1,004 188 65 1 393,588 392

8 Turboprop airplanes 1 to 9 seats multiengine Part 23 2,150 309 220 3 431,823 201

9 Turboprop airplanes 10 to 19 seats Part 23 3,650 507 415 41 1,008,164 276

10 Turboprop airplanes 20 or more seats Part 25 219 123 54 72,668 332

11 Turbojet/Turbofan airplanes <=12,500 lbs Part 23/25 2,029 342 57 101 541,463 267

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000lbs Part 25 4,969 1,049 31 329 1,725,676 347

13 Turbojet/Turbofan airplanes >65,000 lbs Part 25 1,204 320 64 9 426,000 354

14 Rotorcraft piston <=6,000 lbs Part 27 2,326 139 221 1 449,561 193

15 Rotorcraft turbine <=6,000 lbs Part 27 3,640 604 1,477 1,173,330 322

16 Rotorcraft piston >6,000 lbs Part 29 25 0 6 3,985 159

17 Rotorcraft turbine >6,000 lbs Part 29 657 51 267 5 248,839 379

18 Other 28,313 1,060 246 169 1,678,582 59

 211,244 13,311 7,887 699 27,040,100 128

Col 6: Column 5 divided by Column 1.

Col 2: Aircraft for which Air Taxi hours reported. The number of aircraft in this category is significantly higher than the number of aircraft for which air taxi 

operations are their primary use.

Col 3: Aircraft for which Public hours reported.

Col 5: Total hours reported.

Col 4: Analysis of FAA Aircraft Registry as of October, 2004. Aircraft with "Fractional Ownership" field marked "Y."

Source: All Aircraft, Air Taxi Aircraft and Public Aircraft--Analysis of responses to the FAA General Aviation and Air Taxi Activity Survey, CY 2002. 

Fractionally-Owned Aircraft--Analysis of FAA Aircraft Registry as of October, 2004.

Note 1: Certification regulations assigned based on the current regulatory structure; many GA aircraft are certified to regulations which pre-date these. 

Note 2: Columns are not additive; aircraft may be used for multiple purposes during a year.

Col 1: Aircraft reported.

Cols 1 - 3 and 5 - 6: Analysis of responses to the FAA General Aviation and Air Taxi Activity Survey, CY 2002.

Economic Values Category

All Aircraft
3-16 Aircraft Capacity and Utilization Factors

Table 3-11 shows the estimated general aviation hours flown by operating and 

certification part. As can be seen, a large proportion of the hours were flown under 

Part 91, the general flight rules. Activities under Part 135 (commuter and air taxi) and 

Part 137 (aerial application) are the next two most prevalent uses of general aviation 

aircraft. The total hours distributed by FAR part differ slightly from the total hours 

reported in the survey.

Table 3-11: GA Hours Flown by Operating Rule and Aircraft Type

1 2 3 4 5 6 7

Part 91 Part 125 Part 133 Part 135 Part 137

1 Piston engine airplanes 1 to 3 seats (<=200hp) 2,947,937 2,912,064 0 0 11,492 24,382 2,947,937 

2 Piston engine airplanes 1 to 3 seats (>200hp) 1,026,415 277,144 0 0 17,149 732,122 1,026,415 

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) 6,776,608 6,623,769 0 0 126,768 26,072 6,776,608 

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) 5,569,662 5,269,227 0 0 265,095 35,340 5,569,662 

5 Piston engine airplanes 4 to 9 seats multiengine 2,399,533 2,037,916 0 0 341,192 20,425 2,399,533 

6 Piston engine airplanes 10 or more seats 166,266 55,304 19,801 0 76,020 15,141 166,266 

7 Turboprop airplanes 1 to 9 seats one-engine 393,588 63,696 0 0 108,922 220,970 393,588 

8 Turboprop airplanes 1 to 9 seats multiengine 431,823 338,840 0 0 81,694 11,289 431,823 

9 Turboprop airplanes 10 to 19 seats 1,008,164 810,259 0 0 181,765 16,140 1,008,164 

10 Turboprop airplanes 20 or more seats 72,668 413 26,314 0 38,164 7,777 72,668 

11 Turbojet/Turbofan airplanes <=12,500 lbs 541,463 485,484 0 0 55,957 23 541,463 

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000lbs 1,725,676 1,352,921 204,357 0 167,406 992 1,725,676 

13 Turbojet/Turbofan airplanes >65,000 lbs 426,000 0 394,221 0 31,716 63 426,000 

14 Rotorcraft piston <=6,000 lbs 449,561 385,795 0 471 5,426 58,340 450,032 

15 Rotorcraft turbine <=6,000 lbs 1,173,330 732,432 153 37,301 336,389 104,356 1,210,631 

16 Rotorcraft piston >6,000 lbs 3,985 3,345 0 3,345 0 640 7,330 

17 Rotorcraft turbine >6,000 lbs 248,839 91,053 42,486 47,738 72,962 42,337 296,577 

18 Other 1,678,582 1,592,736 15,140 0 18,224 52,482 1,678,582 

 27,040,100 23,032,398 702,471 88,856 1,936,340 1,368,891 27,128,956 

Source: Analysis of responses to the FAA General Aviation and Air Taxi Activity Survey, CY 2002.

Individual responses were sorted to classifications and expanded. Totals may not add due to rounding.

Col 7: Sum of hours reported under all categories.

Economic Values Category GA Survey

Total Hours

Operating Rules Total

Hours

All Aircraft

Note: The GA Survey provided total hours flown (Total Hours) and hours by category which are grouped here into FAR parts. 

The total of hours by category differs slightly from the total hours flown.

Col 1: Total hours reported.

Cols 2 - 6: Hours reported under categories which correspond to Operating Rules shown.
Aircraft Capacity and Utilization Factors 3-17

Table 3-12 shows the active general aviation aircraft and hours flown distributed 

by aircraft age. The general line of demarcation is aircraft built before 1982, and those 

built in 1982 and beyond. In 1982, most general aviation aircraft production in the 

United States ceased, especially for piston engine airplanes. It is interesting to note that 

about 75 percent of the active aircraft were built before 1982. However, more turboprop 

and jet hours were flown in aircraft produced after 1982.

Table 3-12: Active Aircraft and Hours Flown by Age Category

1 2 3 4 5 6

All

Aircraft

Aircraft

Built

Before

1982

Aircraft

Built in

1982 and

After

All

Aircraft

Aircraft

Built

Before

1982

Aircraft

Built in

1982 and

After

1 Piston engine airplanes 1 to 3 seats (<=200hp) Part 23 2,947,937 2,664,367 283,570 33,050 31,246 1,804 

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 1,026,415 592,056 434,360 6,079 4,364 1,714 

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) Part 23 6,776,608 5,591,128 1,185,480 54,352 49,970 4,382 

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 5,569,662 4,455,188 1,114,474 49,993 41,924 8,069 

5 Piston engine airplanes 4 to 9 seats multiengine Part 23 2,399,533 2,077,526 322,007 16,783 15,187 1,596 

6 Piston engine airplanes 10 or more seats Part 23 166,266 160,547 5,719 801 783 18 

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 393,588 20,384 373,204 1,004 62 942 

8 Turboprop airplanes 1 to 9 seats multiengine Part 23 431,823 299,081 132,742 2,150 1,546 603 

9 Turboprop airplanes 10 to 19 seats Part 23 1,008,164 444,583 563,580 3,650 1,690 1,960 

10 Turboprop airplanes 20 or more seats Part 25 72,668 54,138 18,530 219 148 72 

11 Turbojet/Turbofan airplanes <=12,500 lbs Part 23/25 541,463 147,642 393,822 2,029 710 1,319 

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000lbs Part 25 1,725,676 415,251 1,310,425 4,969 1,524 3,445 

13 Turbojet/Turbofan airplanes >65,000 lbs Part 25 426,000 94,994 331,006 1,204 473 731 

14 Rotorcraft piston <=6,000 lbs Part 27 449,561 151,934 297,627 2,326 1,107 1,219 

15 Rotorcraft turbine <=6,000 lbs Part 27 1,173,330 468,192 705,138 3,640 2,004 1,636 

16 Rotorcraft piston >6,000 lbs Part 29 3,985 2,430 1,555 25 18 6 

17 Rotorcraft turbine >6,000 lbs Part 29 248,839 111,553 137,286 657 333 324 

18 Other 1,678,582 472,990 1,205,592 28,313 7,504 20,810 

 27,040,100 18,223,983 8,816,116 211,244 160,592 50,651 

Col 2: Total hours reported for aircraft built in 1981 or earlier.

Col 3: Total hours reported for aircraft built in 1982 or later.

Col 5: Aircraft reported which were built in 1981 or earlier.

Col 6: Aircraft reported which were built in 1982 or later.

Economic Values Category Certification

Total Hours Flown Active Aircraft

Col 4: Aircraft reported.

All Aircraft

Source: Analysis of responses to the FAA General Aviation and Air Taxi Activity Survey, CY 2002.

Individual responses were sorted to classifications and expanded. Totals may not add due to rounding.

Col 1: Total hours reported.
3-18 Aircraft Capacity and Utilization Factors

Table 3-13 shows the number of reported air taxi aircraft and hours flown from 

the GA Survey. As noted above, there were approximately 13,300 air taxi aircraft, 

which flew an estimated 1.3 million flight hours. As can be seen, the larger piston and 

turboprop airplanes have the highest percentage of air taxi hours flown.

Table 3-13: Estimated Total Active Aircraft and Hours Flown 

for All Aircraft and Reported Air Taxi Aircraft

1 2 3 4 5 6 7

Certification Active

Aircraft

Air Taxi

Aircraft

Estimated

Total

Hours

Flown

Estimated

Air Taxi

Hours

Flown

Percent

Air Taxi

Hours

Estimated

Average

Hours

Total

Estimated

Average

HoursAir Taxi

1 Piston engine airplanes 1 to 3 seats (<=200hp) Part 23 33,050 1,252 2,947,937 9,549 0% 89.2 7.6

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 6,079 261 1,026,415 15,785 2% 168.9 60.4

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) Part 23 54,352 2,428 6,776,608 92,513 1% 124.7 38.1

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 49,993 2,858 5,569,662 228,702 4% 111.4 80.0

5 Piston engine airplanes 4 to 9 seats multiengine Part 23 16,783 1,616 2,399,533 307,011 13% 143.0 190.0

6 Piston engine airplanes 10 or more seats Part 23 801 204 166,266 74,717 45% 207.6 366.8

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 1,004 188 393,588 108,224 27% 391.9 576.9

8 Turboprop airplanes 1 to 9 seats multiengine Part 23 2,150 309 431,823 40,312 9% 200.9 130.3

9 Turboprop airplanes 10 to 19 seats Part 23 3,650 507 1,008,164 115,121 11% 276.2 226.9

10 Turboprop airplanes 20 or more seats Part 25 219 123 72,668 38,133 52% 331.6 310.7

11 Turbojet/Turbofan airplanes <=12,500 lbs Part 23/25 2,029 342 541,463 54,850 10% 266.9 160.5

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000lbs Part 25 4,969 1,049 1,725,676 155,770 9% 347.3 148.5

13 Turbojet/Turbofan airplanes >65,000 lbs Part 25 1,204 320 426,000 31,693 7% 353.8 99.0

14 Rotorcraft piston <=6,000 lbs Part 27 2,326 139 449,561 5,012 1% 193.3 36.1

15 Rotorcraft turbine <=6,000 lbs Part 27 3,640 604 1,173,330 58,690 5% 322.4 97.2

16 Rotorcraft piston >6,000 lbs Part 29 25 0 3,985 0 NA 161.1 NA

17 Rotorcraft turbine >6,000 lbs Part 29 657 51 248,839 3,413 1% 378.6 67.3

18 Other 28,313 1,060 1,678,582 6,536 0% 59.3 6.2

 211,244 13,311 27,040,100 1,346,032 5% 128.0 101.1

Col 2: Active air taxi aircraft.

Col 5: Column 4 divided by Column 3.

Economic Values Category

All Aircraft

Source: Analysis of responses to the FAA General Aviation and Air Taxi Activity Survey, CY 2002.

Individual responses were sorted to classifications and expanded. Totals may not add due to rounding.

Note: NA indicates that the population for which costs were available was insufficient to provide reliable results.

Col 1: Active aircraft are those flown at least once during the year.

Col 3: Total hours flown by active aircraft, including air taxi.

Col 4: Reported air taxi hours (also included in Column 3). The number of aircraft in this category is significantly higher than the number of aircraft 

for which air taxi operations are their primary use.

Col 6: Column 3 divided by Column 1.

Col 7: Column 4 divided by Column 2.
Aircraft Capacity and Utilization Factors 3-19

Table 3-14 shows a distribution by five-year increments of age for the active 

general aviation aircraft in the fleet and hours flown by operating regulation. Aircraft 

manufactured in 2002 are included with those manufactured between 1997 and 2001, 

making this a six-year increment. There were few such aircraft in the GA survey, and 

this was done to have a five-year increment begin with 1982. As can be seen, many of 

the aircraft hours flown are by aircraft produced between 1967 and 1981. 

Table 3-14: Hours Flown Distribution of GA Aircraft by 5-Year Increments of Age

1 2 3 4 5 6 7

Age Increment

Year of

Manufacture Part 91 Part 125 Part 133 Part 135 Part 137 TotalFAR Hours

1997 - 2002 21,775 3,444,091 271,786 1,313 276,647 213,138 4,206,975 

1992 - 1996 9,610 1,006,850 164,759 879 89,725 154,451 1,416,663 

1987 - 1991 7,405 762,935 53,673 6,901 117,125 134,017 1,074,652 

1982 - 1986 11,861 1,729,664 32,156 5,645 248,494 116,605 2,132,564 

1977 - 1981 38,174 5,270,621 62,968 23,621 573,212 209,470 6,139,892 

1972 - 1976 34,149 3,812,170 20,603 8,057 259,893 286,385 4,387,109 

1967 - 1971 24,632 2,363,328 48,621 11,771 177,403 104,931 2,706,055 

1962 - 1966 22,472 1,928,410 26,330 28,177 69,380 60,852 2,113,149 

1957 - 1961 13,790 1,105,722 9,053 37 48,567 26,131 1,189,510 

1952 - 1956 7,132 584,581 10,454 622 41,085 16,685 653,427 

1947 - 1951 7,878 408,753 0 1,833 9,859 14,683 435,128 

1942 - 1946 9,245 448,710 1,944 0 22,102 30,959 503,716 

1941 or Earlier 3,121 166,564 122 0 2,847 583 170,116 

All Aircraft 211,244 23,032,398 702,471 88,856 1,936,340 1,368,891 27,128,956

Col 1: Aircraft reported.

Cols 2 - 6: Hours reported under categories which correspond to Operating Rules shown.

Col 7: Sum of hours reported under all categories.

Source: Analysis of responses to the FAA General Aviation and Air Taxi Activity Survey, CY 2002.

Active

Aircraft

Hours Flown
3-20 Aircraft Capacity and Utilization Factors

3.3.3 GA Capacity and Utilization

Table 3-15 shows the average capacity (in seats and gross weight) as well as the 

average percentage of seats occupied for each aircraft group. These data were tabulated 

from the NTSB accident record for the 1982 to 2003 time period. In this time period, 

there were 49,180 accidents and incidents with reported data on aircraft seating capacity 

and 52,229 accidents and incidents with gross weight data. This period was selected to 

provide a large number of observations. It assumes that number of seats, occupants, 

and gross weight of accident aircraft apply to the population of aircraft within each 

group. The average GA aircraft has about 3.7 seats and flies about half full. It should 

be noted that the jet category of more than 65,000 hours includes airline-type aircraft 

that were flown under Part 91.

Table 3-15: GA Capacity and Utilization

1 2 3

Certification

Average

Seats

Occupied

Percent

of Seats

Occupied

Average

Gross

Weight

1 Piston engine airplanes 1 to 3 seats (<=200hp) Part 23 1.8 76.3% 1,414

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 1.8 78.2% 3,011

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) Part 23 4.3 43.1% 2,556

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 4.4 48.8% 2,748

5 Piston engine airplanes 4 to 9 seats multiengine Part 23 5.9 43.1% 6,252

6 Piston engine airplanes 10 or more seats Part 23 13.4 36.1% 9,826

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 1.8 77.8% 6,334

8 Turboprop airplanes 1 to 9 seats multiengine Part 23 6.1 47.7% 11,411

9 Turboprop airplanes 10 to 19 seats Part 23 13.1 45.5% 11,414

10 Turboprop airplanes 20 or more seats Part 25 25.4 45.3% 18,478

11 Turbojet/Turbofan airplanes <=12,500 lbs Part 23/25 5.2 51.2% 8,413

12 Turbojet/Turbofan airplanes >12,500 lbs and <= 65,000 lbs Part 25 9.0 43.8% 22,847

13 Turbojet/Turbofan airplanes >65,000 lbs Part 25 108.0 28.2% 279,474

14 Rotorcraft piston <=6,000 lbs Part 27 2.4 66.4% 1,863

15 Rotorcraft turbine <=6,000 lbs Part 27 4.9 49.8% 3,507

16 Rotorcraft piston >6,000 lbs Part 29 5.2 27.7% 12,881

17 Rotorcraft turbine >6,000 lbs Part 29 6.8 40.7% 10,997

18 Other 2.6 38.1% 1,387

19 All 3.7 52.7% 3,384

Note: Only data reported for accidents that were operating under Part 91, 125, 133, 135, and 137 are included.

Col 1: Average (weighted) number of seats for aircraft in NTSB accident and incident data from 1982 to 2003.

Col 2: Number of seats divided by number of passengers.

Col 3: Weighted average gross weight.

Economic Values Category

Source: GRA analysis of NTSB accident and incident data for the 1982 to 2003 time period.
Aircraft Capacity and Utilization Factors 3-21

3.3.4 Alternate Estimate of Air Taxi Hours

Table 3-16 shows an alternative estimate of air taxi hours flown using FAA data 

that report the number of aircraft that are authorized to conduct on-demand operations 

under Part 135 and the activity data from the CY 2002 GA Survey. Using this method 

produces an estimate of 1.7 million hours for on-demand Part 135 operations. This can 

be contrasted with the 1.3 million “air taxi” or 1.9 million Part 135 hours tabulated from 

the GA Survey. There is uncertainty about the actual levels of on-demand Part 135 

activity. Analysts can consult APO-110 staff analysts to get further information on Part 

135 activity.

Table 3-16: Alternate Estimate of Air Taxi Hours Flown

1 2 3 4 5

Aircraft Type Unique

Aircraft

Average

Annual 

Total Hours

Estimated

Annual

Total Hours

Average

Annual

Air Taxi Hours

Estimated

Annual

Air Taxi Hours

Single-Engine Piston 2,246 148.5 333,605 51.0 114,473

Multiengine Piston 2,670 281.3 750,959 209.8 560,167

Turboprop 1,762 388.4 684,420 267.7 471,748

Jet 2,163 316.1 683,710 141.6 306,342

Rotorcraft Piston 165 239.6 39,541 36.1 5,959

Rotorcraft Turbine 2,065 330.1 681,685 94.9 195,984

Other 1 51.0 51 6.2 6

Total 11,072 3,173,971 1,654,679

Col 1: Total unique aircraft in FAA Operating Specification Subsystem, by aircraft type.

Col 2: Average annual hours from GA Survey.

Col 3: Column 1 multiplied by column 2.

Col 4: Average annual air taxi hours from GA Survey, by aircraft type.

Col 5: Column 1 multiplied by column 4.

Source: Unique aircraft from FAA Operating Specification Subsystem (Data as of July 2001); 

average total and air taxi hours from 2002 GA Survey.
3-22 Aircraft Capacity and Utilization Factors

3.4 MILITARY AIRCRAFT

Military aircraft can impact FAA investment decisions because they utilize the 

resources in the national airspace system. The data sources for the U.S. military aircraft 

fleet came from the 2002 Aviation and Aerospace Almanac produced by McGraw-Hill. 

Data on annual hours flown by aircraft type were obtained from the military services 

either via the worldwide web or through telephone interviews with relevant officials. 

Data were divided into the same categories as were used in the prior economic values 

publication (FAA-APO-98-8). As shown in Table 3-17, the total military fleet contains 

almost 16,000 aircraft. These aircraft average almost 400 hours a year in flight time. The 

largest aircraft category is rotary wing aircraft. The aircraft types with the largest 

average annual hours flown are turbojet and turbofan aircraft with three or more 

engines. These typically are transports, tankers, or surveillance aircraft.

Table 3-17: U.S. Military Fleet and Utilization Levels

(Average Weighted by Fleet)

1 2 3

Aircraft Type Total

Fleet

Average Annual

Flight Hours

Per Aircraft

Total

Flight Hours

Piston 3 N/A N/A

Rotary Wing Aircraft 7,125 297 2,117,609

Turbojet/fan 3+ Engines 1,167 995 1,160,763

Turbojet/fan Attack/Fighter 4,051 323 1,309,960

Turbojet/fan Other 1,587 452 717,209

Turboprop 2,017 487 981,308

Other 22 N/A N/A

N/A 2 N/A N/A

Total 15,974 394 6,286,849

Col 1: Total number of aircraft (by aircraft type) in military service.

Col 2: Average annual flight hours, weighted by fleet.

Col 3: Total flight hours.

Source: Fleet data from Aviation and Aerospace Almanac, McGraw-Hill, 2002. Hours 

per aircraft from military services.
Aircraft Operating Costs 4-1

SECTION 4: AIRCRAFT OPERATING COSTS

4.1 INTRODUCTION

This section provides estimates of variable and fixed aircraft operating costs. 

Aircraft variable operating costs are important factors in the evaluation of FAA 

investment and regulatory programs that concern the time spent in air transportation. 

The variable operating costs of aircraft affect aircraft operators directly and users of air 

service indirectly in the form of higher or lower fares or taxes. Fixed aircraft costs may 

also be important in evaluating the effects of FAA investment and regulatory programs 

that affect fleet size, cause aircraft to be more productive, or cause aircraft to be out of 

service for extended periods of time.

To put airline costs in perspective, this section first shows the relationship of 

aircraft operating costs to total airline operating costs and then presents another 

disaggregation of total airline costs. After this, aircraft operating costs are presented in 

more detail. Costs in this section are shown for large air carrier, general aviation and 

military equipment types. Data are presented for aircraft categories identical to those in 

Section 3. More detailed data are provided in tables available on the APO website 

(www.faa.gov/regulations_policies/policy_guidance/benefit_cost/) Summary data 

are weighted by block or airborne hours. 

Cost data are defined for air carrier and general aviation aircraft as variable or 

fixed. Variable costs change in proportion to aircraft usage, and include fuel and oil, 

maintenance and crew costs.37 Fixed costs show little or no change in proportion to 

changes in activity. For example, in the short-term, a change in activity may not affect 

an operator’s decision about a specific aircraft or fleet of aircraft. In the longer-term, the 

operator could change its fleet and ownership costs. 

There are two estimates of fixed costs provided. The first is fixed accounting 

charges including depreciation, insurance, and rental charges reported by carriers in 

Forms 41 and 298-C, or which have been estimated for GA aircraft. The second is 

provided for commercial aircraft only. If an FAA initiative improves system efficiency, 

an operator may be able to provide the same service with fewer aircraft; alternatively, 

an FAA initiative may cause aircraft to be out of service or to be removed from the fleet 

entirely. In either case, an estimate of the benefit or cost to the carrier of an FAA 

initiative would include the carrier’s opportunity costs—the value of the aircraft in its 

 

37 Some analysts assume that crew costs are fixed in the short run; this is especially the case for entities 

that operate one or a small number of aircraft.
4-2 Aircraft Operating Costs

next best use. One immediate alternative use of an aircraft might be to lease it out to 

another operator. Since there is a well-defined market for operating (short-term) leases 

for most aircraft types, one can use the average monthly lease rate as a good proxy for 

the benefit or cost over a defined period of time. 

4.1.1 Average Versus Incremental Cost

By necessity, the operating cost data presented in this chapter represent average 

costs. Cost categories such as ownership costs are reported separately so they can be 

included or excluded in a specific analysis. However, economists typically look at the 

concept of incremental costs (i.e., the changes in costs from small changes in levels of 

activity). Incremental costs may differ from the average costs used in this chapter, but

the data from Form 41 and other sources using average costs are well-accepted industry 

standards. Analysts are cautioned, however, that average costs may not always be the 

most appropriate measure. 

4.1.2 Change in Industry Structure and Implications for Airline Operating 

Cost Trends

The U.S. airline industry has undergone considerable financial restructuring 

following the events of September 11, 2001. This, coupled with a shift in the business 

cycle, caused severe losses for U.S. air carriers, and a situation where the supply of seats 

in the industry well exceeded demand at existing price levels. In response, carriers 

reduced fares to maintain traffic levels, or took aircraft out of service. This in turn 

reduced airline revenues and caused carriers to enter into significant cost reduction 

programs. Some carriers reorganized their finances and obligations through the 

bankruptcy process. During this time, the “old line” carriers actually reduced their 

level of output while the “low cost carriers” increased market share. 

Because the Form 41 data represent aggregations across the industry, these 

trends in reduced costs by carrier and a change in the composition of the industry likely 

have had some impact on average hourly aircraft operating costs and are likely to 

continue to do so at least in the near future. Readers are cautioned that the values 

reported below were developed during a period of industry restructuring. As such, not 

all cost or fleet changes are reflected in the reported data. 

4.1.3 Direct and Indirect Costs

Table 4-1 shows direct and indirect operating expenses for major air carriers.38 

As can be seen, direct costs are below 50 percent of total costs for major air carriers. The 

direct costs will be examined in more detail below. However, this table provides a 

 

38 Major air carriers are those with annual revenues of more than $1 billion; direct and indirect costs are 

categories used on Schedule P.7 of Form 41.
Aircraft Operating Costs 4-3

perspective on overall carrier costs and the relative magnitudes of each category of 

costs. Industry costs for carriers filing Schedule P-7 of Form 41 totaled $104.8 billion in 

2002. Overall, the average total operating cost per block hour for these air carriers was 

$7,126 in 2002.

Table 4-1: Major Carrier Costs – Direct and Indirect Costs

Year 2002

Category Costs

(US$millions) Percent

Cost Per

Block

Hour

Cost Per

Airborne

Hour

Total Crew Cost $11,965 11.42% $814 $963

Total Fuel & Oil $11,264 10.75% $766 $907

Total Maintenance $10,538 10.06% $717 $848

Total Rentals $5,877 5.61% $400 $473

Total Depreciation $4,275 4.08% $291 $344

Total Insurance $273 0.26% $19 $22

Other Costs $2,375 2.27% $162 $191

Total Direct $46,567 44.45% $3,168 $3,749

Passenger Service Expense $9,685 9.24% $659 $780

Aircraft Service Expense $6,593 6.29% $448 $531

Traffic Service Expense $11,431 10.91% $778 $920

Reservations and Sales Expense $7,447 7.11% $507 $600

Administration and Publicity Expense $8,708 8.31% $592 $701

Maintenance And Depreciation Ground $2,589 2.47% $176 $208

Depreciation Expense - Maintenance Equip $223 0.21% $15 $18

Amortization (Non-Flight Equipment) $319 0.30% $22 $26

Service Sales and General Operating Expenses $46,995 44.86% $3,197 $3,784

Transport Related Expenses $11,202 10.69% $762 $902

Total Indirect $58,198 55.55% $3,959 $4,686

Total Operating Expenses $104,765 100.00% $7,126 $8,435

Note: Part 25 aircraft unless otherwise noted.

These costs figures are from Schedule P-7 - Operating Expenses by Functional Grouping. 

The total includes all Major Scheduled Passenger and Other Carriers with the exception of DHL which did not file a P7 in the last three quarters of 2002. 

Table 4-2 shows air carrier costs per block hour by objective grouping.39 These 

data are divided into passenger and all cargo carriers and then into the groupings of 

Major, National, and Regional carriers.40 In general, all cargo carriers have higher total 

block hour costs than passenger carriers. As can be seen, transport-related expenses are 

a large proportion of total costs for Major and National all cargo air carriers.

 

39 The block hour data in Tables 4-1 and 4-2 are not directly comparable because there are different 

groupings of carriers (e.g., Table 4-1 contains data for both passenger and all cargo carriers.)

40 Major air carriers have annual revenues of more than $1 billion; national carriers have annual revenues 

of more than $100 million.
4-4 Aircraft Operating Costs

Table 4-2: Large Air Carrier Operating Expenses per Block Hour 

by Objective Groupings

Year 2002

4.2 AIR CARRIER AIRCRAFT OPERATING COST DATA

Cost data for air carriers were derived from Bureau of Transportation Statistics 

(BTS) Form 41 and Form 298-C data. Form 41 data cover large air carriers (generally 

those with annual revenues of at least $100 million).41 Form 298-C data cover smaller 

air carriers (generally smaller carriers operating under FAR 121 and/or FAR 135) and 

were available for the 12-month period ending September 2001.42 Table 4-3 shows 

aggregate average aircraft operating cost per block hour and activity data for Part 121 

and Part 135 air carriers. Part 135 air carriers represent a very small proportion of the 

air carrier industry.43 This table includes all carriers that report on either Form 41 or 

Form 298-C. However, because certain carriers provide different levels of information, 

the data in the sections that follow are presented in three groups:

 

41 Some carriers have exemptions from reporting Form 41 data.

42 Data were incomplete for later periods, and reporting requirements changed in 2002, making it 

impossible to develop a consistent and useful database for later periods. In addition, service was 

disrupted by September 11, 2001 terrorist acts, and made the period ending with the September 2001 

quarter perhaps the least disrupted period to use for this study. While one quarter of the year chosen 

was affected, two or more quarters after the September 2001 quarter were seriously disrupted.

43 Regulatory changes in the late 1990s caused many carriers to shift from Part 135 to Part 121.

Total 

Majors Nationals Regionals Majors Nationals Regionals Carriers

General Management Personnel $30 $44 $197 $82 $103 $131 $37

Flight Personnel $816 $329 $563 $935 $454 $349 $751

Maintenance Labor $238 $94 $165 $663 $156 $156 $245

Aircraft and Traffic Handling $480 $183 $68 $576 $69 $95 $439

Other Personnel $252 $89 $83 $380 $279 $88 $238

Total Salaries $1,817 $739 $1,076 $2,636 $1,060 $820 $1,710

Total Fringe Benefits $768 $256 $466 $824 $428 $327 $696

Total Salaries and Benefits $2,584 $995 $1,541 $3,459 $1,487 $1,147 $2,406

Total Materials $1,136 $617 $1,473 $1,891 $2,551 $1,407 $1,133

Total Services $1,131 $701 $1,255 $1,213 $1,433 $1,214 $1,083

Landing Fees $138 $73 $384 $222 $193 $29 $136

Rentals $570 $510 $928 $1,038 $1,060 $568 $598

Depreciation $362 $98 $196 $872 $577 $328 $361

Amortization $42 $4 $9 $19 $74 $10 $35

Other $120 $141 $424 $1,094 -$101 $336 $186

Transport Related Expenses $291 $17 $4 $6,502 $2,304 $82 $670

Total Operating Expenses $6,375 $3,156 $6,215 $16,311 $9,579 $5,113 $6,609

Total Non-Operating Expenses $70 $110 $274 $378 $264 $52 $98

Total Expenses $6,445 $3,267 $6,489 $16,689 $9,844 $5,164 $6,707

Note: Part 25 aircraft unless otherwise noted.

The Operating Expenses come directly from DOT Schedule P6 "Operating Expense by Objective Grouping." 

The "Other Information" is from DOT Schedule P1.2 "Statement of Operations" and DOT Schedule T-2 "Traffic Statistics."

Expense Category Passenger All Cargo
Aircraft Operating Costs 4-5

Large Form 41

Regional Form 41

Form 298-C

For Part 121 air carriers, average variable aircraft operating costs are $2,103 and average 

total costs are $2,766 per block hour. Comparable costs for Part 135 aircraft are $287 and 

$377 per block hour, respectively. Data are shown for the following categories of cost 

for each equipment type:

Crew: Includes flight deck crew.

Fuel and Oil: Aircraft fuel and oil costs are the dollar value of stocks issued 

for flight operations.

Maintenance: Maintenance costs include labor, parts, materials, and burden 

for aircraft and engine maintenance.

Rentals: The amortization (for capital leases) and rental charges (for 

operating leases) for fixed assets are recorded in this category. Air carriers 

that file on Form 298-C do not report separate amounts for rentals and 

amortization.

Depreciation: Depreciation measures the consumption of a fixed asset over 

its life, due to use and time. Depreciation charges recorded by air carrier 

flight equipment, engines and related equipment are included in this 

category. Depreciation is based on the historical cost of the aircraft.

Insurance: These are charges typically paid by coverage that indemnifies 

operators for accidents.

Other: Insurance costs are reported as “other” costs in Form 298-C.44, 45

The variable operating costs in each table are comprised of Fuel and Oil, Total 

Maintenance, and Crew. Selected ownership costs are those most closely related to the 

carrier’s cost of ownership of the aircraft, namely depreciation, amortization, rentals, 

and insurance.

 

44 See Part 298.63 reporting requirements for complete definitions.

45 “Other” is defined as including “general (hull) insurance and all other expenses incurred in the in-flight 

operation of aircraft and holding of aircraft and aircraft operational personnel in readiness for assignment 

to in-flight status, which are not provided for otherwise in this schedule.” See Part 298.63(d)(l)(iii).
4-6 Aircraft Operating Costs

1 2 3 4 5 6 7 8 9

Average

Variable

Costs

Per

Block

Hour

Average

Total

Costs

Per

Block

Hour

Total

Block

Hours*

Average

Variable

Costs

Per

Block

Hour

Average

Total

Costs

Per

Block

Hour

Total

Block

Hours*

Average

Variable

Costs

Per

Block

Hour

Average

Total

Costs

Per

Block

Hour

Total

Block

Hours*

Two-Engine Narrow-Body $1,894 $2,456 11,512,186 NR NR NR $1,894 $2,456 11,512,186

Two-Engine Wide-Body $3,343 $4,403 2,191,418 NR NR NR $3,343 $4,403 2,191,418

Three-Engine Narrow-Body $3,723 $4,459 409,095 NR NR NR $3,723 $4,459 409,095

Three-Engine Wide-Body $4,501 $6,359 593,434 NR NR NR $4,501 $6,359 593,434

Four-Engine Narrow-Body $4,908 $6,177 92,226 NR NR NR $4,908 $6,177 92,226

Four-Engine Wide-Body $5,945 $8,054 437,135 NR NR NR $5,945 $8,054 437,135

Regional Jet under 70 seats $728 $1,055 1,683,830 $661 $1,657 790 $728 $1,055 1,684,620

Regional Jet 70 to 100 seats $1,139 $1,707 102,049 NR NR NR $1,139 $1,707 102,049

Turboprops under 20 seats (Part 23) $560 $719 317,961 $424 $580 61,638 $538 $697 379,599

Turboprops under 20 seats (Part 25) $710 $1,027 25,545 NR NR NR $710 $1,027 25,545

Turboprops with 20 or more seats $649 $914 912,817 $728 $973 6,902 $650 $914 919,719

Piston Engine (Part 23) $316 $371 32,153 $225 $283 188,474 $238 $296 220,627

Piston Engine (Part 25) $1,784 $1,809 14,891 $51 $71 133 $1,769 $1,793 15,024

Total $2,103 $2,766 18,324,740 $287 $377 257,937 $2,078 $2,733 18,582,677

Note: Part 25 aircraft unless otherwise noted.

Col 4: Average variable cost (weighted by block hours) for Alaskan and Non-Alaskan Part 135 operators.

Col 5: Average total cost (weighted by block hours) for Alaskan and Non-Alaskan Part 135 operators.

Col 6: Total block hours for Alaskan and Non-Alaskan Part 135 operators.

Col 3: Total block hours for large passenger and air freight Form 41 operators, regional passenger and air freight Form 41 operators, Alaskan and 

Non-Alaskan Part 121 operators.

Col 7: Average variable cost (weighted by block hours), combined data for large passenger and air freight Form 41 operators, regional passenger and 

air freight Form 41 operators, and Alaskan and Non-Alaskan (Part 121 and Part 135) operators.

Col 8: Average total cost (weighted by block hours), combined data for large passenger and air freight Form 41 operators, regional passenger and air 

freight Form 41 operators, and Alaskan and Non-Alaskan (Part 121 and Part 135) operators.

Col 9: Total block hours, combined data for large passenger and air freight Form 41 operators, regional passenger and air freight Form 41 operators, 

and Alaskan and Non-Alaskan (Part 121 and Part 135) operators.

Source: Form 41 and Form 298

*Note: Form 41 Carriers Utilization Hours are slightly lower in Chapter 4 from the numbers reported in Chapter 3 because costs are not reported for 

all aircraft.

Col 1: Average variable cost (weighted by block hours), combined data for large passenger and air freight Form 41 operators, regional passenger and 

air freight Form 41 operators, Alaskan and Non-Alaskan Part 121 operators.

Col 2: Average total cost (weighted by block hours), combined data for large passenger and air freight Form 41 operators, regional passenger and air 

freight Form 41 operators, Alaskan and Non-Alaskan Part 121 operators.

Economic Values Category

Part 121

(Form 41 and 298-C carriers)

Part 135

(298-C Carriers)

Total

(Part 121 + Part 135)

Table 4-3: Summary Air Carrier Average Aircraft Operating Costs 

and Block Hours

Block hours are the common industry measure for presenting operating cost data 

and are used in this report. Tables are also provided on the APO website for costs 

broken down by airborne hours. Analysts using the data need to identify the 

appropriate value, block or airborne hours. (Section 6 discusses cost by phase of flight, 

which divides elapsed block times into component flight segments.) Variable costs 

include all aircraft operating cost elements, except rentals, depreciation and insurance. 

This provides an industry-wide perspective for passenger and all cargo operators 

combined. 
Aircraft Operating Costs 4-7

4.2.1 Large Form 41 Passenger and All-Cargo Cost Per Block Hour 

Table 4-4 summarizes variable and fixed costs per block hour for large passenger 

(Form 41) air carriers. Total operating costs average $2,741 per block hour while 

variable costs average $2,100 per block hour. On average, each category—crew, fuel 

and oil, maintenance and ownership, insurance—comprise about one-fourth of total 

operating costs. Two-engine wide-body and narrow-body aircraft along with regional 

jets with less than 70 seats are the groups that comprise the majority of activity, 

measured in block hours. 

Table 4-4: Large (Form 41) Passenger Part 121 Air Carrier Operating and Fixed 

Costs Per Block Hour

1 2 3 4 5 6 7 8 9 10

Crew Fuel

& Oil

Total

Maintenance

Total

Variable

Costs

Rentals Depreciation Insurance

Total

Fixed

Costs

Total

Costs

Block

Hours

Two-Engine Narrow-Body $674 $616 $589 $1,879 $357 $180 $15 $552 $2,432 11,353,179

Two-Engine Wide-Body $1,120 $1,225 $941 $3,285 $409 $509 $31 $949 $4,234 1,878,384

Three-Engine Narrow-Body $1,196 $807 $496 $2,499 $79 $390 $9 $478 $2,976 170,762

Three-Engine Wide-Body $1,369 $1,753 $1,363 $4,485 $723 $1,259 $46 $2,027 $6,512 255,679

Four-Engine Narrow-Body NR NR NR NR NR NR NR NR NR NR

Four-Engine Wide-Body $1,941 $2,455 $1,655 $6,051 $1,275 $784 $42 $2,102 $8,153 321,888

Regional Jet under 70 seats $235 $304 $208 $748 $203 $102 $7 $312 $1,060 933,530

Regional Jet 70 to 100 seats $353 $443 $343 $1,139 $448 $70 $50 $567 $1,707 102,049

Turboprops under 20 seats (Part 23) NR NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 25) NR NR NR NR NR NR NR NR NR NR

Turboprops with 20 or more seats $266 $147 $562 $975 $330 $56 $7 $393 $1,369 270,929

Piston Engine (Part 23) NR NR NR NR NR NR NR NR NR NR

Piston Engine (Part 25) NR NR NR NR NR NR NR NR NR NR

All Aircraft $737 $722 $641 $2,100 $377 $246 $17 $640 $2,741 15,286,400

Source: BTS Form 41 for year-end 2002. Also Schedule P5.2.

Note: Part 25 aircraft unless otherwise noted.

Col 1: Total flight deck (pilot) costs divided by total block hours.

Col 2: Cost of total fuel and oil consumed divided by total block hours.

Col 3: Airframe and Engine Maintenance, plus overhead (burden).

Col 4: Columns 1+2+3.

Col 5: Total amortization (for capital leases) and rental charges (for operating leases) divided by total block hours.

Col 6: Total depreciation charges divided by block hours.

Col 7: Total insurance costs divided by total block hours.

Col 8: Columns 5+6+7.

Col 9: Columns 4+8.

Col 10: Block hours reported in Form 41.

NR: None reported

Economic Values Category

Per Block Hour
4-8 Aircraft Operating Costs

Table 4-5 reports operating cost data for Form 41 all-cargo airlines. Many of 

these aircraft have been converted to all-cargo configurations from passenger aircraft. 

Total operating costs average $5,922 per block hour while variable costs average $4,339 

per block hour. No smaller aircraft are reported by large all cargo carriers, which raises 

the average cost per block hour. As above, each of the major categories comprises about 

one-fourth of total operating costs.

Table 4-5: Large (Form 41) Air Cargo Carrier Operating 

and Fixed Costs Per Block Hour

1 2 3 4 5 6 7 8 9 10

Crew Fuel

& Oil

Total

Maintenance

Total

Variable

Costs

Rentals Depreciation Insurance

Total

Fixed

Costs

Total

Costs

Block

Hours

Two-Engine Narrow-Body $1,339 $886 $1,068 $3,293 $105 $1,082 $97 $1,284 $4,577 116,769

Two-Engine Wide-Body $1,366 $1,180 $1,133 $3,679 $1,113 $640 $89 $1,842 $5,521 276,283

Three-Engine Narrow-Body $1,894 $891 $2,171 $4,956 $311 $646 $42 $998 $5,955 190,932

Three-Engine Wide-Body $1,353 $1,663 $1,396 $4,412 $1,196 $491 $60 $1,746 $6,158 327,390

Four-Engine Narrow-Body $1,292 $1,713 $1,904 $4,908 $360 $829 $79 $1,268 $6,177 92,226

Four-Engine Wide-Body $1,182 $2,909 $1,545 $5,636 $1,226 $862 $48 $2,136 $7,772 105,813

Regional Jet under 70 seats $267 $480 $573 $1,320 $0 $601 $119 $720 $2,040 8,842

Regional Jet 70 to 100 seats NR NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 23) NR NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 25) NR NR NR NR NR NR NR NR NR NR

Turboprops with 20 or more seats NR NR NR NR NR NR NR NR NR NR

Piston Engine (Part 23) NR NR NR NR NR NR NR NR NR NR

Piston Engine (Part 25) NR NR NR NR NR NR NR NR NR NR

All Aircraft $1,417 $1,443 $1,479 $4,339 $835 $680 $69 $1,583 $5,922 1,118,255

Note: Part 25 aircraft unless otherwise noted.

Col 7: Total insurance costs divided by total block hours.

Col 8: Columns 5+6+7.

Col 9: Columns 4+8.

Col 10: Block hours reported in Form 41.

Col 3: Airframe and Engine Maintenance, plus overhead (burden).

Col 4: Columns 1+2+3.

Col 5: Total amortization (for capital leases) and rental charges (for operating leases) divided by total block hours.

Col 6: Total depreciation charges divided by block hours.

Source: BTS Form 41 for year-end 2002. Also Schedule P5.2.

NR: None reported

Col 1: Total flight deck (pilot) costs divided by total block hours.

Col 2: Cost of total fuel and oil consumed divided by total block hours.

Economic Values Category

Per Block Hour
Aircraft Operating Costs 4-9

1 2 3 4 5 6 7 8 9 10

Economic Values Category Crew Fuel

& Oil

Flight Ops

Other

(Except

Rentals)

Total

Flight

Ops

(Except

Rentals)

Maintenance

Flight Equip

Deprec

& Rental

Flight

Equip

Flight

Equip

Expenses

Total

Flight

Operations 

Plus

Maintenance

Total

Cost

Block

Hours

Two-Engine Narrow-Body $279 $745 $423 $1,447 $525 $1,087 $1,612 $1,972 $3,059 42,238

Two-Engine Wide-Body $501 $1,012 $791 $2,305 $857 $1,082 $1,940 $3,162 $4,244 2,129

Three-Engine Narrow-Body $613 $1,361 $893 $2,867 $749 $708 $1,457 $3,616 $4,324 16,095

Three-Engine Wide-Body $762 $1,668 $3,198 $5,628 $2,764 $1,161 $3,926 $8,392 $9,553 8,951

Four-Engine Narrow-Body NR NR NR NR NR NR NR NR NR NR

Four-Engine Wide-Body NR NR NR NR NR NR NR NR NR NR

Regional Jet under 70 seats NR NR NR NR NR NR NR NR NR NR

Regional Jet 70 to 100 seats NR NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 23) NR NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 25) NR NR NR NR NR NR NR NR NR NR

Turboprops with 20 or more seats NR NR NR NR NR NR NR NR NR NR

Piston Engine (Part 23) NR NR NR NR NR NR NR NR NR NR

Piston Engine (Part 25) NR NR NR NR NR NR NR NR NR NR

All Aircraft $426 $1,015 $901 $2,342 $876 $1,008 $1,884 $3,218 $4,226 69,413

Col 5: Total for maintenance of flight equipment divided by total block hours.

Col 6: Total depreciation and flight equipment rental expenses divided by block hours.

Col 1: Total flight deck (pilot) costs divided by total block hours.

Col 2: Cost of total fuel and oil consumed divided by total block hours.

Col 4: Columns 1+2+3.

Col 9: Columns 4+7.

Col 10: Block hours reported in Form 41.

Col 7: Columns 5+6.

Col 8: Columns 4+5.

Col 3: Total of all other flight operations expenses (except rentals) divided by total block hours.

Source: BTS Form 41 for year-end 2002. Also Schedule P5.1

Note: Part 25 aircraft unless otherwise noted.

4.2.2 Form 41 Passenger and All-Cargo Regional Carriers Cost Per Block 

Hour

Table 4-6 presents operating cost per block hour data for regional passenger 

carriers that file Form 41. These carriers report in a different format than the large 

Form 41 carriers. All of the activity is comprised of two- and three-engine narrow- and 

wide-body aircraft. The average total cost per block hour is $4,226, while the variable 

cost46 per block hour is $3,218. 

Table 4-6: Regional (Form 41) Passenger Air Carrier Operating and Fixed Costs 

Per Block Hour

 

46 To maintain compatibility with large Form 41 carriers, we define variable costs to be the sum of total 

flight operations plus maintenance.
4-10 Aircraft Operating Costs

Table 4-7 presents similar data for regional all-cargo carriers that file Form 41. 

These carriers report data for small aircraft. The average total aircraft cost per block 

hour is $3,938, while the average total flight operations plus maintenance cost is $3,235. 

Two-engine wide-body and three-engine narrow-body aircraft together comprise about 

62 percent of the total block hours.

Table 4-7: Regional (Form 41) Air Freight Carrier Operating and Fixed Costs

Per Block Hour

1 2 3 4 5 6 7 8 9 10

Economic Values Category

Crew

Pilots

Only

Fuel

& Oil

Flight Ops

Other

(Except

Rentals)

Total

Flight

Ops

(Except

Rentals)

Maintenance

Flight Equip

Deprec

& Rental

Flight

Equip

Flight

Equip

Expenses

Total

Flight

Operations 

Plus

Maintenance

Total

Cost

Block

Hours

Two-Engine Narrow-Body NR NR NR NR NR NR NR NR NR NR

Two-Engine Wide-Body $590 $1,277 $348 $2,215 $1,615 $781 $2,396 $3,830 $4,611 34,622

Three-Engine Narrow-Body $483 $1,167 $328 $1,978 $962 $556 $1,517 $2,940 $3,496 31,306

Three-Engine W ide-Body $663 $2,068 $92 $2,823 $763 $1,170 $1,933 $3,585 $4,755 1,414

Four-Engine Narrow-Body NR NR NR NR NR NR NR NR NR NR

Four-Engine W ide-Body $570 $2,465 $1,047 $4,082 $1,711 $2,034 $3,745 $5,793 $7,828 9,434

Regional Jet under 70 seats NR NR NR NR NR NR NR NR NR NR

Regional Jet 70 to 100 seats NR NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 23) $80 $77 $58 $214 $44 $138 $182 $259 $397 1,482

Turboprops under 20 seats (Part 25) NR NR NR NR NR NR NR NR NR NR

Turboprops with 20 or more seats $933 $920 $161 $2,014 $1,749 $1,054 $2,803 $3,764 $4,818 9,076

Piston Engine (Part 23) $106 $134 $20 $260 $169 $18 $187 $429 $447 5,375

Piston Engine (Part 25) $280 $699 $72 $1,051 $733 $18 $751 $1,784 $1,802 14,653

All Aircraft $514 $1,177 $326 $2,017 $1,219 $702 $1,921 $3,235 $3,938 107,362

Note: Part 25 aircraft unless otherwise noted.

Col 5: Total for maintenance of flight equipment divided by total block hours.

Col 6: Total depreciation and flight equipment rental expenses divided by block hours.

Col 9: Columns 4+7.

Col 10: Block hours reported in Form 41.

Col 7: Columns 5+6.

Col 8: Columns 4+5.

Col 1: Total flight deck (pilot) costs divided by total block hours.

Col 2: Cost of total fuel and oil consumed divided by total block hours.

Col 4: Columns 1+2+3.

Col 3: Total of all other flight operations expenses (except rentals) divided by total block hours.

Source: BTS Form 41 for year-end 2002. Also Schedule P5.1
Aircraft Operating Costs 4-11

4.2.3 Alaska and Non-Alaska 298C Cost Per Block Hour

Table 4-8 provides data for Part 298-C carriers in Alaska, which have a unique 

operating environment. The average total aircraft cost per block hour is $467, while the 

average variable costs are $359 per block hour. These carriers operate mostly Part 23 

aircraft. 

Table 4-8: Alaskan Form 298-C Operating and Fixed Cost Per Block Hour

1 2 3 4 5 6 7 8 9

Economic Values Category Crew 

Expense

Fuel & 

Oil Maintenance 

Total 

Variable 

Costs

Depreciation 

Rental Other 

Total 

Fixed 

Costs 

Total 

Costs

Total 

Block 

Hours

Two-Engine Narrow-Body NR NR NR NR NR NR NR NR NR

Two-Engine Wide-Body NR NR NR NR NR NR NR NR NR

Three-Engine Narrow-Body NR NR NR NR NR NR NR NR NR

Three-Engine Wide-Body NR NR NR NR NR NR NR NR NR

Four-Engine Narrow-Body NR NR NR NR NR NR NR NR NR

Four-Engine Wide-Body NR NR NR NR NR NR NR NR NR

Regional Jet under 70 seats $239 $308 $367 $914 $475 $48 $523 $1,437 2,395

Regional Jet 70 to 100 seats NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 23) $127 $142 $199 $468 $120 $41 $161 $629 106,024

Turboprops under 20 seats (Part 25) NR NR NR NR NR NR NR NR NR

Turboprops with 20 or more seats $235 $243 $412 $890 $190 $52 $242 $1,132 25,263

Piston Engine (Part 23) $75 $62 $95 $232 $35 $25 $60 $292 209,742

Piston Engine (Part 25) $315 $226 $1,247 $1,788 $320 $104 $425 $2,213 238

Alaskan Total $104 $102 $153 $359 $76 $32 $108 $467 343,662

Note: Part 25 aircraft unless otherwise noted.

Source: Tabulated by GRA from Form 298 filings for the four quarters ending September 30, 2001.

Col 1: Total flight deck (pilot) costs divided by total block hours.

Col 2: Cost of total fuel and oil consumed divided by total block hours.

Col 3: Total for maintenance costs divided by total block hours.

Col 4: Columns 1+2+3.

Col 5: Total depreciation and rental expenses divided by block hours.

Col 6: Other expenses divided by block hours.

Col 7: Columns 5+6.

Col 8: Columns 4+7.

Col 9: Block hours reported in Form 41.
4-12 Aircraft Operating Costs

Table 4-9 reports operating cost per block hour for all other Part 298-C carriers. 

Most of the activity for these carriers is by regional jets and large turboprop aircraft. 

These carriers have an average total aircraft cost per block hour of $878 and an average 

variable cost of $622 per block hour.

Table 4-9: Non Alaskan Form 298-C Operating and Fixed Costs Per Block Hour

More detailed information for airborne hours, type of operating authority, and 

detailed aircraft type is provided in web-based tables. 

4.3 GENERAL AVIATION OPERATING COSTS

4.3.1 Data Sources for Operating Costs

The primary source for the variable and fixed operating costs for general aviation 

aircraft was The Aircraft Cost Evaluator, published by Conklin and de Decker Associates, 

Inc.47 The following variable cost categories were obtained from The Aircraft Cost 

Evaluator for use in this study:

 

47 Conklin and de Decker Associates, Inc., The Aircraft Cost Evaluator (Orleans, MA, Spring, 2003).

1 2 3 4 5 6 7 8 9

Economic Values Category Crew

Expense

Fuel

& Oil Maintenance 

Total

Variable

Costs

Depreciation

Rental Other 

Total

Fixed

Costs 

Total

Costs

Total

Block

Hours

Two-Engine Narrow-Body NR NR NR NR NR NR NR NR NR

Two-Engine Wide-Body NR NR NR NR NR NR NR NR NR

Three-Engine Narrow-Body NR NR NR NR NR NR NR NR NR

Three-Engine Wide-Body NR NR NR NR NR NR NR NR NR

Four-Engine Narrow-Body NR NR NR NR NR NR NR NR NR

Four-Engine Wide-Body NR NR NR NR NR NR NR NR NR

Regional Jet under 70 seats $168 $286 $241 $695 $307 $34 $341 $1,036 739,853

Regional Jet 70 to 100 seats NR NR NR NR NR NR NR NR NR

Turboprops under 20 seats (Part 23) $126 $128 $314 $567 $140 $17 $157 $725 272,093

Turboprops under 20 seats (Part 25) $194 $288 $227 $710 $297 $21 $318 $1,027 25,545

Turboprops with 20 or more seats $189 $165 $204 $557 $163 $34 $197 $754 614,451

Piston Engine (Part 23) $74 $82 $106 $263 $28 $18 $46 $308 5,510

Piston Engine (Part 25) NR NR NR NR NR NR NR NR NR

Non-Alaskan Total $169 $214 $238 $622 $225 $31 $256 $878 1,657,585

Note: Part 25 aircraft unless otherwise noted.

Source: Tabulated by GRA from Form 298 filings for the four quarters ending September 30, 2001.

Note: "Sum of Unknown Types" and aircraft with 0 airborne hours not included

Col 1: Total flight deck (pilot) costs divided by total block hours.

Col 2: Cost of total fuel and oil consumed divided by total block hours.

Col 3: Total for maintenance costs divided by total block hours.

Col 4: Columns 1+2+3.

Col 9: Block hours reported in Form 41.

Col 5: Total depreciation and rental expenses divided by block hours.

Col 6: Other expenses divided by block hours.

Col 7: Columns 5+6.

Col 8: Columns 4+7.
Aircraft Operating Costs 4-13

Fuel

o Fuel (assuming fuel price of $2.51 per gallon for avgas and $2.41 for 

turbine fuel (Jet A)—costs obtained by Conklin and de Decker from 

Fillup Flyer Fuel Finder

o Fuel Additives 

o Lubricants

Maintenance

o Maintenance Labor

o Parts Airframe/Engine/Avionics

o Engine Restoration

o Thrust Reverser Overhaul

o Propeller Overhaul

o APU Overhaul

o Dynamic Components/Life Limited Parts

Crew Salaries (based on 2002 NBAA Salary Survey and other sources)

o Captain

o Co-pilot

o Flight Engineer/Other

o Benefits

Maintenance labor costs represent the average cost of routine, scheduled, and 

unscheduled maintenance labor. Labor hours are based on data from operator 

experience, manufacturer's data and surveys. Crew salaries are derived for each aircraft 

type from a recognized pilot salary survey, and benefits are typically an additional 30 

percent of wages. Salaries are counted for the entire crew, which depending on the 

aircraft type can consist of a captain, copilot and flight engineer. Crew salaries and 

benefits are divided by an estimated 356 flight hours per year in order to obtain hourly 

crew costs. The 356 flight hours is a weighted average derived from 2002 NBAA 

Compensation & Benchmark Survey48 about the typical annual flight hours of a pilot of 

large GA aircraft. The Aircraft Cost Evaluator also provided the following fixed costs:

Hangar

Insurance 

o Hull

o Admitted Liability

o Legal Liability

 

48 National Business Aviation Association, NBAA Compensation & Benchmark Survey (Washington, DC, 

2002).
4-14 Aircraft Operating Costs

Miscellaneous Overhead

o Recurrent Training

o Aircraft Modernization

o Navigation Chart Services

o Refurbishing

o Computerized Maintenance Management Program

o Weather Service

o Other Fixed Cost

o Fractional Cost/Year + Tax

The Aircraft Cost Evaluator provides different cost categories based on the type of 

operation for which an aircraft is used. It was assumed that piston and turboprops 

(groups 1-10) are used in business operations; turbojets (groups 11-13) are used in 

corporate operations; piston engine rotorcraft (groups 14 and 16) are used in utility 

operations; and turbine rotorcraft engine (groups 15 and 17) are used in commercial 

operations. Business operating costs from Conklin and de Decker assume that the 

aircraft is owner-flown and therefore no crew salaries are included as costs. However, 

for the purposes of economic analysis, the costs of pilot’s time should be considered in 

some circumstances. To allow for this, all piston engine and turboprop airplanes for 

which air taxi hours are a small percentage of total hours flown (i.e. all piston engine 

airplanes with fewer than 10 seats), it is assumed that the crew cost per hour equals the 

value of General Aviation Business travel time, or $45.0049 per hour. For the other 

groups that used business aircraft operating costs from Conklin and de Decker, it is 

assumed that crew costs are the same as those for aircraft used in corporate operations. 

For piston engine rotorcraft, air taxi hours are a small percentage of total hours flown. 

Therefore, it was assumed that the crew cost per hour equals the value of time ($45.00). 

The Aircraft Cost Evaluator was the primary source for the GA operating costs. 

However, since it did not cover all aircraft types in the FAA GA Survey, 

PlaneQuest.com50 was used as a secondary source. It was occasionally necessary to 

change assumptions (for example fuel cost) in order to make the estimated costs 

comparable to those obtained from Conklin and de Decker. Following are the variable 

operating cost categories obtained from PlaneQuest.com:

Fuel

o Fuel (assuming fuel price of $2.51 per gallon for avgas and $2.41 for 

turbine fuel)

o Oil

 

49 FAA, APO. Treatment of Values of Passenger Time in Economic Analysis, APO Bulletin, APO-03-1. (March 

2003)

50 http://www.planequest.com/operationcosts/default.asp
Aircraft Operating Costs 4-15

Maintenance

o Maintenance Cost

o Hourly Engine Reserve

o Propeller and Thrust Reverser Reserve

PlaneQuest.com does not provide the crew cost data so it was assumed that the crew 

costs for a specific aircraft type are the same as the crew cost for the majority of aircraft 

types found in the economic values category that the aircraft belongs to. Fixed 

operating costs obtained from PlaneQuest.com consist of:

Annual Insurance

Annual hangar/Tiedown

Training

4.3.2 Depreciation

In order to reflect general aviation aircraft ownership costs, estimates based on 

replacement costs were developed for this report. The large number of older GA 

aircraft in use and the fact that these aircraft are still bought and sold suggests that 

depreciation measures that divide original acquisition costs over a fixed time period 

may not be appropriate. One of the reasons why general aviation aircraft retain their 

value for a longer period of time is that these aircraft, especially older GA aircraft, get 

modernized, overhauled, fitted with new avionics, etc. In order to estimate 

depreciation that allows for these factors, the geometric depreciation method was used. 

This method assumes that each aircraft retains a fixed percentage of its current market 

value from year to year. The annual amount of depreciation is the change in this value 

for one year. It is based on the aircraft age and market value as shown below.

In this report we assume that aircraft retain 95 percent of their value from year to 

year.

Change in Value of Aircraft of age “t+1” = CMVt – CMVt (R)

where:

CMV = Current market value for aircraft of age “t”

R = Remaining value percentage

To illustrate, assume an aircraft is worth $1,000,000 at age “t”. In the following 

year, at age of “t+1”, the aircraft retains 95 percent of its market from the previous year. 

Thus, the annual change in value or depreciation is $50,000 ($1,000,000 - $1,000,000 

(0.95)). Figure 4-1 illustrates retained value curve for aircraft of various ages.
4-16 Aircraft Operating Costs

Figure 4-1: Geometric Depreciation – Annual Depreciation Amount Over Time

(aircraft retains 95% of its value each year)

-

10,000

20,000

30,000

40,000

50,000

1 21 41 61 81

Age

Annual Depreciation

A

m

ount

*new aircraft value = $1,000,000

This value is divided by the annual flight hours to calculate depreciation per flight 

hour. Figure 4-2 illustrates the change in aircraft market value over time assuming it 

retains 95 percent of its value from year to year.

Figure 4-2: Geometric Depreciation – Market Value Over Time

(aircraft retains 95% of its value each year)

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

0 20 40 60 80 100 120

Age

Aircraft V

alue
Aircraft Operating Costs 4-17

Depreciation is a significant component of the fixed costs for general aviation 

aircraft. PlaneQuest.com does not report book depreciation. In Conklin and de 

Decker’s database, book depreciation generally assumes the new price of an aircraft and 

depreciates it over 8 years to a 20 percent residual value (i.e., 10 percent per year). A 

recent article in Airfinance Journal51 supports the 5 percent depreciation assumption of 

this report. The article suggests that the currently common depreciation practice of 

depreciating an aircraft over 25 years with a residual value of 15 percent (i.e., 3.4 

percent per year) should actually be increased to 5 percent or to 6 percent depreciation 

each year. 

Table 4-10 summarizes general aviation aircraft operating cost per flight hour by 

each of the economic values categories. While the average total cost per hour is about 

$1,000, it ranges from about $100 per hour to over $6,000 per hour, depending on the 

size, complexity and age of the aircraft within each group. Average variable costs per 

hour including flight crews are $362, while they are $253 per hour if crew costs are not 

counted.

Table 4-10: GA and Air Taxi Operating and Fixed Costs

(weighted by hours)

 

51 John Morrison, “Lessors Face Black Hole”, Airfinance Journal, December 2003/January 2004. p. 24-29.

1 2 3 4 5 6 7 8

Certification Crew Fuel

& Oil Maintenance

Variable

Operating

Costs

(Including

Crew)

Variable

Operating

Costs

(Excluding

Crew)

Annual

Fixed Cost

Other 

(Without

Depreciation)

Annual 

Depreciation 

Fixed

Cost

Per

Hour

1 Piston Engine Airplanes 1 to 3 seats (<=200hp) Part 23 $45 $12 $30 $87 $42 $2,251 $1,338 $34

2 Piston Engine Airplanes 1 to 3 seats (>200hp) Part 23 $45 $42 $56 $143 $98 $21,147 $4,855 $215

3 Piston Engine Airplanes 4 to 9 seats One-Engine (<=200hp) Part 23 $45 $30 $40 $116 $71 $15,198 $2,897 $139

4 Piston Engine Airplanes 4 to 9 Seats One-Engine (>200hp) Part 23 $45 $43 $61 $150 $105 $20,024 $6,310 $235

5 Piston Engine Airplanes 4 to 9 Seats Multi-Engine Part 23 $45 $94 $118 $257 $212 $27,761 $8,770 $256

6 Piston Engine Airplanes 10 or more Seats Part 23 $112 $118 $141 $372 $259 $32,130 $8,816 $107

7 Turboprop Airplanes 1 to 9 seats One-Engine Part 23 $181 $139 $142 $462 $281 $83,021 $59,166 $340

8 Turboprop Airplanes 1 to 9 seats Multi-Engine Part 23 $238 $214 $410 $862 $623 $65,408 $36,501 $479

9 Turboprop Airplanes 10 to 19 seats Part 23 $244 $271 $396 $911 $667 $86,486 $65,555 $543

10 Turboprop Airplanes 20 or more seats Part 25 $433 $323 $357 $1,113 $681 $92,475 $56,876 $532

11 Turbojet/Turbofan Airplanes <=12,500 lbs Part 23/25 $475 $445 $433 $1,353 $878 $139,144 $167,669 $1,058

12 Turbojet/Turbofan Airplanes >12,500 lbs and <=65,000 lbs Part 25 $559 $631 $677 $1,868 $1,309 $325,350 $324,828 $1,737

13 Turbojet/Turbofan Airplanes >65,000 lbs Part 25 $713 $1,217 $807 $2,737 $2,024 $473,248 $978,930 $3,419

14 Rotorcraft Piston <=6,000 lbs Part 27 $45 $34 $97 $176 $131 $78,113 $7,936 $381

15 Rotorcraft Turbine <=6,000 lbs Part 27 $188 $94 $259 $539 $353 $159,656 $35,783 $561

16 Rotorcraft Piston >6,000 lbs Part 29 NR NR NR NR NR NR NR NR

17 Rotorcraft Turbine >6,000 lbs Part 29 $233 $231 $596 $1,060 $827 $254,891 $94,957 $1,075

18 Other NR NR NR NR NR NR NR NR NR

$109 $114 $138 $362 $253 $54,587 $46,503 $728

NR = Not Reported

Economic Values Category

All Aircraft

Col 1: Crew: for GRA groups 1-5, 14 and 16, crew cost = value of time = $45 and assumes a single pilot; for other categories, crew cost includes salaries and benefits reported by Conklin and de Decker and assumes 3

flight hours (based on 2002 NBAA salary survey, p. 136).

Col 2: Fuel, oil and additives used per hour, with fuel at $2.51 per gallon for pistons and $2.41 per gallon for all other economic values groups.

Col 3: Total Maintenance cost, including labor, parts, engine allowances, propeller/thrust reverser overhaul, and APU overhaul* if applicable.

Col 4: Variable Operating Cost Total. Addition of columns 1, 2 and 3.

Sources of cost data: GRA analysis of 2002 GA Survey and 1) Conklin and de Decker, Aircraft Cost Evaluator, Spring 2003; 2) http://www.planequest.com/; 3)Aircraft Bluebook, Summer 2003; 4) Aircraft Types and Pric

Guidelines 2002-2003; 5) GRA estimate of aircraft prices.

Note: Class 8 Turboprops also included Cessna 421 which is a piston aircraft. For this reason we have not included this aircraft type in our calculations. Class 11 Turbojets also included PC-12 which is a turboprop. F

reason we have not included this aircraft type in our calculations.

Col 7: Average annual aircraft depreciation assuming that aircraft retain 95% of their value from year to year. 

* Conklin and de Decker only

Col 8: Fixed Cost per hour, assuming hours of utilization reported in Column 10 = (Column 6 + Column 7)/Column 10.

Col 9: Total Cost per Hour: Column 4 plus Column 8.

Col 10: Average (weighted) hours of utilization for each economic values group for all aircraft with both operating cost data and price data used in calculating annual depreciation.

Col 5: Maintenance and Fuel only (Column 2 plus Column 3).

Col 6: Annual fixed cost including hangar cost, insurance cost, training cost, services* typically used by air taxi and commercial operators (e.g., Weather service, maintenance programs, etc.).
4-18 Aircraft Operating Costs

Table 4-11 shows variable and total aircraft operating costs for aircraft under the 

various parts of the operating regulations. Part 125 aircraft have the highest total cost 

per hour ($12,568) because they are much larger than the aircraft in other groups. The 

Part 133 costs per hour ($2,646) reflect the higher operating costs of rotorcraft. Finally, 

Part 91 costs per hour ($800) are a little more than one-half of the costs per flight hour 

($1,449) for Part 135 aircraft operations.

Table 4-11: GA Operating and Fixed Costs By Operating Rule Part 

(weighted by Part hours)

4.3.3 Fractional Ownership Operating Costs

Table 4-12 presents operating costs for fractionally owned aircraft. The FAA 

Aircraft Registry (March, 2003) was used to identify the fractionally owned aircraft.52 

The Aircraft Cost Evaluator from Conklin & de Decker was then used as a source of 

operating cost data for aircraft types identified as fractionally owned through the FAA 

Aircraft Registry. Operating costs for fractional aircraft were weighted by the number 

of fractional aircraft in order to arrive at average operating costs by economic values 

category as well as for all fractionally owned aircraft. 

 

52 The Aircraft Registry uses an algorithm to identify fractional ownership aircraft. These aircraft were 

not tracked until very recently and there was no mandatory reporting.

1 2 1 2 1 2 1 2 1 2

Variable

Operating

Costs 

(per hour)

Total

Cost

(per

hour)

Variable

Operating

Costs 

(per hour)

Total

Cost

(per

hour)

Variable

Operating

Costs 

(per hour)

Total

Cost

(per

hour)

Variable

Operating

Costs 

(per hour)

Total

Cost

(per

hour)

Variable

Operating

Costs 

(per hour)

Total

Cost

(per

hour)

1 Piston engine airplanes 1 to 3 seats (<=200hp) Part 23 $87 $121 NR NR NR NR $88 $124 $86 $117

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 $140 $382 NR NR NR NR $144 $345 $145 $339

3 Piston engine airplanes 4 to 9 seats one-engine Part 23 $116 $255 NR NR NR NR $113 $243 $107 $214

4 Piston engine airplanes 4 to 9 seats one-engine Part 23 $150 $386 NR NR NR NR $151 $364 $153 $385

5 Piston engine airplanes 4 to 9 seats multiengine Part 23 $254 $508 NR NR NR NR $275 $548 $251 $481

6 Piston engine airplanes 10 or more seats Part 23 $372 $481 NR NR NR NR $372 $456 $372 $475

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 $484 $900 NR NR NR NR $452 $756 $462 $814

8 Turboprop airplanes 1 to 9 seats multiengine Part 23 $861 $1,354 NR NR NR NR $855 $1,266 $954 $1,372

9 Turboprop airplanes 10 to 19 seats Part 23 $892 $1,453 NR NR NR NR $997 $1,455 $981 $1,519

10 Turboprop airplanes 20 or more seats Part 25 $4,591 $7,128 $811 $1,382 NR NR $1,067 $1,493 $1,901 $2,885

11 Turbojet/Turbofan airplanes <=12,500 lbs Part 23/25 $1,365 $2,492 NR NR NR NR $1,460 $2,579 NR NR

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000 Part 25 $1,827 $3,579 $2,746 $5,774 NR NR $1,643 $2,475 $1,615 $2,530

13 Turbojet/Turbofan airplanes >65,000 lbs Part 25 NR NR $2,728 $6,179 NR NR $3,215 $4,913 NR NR

14 Rotorcraft Piston <=6,000 lbs Part 27 $171 $567 NR NR $174 $474 $175 $584 $217 $474

15 Rotorcraft turbine <=6,000 lbs Part 27 $514 $1,055 NR NR $515 $1,021 $599 $1,213 $502 $1,013

16 Rotorcraft Piston >6,000 lbs Part 29 NR NR NR NR NR NR NR NR NR NR

17 Rotorcraft turbine >6,000 lbs Part 29 $1,024 $2,412 $2,062 $3,159 $1,909 $2,988 $1,031 $1,872 $920 $1,658

18 Other NR NR NR NR NR NR NR NR NR NR NR

$295 $800 $2,690 $12,568 $968 $2,646 $579 $1,449 $299 $828

NR = Not Reported

Comments:

Crew: for GRA groups 1-5, 14 and 16, crew cost = value of time = $45; for other categories, crew cost includes salaries and benefits reported by Conklin and de Decker and

assumes 356 flight hours (based on 2002 NBAA Salary Survey, p. 136).

PART 135

Col 1: Variable operating costs include crew, fuel and oil, and maintenance costs.

Col 2: Total costs per hour include variable costs (Col 1) and fixed costs*** (depreciation* and other fixed costs**).

PART 137

All Aircraft

Source: GRA analysis of 2002 GA Survey and estimated hourly costs by aircraft type.

**Annual fixed cost including hangar cost, insurance cost, training cost, services typically used by air taxi and commercial operators (e.g., Weather service, maintenance programs, etc.).

*Average annual aircraft depreciation calculated assuming that aircraft retain 95% of their value from year to year. 

***Fixed costs first weighted by Part hours than divided by average hours for all Parts, as reported in Table 4-10 Column 10.

Economic Values Category (all years) Certification

PART 91 PART 125 PART 133
Aircraft Operating Costs 4-19

Operating costs for fractionally owned aircraft are not directly comparable to 

those of other general aviation aircraft. This is because the Conklin & de Decker data, 

as can be seen in Table 4-12, does not report the operating cost components (i.e., fuel, 

maintenance, etc.) only the hourly operating costs. In addition, costs in Aircraft Cost 

Evaluator are reported by fractional ownership provider and fractional ownership share. 

One fractional ownership provider was chosen to represent all aircraft in those aircraft 

types owned by more than one provider because costs do not differ significantly 

between the different providers of services of the same aircraft type. The hourly 

operating costs reported in Table 4-12 assume quarter share ownership and no 

depreciation. Average total operating costs per hour for all fractionally owned aircraft 

are higher than those of general aviation aircraft.

Table 4-12: Fractional Ownership Costs

(averages weighted by the number of aircraft)

4.4 MILITARY OPERATING COSTS

Data on military aircraft operating costs were developed in consultation with the 

various branches of the armed services. Data were obtained both from public websites 

as well as telephone interviews with appropriate personnel. Because averages are 

reported, it is assumed that they apply to all aircraft within a group, even if data were 

1 2 3 4 5 6 7

Total

Aircraft

Quarter

Share

Acquisition

Fixed

Annual

Budget

Fixed Cost

Per Hour

Hourly

Variable

Operating

Cost

+ Tax

Total

Operating

Cost

Per Hour

Contract

Block

Hours

Per Year

1 Piston engine airplanes 1 to 3 seats (<=200hp) 11 N/A N/A N/A N/A N/A N/A

2 Piston engine airplanes 1 to 3 seats (>200hp) 2 N/A N/A N/A N/A N/A N/A

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) 7 N/A N/A N/A N/A N/A N/A

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) 3 N/A N/A N/A N/A N/A N/A

5 Piston engine airplanes 4 to 9 seats multiengine 3 N/A N/A N/A N/A N/A N/A

6 Piston engine airplanes 10 or more seats N/A N/A N/A N/A N/A N/A N/A

7 Turboprop airplanes 1 to 9 seats one-engine 5 $838,000 $107,628 $615 $615 $1,230 $175

8 Turboprop airplanes 1 to 9 seats multiengine 1 N/A N/A N/A N/A N/A N/A

9 Turboprop airplanes 10 to 19 seats 32 N/A N/A N/A N/A N/A N/A

10 Turboprop airplanes 20 or more seats N/A N/A N/A N/A N/A N/A N/A

11 Turbojet/Turbofan airplanes <=12,500 lbs 126 $780,000 $172,800 $864 $1,070 $1,934 $200

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000 lbs 376 $3,171,007 $330,758 $1,654 $2,068 $3,722 $200

13 Turbojet/Turbofan airplanes >65,000 lbs 38 $5,705,556 $518,533 $2,593 $3,191 $5,784 $200

14 Rotorcraft Piston <=6,000 lbs 1 N/A N/A N/A N/A N/A N/A

15 Rotorcraft turbine <=6,000 lbs N/A N/A N/A N/A N/A N/A N/A

16 Rotorcraft Piston >6,000 lbs N/A N/A N/A N/A N/A N/A N/A

17 Rotorcraft turbine >6,000 lbs 4 $1,412,792 $240,888 $964 $860 $1,824 $250

18 Other 8 N/A N/A N/A N/A N/A N/A

Grand Total 617 $3,287,687 $339,671 $1,698 $2,114 $3,812 200

Col 1: Total number of fractionally owned aircraft by economic values group as reported in FAA Aircraft Registry.

Col 2: Quarter share acquisition, from Conklin & de Decker.

Col 3: Fixed annual cost, does not include depreciation, Conklin & de Decker.

Col 4: Fixed costs per hour: column 3 divided by column 7.

Col 5: Variable hourly operating cost with tax, Conklin & de Decker.

Col 6: Total operating costs per hour: column 4 plus column 5.

Col 7: Contract block hours as reported by Conklin & de Decker.

Economic Values Category

and Manufacturer Name

Source: Aircraft types and counts come from FAA Aircraft Registry, March 2003; Fractional ownership costs come from the Aircraft Cost Evaluator by Conklin & de 

Decker, Spring, 2003.

*PC-12 was in the FAA Aircraft Registry's economic values class #11 but was moved to class # 7 where it should be; Gulfstream 200 was in economic values class 

#13 but was moved to class #12.
4-20 Aircraft Operating Costs

not available for some aircraft in that group. In general, the values were applied on an 

aircraft-type-by-aircraft type basis where there were cost observations from at least one 

military air service. In cases where there were no observed costs for a specific aircraft 

type, the group average was applied. 

The military operating costs include crews and reflect the varying sizes of crews 

for a specific aircraft. For example, most military rotary wing aircraft operate with a 

pilot, co-pilot and one or two other crew members. Some of the larger turbojet aircraft 

with three or more engines conduct electronic surveillance operations and have large 

on-board crews. The crew costs reported in Table 4-13 reflect this. The military 

aggregates costs somewhat differently than the airlines or general aviation operators. 

In general, operating costs exclude crew because these are viewed as a fixed cost in that 

the number of military pilots does not generally change with annual flight hours. Costs 

are also shown including crew costs and then shown with total costs, which includes 

other costs. This latter category includes some measure of ownership costs for some of 

the services, but not all. The relatively high cost per hour of military aircraft reflects the 

composition of the military fleet, which includes many large turbine-powered multiengine airplanes and rotorcraft. More detailed data are provided in tables on the APO 

website.

Table 4-13: Estimated Military Operating Costs Per Hour (FY2002)

(average weighted by flight hour) 

1 2 3 4 5 6 7

Aircraft Type Crew Fuel Maintenance Other

Total

Operating

Costs

(Excluding

Crew)

Total

Operating

Costs

(Including

Crew)

Total Costs

Per Hour

(Including

Crew)

Rotary Wing Aircraft $888 $186 $6,360 $768 $6,546 $7,434 $8,202

Turbojet/fan 3+ Engines $2,203 $1,921 $4,357 $421 $6,279 $8,482 $8,856

Turbojet/fan Attack/Fighter $397 $1,103 $8,230 $488 $9,333 $9,730 $10,219

Turbojet/fan Other $1,571 $764 $2,929 $600 $3,694 $5,265 $5,772

Turboprop $550 $393 $3,121 $418 $3,424 $3,974 $4,368

Average Weighted Total $940 $665 $4,588 $535 $5,198 $6,138 $6,640

Col 1: Crew cost, average weighted by flight hours.

Col 2: Fuel cost, average weighted by flight hours.

Col 3: Maintenance costs, average weighted by flight hours.

Col 4: Other Costs, average weighted by flight hours.

Col 5: Sum of columns 2 and 3.

Col 6: Sum of columns 1,2 and 3.

Col 7: Sum of columns 1, 2, 3 and 4.

Note: Operating costs were not available for all aircraft types.

Sources: Army, Army Reserve and National Guard (Department of Defense FY2002); Air Force, Air Force Reserve 

and Air National Guard (US Air Force and Planning Factors); Navy, Naval Reserve, Marine Corps, and Marine 

Corps Reserve (Navy Visibility and Management of Operations and Support Cost); Coast Guard (The Aircraft Cost 

Evaluator, Conklin & de Decker).
Unit Replacement and Restoration Costs of Damaged Aircraft 5-1

SECTION 5: UNIT REPLACEMENT AND RESTORATION COSTS

OF DAMAGED AIRCRAFT

5.1 INTRODUCTION

The cost of damage to aircraft in aviation accidents is borne directly by operators 

and indirectly by users and society in the form of higher fares and costs.53 Determining 

these costs provides a measure for evaluation of FAA investment and regulatory 

programs that affect the likelihood of aircraft being damaged or destroyed.

5.1.1 Replacement 

For the purpose of evaluating the cost of aircraft replacement, a destroyed 

aircraft is assigned the value of a replacement. This valuation assumption is consistent 

with the opportunity cost of the loss of the use of a typical aircraft; the value of a new 

aircraft would overstate the typical loss. (Even though a destroyed aircraft might be 

replaced by a new aircraft, the new aircraft provides additional value over the one it 

replaces.) The aircraft values reported below are based on transactions in the welldefined market for used aircraft, except for military aircraft which will be discussed 

later in this section. The aircraft value in an orderly market without excess aircraft 

capacity or excess demand for aircraft is referred to as the “base” value, which reflects 

the long-run relationship between current value, age and original price of an aircraft. 

At present, the current market for commercial aircraft has substantial excess capacity 

and the current market values of aircraft are well below the base values.54 Current 

market values are also reported below. For general aviation aircraft, estimated market 

values are used.

5.1.2 Restoration

The NTSB classifies aircraft involved in accidents as “destroyed,” having 

“substantial damage,” having “minor damage,” or having “no damage.” The cost 

incurred as a result of “minor damage” to aircraft is generally a negligible percentage of 

the market value and is not evaluated in this report. An aircraft with “substantial 

damage” is one that is damaged but repairable; industry data discussed below provide 

 

53 Insurance represents a transfer payment between the insurance company and the insured and does not 

directly affect the economic losses in an accident.

54 A base value reflects historic trends and may be more appropriate if the expected accidents to be 

valued occur over a long time period.
5-2 Unit Replacement and Restoration Costs of Damaged Aircraft

a means of estimating the relationship between the cost of damage and the total value 

of the aircraft. 

5.2 AIR CARRIER AIRCRAFT

5.2.1 Replacement

Replacement values for air carriers were derived from a proprietary database 

developed by Aviation Specialists Group (AVSPEC).55 The first step in establishing an 

average fleet valuation is to develop an industry database covering each aircraft and 

aircraft type in the U.S. fleet. The average value was developed using an estimated 

value for each aircraft delivered in a given year, and then aggregating these values into 

the economic values aircraft categories.

The valuation database uses industry data on recent sales and asking prices of 

airplanes on the used market. There is an active market in used commercial aircraft, 

and thus it is possible to obtain reliable estimates of a destroyed aircraft. Both the base 

and market values are reported so that analysts can determine an appropriate range of 

values.

The summary of values for passenger and all cargo air carrier aircraft are shown 

in Table 5-1. Detailed data by equipment type are contained on the APO website. The 

first column for each operator group reports the number of aircraft in the AVSPEC 

database that were used in developing weighted averages.56 The second column shows 

the base value, which assumes an orderly market for aircraft transactions. The third 

column reports current market (circa 2003) values (which are lower than base values). 

The average base value of a passenger aircraft is about $13.5 million. The market value 

is $2.0 million less. The range in values among the aircraft groups is quite large 

reflecting the different average size and average age of aircraft in each group. Similar 

results hold for all cargo aircraft.

 

55 Aviation Specialists Group, 1037 Sterling Road, Suite 203, Herndon, VA 20170.

56 This differs from the Form 41 fleet sizes because they consider all aircraft in the U.S. fleet, including 

aircraft out of service, aircraft in non-commercial service and other circumstances.
Unit Replacement and Restoration Costs of Damaged Aircraft 5-3

Table 5-1: Estimated Market Values of Air Carrier Aircraft ($2003)

Table 5-2 provides base and current market values for passenger (and 

passenger/freight combination) carrier aircraft. It also shows the standard deviation of 

each aircraft group value, which is based on the number and value of each aircraft 

within the group. The average monthly lease rates for each aircraft group are also 

shown. (In general, the monthly aircraft operating lease rate is from one to two percent 

of the market value.)

1 2 3 1 2 3

 Number

of

Aircraft 

 Weighted

Average

Base Value

US$ Millions 

 Weighted

Average

Estimated

Current

Market Value

US$ Millions 

 Number

of

Aircraft 

 Weighted

Average

Base Value

US$ Millions 

 Weighted

Average

Estimated

Current

Market Value

US$ Millions 

Two-Engine Narrow-Body 3,913 $16.47 $13.67 128 $14.99 $11.23

Two-Engine Wide-Body 554 $49.24 $42.26 177 $26.35 $23.03

Three-Engine Narrow-Body 368 $0.71 $0.71 348 $1.08 $1.02

Three-Engine Wide-Body 169 $7.77 $6.44 163 $20.22 $16.90

Four-Engine Narrow-Body 50 $0.32 $0.32 128 $2.92 $2.92

Four-Engine Wide-Body 133 $38.42 $30.02 121 $27.79 $19.33

Regional Jet Under 70 seats 976 $14.07 $13.23 NR NR NR

Regional Jet 70 to 100 seats 101 $14.99 $13.40 NR NR NR

Turboprop Under 20 seats (Part 23) 1,147 $0.48 $0.56 NR NR NR

Turboprop Under 20 seats (Part 25) 112 $0.10 $0.10 NR NR NR

Turboprops with 20 or more seats 1,143 $1.95 $2.19 NR NR NR

Piston Engine (Part 23) NR NR NR NR NR NR

Piston Engine (Part 25) NR NR NR NR NR NR

All Aircraft 8,666 $13.48 $11.46 1,065 $13.14 $10.64

Col 2: Total base value of aircraft fleet, divided by column 1.

Col 3: Total estimated current market value of aircraft fleet, divided by column 1.

Source: Aviation Specialists Group

NR = None Reported

Note: Air Carrier fleet counts are higher than those reported in section 3. This is because the data from Aviation Specialists 

group includes all US registered aircraft while section 3 data comes from Form 41 which is filed by certain air carriers only.

Col 1: Aircraft fleet count.

Economic Values Category

Air Carrier - Passenger Air Carrier - Cargo
5-4 Unit Replacement and Restoration Costs of Damaged Aircraft

Table 5-2: 2003 Passenger Air Carrier Fleet Sizes and Values

Table 5-3 shows base and current market values for all cargo aircraft. While the 

average values are approximately the same as for passenger aircraft, the higher 

standard deviation reflects a greater variability in the underlying data. 

1 2 3 4 5 6

Economic Values Category

Number

of

Aircraft

Weighted

Average

Base Value

US$ Millions

Standard

Deviation

of Base

Value

US$ Millions

Weighted Average

Estimated Current

Market Value

US$ Millions

Standard

Deviation

of Market

Value

US$ 

Millions

Weighted Average

Projected Monthly

Lease Rate

US$ Thousands

Two-Engine Narrow-Body 3,913 $16.47 $4.34 $13.67 $3.31 $143.29

Two-Engine Wide-Body 554 $49.24 $10.81 $42.26 $9.18 $417.44

Three-Engine Narrow-Body 368 $0.71 $0.32 $0.71 $0.20 $17.33

Three-Engine Wide-Body 169 $7.77 $3.84 $6.44 $3.07 $168.23

Four-Engine Narrow-Body 50 $0.32 NR $0.32 NR NR

Four-Engine Wide-Body 133 $38.42 $17.23 $30.02 $11.99 $395.31

Regional Jet under 70 seats 976 $14.07 $1.85 $13.23 $1.72 $126.88

Regional Jet 70 to 100 seats 101 $14.99 $2.11 $13.40 $1.70 $129.96

Turboprops under 20 seats (Part 23) 1,147 $0.48 $0.34 $0.56 $0.29 $19.53

Turboprops under 20 seats (Part 25) 112 $0.10 N/A $0.10 N/A N/A

Turboprops with 20 or more seats 1,143 $1.95 $0.97 $2.19 $0.87 $35.09

Piston Engine (Part 23) NR NR NR NR NR NR

Piston Engine (Part 25) NR NR NR NR NR NR

All Aircraft 8,666 $13.48 $3.60 $11.46 $2.86 $140.81

Source: Aviation Specialists Group

NR = None Reported

Col 4: Total estimated current market value of aircraft fleet, divided by column 1.

Col 5: Standard deviation of current market values.

Col 6: For jets, projected monthly lease rate (from base value). For turboprops, estimated current market lease rate.

Note: Air Carrier fleet counts are higher than those reported in section 3. This is because the data from Aviation Specialists group includes 

all US registered aircraft while section 3 data comes from Form 41 which is filed by certain air carriers only.

Col 1: Aircraft fleet count.

Col 2: Total base value of aircraft fleet, divided by column 1.

Col 3: Standard deviation of base values.
Unit Replacement and Restoration Costs of Damaged Aircraft 5-5

Table 5-3: 2003 Cargo Air Carrier Fleet Sizes and Values

5.2.2 Restoration

Restoration costs were estimated for commercial air carriers by analysis of the 

CASE database developed by Airclaims, Inc.57 The database covers all commercial 

aircraft accidents throughout the world, and includes the insured hull value of the 

aircraft and the value of the claim. Aircraft that were destroyed were excluded from the 

analysis because the replacement cost is assumed to equal the current market value of 

the aircraft. Based on discussions with Airclaims, it is believed that the dataset excludes 

minor accidents because they would fall below the typical insurance deductible 

amount. 

As shown in Table 5-4, the average insured value of a passenger aircraft involved 

in an accident was $28.0 million, while the average hull loss was $3.7 million. 

Restoration costs are estimated to be 13 percent of the aircraft value. For all cargo 

aircraft, the restoration percentage is 15 percent. The restoration percentages by aircraft 

group should be applied to the aircraft values in the above sections. Readers should be 

aware that there were a limited number of accidents in some of the aircraft categories. 

 

57 Case Database. Airclaims Group, Ltd., London Heathrow Airport, England.

1 2 3 4 5 6

Economic Values Category

Number

of

Aircraft

Weighted

Average

Base Value

US$ Millions

Standard

Deviation

of Base

Value 

US Millions

Weighted Average

Estimated Current

Market Value

US$ Millions

Standard

Deviation

of Market

Value 

US Millions

Weighted Average

Projected Monthly

Lease Rate

US$ Thousands

Two-Engine Narrow-Body 128 $14.99 $10.16 $11.23 $6.99 $208.04

Two-Engine Wide-Body 177 $26.35 $7.26 $23.03 $6.17 $259.42

Three-Engine Narrow-Body 348 $1.08 $0.41 $1.02 $0.26 $32.51

Three-Engine Wide-Body 163 $20.22 $9.08 $16.90 $7.34 $318.67

Four-Engine Narrow-Body 128 $2.92 NR $2.92 NR NR

Four-Engine Wide-Body 121 $27.79 $12.41 $19.33 $9.26 $169.10

Regional Jet under 70 seats NR NR NR NR NR NR

Regional Jet 70 to 100 seats NR NR NR NR NR NR

Turboprops under 20 seats (Part 23) NR NR NR NR NR NR

Turboprops under 20 seats (Part 25) NR NR NR NR NR NR

Turboprops with 20 or more seats NR NR NR NR NR NR

Piston Engine (Part 23) NR NR NR NR NR NR

Piston Engine (Part 25) NR NR NR NR NR NR

All Aircraft 1,065 $13.14 $5.03 $10.64 $4.00 $153.67

Col 4: Total estimated current market value of aircraft fleet, divided by column 1.

Col 5: Standard deviation of current market values.

Col 6: For jets, projected monthly lease rate (from base value). For turboprops, estimated current market lease rate.

Note: Air Carrier fleet counts are higher than those reported in section 3. This is because the data from Aviation Specialists group 

includes all US registered aircraft while section 3 data comes from Form 41 which is filed by certain air carriers only a

Col 1: Aircraft fleet count.

Col 2: Total base value of aircraft fleet, divided by column 1.

Col 3: Standard deviation of base values.

Source: Aviation Specialists Group

NR = None Reported
5-6 Unit Replacement and Restoration Costs of Damaged Aircraft

Table 5-4: Restoration Costs – Air Carrier Passenger and All-Cargo Aircraft 

($2003)

5.3 GENERAL AVIATION AIRCRAFT

5.3.1 Replacement

Replacement values for general aviation aircraft were based on a methodology 

similar to that used for commercial air carriers. The primary source of data was the 

Aircraft Bluebook -Price Digest (Summer, 2003).

58 For aircraft types not covered in the 

Aircraft Bluebook, a secondary data source was used: Aircraft Types and Price Guidelines 

2002-2003.59 Finally, GRA estimated prices of some aircraft whose make and model 

were covered in either of the two sources mentioned but not for a desired year of 

manufacture. For example, the Aircraft Bluebook provided price data on a specific make 

and model back to the year 1970 but the GA survey listed that make and model 

manufactured in 1969, GRA would estimate the value of the needed aircraft as 

somewhat lower than that for 1970. Aircraft in the fleet were assigned to one of the 18 

economic value classifications. The average age of all aircraft of a particular type was 

calculated based on detailed data from the General Aviation Survey, Calendar Year 2002

 

58 Aircraft Bluebook – Price Digest, (Overland Park, KS: Primedia Business Directories & Books, Summer 

2003). 

59 Aircraft Types and Price Guidelines, Including Turbine Engines 2002-2003, (London, England: CTC Services 

Aviation (LAD), 2003).

1 2 3 4 1 2 3 4

Number of

Accident

Aircraft

 Average of

Hull Value

US$ Millions 

 Average of

Gross

Hull Loss

US$ Millions 

 Loss/

Value

(%) 

Number of

Accident

Aircraft

 Average of

Hull Value

US$ Millions 

 Average of

Gross

Hull Loss

US$ Millions 

 Loss/

Value

(%) 

Two-engine narrow body jet 128 $23.6 $3.5 15% NR NR NR NR

Two-engine wide body jet 50 $65.1 $7.4 11% 2 $50.5 $27.2 54%

Three-engine narrow body jet 87 $21.3 $3.9 18% 6 $5.3 $1.7 33%

Three-engine wide body jet 19 $66.7 $7.3 11% 7 $63.0 $5.1 8%

Four-engine narrow body jet 4 $5.3 $1.8 33% 25 $7.9 $1.7 22%

Four-engine wide body jet 48 $82.7 $8.5 10% 15 $62.7 $7.0 11%

Regional jet under 70 seats 5 $17.7 $1.4 8% NR NR NR NR

Regional jet with 70 seats of more 7 $20.7 $1.6 8% 1 $19.7 $1.3 6%

Turboprops under 20 seats Part 23 40 $2.4 $0.4 15% 17 $1.0 $0.5 45%

Turboprops under 20 seats Part 25 NR NR NR NR NR NR NR NR

Turboprops with 20 seats or more 127 $5.5 $1.3 24% 19 $1.8 $0.6 36%

Piston Engine (Part 23) NR NR NR NR NR NR NR NR

Piston Engine (Part 25) NR NR NR NR NR NR NR NR

All Aircraft 515 $28.0 $3.7 13% 92 $19.4 $2.9 15%

Economic Values Category

Air Carrier - Passenger Air Carrier - All-Cargo

Col 4: Column 3 divided by column 2.

Source: GRA analysis of Airclaims data for the period 1990-2003.

Col 1: Number of aircraft involved in accidents.

Col 2: Total hull value of aircraft fleet, divided by column 1.

Col 3: Total hull loss value divided number of aircraft with reported hull loss data.
Unit Replacement and Restoration Costs of Damaged Aircraft 5-7

data set.60 The value for the average aircraft for each type was identified from the 

Aircraft Bluebook; these averages were used together with the relative numbers of 

aircraft of each type in a particular Economic Value Class to obtain a weighted average 

value for that class.

The summary of valuation for the general aviation aircraft groups is shown in 

Table 5-5. This valuation is provided in terms of an average value per aircraft, a 

minimum and maximum value per aircraft, and a statistical standard derivation that 

applies to the average value. Overall, the average GA aircraft has a value of $361,943; 

the large standard deviation reflects the broad range of values in some aircraft 

categories. 

Table 5-5: Estimated Market Values of General Aviation Aircraft ($2003)

There have been significant changes in the composition of the general aviation 

fleet since the early 1980’s which make it desirable to have additional information on 

aircraft values. There was a major decline in GA aircraft production—primarily smaller 

 

60 Data provided by PA Consulting. The analysis here used the actual sample records and appropriate 

expansion factors.

1 2 3 4 5 6

Number of 

Aircraft

Average

Value

Per

Aircraft

Minimum

Value

Per

Aircraft

Maximum

Value

Per

Aircraft

Standard

Deviation

of Average

Aircraft

Value

Average

Aircraft

Age

(in 2003)

1 Piston engine airplanes 1 to 3 seats (<200hp) Part 23 33,050 $24,249 $4,000 $135,000 $4,970 40

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 6,079 $123,843 $18,000 $535,000 $32,478 33

3 Piston engine airplanes 4 to 9 seats one-engine (<200hp) Part 23 54,352 $46,095 $14,500 $225,000 $4,530 33

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 49,993 $114,594 $30,000 $685,000 $14,832 30

5 Piston engine airplanes 4 to 9 seats two-engine Part 23 16,783 $152,680 $33,000 $900,000 $21,699 30

6 Piston engine airplanes 10 or more seats Part 23 801 $137,688 $74,000 $290,000 $19,632 34

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 1,004 $803,011 $143,000 $2,100,000 $226,704 8

8 Turboprop airplanes 1 to 9 seats two-engine Part 23 2,150 $517,788 $63,000 $1,850,000 $112,440 24

9 Turboprop airplanes 10 to 19 seats Part 23 3,650 $1,222,412 $325,000 $4,650,000 $243,009 19

10 Turboprop airplanes 20 or more seats Part 25 219 $2,014,790 $194,500 $9,500,000 $1,043,081 22

11 Turbojet/Turbofan two-engine airplanes <12,500 lbs. Part 23 2,029 $2,568,083 $370,000 $6,300,000 $248,989 14

12 Turbojet/Turbofan airplanes >12,500 lbs. And <65,000 lbs. Part 25 4,969 $5,851,422 $580,000 $23,500,000 $1,146,736 12

13 Turbojet/Turbofan airplanes >65,000 lbs. Part 25 1,204 $17,549,160 $2,800,000 $32,000,000 $1,639,628 13

14 Rotorcraft piston <6,000 lbs. Part 27 2,326 $135,430 $19,800 $338,000 $31,342 16

15 Rotorcraft turbine <6,000 lbs. Part 27 3,640 $606,739 $72,000 $5,000,000 $195,610 18

16 Rotorcraft piston >6,000 lbs. Part 29 25 NA NA NA NA NA

17 Rotorcraft turbine >6,000 lbs Part 29 657 $1,888,082 $430,000 $6,000,000 $605,067 23

18 Other 28,313 NA NA NA NA NA

 211,244 $361,943 $4,000 $32,000,000 $368,204 31

Col 5: Square root of (n*(x-average price)^2)/(n*(n-1)) where n is the number of observations and x is aircraft price.

Col 6: Average aircraft age (weighted) for data with known aircraft value and year of manufacture.

Economic Values Category Certification

All Years

Col 2: Average aircraft value weighted by the number of aircraft.

Col 3: The lowest aircraft value reported for each economic values class. 

Col 4: The highest aircraft value reported for each economic values class.

All Aircraft

Source: GA Survey 2002; Aircraft Bluebook Price Digest (Summer, 2003); Aircraft Types and Price Guidelines 2002-2003; GRA estimate

NA=Not Available

Col 1: Total number of aircraft in GA Survey.

Note: "Other" economic values class is included in calculating fleet total for all aircraft but not in calculating estimated market values and age for all aircraft.
5-8 Unit Replacement and Restoration Costs of Damaged Aircraft

piston aircraft—after 1981. The fleet age profile for smaller piston aircraft is 

significantly different than that for larger turbine aircraft. Moreover, there is wide 

variation in the values of pre- and post-1982 aircraft. 

As was noted previously, no data were available in certain aircraft categories. As 

a result, average values are less relevant for at least some economic evaluations. For 

example, FAA may be faced with an investment or regulatory decision that 

disproportionately affects GA piston or GA turbine operators. In extreme cases, these 

decisions may affect only one group or the other. Other decisions may affect aircraft of 

only certain ages, such as a requirement to bring an old design up to a modern 

standard. The values relevant for use in such a benefit-cost study should reflect the 

aircraft actually affected. One way to reflect such value differences is to use either pre1982 or post-1982 data depending upon which is most representative. Table 5-6 shows 

the estimated market values for the 160,592 aircraft manufactured before 1982. As can 

be seen, these aircraft are 35 years old on average and have an average market value of 

approximately $95,000.

Table 5-6: Estimated Market Values of Pre-1982 General Aviation Aircraft ($2003)

1 2 3 4 5 6

Number 

of 

Aircraft

Average

Value

Per

Aircraft

Minimum

Value

Per

Aircraft

Maximum

Value

Per

Aircraft

Standard

Deviation

of Average

Aircraft

Value

Average

Aircraft

Age

(in 2003)

1 Piston engine airplanes 1 to 3 seats (<200hp) Part 23 31,246 $21,496 $4,000 $67,000 $3,176 42

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 4,364 $72,982 $18,000 $160,000 $10,658 42

3 Piston engine airplanes 4 to 9 seats one-engine (<200hp) Part 23 49,970 $40,991 $14,500 $103,000 $2,810 34

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 41,924 $85,927 $30,000 $210,000 $6,484 34

5 Piston engine airplanes 4 to 9 seats two-engine Part 23 15,187 $132,754 $33,000 $380,000 $16,566 32

6 Piston engine airplanes 10 or more seats Part 23 783 $130,762 $74,000 $235,000 $15,682 34

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 62 $187,976 $143,000 $196,000 $9,061 24

8 Turboprop airplanes 1 to 9 seats two-engine Part 23 1,546 $383,106 $63,000 $800,000 $52,928 27

9 Turboprop airplanes 10 to 19 seats Part 23 1,690 $773,026 $325,000 $1,150,000 $59,427 25

10 Turboprop airplanes 20 or more seats Part 25 148 $699,467 $194,500 $1,230,000 $153,833 27

11 Turbojet/Turbofan two-engine airplanes <12,500 lbs. Part 23/25 710 $824,692 $370,000 $1,500,000 $50,808 29

12 Turbojet/Turbofan airplanes >12,500 lbs. and <65,000 lbs. Part 25 1,524 $1,715,000 $580,000 $6,400,000 $285,221 25

13 Turbojet/Turbofan airplanes >65,000 lbs. Part 25 473 $3,878,931 $2,800,000 $6,200,000 $219,840 29

14 Rotorcraft piston <6,000 lbs. Part 27 1,107 $69,630 $19,800 $99,000 $7,749 33

15 Rotorcraft turbine <6,000 lbs. Part 27 2,004 $319,045 $72,000 $1,330,000 $53,942 27

16 Rotorcraft piston >6,000 lbs. Part 29 18 NA NA NA NA NA

17 Rotorcraft turbine >6,000 lbs Part 29 333 $1,047,191 $430,000 $2,625,000 $183,096 32

18 Other 7,504 NA NA NA NA NA

160,592 $94,661 $4,000 $6,400,000 $57,420 35

NA = Not Available

Col 5: Square root of (n*(x-average price)^2)/(n*(n-1)) where n is the number of observations and x is aircraft price.

Col 6: Average aircraft age (weighted) for data with known aircraft value and year of manufacture.

Economic Values Category Certification

Pre-1982

Col 3: The lowest aircraft value reported for each economic values class. 

Col 4: The highest aircraft value reported for each economic values class.

All Aircraft

Source: GA Survey 2002; Aircraft Bluebook Price Digest (Summer, 2003); Aircraft Types and Price Guidelines 2002-2003; GRA estimate

Col 1: Total number of aircraft in GA Survey manufactured before 1982.

Col 2: Average aircraft value weighted by the number of aircraft.

Note: "Other" economic values class is included in calculating fleet total for all aircraft but not in calculating estimated market values and age for all aircraft.
Unit Replacement and Restoration Costs of Damaged Aircraft 5-9

Table 5-7 shows the market values for the 50,651 GA aircraft that were 

manufactured in 1982 or later. These aircraft have an average age of 10 years and an 

average market value of $1.8 million, which reflects both higher average values within 

each category as well as a higher proportion of large turbine engine aircraft in the post1982 fleet.

Table 5-7: Estimated Market Values – 1982 and Later General Aviation Aircraft 

($2003)

1 2 3 4 5 6

Number 

of 

Aircraft

Average

Value

Per

Aircraft

Minimum

Value

Per

Aircraft

Maximum

Value

Per

Aircraft

Standard

Deviation

of Average

Aircraft

Value

Average

Aircraft

Age

(in 2003)

1 Piston engine airplanes 1 to 3 seats (<200hp) Part 23 1,804 $76,108 $17,000 $135,000 $8,536 9

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 1,714 $256,885 $33,000 $535,000 $39,631 10

3 Piston engine airplanes 4 to 9 seats one-engine (<200hp) Part 23 4,382 $108,914 $48,000 $225,000 $6,521 11

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 8,069 $264,955 $56,000 $685,000 $20,144 10

5 Piston engine airplanes 4 to 9 seats two-engine Part 23 1,596 $360,326 $145,000 $900,000 $30,378 15

6 Piston engine airplanes 10 or more seats Part 23 18 $290,000 $290,000 $290,000 $0 19

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 942 $824,903 $170,000 $2,100,000 $226,032 8

8 Turboprop airplanes 1 to 9 seats two-engine Part 23 603 $918,754 $115,000 $1,850,000 $131,405 14

9 Turboprop airplanes 10 to 19 seats Part 23 1,960 $1,628,946 $476,500 $4,650,000 $258,069 13

10 Turboprop airplanes 20 or more seats Part 25 72 $3,179,785 $750,000 $9,500,000 $1,279,249 18

11 Turbojet/Turbofan two-engine airplanes <12,500 lbs. Part 23 1,319 $3,187,683 $1,000,000 $6,300,000 $211,507 9

12 Turbojet/Turbofan airplanes >12,500 lbs. And <65,000 lbs. Part 25 3,445 $7,170,976 $1,650,000 $23,500,000 $1,141,863 9

13 Turbojet/Turbofan airplanes >65,000 lbs. Part 25 731 $22,347,618 $6,800,000 $32,000,000 $1,173,882 7

14 Rotorcraft piston <6,000 lbs. Part 27 1,219 $166,504 $69,000 $338,000 $31,056 8

15 Rotorcraft turbine <6,000 lbs. Part 27 1,636 $856,887 $131,000 $5,000,000 $223,641 10

16 Rotorcraft piston >6,000 lbs. Part 29 6 NA NA NA NA NA

17 Rotorcraft turbine >6,000 lbs Part 29 324 $2,620,187 $530,000 $6,000,000 $679,377 14

18 Other 20,810 NA NA NA NA NA

50,651 $1,817,062 $ 17,000 $32,000,000 $ 871,932 10

NA = Not Available

Col 5: Square root of (n*(x-average price)^2)/(n*(n-1)) where n is the number of observations and x is aircraft price.

Col 6: Average aircraft age (weighted) for data with known aircraft value and year of manufacture.

Col 3: The lowest aircraft value reported for each economic values class. 

Col 4: The highest aircraft value reported for each economic values class.

All Aircraft

Source: GA Survey 2002; Aircraft Bluebook Price Digest (Summer, 2003); Aircraft Types and Price Guidelines 2002-2003; GRA estimate

Col 1: Total number of aircraft in GA Survey manufactured in 1982 or later.

Col 2: Average aircraft value weighted by the number of aircraft.

Note: "Other" economic values class is included in calculating fleet total for all aircraft but not in calculating estimated market values and age for all 

Economic Values Category Certification

1982 and Beyond

5.3.2 Restoration

Restoration values for general aviation aircraft were estimated using the data 

from Airclaims and AVEMCO. The values are reported by the economic values 

category only because a further breakdown by aircraft type is not feasible. The two 

sources provide average hull value of aircraft, average hull damage and the number of 

aircraft losses. Average hull value and average hull damage values were weighted by 

the number of aircraft with data to obtain averages for all aircraft. Average hull 
5-10 Unit Replacement and Restoration Costs of Damaged Aircraft

damage value was then divided by the average hull value, resulting in “damage/value” 

percentage for all aircraft as well as for each economic values category. 

The economic values categories not covered in the AVEMCO or Airclaims 

database(s) were estimated using general aviation replacement costs from section 5.3.1. 

Average hull value obtained from Section 5.3.1 for each economic values category was 

multiplied by the “damage/value” percentage for all aircraft. The number of aircraft 

for those categories whose values were obtained from the Section 5.3.1 was not reported 

nor was it used in calculating weighted averages for all aircraft. Table 5-8 presents the 

summary of restoration costs for general aviation aircraft groups.

Table 5-8: General Aviation Restoration Costs ($2003)

Table 5-9 shows general aviation restoration values for aircraft that were 

manufactured before 1982. Average hull damage for all aircraft reported through 

AVEMCO and Airclaims is about 26 percent of average hull value. 

1 2 3 4 5 6 7

Certification Number of 

Aircraft

Average

of Hull

Value

Average

of Hull

Damage

Damage/

Value

Aircraft

with Hull

Value

Data

Aircraft

with Hull

Damage

Data

Source

1 Piston engine airplanes 1 to 3 seats (<200hp) Part 23 610 $ 38,637 $ 11,714 30% 584 554 AVEMCO

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 76 $ 111,164 $ 20,516 18% 73 70 AVEMCO

3 Piston engine airplanes 4 to 9 seats one-engine (<200hp) Part 23 1,200 $ 50,326 $ 10,981 22% 1,171 1,130 AVEMCO

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 953 $ 104,269 $ 18,916 18% 936 902 AVEMCO

5 Piston engine airplanes 4 to 9 seats two-engine Part 23 327 $ 125,382 $ 30,010 24% 320 307 AVEMCO

6 Piston engine airplanes 10 or more seats Part 23 2 $ 232,500 $ 24,364 10% 2 2 AVEMCO

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 NR $ 803,011 $ 163,650 20% NR NR N/A*

8 Turboprop airplanes 1 to 9 seats two-engine Part 23 NR $ 517,788 $ 105,523 20% NR NR N/A*

9 Turboprop airplanes 10 to 19 seats Part 23 1 $ 900,000 $ 6,607 1% 1 1 AVEMCO

10 Turboprop airplanes 20 or more seats Part 25 NR $ 2,014,790 $ 410,605 20% NR NR N/A*

11 Turbojet/Turbofan two-engine airplanes <12,500 lbs. Part 23/25 NR $ 2,568,083 $ 523,364 20% NR NR N/A*

12 Turbojet/Turbofan airplanes >12,500 lbs. And <65,000 lbs. Part 25 67 $ 4,532,030 $ 933,119 21% 66 67 Airclaims

13 Turbojet/Turbofan airplanes >65,000 lbs. Part 25 4 $ 12,625,000 $ 771,250 6% 4 4 Airclaims

14 Rotorcraft piston <6,000 lbs. Part 27 NR $ 135,430 $ 27,600 20% NR NR N/A*

15 Rotorcraft turbine <6,000 lbs. Part 27 NR $ 606,739 $ 123,651 20% NR NR N/A*

16 Rotorcraft piston >6,000 lbs. Part 29 NR NR NR NR NR NR NR

17 Rotorcraft turbine >6,000 lbs Part 29 NR $ 1,888,082 $ 384,783 20% NR NR N/A*

18 Other 422 $ 64,272 $ 15,473 24% 325 294 AVEMCO

 3,662 $ 172,084 $ 35,070 20% 3,482 3,331 AVEMCO

& Airclaims

N/A = Not Available

NR = Not Reported

Col 1: Total number of aircraft in the database.

Col 2: Average aircraft hull value for each economic values class.

Col 3: Average aircraft hull damage value for each economic values class.

Col 4: Column 2 divided by column 1.

Col 5: Number of aircraft with hull value data.

Col 6: Number of aircraft with hull damage data.

Col 7: Source of data.

Note: *Where source of data is not available, it is assumed that Average Hull Value equals Average Market Value from the table 5-5; Average Hull Damage equals 

"Damage/Value" for All Aircraft (~20%) multiplied by Average Hull Value; "Damage/Value" equals "Damage/Value" for All Aircraft.

All Aircraft

Economic Values Category
Unit Replacement and Restoration Costs of Damaged Aircraft 5-11

Table 5-9: General Aviation Restoration Costs – Pre 1982 Aircraft ($2003)

Restoration values for the aircraft manufactured in 1982 or later are summarized 

in Table 5-10. Average hull damage for all aircraft reported through AVEMCO and 

Airclaims is about 15 percent of average hull value.

1 2 3 4 5 6 7

Certification Number of 

Aircraft

Average

of Hull

Value

Average

of Hull

Damage

Damage/

Value

Aircraft

with Hull

Value

Data

Aircraft

with Hull

Damage

Data

Source

1 Piston engine airplanes 1 to 3 seats (<200hp) Part 23 545 $ 31,506 $ 10,587 34% 520 491 AVEMCO

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 38 $ 93,778 $ 18,586 20% 36 36 AVEMCO

3 Piston engine airplanes 4 to 9 seats one-engine (<200hp) Part 23 1,155 $ 47,682 $ 10,559 22% 1,126 1,086 AVEMCO

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 840 $ 89,119 $ 17,739 20% 824 793 AVEMCO

5 Piston engine airplanes 4 to 9 seats two-engine Part 23 316 $ 117,903 $ 28,940 25% 309 296 AVEMCO

6 Piston engine airplanes 10 or more seats Part 23 2 $ 232,500 $ 24,364 10% 2 2 AVEMCO

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 NR $ 187,976 $ 48,936 26% NR NR N/A*

8 Turboprop airplanes 1 to 9 seats two-engine Part 23 NR $ 383,106 $ 99,734 26% NR NR N/A*

9 Turboprop airplanes 10 to 19 seats Part 23 1 $ 900,000 $ 6,607 1% 1 1 AVEMCO

10 Turboprop airplanes 20 or more seats Part 25 NR $ 699,467 $ 182,093 26% NR NR N/A*

11 Turbojet/Turbofan two-engine airplanes <12,500 lbs. Part 23/25 NR $ 824,692 $ 214,693 26% NR NR N/A*

12 Turbojet/Turbofan airplanes >12,500 lbs. And <65,000 lbs. Part 25 39 $ 2,361,256 $ 734,641 31% 39 39 Airclaims

13 Turbojet/Turbofan airplanes >65,000 lbs. Part 25 1 $ 6,500,000 $ 2,000,000 31% 1 1 Airclaims

14 Rotorcraft piston <6,000 lbs. Part 27 NR $ 69,630 $ 18,127 26% NR NR N/A*

15 Rotorcraft turbine <6,000 lbs. Part 27 NR $ 319,045 $ 83,057 26% NR NR N/A*

16 Rotorcraft piston >6,000 lbs. Part 29 NR NR NR NR NR NR NR 

17 Rotorcraft turbine >6,000 lbs Part 29 NR $ 1,047,191 $ 272,617 26% NR NR N/A*

18 Other 71 $ 39,145 $ 12,933 33% 55 52 AVEMCO

 3,008 $ 97,982 $ 25,508 26% 2,913 2,797 AVEMCO

& Airclaims

N/A = Not Available

NR = Not Reported

Col 1: Total number of aircraft in the database.

Col 2: Average aircraft hull value for each economic values class.

Col 3: Average aircraft hull damage value for each economic values class.

Col 4: Column 2 divided by column 1.

Col 5: Number of aircraft with hull value data.

Col 6: Number of aircraft with hull damage data.

Col 7: Source of data.

Note: *Where source of data is not available, it is assumed that Average Hull Value equals Average Market Value from the table 5-5; Average Hull Damage equals 

"Damage/Value" for All Aircraft (~20%) multiplied by Average Hull Value; "Damage/Value" equals "Damage/Value" for All Aircraft.

All Aircraft

Economic Values Category
5-12 Unit Replacement and Restoration Costs of Damaged Aircraft

Table 5-10: General Aviation Restoration Costs – 1982 and Later Aircraft ($2003)

5.4 MILITARY AIRCRAFT

5.4.1 Replacement

Estimating replacement values for military aircraft is considerably more complex 

than it is for air carrier or general aviation aircraft. One problem is that used military 

aircraft do not sell in the large numbers that commercial equipment does. The second 

problem is that there is a complex procurement process for military aircraft, which often 

makes unit cost estimates for individual types inappropriate as measures of 

opportunity costs.

The example of the B-52 bomber illustrates the two problems discussed above. 

First, there is no used market for this aircraft. It is an aircraft for which there are few 

substitutes. Second, what would it cost to actually replace a B-52 that is lost in an 

accident? It is not possible to buy one B-52 or a newer plane that has similar 

characteristics.61 A new military procurement program would cost a substantial sum of 

money, which could not be counted as a cost against one aircraft lost in an accident. 

 

61 The B-52 aircraft program has had a number of aircraft upgrades, which adds to the complexity in 

determining a market value.

1 2 3 4 5 6 7

Certification Number of 

Aircraft

Average

of Hull

Value

Average

of Hull

Damage

Damage/

Value

Aircraft

with Hull

Value

Data

Aircraft

with Hull

Damage

Data

Source

1 Piston engine airplanes 1 to 3 seats (<200hp) Part 23 65 $96,580 $20,496 21% 64 63 AVEMCO

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 38 $128,081 $22,559 18% 37 34 AVEMCO

3 Piston engine airplanes 4 to 9 seats one-engine (<200hp) Part 23 45 $116,483 $21,414 18% 45 44 AVEMCO

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 113 $215,730 $27,483 13% 112 109 AVEMCO

5 Piston engine airplanes 4 to 9 seats two-engine Part 23 11 $335,455 $58,799 18% 11 11 AVEMCO

6 Piston engine airplanes 10 or more seats Part 23 NR $290,000 $44,782 15% NR NR N/A*

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 NR $824,903 $127,381 15% NR NR N/A*

8 Turboprop airplanes 1 to 9 seats two-engine Part 23 NR $918,754 $141,873 15% NR NR N/A*

9 Turboprop airplanes 10 to 19 seats Part 23 NR $1,628,946 $251,541 15% NR NR N/A*

10 Turboprop airplanes 20 or more seats Part 25 NR $3,179,785 $491,021 15% NR NR N/A*

11 Turbojet/Turbofan two-engine airplanes <12,500 lbs. Part 23/25 NR $3,187,683 $492,240 15% NR NR N/A*

12 Turbojet/Turbofan airplanes >12,500 lbs. And <65,000 lbs. Part 25 28 $7,667,593 $1,209,571 16% 27 28 Airclaims

13 Turbojet/Turbofan airplanes >65,000 lbs. Part 25 3 $14,666,667 $361,667 2% 3 3 Airclaims

14 Rotorcraft piston <6,000 lbs. Part 27 NR $166,504 $25,712 15% NR NR N/A*

15 Rotorcraft turbine <6,000 lbs. Part 27 NR $856,887 $132,320 15% NR NR N/A*

16 Rotorcraft piston >6,000 lbs. Part 29 NR NR NR NR NR NR NR 

17 Rotorcraft turbine >6,000 lbs Part 29 NR $2,620,187 $404,608 15% NR NR N/A*

18 Other 351 $69,390 $16,019 23% 270 242 AVEMCO

 654 $551,448 $85,154 15% 569 534 AVEMCO

& Airclaims

N/A = Not Available

NR = Not Reported

Col 1: Total number of aircraft in the database.

Col 2: Average aircraft hull value for each economic values class.

Col 3: Average aircraft hull damage value for each economic values class.

Col 4: Column 2 divided by column 1.

Col 5: Number of aircraft with hull value data.

Col 6: Number of aircraft with hull damage data.

Col 7: Source of data.

Note: *Where source of data is not available, it is assumed that Average Hull Value equals Average Market Value from the table 5-5; Average Hull Damage equals 

"Damage/Value" for All Aircraft (~20%) multiplied by Average Hull Value; "Damage/Value" equals "Damage/Value" for All Aircraft.

All Aircraft

Economic Values Category
Unit Replacement and Restoration Costs of Damaged Aircraft 5-13

Data on military aircraft replacement values were obtained from each branch of 

the services. They are based on unit production costs of each aircraft. Summary values 

are reported in Table 5-11.

5.4.2 Restoration

Data on military restoration costs were also obtained from the military services. 

They are based on the repair cost of aircraft damaged in accidents. Because the 

government self-insures, it is likely that the accident data reflect a high proportion of 

accidents with relatively low levels of damage. Estimated restoration costs average 3 

percent of aircraft value as shown above in Table 5-11. However, if the avoided 

accidents are likely to involve substantial damage, a higher value would be appropriate. 

In this case, the value of 13 percent for air carrier aircraft restoration is recommended 

because of the similarities of aircraft types involved.

Table 5-11: Summary of Military Aircraft Values and Restoration Costs (FY2003)

average weighted by fleet ($ millions) 

1 2 3 4

Aircraft Type Number of 

Aircraft

Average

Replacement

Value

Average

Restoration

Value

Restoration

Percentage

Piston 3 $0.1 NA N/A

Rotary Wing Aircraft 7,125 $10.9 $0.7 6.1%

Turbojet/fan 3+ Engines 1,167 $74.9 $0.4 0.5%

Turbojet/fan Attack/Fighter 4,051 $34.7 $0.7 1.9%

Turbojet/fan Other 1,587 $12.3 $0.9 7.5%

Turboprop 2,017 $31.9 $1.3 4.0%

Other 22 $23.2 NA N/A

N/A 2 NA NA N/A

Total 15,974 $24.4 $0.7 3.0%

Col 1: Total number of aircraft for each aircraft type in military service.

Col 2: Average replacement value for each aircraft type, weighted by fleet.

Col 3: Average restoration value for each aircraft type, weighted by fleet.

Col 4: Column 3 divided by column 2.

Sources-Aircraft Replacement: Army, Army Reserve and National Guard 

(TB_43_0002_3.pdf); Air Force, Air Force Reserve and Air National Guard U.S. Air Force 

(U.S. Airforce and Planning Factors); Navy, Naval Reserve, Marine Corps, and Marine Corps 

Reserve (Ser AIR=1.1.1A/AAC03); Coast Guard 

Note: Replacement and restoration values were not available for all aircraft types.

Sources-Aircraft Restoration: Navy and Marine Corps restoration Costs
5-14 Unit Replacement and Restoration Costs of Damaged Aircraft

This Page Intentionally Left Blank
Economic Values Related to Aircraft Performance Factors 6-1

SECTION 6: ECONOMIC VALUES RELATED TO 

AIRCRAFT PERFORMANCE FACTORS

6.1 INTRODUCTION

Certain types of investment programs or regulatory changes can affect aircraft 

performance. This can occur by changing the weight of the aircraft as well as altering 

the time in certain phases of flight. This section covers two elements related to aircraft 

performance: 

The additional fuel use caused by incremental changes in aircraft weight 

The proportion of time spent in various phases of flight on representative 

aircraft missions

Measures are developed for air carrier and general aviation aircraft. Data were not 

available on military aircraft performance. This section also contains data on the price 

of aviation fuel and sources for updated information on fuel prices. 

The objective of this section is to provide values for use in economic analyses 

related to investment and regulatory decisions that alter the performance of aircraft. 

For example, increases in aircraft weight affect fuel burn. The issue of when mandated 

increases in aircraft weight affect the suitability of an aircraft for specific missions is not 

directly examined in this section. For example, aircraft are designed with a target 

mission in terms of payload and range in mind, and these are performed at an assumed 

maximum aircraft weight. If a regulation were to cause a large change in aircraft 

weight, then the aircraft may not be capable of performing some of the missions for 

which it was designed. In this section, the values presented assume that the 

incremental changes in aircraft weight do not occur at the limits of the payload-range 

envelope. 

When regulatory actions occur during the aircraft design phase, aircraft weight 

increases will often cause an increase in installed power, fuel capacity, and so forth to 

maintain the target payload-range capability. Essentially, the increase in aircraft weight 

requires an increase in the amount of fuel used to fly the same mission. The increase in 

fuel used adds weight to the aircraft requiring additional fuel to be carried. The aircraft 

design would then be optimized for these new performance parameters. The reoptimization of an aircraft design is not considered in the values developed below. Reoptimization of a design may be the most appropriate type of analysis in some cases; 

however, it is not possible to capture this in a standard economic value.
6-2 Economic Values Related to Aircraft Performance Factors

6.2 APPROACH

The aircraft selected for analysis in this chapter were based on review of FAA’s 

enhanced traffic management system (ETMS) and Official Airline Guide (OAG) data

regarding the types of aircraft operating in the National Airspace System (NAS) and the 

typical missions in terms of stage length at which they were operated.62 GRA selected 

the most frequently observed aircraft within each aircraft type/user group combination 

and determined the median stage length for the missions performed by this aircraft. 

These form the basis for the mission lengths over which the increases in fuel burn 

(based on increases in aircraft weight) were calculated, as well as the lengths of mission 

for which flight segment times were developed. Research conducted for the prior 

economic values study (FAA-APO-98-8: Tables 7-16 and 7-18) showed that the 

incremental fuel burn per pound of additional weight was relatively constant over the 

range weight added. Weight penalties used in this report range from 100 to 500 pounds 

depending on aircraft type. 

6.2.1 Air Carrier Aircraft

Air carrier aircraft operated by passenger/combination carriers were selected 

using the OAG for February 2003. Aircraft were selected for each economic values 

category based on total hours flown. The aircraft types having the greatest hours flown 

were chosen to represent all aircraft within a category. In general, one to three aircraft 

were selected to represent an aircraft category. Only data for the domestic and 

international operations of U.S. air carriers were included. Commuter and regional 

aircraft also were selected using the OAG. All-cargo aircraft were selected using data 

from ETMS. 

6.2.2 General Aviation Aircraft

Air taxi aircraft models were identified using a tabulation from the Operating 

Specification Subsystem maintained by FAA Flight Standards Organization. Aircraft 

that were approved for use in Part 135 operations were analyzed to determine the most 

common aircraft types. GA aircraft were selected based on flight frequencies in ETMS.

6.2.3 Aircraft Performance Data

The data presented in this analysis were based on flight test results obtained at 

aircraft certification and represent the nominal level of performance at aircraft delivery. 

The performance manuals are produced by the aircraft manufacturer and represent the 

optimal performance achievable by the operator. Due to external and internal 

 

62 The ETMS provides data on flights that were operated in the NAS while the OAG provides data on 

scheduled flights.
Economic Values Related to Aircraft Performance Factors 6-3

configuration changes, the aircraft’s actual performance will vary as a factor of weight, 

operating conditions, etc. In addition, it can be expected that actual aircraft 

performance will degrade as the aircraft ages, further restricting its capabilities. For 

example, no factor has been applied to allow for degradation in fuel efficiency over 

time. 

6.2.3.1 General Assumptions—The analysis was performed in accordance with 

Approved Transport Category Operations, in particular Part 25, paragraph 25.121 and 

amendment 42. Regulatory performance is calculated with air conditioning bleeds off. 

Some aircraft performance is determined with reference to Part 23, Part 27, Part 29 or 

Part 135 requirements.

Climb, cruise, descent and holding fuel flows are calculated on the basis of an 

economic air conditioning mode. Takeoff performance is calculated for zero wind, dry, 

hard and level runway, and no obstacles. Holding and diversion fuel allowances were 

calculated for the respective aircraft weights at the beginning of the hold or diversion 

profile.

6.2.3.2 Aircraft Parameters—The Operational Weight Empty (OWE) is the 

weight of a typical aircraft as equipped for passenger operations. Included in the OWE 

is the manufacturer’s empty weight plus standard and operational items. Standard 

items include: unusable fuel, seats, carpet, engine oil, emergency equipment, toilet 

fluids and chemicals, galley, buffet, etc. Operational items include things such as crew, 

baggage, manuals, food, beverages, and life vests. 

The Maximum Zero Fuel Weight (MZFW) is the maximum allowable weight of 

the aircraft before fuel is added.

The Maximum Structural Payload is the difference between the MZFW and the 

OWE. For purposes of this analysis 70 percent of the maximum structural payload was 

assumed for the base case performance analysis. An additional calculation involving 

either a 100 or 500 pound payload increment was then performed. The difference in 

fuel burn against the base case was determined to be the incremental fuel burn for the 

weight increment.

The Maximum Landing Weight (MLW) is the certified maximum allowable 

weight of the aircraft at touchdown. 

Mission Takeoff Weight is the total of OWE, passenger and/or cargo weight, 

mission fuel weight and reserve fuel weight. Takeoff weight may be limited by aircraft 

performance. Mission Takeoff Weight may be less than the Maximum Takeoff Weight.
6-4 Economic Values Related to Aircraft Performance Factors

The combination of maximum payload and maximum fuel weight plus the OWE 

may exceed the MZFW. In such situations, the operator must balance payload, 

reserves, and mission needs to achieve the requirements of the flight profile. This 

involves a tradeoff between the payload and fuel load carried, and generally affects the 

maximum range that can be achieved. 

6.2.3.3 Flight Profile—A mission is conducted over a specified distance. The 

effects of wind were not included in the analysis. The mission distance is applied from 

takeoff point (origin airport) to landing point (destination airport). No distance credit is 

taken for the taxi-out, takeoff, approach and landing, and taxi-in, as these segments may 

not be in the same direction as the desired flight path.

All of the factors shown above must be taken into account for proper mission 

planning. A computer model was used with given parameters to calculate the optimal 

result. For optimization purposes, the computer model iterates to achieve the best 

payload vs. time ratio. This is due to most costs being time based. 

The current industry practice is to allow the aircraft to maintain straight and 

level flight (in the mission cruise portion) for a minimum of 30 percent of the mission 

distance. This is to allow for safe movement about the cabin and the servicing of 

passengers. 

Figure 6-1 illustrates the development of performance changes related to a 500-

pound weight penalty for a Gulfstream IV operating at a 1,000 nm stage length. The 

assumptions include an instrument standard (ISA) day, zero winds, level operation, 70 

percent payload, Mach 0.8 cruise speed and National Business Aviation Association 

(NBAA) instrument flight rules (IFR) reserves. It shows the mission time, fuel burn and 

distance for each flight segment. The top part of the figure is the baseline mission and 

the bottom part is the same mission with a 500-pound weight penalty. The mission 

with the 500-pound weight penalty uses 42 more pounds of fuel, while the flight time 

for the mission is increased by one minute from 2 hours 27 minutes to 2 hours 28 

minutes.

The performance models and manufacturer data also permit estimation of the 

time aircraft spend in various mission segments of a flight including taxi-out, takeoff, 

climb, cruise, descent, landing, and taxi-in. Not all mission segments are available for 

each aircraft analyzed, using manufacturer data. 
Economic Values Related to Aircraft Performance Factors 6-5

Figure 6-1: Gulfstream IV Illustrative Performance Calculations

1,000nm Stage Length and 500 lb Weight Penalty*

Total variance for 500 lb weight increase = 1 min of additional flight time 

and 42 lb or 6.3 usg of additional fuel

* Range 1,000 nm, ISA, zero winds, sea level takeoff, 70% payload, cruise at 

Mach 0.80 and NBAA IFR reserves

5,607 /hr

Mission

Time Fuel Distance

2:27 6,478 lb 1,000 nm

Baseline

2:28 2:28

Mission

Time Fuel Distance

2:28 6,520 lb 1,000 nm

+500 lb

Climb

Variance

0 min

27 lb

Cruise

Variance

0 min

13 lb

Descent

Variance

1 min

2 lb

Taxi out Climb Cruise Descent Taxi in

Time

Weight

Time

Weight

Total variance for 500 lb weight increase = 1 min of additional flight time 

and 42 lb or 6.3 usg of additional fuel

* Range 1,000 nm, ISA, zero winds, sea level takeoff, 70% payload, cruise at 

Mach 0.80 and NBAA IFR reserves

5,607 /hr

Mission

Time Fuel Distance

2:27 6,478 lb 1,000 nm

Mission

Time Fuel Distance

2:27 6,478 lb 1,000 nm

Baseline

2:28 2:28

Mission

Time Fuel Distance

2:28 6,520 lb 1,000 nm

Mission

Time Fuel Distance

2:28 6,520 lb 1,000 nm

+500 lb

Climb

Variance

0 min

27 lb

Cruise

Variance

0 min

13 lb

Descent

Variance

1 min

2 lb

Taxi out Climb Cruise Descent Taxi in

Time

Weight

Time

Weight
6-6 Economic Values Related to Aircraft Performance Factors

6.3 AIR CARRIER AIRCRAFT

This section presents the analysis of weight penalties and mission segments for 

large commercial aircraft. It considers aircraft used in passenger (combination) service 

as well as those used in all-cargo service. 

6.3.1 Incremental Fuel Burn

As noted above, incremental fuel burn related to an increase in aircraft weight 

was calculated for selected aircraft types and selected stage lengths. The aircraft types 

selected present a sampling of the most common aircraft in use within each economic 

values category. Mission lengths were based on typical mission lengths for each aircraft 

type. For most aircraft models, multiple mission lengths were analyzed. A weight 

penalty of 500 pounds was used for all jet aircraft, while a weight penalty of 100 pounds 

was used for turboprop and piston engine aircraft.

Table 6-1 presents the results for all large commercial aircraft (includes both 

passenger and all-cargo aircraft). The table presents the aircraft type, passenger or 

cargo configuration, the stage lengths analyzed, the weight penalty and the incremental 

fuel burn in pounds per flight.63 In addition, the incremental fuel burn per pound of 

weight added is also calculated in U.S. gallons per flight. The incremental fuel burn in 

gallons per hour per pound of weight added is calculated by dividing the incremental 

fuel burn per flight per pound of weight added by the flight time. Also shown is the 

total flight time for the specific mission analyzed. 

As noted above, prior research has shown that the incremental fuel per pound of 

weight added is relatively constant for the weight increases considered in this section. 

Therefore, the additional fuel consumption per year can be estimated by the amount of 

weight added times the incremental fuel burn times the annual utilization in flight 

hours. For example, assume that a regulation imposes a 100-pound weight penalty on a 

B737-300 that operates over a 250 nm average stage length for 3,000 hours per year. The 

annual cost at $0.80 per gallon for the additional fuel consumed because of the increase 

in aircraft weight is $960.00 (3,000 hours x $0.80 per gallon x 0.004 pounds x 100 gallons 

per pound).

 

63 Fuel weight in pounds is converted to U.S. gallons by using 6.7 lbs per gallon.
Economic Values Related to Aircraft Performance Factors 6-7

1 2 3 4 5 6 7

250 nm 500 25 21.800 0.007 0.7 0.010

500 nm 500 25 35.400 0.011 1.2 0.009

250 nm 500 25 11.000 0.003 0.8 0.004

500 nm 500 25 22.000 0.007 1.4 0.005

500 nm 500 25 22.000 0.007 1.3 0.005

1,000 nm 500 25 47.000 0.014 2.4 0.006

500 nm 500 25 24.000 0.007 1.3 0.006

750 nm 500 25 28.000 0.008 1.8 0.005

DC-9 Cargo 500 nm 500 25 17.000 0.005 1.2 0.004

500 nm 500 25 20.000 0.006 1.5 0.004

750 nm 500 25 30.000 0.009 2.1 0.004

3,000 nm 500 25 114.000 0.034 6.7 0.005

5,000 nm 500 25 200.000 0.060 11.0 0.005

3,000 nm 500 25 67.000 0.020 6.0 0.003

4,400 nm 500 25 143.000 0.043 9.0 0.005

250 nm 500 25 15.000 0.004 0.7 0.006

500 nm 500 25 24.000 0.007 1.1 0.006

1,750 nm 500 25 58.000 0.017 4.0 0.004

2,000 nm 500 25 75.000 0.022 4.5 0.005

250 nm 500 25 16.000 0.005 0.7 0.007

500 nm 500 25 18.000 0.005 1.2 0.004

500 nm 500 25 15.000 0.004 1.3 0.003

750 nm 500 25 37.000 0.011 1.8 0.006

5,000 nm 500 25 210.000 0.063 10.4 0.006

7,000 nm 500 25 318.000 0.095 14.4 0.007

250 nm 500 25 10.000 0.003 0.7 0.004

500 nm 500 25 18.000 0.005 1.3 0.004

250 nm 500 25 13.000 0.004 0.8 0.005

500 nm 500 25 19.000 0.006 1.4 0.004

250 nm 500 25 8.000 0.002 0.7 0.003

500 nm 500 25 19.000 0.006 1.3 0.004

Beech 1900 Passenger 250 nm 100 23 5.300 0.008 1.1 0.007

C-208 Cargo 250 nm 100 23 0.918 0.001 1.7 0.001

250 nm 100 23 2.570 0.004 1.0 0.004

500 nm 100 23 2.140 0.003 2.1 0.002

Turboprop under 20 seats (Part 25) * * N/A N/A N/A N/A N/A N/A N/A

250 nm 100 25 1.000 0.001 1.0 0.001

500 nm 100 25 2.000 0.003 2.0 0.001

Piston Engine (Part 23) Piper PA-31 Cargo 250 nm 100 23 0.930 0.001 1.5 0.001

Piston Engine (Part 25) * * N/A N/A N/A N/A N/A N/A N/A

**Fuel weight in pounds is converted to U.S. gallons by using 6.7 lbs per gallon

Col 1: Median stage length for the missions performed by each aircraft type.

Col 2: Weight penalty of 500 lbs. was used for all jet aircraft while weight penalty of 100 lbs. was used for all turboprops and pistons.

Col 3: Certification Part.

Col 4: Manufacturer data.

Col 5: Column 4 divided by column 2 divided by 6.7

Col 6: Manufacturer Data.

Col 7: Column 5 divided by column 6.

N/A = Few units in service

*Data for general aviation aircraft may be used to represent these aircraft categories.

Turboprop 20 seats and over Dash 8-102 Passenger

Source: GRA analysis of manufacturer data

Regional Jet 70 to 100 seats CRJ-700ER Passenger

Turboprop under 20 seats (Part 23) Swearingen

Metro II SA-226 Cargo

Regional Jet under 70 seats

CRJ-200ER Passenger

ERJ-135 Passenger

Four-Engine Narrow-Body DC8-60 Cargo

Four-Engine Wide-Body

B747-100 Cargo

B747-400 Passenger

Three-Engine Narrow-Body B727-200 Cargo

Three-Engine Wide-Body DC-10-30 Cargo

Passenger

Two-Engine Wide-Body

A300-600 Cargo

B767-300 Passenger

B777-200 Passenger

Flight

Time

(hr)

Incremental

Fuel Burn

per Flight Hour

per Pound of 

Weight

Added (usg**)

Two-Engine Narrow-Body

A320-200 Passenger

B737-300 Passenger

B757-200 Passenger/

Cargo

MD 81

Economic Values Category Aircraft

Type

Passenger/

Cargo

Median

Stage

Length

Weight

Penalty Part

Incremental

Fuel Burn

Per Flight

(lbs.)

Incremental

Fuel Burn

Per Flight 

Per Pound of 

Weight

Added (usg**)

Table 6-1: Large Commercial Aircraft – Incremental Fuel Burn
6-8 Economic Values Related to Aircraft Performance Factors

6.3.2 Flight Profiles 

Flight profiles for all carrier aircraft are presented in Table 6-2. These are based 

on simple averages of the data from the specific aircraft shown in Table 6-1 above.64 

Not all mission segments could be calculated for each aircraft and some have been 

aggregated. Flight profiles for each mission by each aircraft and type are provided in 

supporting tables on the APO website.

Table 6-2: Large Commercial Aircraft – Breakdown of Flight Profiles

1 1a 2 3 4 5

Climb/

Cruise/

Descent

Landing Taxi-in Total

Minutes

Two-Engine Narrow-Body 67.2 10.0 5.0 92.9

Two-Engine Wide-Body 487.9 5.0 5.0 507.9

Three-Engine Narrow-Body 54.9 NR 5.0 68.9

Three-Engine Wide-Body 202.4 25.0 NR 252.4

Four-Engine Narrow-Body 26.4 18.0 NR 58.5

Four-Engine Wide-Body 735.2 4.0 5.0 755.5

Economic Values Category Taxi out Takeoff

and Climb Cruise

Descent

and

Landing

Taxi in Total

Minutes

Regional Jet under 70 seats 7.5 19.4 28.5 15.7 4.5 75.5

Regional Jet 70 to 100 seats 6.0 25.0 21.0 14.0 4.0 70.0

Turboprop under 20 seats (Part 23) NR 15.9 56.5 15.1 NR 87.5

Turboprop under 20 seats (Part 25) N/A N/A N/A N/A N/A N/A

Turboprop 20 seats and over 7.5 22.5 72.3 21.0 4.5 127.8

Piston Engine (Part 23) 2.0 16.0 43.9 33.0 2.0 96.9

Piston Engine (Part 25) N/A N/A N/A N/A N/A N/A

N/A = Few units in service

NR = Values not reported

Col 5: Sum of columns 1 through 4.

Col 1-4: GRA sorted the data in flight profiles because the manufacturer data was not reported in the same 

categories for each aircraft type.

Economic Values Category

Average Flight Profiles (min)

Taxi out/

Takeoff/

Climbout

10.7

10.0

9.0

25.0

14.1

Note: Four-Engine Wide-Body does not include B747-100 because B747-100 flight profile was

significantly different from other aircraft in the same category.

11.3

Source: GRA analysis of manufacturer data

6.4 GENERAL AVIATION

Table 6-3 contains the results of the performance analysis of weight penalties for 

selected general aviation and air taxi aircraft. The underlying performance data does 

 

64 Weighted averages were not calculated because there was not a good representation of the aircraft 

within each group. Thus, the category averages should be viewed as approximations of the amount of 

flight time in each flight segment of a typical aircraft mission.
Economic Values Related to Aircraft Performance Factors 6-9

not differentiate between air taxi and other general aviation aircraft. The same mission 

analysis rules as above were used except that a weight penalty of 100 pounds was 

applied to all aircraft except for the largest business jet aircraft category. In addition, 

rotorcraft performance is considered in this section. As can be seen, most aircraft were 

evaluated over one proposed mission length, except for jet aircraft that were evaluated 

at two mission lengths. The table shows the amount of the weight penalty, the 

incremental fuel burn per flight in pounds, and the incremental fuel burn per flight per 

pound of added weight in gallons. The incremental fuel burn per pound of weight 

added per flight hour is also shown in this table. 

Table 6-4 summarizes performance data for the general aviation and air taxi 

aircraft. Performance profiles allow consideration of the proportion of mission length 

spent in each part of the flight profile. This permits calculation of costs by amount of 

time in each part of the flight using the cost data per flight hour from Section 4.

Table 6-3: General Aviation and Air Taxi Aircraft – Incremental Fuel Burn

1 2 3 4 5 6 7

1 Piston engine airplanes 1 to 3 seats (<=200hp) N/A N/A N/A N/A N/A N/A N/A N/A

2 Piston engine airplanes 1 to 3 seats (>200hp) N/A N/A N/A N/A N/A N/A N/A N/A

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) C-172 250 nm 100 23 0.920 0.001 2.1 0.001

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp)** N/A N/A N/A N/A N/A N/A N/A N/A

5 Piston engine airplanes 4 to 9 seats multiengine PA-31 250 nm 100 23 0.930 0.001 1.5 0.001

6 Piston engine airplanes 10 or more seats N/A N/A N/A N/A N/A N/A N/A N/A

7 Turboprop airplanes 1 to 9 seats one-engine C-208 250 nm 100 23 0.918 0.001 1.7 0.001

8 Turboprop airplanes 1 to 9 seats multiengine Cessna 421 250 nm 100 23 0.329 0.000 1.0 0.000

9 Turboprop airplanes 10 to 19 seats BE-200 250 nm 100 23 1.591 0.002 1.0 0.002

10 Turboprop airplanes 20 or more seats** N/A N/A N/A N/A N/A N/A N/A N/A

C550/560 250 nm 100 25 2.000 0.003 0.7 0.004

C550/560 500 nm 100 25 5.000 0.007 1.4 0.005

Lear Jet 35 500 nm 100 25 2.520 0.004 1.2 0.003

Lear Jet 35 1,000 nm 100 25 2.786 0.004 2.4 0.002

Lear Jet 60 500 nm 100 25 5.135 0.008 1.2 0.006

Lear Jet 60 1,000 nm 100 25 11.028 0.016 2.4 0.007

Gulfstream G-IV 250 nm 500 25 12.000 0.004 0.6 0.006

Gulfstream G-IV 1,000 nm 500 25 42.000 0.013 2.3 0.005

14 Rotorcraft Piston <=6,000 lbs R-22 200 nm 100 27 1.500 0.002 1.8 0.001

15 Rotorcraft Turbine <=6,000 lbs B-206 200 nm 100 27 5.800 0.009 1.8 0.005

16 Rotorcraft Piston >6,000 lbs N/A N/A N/A N/A N/A N/A N/A N/A

17 Rotorcraft Turbine >6,000 lbs S-76 200 nm 100 29 13.610 0.020 1.5 0.014

18 Other N/A N/A N/A N/A N/A N/A N/A N/A

*U.S. Gallons: Fuel weight in pounds is converted to U.S. gallons by using 6.7 lbs per gallon.

Col 1: Mission stage length for the missions performed by each aircraft type.

Col 2: Weight penalty of 100 lbs. Or 500 lbs. Depending on aircraft type.

Col 3: Certification Part.

Col 4: Manufacturer data.

Col 5: Column 4 divided by column 2 divided by 6.7.

Col 6: Manufacturer Data.

Col 7: Column 5 divided by column 6.

Economic Values Category Aircraft

Type

Mission

Stage

Length

Weight

Penalty Part

Incremental

Fuel Burn

Per Flight

(lbs.)

Incremental

Fuel Burn

Per Flight 

Per Pound of 

Weight

Added (usg*)

Flight

Time

(hr)

Incremental

Fuel Burn

Per Flight Hour

Per Pound of 

Weight

Added (usg*)

11 Turbojet/Turbofan airplanes <=12,500 lbs

Source: GRA analysis of manufacturer data

N/A = Few units in service

**Data for large commercial aircraft may be used to represent these aircraft categories.

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000lbs

13 Turbojet/Turbofan airplanes >65,000 lbs
6-10 Economic Values Related to Aircraft Performance Factors

Table 6-4: General Aviation and Air Taxi Aircraft – Breakdown of Flight Profiles

Flight Segment Categories Limited by Available Data

6.5 FUEL COSTS 

In order to apply the incremental fuel burn data to an economic analysis, fuel 

price information is required. Data have been developed for both air carrier (Jet-A) and 

general aviation fuel (Jet-A and Avgas). Piston engine aircraft consume Avgas while all 

other aircraft consume Jet-A. (All military aircraft use Jet-A.)

Table 6-5 presents jet fuel (Jet-A) prices reported by carriers filing Form 41. The 

Air Transport Association of America (ATA) maintains these data on its web site and 

presents a time series dating back to 1977. Readers should be cautioned that large air 

carriers generally buy fuel in significant quantities and therefore pay substantially less 

than other users. In addition, some carriers now purchase hedge contracts to insulate 

themselves from rapid increases in fuel prices. Smaller carriers may pay more than the 

average price of fuel for Form 41 carriers. 

1 2 3 4 5 6 7 8 9 10 11 12

Taxi-out Takeoff/

Climbout Cruise Descent Taxi-in Taxi-out Takeoff/Climbout Cruise Descent Taxi-in

1 Piston engine airplanes 1 to 3 seats (<=200hp) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

2 Piston engine airplanes 1 to 3 seats (>200hp) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) C-172 250 nm 2.1 NR 13.0 107.0 7.0 NR 0% 10% 84% 6% 0%

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp)* N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

5 Piston engine airplanes 4 to 9 seats multiengine PA-31 250 nm 1.5 2.0 16.0 43.9 33.0 2.0 2% 17% 45% 34% 2%

6 Piston engine airplanes 10 or more seats N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

7 Turboprop airplanes 1 to 9 seats one-engine C-208 250 nm 1.7 NR 15.9 69.2 15.0 NR 0% 16% 69% 15% 0%

8 Turboprop airplanes 1 to 9 seats multiengine Cessna 421 250 nm 1.0 NR 6.2 62.8 11.5 NR 0% 8% 78% 14% 0%

9 Turboprop airplanes 10 to 19 seats BE-200 250 nm 1.0 NR 13.3 38.6 8.6 NR 0% 22% 64% 14% 0%

10 Turboprop airplanes 20 or more seats* N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

C550/560 250 nm 0.7 NR 13.0 20.0 11.0 NR 0% 30% 45% 25% 0%

C550/560 500 nm 1.4 NR 24.0 49.0 14.0 NR 0% 28% 56% 16% 0%

Lear Jet 35 500 nm 1.2 11.0 14.1 44.9 14.4 NR 13% 17% 53% 17% 0%

Lear Jet 35 1,000 nm 2.4 11.0 16.6 111.2 15.0 NR 7% 11% 72% 10% 0%

Lear Jet 60 500 nm 1.2 11.0 11.9 50.2 11.0 NR 13% 14% 60% 13% 0%

Lear Jet 60 1,000 nm 2.4 11.0 13.6 116.8 11.9 NR 7% 9% 76% 8% 0%

Gulfstream G-IV 250 nm 0.6 11.0 12.0 11.0 15.0 NR 22% 24% 22% 31% 0%

Gulfstream G-IV 1,000 nm 2.3 11.0 18.0 102.0 17.0 NR 7% 12% 69% 11% 0%

14 Rotorcraft Piston <=6,000 lbs R-22 200 nm 1.8 NR 4.0 103.2 4.0 NR 0% 4% 93% 4% 0%

15 Rotorcraft Turbine <=6,000 lbs B-206 200 nm 1.8 NR 4.0 103.2 4.0 NR 0% 4% 93% 4% 0%

16 Rotorcraft Piston >6,000 lbs N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

17 Rotorcraft Turbine >6,000 lbs S-76 200 nm 1.5 NR 4.0 103.2 4.0 0% 4% 93% 4% 0%

18 Other N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Col 1: Stage length for the missions performed by each aircraft type.

Col 2: Flight time - manufacturer data.

Col 3-7: Breakdown of Flight profiles - based on manufacturer data.

Col 8-12: Breakdown of flight profiles - percent of time spent in each stage of flight.

Economic Values Category Aircraft

Type

Mission

Stage

Length

Flight

Time

(hr)

Breakdown of Flight Profile (min) Breakdown of Flight Profile (percent)

11 Turbojet/Turbofan airplanes <=12,500 lbs

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000lbs

NR = Values not reported

*Data for large commercial aircraft may be used to represent these aircraft categories.

13 Turbojet/Turbofan airplanes >65,000 lbs

Source: GRA analysis of manufacturer data

N/A = Few units in service
Economic Values Related to Aircraft Performance Factors 6-11

Year Fuel Consumption

(gallons)

Fuel Cost (¢/gallon)

Nominal Prices

Fuel Cost (¢/gallon)

Real Prices (base year-2003)

1977 9,910,427,204 36.21 110.54

1978 10,188,035,462 39.26 111.40

1979 10,694,320,392 57.70 147.30

1980 10,266,539,467 89.17 200.20

1981 10,587,769,025 104.69 213.07

1982 10,400,198,108 98.94 189.68

1983 10,670,862,819 89.61 166.44

1984 11,912,365,223 85.49 152.22

1985 12,602,936,017 80.93 139.15

1986 13,682,326,978 55.77 94.14

1987 14,480,455,202 55.95 91.12

1988 15,180,728,457 53.49 83.65

1989 15,462,437,928 60.50 90.26

1990 16,232,059,039 78.26 110.77

1991 15,327,014,735 69.07 93.82

1992 15,882,983,385 63.66 83.94

1993 16,065,151,010 60.58 77.56

1994 16,662,883,478 55.82 69.68

1995 17,114,062,801 55.83 67.77

1996 17,752,362,587 66.45 78.35

1997 18,477,667,039 64.48 74.32

1998 18,889,501,116 51.31 58.24

1999 19,652,618,771 53.12 58.99

2000 20,319,276,869 80.64 86.63

2001 19,082,056,714 77.72 81.19

2002 17,839,126,707 71.44 73.47

YTD-Oct 2003 14,862,606,416 84.40 84.40

Source : http://www.airlines.org/econ/files/fuel.xls

Data from: DOT Form 41 filings (recent months are preliminary and subject to restatement)

Notes: Costs do not include taxes, into-plane fees, or expenses associated with hedging 

programs. Real prices were calculated using the CPI inflation calculator. The CPI inflation 

calculator uses the average Consumer Price Index for a given calendar year. This data 

represents changes in prices of all goods and services purchased for consumption by urban 

households. This index value has been calculated every year since 1913. For the current year, 

the latest monthly index value is used. Link for the CPI inflation calculator can be found on: 

http://www.bls.gov/cpi/home.htm

Table 6-5: Fuel Cost and Consumption—System-wide Operations

U.S. Majors, Nationals and Large Regionals — All Services

Table 6-6 reports general aviation fuel prices for Jet-A and Avgas. These data are 

for December 2003. Updated data can be obtained from the web site noted in Table 6-6. 

As can be seen, general aviation fuel costs considerably more per gallon than air carrier 

fuel, about $3.00 per gallon for general aviation vs. less than $1.00 per gallon for air 

carriers.
6-12 Economic Values Related to Aircraft Performance Factors

Table 6-6: General Aviation Jet-A and Avgas Per Gallon Fuel Prices ($2003)

 http://www.aviationresearch.com/Free/fuel_survey.asp

Table 6-7 shows the average rate of fuel consumption (gallons per hour) and the 

estimated annual fuel use in millions of gallons for the general aviation fleet in 2002.

Table 6-7: 2002 General Aviation Total Fuel Consumed and Average Fuel 

Consumption Rate by Aircraft Type

Includes Air Taxi Aircraft; Excludes Commuter Aircraft

www.faa.gov/data_statistics/aviation_data_statistics/general_aviation/CY2002/media/FAA%202002%20chapter%205.xls

 Region

Jet-A

High

Price

Jet-A

Low

Price

Jet-A

Average

Price

Avgas

High

Price

Avgas

Low

Price

Avgas

Average

Price

 Eastern $3.99 $2.05 $3.22 $4.01 $2.15 $3.30 

 Western $4.50 $2.44 $3.11 $3.95 $2.25 $3.07 

 Central $3.53 $1.95 $2.66 $3.67 $2.28 $2.92 

 Southern $3.92 $2.49 $3.20 $4.21 $2.49 $3.33 

 Nationwide $3.77 $2.19 $2.93 $3.80 $2.29 $3.05 

Prices include taxes and fees.

Source: Aviation Research Group/U.S. Inc. 

The table above shows results of a fuel price survey of U.S. fuel suppliers performed in Dec 2003

Economic

Values 

Category

Aircraft Type Certification Average Rate 

(GPH)

Estimated Fuel Use 

(Mil. Gal.)

Percent 

Standard 

Error

GA Survey Categories

1 Piston engine airplanes 1 to 3 seats (<=200hp) Part 23 10.9 170 1.8 1 Engine Fixed Wing Piston

2 Piston engine airplanes 1 to 3 seats (>200hp) Part 23 10.9 170 1.8 1 Engine Fixed Wing Piston

3 Piston engine airplanes 4 to 9 seats one-engine (<=200hp) Part 23 10.9 170 1.8 1 Engine Fixed Wing Piston

4 Piston engine airplanes 4 to 9 seats one-engine (>200hp) Part 23 10.9 170 1.8 1 Engine Fixed Wing Piston

5 Piston engine airplanes 4 to 9 seats multiengine Part 23 28.9 67.1 5.1 2 Engine Fixed Wing Piston

6 Piston engine airplanes 10 or more seats Part 23 12.9 240.7 2.2 Piston Total

7 Turboprop airplanes 1 to 9 seats one-engine Part 23 54.4 22.1 5.5 1 Engine Fixed Wing Turboprop

8 Turboprop airplanes 1 to 9 seats multiengine Part 23 88.6 105.8 3.4 2 Engine Fixed Wing Turboprop

9 Turboprop airplanes 10 to 19 seats Part 23 82.3 127.9 2.9 Turboprop Total

10 Turboprop airplanes 20 or more seats Part 25 82.3 127.9 2.9 Turboprop Total

11 Turbojet/Turbofan airplanes <=12,500 lbs Part 23/25 271.6 654.7 4 Turbojet Total

12 Turbojet/Turbofan airplanes>12,500 lbs and <=65,000lbs Part 25 271.6 654.7 4 Turbojet Total

13 Turbojet/Turbofan airplanes >65,000 lbs Part 25 271.6 654.7 4 Turbojet Total

14 Rotorcraft piston <=6,000 lbs Part 27 15.1 6.4 7.8 Rotorcraft Piston

15 Rotorcraft turbine <=6,000 lbs Part 27 28.5 32.9 6 Rotorcraft Turbine

16 Rotorcraft piston >6,000 lbs Part 29 15.1 6.4 7.8 Rotorcraft Piston

17 Rotorcraft turbine >6,000 lbs Part 29 28.5 32.9 6 Rotorcraft Turbine

18 Other

Source: Table 5.1 of General Aviation and Air Taxi Activity Survey, CY2002 (May 2004) 
Labor Cost Factors 7-1

SECTION 7: LABOR COST FACTORS

7.1 INTRODUCTION

Many changes to FAA investment or regulatory programs require the 

expenditure of labor hours to construct, manufacture, modify, operate or service 

aviation facilities or equipment. In addition, regulations can require additional 

education or training of personnel. While many of these costs are embedded in other 

cost factors (e.g., flight crew costs are typically included in aircraft operating costs), 

there may be a need to separately place a value on labor hours expended. This section 

of the report summarizes data on labor costs for typical aviation industry employees. It 

also suggests ways of including these and related costs in benefit-cost studies or 

regulatory evaluations. There are many types of labor that could be affected by FAA 

investments or regulations, and labor rates for even the same occupation can vary 

widely by industry segment, years of experience, and geographic location, among other 

factors.

Labor costs can be stated in a variety of ways, including the direct salary or wage 

cost of a unit of labor (annual or hourly), the direct cost plus the cost of benefits, or the 

“fully loaded” cost, which includes the enterprise’s overhead costs that are allocated to 

labor as well as the direct cost and the cost of benefits. Which cost should be used 

depends on the regulatory impact of interest, in particular, whether the impact would 

include the hiring of additional staff or capital investments along with labor impacts. 

Impacts that are modest in terms of additional labor hour requirements can be best 

estimated using direct labor costs alone. An impact that includes the hiring of some 

new workers arguably should include benefits costs as well, and an impact that 

involves significant expansion of operations and equipment along with employment 

should also include overhead costs in the labor rates used.

7.2 LABOR COSTS IN AIRCRAFT MANUFACTURING INDUSTRIES

Aircraft and aeronautical manufacturers may be affected by some changes in 

aviation regulations or investments due to changes they must make to manufacturing 

processes or related procedures for in-production aircraft or other aeronautical 

products. Making these changes will usually require specific actions by engineers and 

production workers within the affected firm. Survey data on labor compensation levels 

for aerospace and aeronautics firms is used to provide the basis for cost estimates of 

such impacts. These data are reported as hourly compensation levels for sectors within 

the aeronautical industry.
7-2 Labor Cost Factors

Sector of Aircraft Industry Average Hourly Earnings 

(2002)

Total Aircraft (SIC 372) $21.72

 Aircraft (SIC 3721) $24.53

 Engines & Parts (SIC 3724) $21.31

 Other Parts & Equipment (SIC 3728) $19.23

Source: Aerospace Facts and Figures 2003/2004, Bureau of Labor 

Statistics and AIA Estimates.

Table 7-1 contains data on 2003 aircraft manufacturing labor rates and benefits 

costs per hour for white-collar occupations and blue-collar occupations. These rates 

include wages and salaries as well as benefits. However, they do not include overhead 

costs or general and administrative costs. 

Table 7-1: 2003 Aircraft Manufacturing Industry Labor Rates

Blue-Collar 

Occupation

White-Collar 

Occupation

Wages and Salaries $24.11 $31.59

Benefits $16.67 $17.45

Total Compensation $40.78 $49.04

Overhead* 96% 55%

Total Compensation 

Including Overhead Costs $79.93 $76.01

Source: Aerospace Facts and Figures 2003/2004, Aerospace Industries

of America

*Overhead cost levels shown in the table above are based on aircraft

manufacturing industry norms. 

Within the aircraft manufacturing industry, there is some variability in 

compensation of production workers, according to the sector of the industry. Table 7-2 

reports average 2002 production worker hourly wages for the overall “Aircraft and 

Parts” industry (SIC 372) and for the subsectors “Aircraft” (SIC 3721), “Engines and 

Parts” (SIC 3724) and “Other Parts and Equipment” (SIC 3728). This table reports 

compensation only. 

Overhead levels in aircraft manufacturing vary. They can range from about 50 to 

100 percent of total compensation. Therefore, the above numbers should be multiplied 

by 1.5 or 2.0 if consideration of overheads is appropriate.

Table 7-2: Average Hourly Earnings, Aircraft Industry Production Workers (2002)
Labor Cost Factors 7-3

The terms used to specify aerospace engineering specialties often have an 

unclear relationship to the types of tasks typically undertaken. Table 7-3 provides data 

on the relationship between the most common aerospace engineering fields and the 

type of work usually undertaken by those in the field.

Table 7-3: Types of Work Done Within Aerospace Engineering Fields

Engineering Field Type of Work

Electrical Design

Equipment Lines

Electrical Applications

Crew & Equipment

Hydraulics

Mechanical Systems Auxiliary Mechanics

Flight Controls

Reliability

Power Plant

Environmental Control Systems

Stress

Structures Contour Development

Structural Design

CAD Applications

Check

Certification

Document Control

EMU

Acoustics

Propulsion

Stability and Control

Aerodynamics

Loads and Dynamics

Project Engineering

Source: General Aviation Manufacturers Association.

Propulsion Systems

Support

Flight Science

Avionics Electrical

7.3 SALARIES, BENEFITS AND TRAINING COSTS FOR GA PILOTS

Crew costs are reported for GA operators as part of these operators’ overall 

operating costs in Section 4 of this report. These are reported for aircraft grouped into 

the 18 Economic Values aircraft classification categories for GA aircraft. The Conklin & 

de Decker data used to develop these operating costs have also been used to detail per 

pilot wage and benefits rates for eight of these aircraft categories (those most commonly 

used for passenger transport by business and corporate users). These compensation 

data are reported on a per annual flight hour basis in Table 7-4. Pilot pay and benefit 
7-4 Labor Cost Factors

costs are reported for all categories of aircraft. For larger aircraft, co-pilot pay and 

benefits are also reported.65 Fringe benefit costs are customarily reported by Conklin & 

de Decker as 30 percent of the pilot or co-pilot salary. The table also reports the average 

total crew cost for each aircraft category. Because of differences in crew requirements 

for different aircraft within each category (not all aircraft within a category may require 

a co-pilot, for example), the pilot and co-pilot per flight hour salary and benefit costs 

may not sum up to the total per-flight hour crew cost.

Table 7-4: Disaggregated Flight Crew Compensation and Training Costs

for Selected GA Operators

Table 7-4 also reports per-pilot flight crew training costs for each of the aircraft 

categories. These data are also taken from the Conklin & de Decker Aircraft Cost 

Evaluator database, and refer to the cost of “flight crew training using a professional, 

simulator-based training program (if available) or the equivalent.” These training cost 

data represent the level of training to remain qualified and current on a specific aircraft 

type. These data are reported because regulatory changes that would cause operators 

of these types of aircraft to hire and train additional pilots do impose new training costs 

as well as the more direct costs of employing a new pilot.

7.4 AIR CARRIER FLIGHT CREW TRAINING COSTS

Regulatory changes could also cause air carriers to hire additional flight crew, 

and this would result in new training costs as well as the direct costs of employing a 

new pilot. As part of its comments on a past FAA NPRM in 1996, the Air Transport 

 

65 Smaller aircraft generally can be operated by a single pilot while larger aircraft use two flight crew 

members (pilot and co-pilot). Some older transport aircraft also require a third crew member, a flight 

engineer.

6 Piston engine airplanes 10 or more seats $112 $90 $22 -- -- $4,400

7 Turboprop airplanes 1 to 9 seats one-engine $181 $139 $42 -- -- $4,537

8 Turboprop airplanes 1 to 9 seats multiengine $238 $183 $55 -- -- $6,190

9 Turboprop airplanes 10 to 19 seats $244 $183 $55 $163 $49 $8,572

10 Turboprop airplanes 20 or more seats $433 $211 $63 $163 $49 $11,706

11 Turbojet/Turbofan airplanes <=12,500 lbs $475 $214 $64 $158 $47 $10,250

12 Turbojet/Turbofan airplanes >12,500 lbs and <=65,000 lbs $559 $251 $75 $185 $56 $13,695

13 Turbojet/Turbofan airplanes > 65,000 lbs $713 $315 $95 $229 $69 $24,401

Source: Tabulated from data for individual aircraft in Conklin and deDecker Aircraft Cost Evaluator. Data represent weighted average 

costs per annual flight hour for aircraft within the category. The column "Average Total Crew Cost" is taken from the "Crew" cost column 

of Table 4-10.

Co-Pilot

Direct

(When

Applicable)

Co-Pilot

Benefits

Average

Total

Crew Cost

Training

Costs

(Per

Crewmember)

Pilot

Direct

Pilot

Benefits Economic Values Category (All Years)
Labor Cost Factors 7-5

Association of America (ATA) reported results from a survey of its members regarding 

training costs.66 The estimate reported by ATA for the average cost of an initial training 

session for pilots moving to a new rung on the seniority ladder was $23,384 in 1995, or 

$26,637 in 2003 dollars, a value that is comparable to that reported by Conklin & de 

Decker for the largest jet GA aircraft (which includes the Boeing Business Jet and the 

Airbus Corporate Jet) as shown in Table 7-4.

Costs of pilot training and of the maintaining of type currency by pilots come 

about because of the many “types” of commercial aircraft and the need for type-specific 

training and skills for pilots.67 Pilots (captains or first officers) undergo specific training 

to achieve a specific “type rating,” which will apply to one or more aircraft that qualify 

as a single “type.” For example, the older Airbus A300B2/4 aircraft make up a single 

type, and require a unique rating for its pilots, while the next generation A300-600 

shares a common type rating with the A310-200/-300 aircraft series. There are many 

other types for Airbus aircraft. Similarly, the older Boeing 737-300/-400/-500 series has 

a single type rating, as do aircraft in the 737-600/-700/-800/-900(NG) series. There are 

also numerous other type ratings within the Boeing family of commercial aircraft.

To operate the aircraft for which they have a type rating, pilots must receive 

recurrent training within the type rating twice annually, as well as an annual line check 

for one or two flights in the aircraft. Pilot recurrent training generally lasts one to three 

days per training session (two to six days per year), and involves at least one simulator 

refresher training session. 

A more significant pilot training cost that could be imposed on operators 

through their compliance with changed regulations is that associated with “type 

transition training.” This training, which can take from 21 to 25 days, is required for 

pilots who are becoming “type rated” for a different type of aircraft, such as the 

transition from being type rated on the Airbus A320 aircraft to becoming type rated on 

the Boeing 777 aircraft. The economic impact of this type of training for operators 

depends on the frequency with which pilots make such transitions and on the fleet 

complexity chosen by a given operator. Regulatory changes that cause operators to hire 

additional pilots will lead to these costs, as pilots are hired across an operator’s fleet. 

The costs associated with these lengthy type transition training sessions include not 

only the compensation and benefits provided to the pilots undergoing training, but also 

opportunity costs incurred when pilots are removed from revenue service, housing and 

other accommodation costs, and costs associated with the operation of the training 

facilities (which may be owned by the operator or contracted from an outside provider 

of training services).

 

66 Air Transport Association, Benefit & Cost Analysis: Pilot Flight Time and Duty Time, Washington, DC, 

1996, pp. 22-23.

67 “What Savings Can Be Expected from Commonality Benefits?” Aircraft Commerce 21: Dec 2003/Jan 

2004, pp. 12-16.
7-6 Labor Cost Factors

While transition training would last from 21 to 25 days, this training could be 

shorter for transition between aircraft that share some degree of commonality. When 

there is some degree of commonality, type transition training is sometimes referred to 

as “differences training.” Adjustments to the length of a transition training session 

varies with the specific differences transition. For example, getting a type rating for an 

Airbus A330 or A340 may take only eight days for a pilot who is already type rated for 

an A320. Similarly, differences training for a transition from the Boeing 737-100/200 to 

the 737NG takes only nine days, while the transition from the Boeing 757 to the 767 

takes only four hours.

Paying for these training obligations makes up an important share of the costs 

that would be associated with regulatory changes that caused operators to adjust their 

pilot ranks in some way. Due to the multiplicity of aircraft types and the importance of 

fleet complexity for the costs faced by any given operator, it is not possible to specify 

costs associated with flight crew adjustments; the impact of any given regulatory 

change would have to be analyzed on an individual basis. However, general 

information on these training alternatives is summarized in Figure 7-1.

Figure 7-1: Flight Crew Training Categories for Commercial Airline Operations

Training Category Duration Frequency

Initial Type Rating 23 to 25 days Start of career

Recurrent Training 1 to 3 days Twice a year

Type Transition 

Training

21 to 25 days 

(may be less if there are commonalities 

between the aircraft types

Depends on airline fleet complexity and 

size (for example, unnecessary if airline 

operates only one type rated aircraft)

Source: “What Savings Can Be Expected From Commonality Benefits?” Aircraft Commerce, December 

2003/January 2004, p. 12-18. 

The cost impact of changes in FAA regulations or investment requirements that 

cause commercial air carriers to need additional flight crew for some or all of the 

aircraft types in their fleet can be further complicated by labor agreements. While the 

net effect of such changes is the hiring of a number of new pilots, each of whom would 

need initial training for the aircraft to which they were assigned, the nature of pilot 

contracts can result in a need for additional training sessions. This is because within a 

given airline, pilots move up a seniority ladder that is sequenced by aircraft type and 

seat position (captain or first officer), depending on the airline’s pilot contract. If there 

is a need to increase the number of pilots by a given percentage, the number of training 

sessions required by a specific airline depends on the number of pilots an airline 

currently employs and the complexity of the airline’s fleet.

This relationship between an airline’s need to hire new pilots and the consequent 

need for training sessions within the airline’s seniority ladder is also related to the 
Labor Cost Factors 7-7

airline’s fleet structure. Suppose a regulatory change, such as one regarding flight and 

duty time requirements, results in all affected airlines needing to increase their flight 

crew rosters by two percent. For any airline with a current flight crew roster of 2,000 

pilots, this means 40 new pilots must be hired. However, the number of initial training 

sessions that will be required to meet this need depends on the complexity of the 

airline’s fleet, since pilot labor agreements generally specify a strict seniority ladder by 

which pilots move from one position to the next, with any newly hired pilot required to 

start her career at the bottom rung of the seniority ladder.68 

This relationship is illustrated in the following three figures, which illustrate 

three contrasting scenarios. Consider first an airline that uses a flight crew roster of 

2,000 pilots (1,000 captains and 1,000 first officers), and uses a single (two seat cockpit) 

aircraft type. This scenario is illustrated in Figure 7-2. Increasing the airline’s pilot 

roster by two percent means that it will need 1,020 captains and 1,020 first officers. Pilot 

seniority rules require that the 20 new captain slots be filled from the ranks of current 

first officers, each of whom will need a training session to become qualified for the new 

position. The airline will also need 40 new first officers, 20 to replace the first officers 

who have moved up the seniority ladder and 20 to cover the new flight crew 

requirement. Thus, while there will be only 40 newly hired pilots, there will be 60 

initial training sessions required to integrate these new hires into the airline’s new flight 

crew rosters. 

Figure 7-2: Interaction of Regulatory Requirements for New Flight Crew and

Flight Crew Seniority Ladder: Example 1 – 2,000 Current Flight Crew Members

to be Increased by Two Percent, One Aircraft Type

2000 Flight Crew

1 Aircraft Type

Captain

First Officer

1000 C 1020 C 60 Training

Sessions

1000

980

20

40 New 

Pilots

1000 FO 1020 FO

Current Crew Increased Crew

C = Captain

FO = First Officer

 

68 Not all pilots will choose to exercise their seniority to bid up to a higher level assignment. For example, 

such a change might require a change in domicile. Or, being the most senior pilot in a lower category 

may provide more flexibility and value to a pilot than being the most junior pilot in a higher group. 
7-8 Labor Cost Factors

In Figure 7-3, the situation for an airline that uses a pilot roster of 2,000 to operate 

a fleet made up of equal members of two types of (two seat cockpit) aircraft is 

presented. In this example, the pilot seniority system is presented as taking pilot 

employees through the first officer seats and then on to the captain seats; other airlines 

may rely on bargaining agreements that have differently designed seniority sequences. 

In the simplified example, the airline is also shown as having a symmetrical fleet in the 

sense that for each of the two aircraft types, it employees 500 captains and 500 first 

officers. Of course, fleets for actual airlines may not have this symmetry. For the airline 

in the example, a two percent increase in pilot requirements means that each new flight 

crew category must take on 10 new members. As the example in Figure 7-3 shows, the 

pilot seniority ladder means that the 10 new captains for the senior type of aircraft come 

from those pilots who are qualified to serve as captains on the junior aircraft, each of 

whom must take part in a training session, and so forth. With a symmetrical fleet of 

this type, adding 40 new hires leads to 100 new training sessions (40 + 30 + 20 +10).

Figure 7-3: Interaction of Regulatory Requirements for New Flight Crew and

Flight Crew Seniority Ladder: Example 2—2,000 Current Flight Crew Members 

to be Increased by Two Percent, Two Aircraft Types

2000 Flight Crew

2 Aircraft Types

(Subscripts 1, 2)

Captain 1, 2

First Officer 1, 2

500 C1 510 C1

100 Training

Sessions

500

10

500 C2 510 C2

490

20

500 FO1 510 FO1

480

30

500 FO2 510 FO2

470

C = Captain

FO = First Officer

Current Crew Increased Crew

40 New 

Pilots

A final example, as shown in Figure 7-4, illustrates the effect of the seniority 

ladder on the training requirements associated with a two percent pilot increase for an 

airline with 2,000 flight crew members who are equally distributed within a fleet evenly 

divided among four types of two seat cockpit aircraft. Thus, a two percent increase to 

255 in the roster of 250 pilots currently serving as captains in the most senior aircraft 

would come from the 250 pilots serving as captains on the aircraft one rung down in 

seniority, and so forth. As the figure illustrates, for a 2,000 pilot airline with the four 
Labor Cost Factors 7-9

aircraft fleet as shown, adding two percent more pilots across its fleet leads to 40 new 

hires, but this requires 180 new training sessions as captains and first officers move up 

the seniority ladder. 

Figure 7-4: Interaction of Regulatory Requirements for New Flight Crew and

Flight Crew Seniority Ladder: Example 3—2,000 Current Flight Crew Members

to be Increased by Two Percent, Four Aircraft Types

180 Training

Sessions

250 C1 255 C1

250

5

250 C2 255 C2

245

10

250 C3 255 C3

240

15

250 C4 255 C4

235

20

250 FO1 255 FO1

230

25

250 FO2 255 FO2

225

30

250 FO3 255 FO3

220

35

250 FO4 255 FO4

215

40 New

Pilots

2000 Flight Crew

4 Aircraft Types

(Subscripts 1, 2, 3, 4)

Captain 1, 2, 3, 4

First Officer 1, 2, 3, 4

C = Captain

FO = First Officer

Current Crew Increased Crew

The examples in the figures above are somewhat idealized, since actual airlines 

would not operate a fleet partitioned so evenly among types of aircraft. These 

simplified examples do illustrate, however, the complications that a pilot seniority 

ladder adds to the problem of increasing an airline’s ranks of pilots. As the airline’s 

fleet complexity grows, the more steps there will be in the overall seniority ladder, and 

the more total training sessions may be required for the airline to satisfy a given 

requirement to increase its pilot ranks. The example also implies that any change that 

leads to such changes in pilot rosters can be more expensive for an airline with a more 

complex fleet than for an airline with a less complex fleet. 
7-10 Labor Cost Factors

Other factors that can affect the number of training sessions required within 

overall pilot ranks for accommodating new pilot requirements include contractual 

restrictions on the frequency of pilot advancement along seniority ladders (pilots may 

be required to spend a minimum length of time at a training level before advancing 

further) at individual airlines and the willingness of pilots to elect to move up seniority 

ladders, for personal or lifestyle reasons. In its 1996 comment on the 1995 Flight and 

Duty NPRM, the ATA estimated, based on a survey of its members, that on average, a 

new pilot hire necessitated five pilot training sessions as existing pilots moved their 

way up the airline’s seniority ladder.69 However, average fleet complexity and pilot 

contract provisions have changed over time, so this average has also changed. For this 

reason, analyses of regulatory changes that are likely to lead to significant changes in 

pilot requirements should include case-by-case investigations of the likely number of 

pilots who would shift among aircraft equipment types as a consequence of the 

regulatory change.

7.5 OTHER AVIATION-RELATED LABOR COST DATA

There are many other aviation-related professions and skilled trades that could 

be affected by changes in regulations or investment requirements. Wage and salary 

data for these occupations were gathered from industry and government sources. The 

data in Table 7-5 are the most recent available. They are reported as annual 

compensation and represent national averages. There is probably variation within each 

category, depending on such factors as region of country, years of employee experience, 

whether the position is in an urban or rural setting, and other factors.

The average annual labor costs are reported for flight attendants (air carrier and 

corporate), air traffic controllers, airfield operations specialists, and certain categories of 

aircraft maintenance labor. For each annual salary category, the source of the data is 

also reported. Because of the variety of sources and occupations, the reported salaries 

do not include fringe benefits, overheads, or other non-salary cost components.

 

69 Air Transport Association, Benefit & Cost Analysis :Pilot Flight Time and Duty Time, Washington, DC, 

1996, pp. 22-23.
Labor Cost Factors 7-11

Table 7-5: Salary Data for Aviation Occupations

Job Title

Average

Annual

Salary

Year Source

 Air Carrier (Scheduled) $51,120 2002 BLS National Compensation Survey

 Corporate (Unscheduled) $47,160 2002 NBAA Compensation & Benchmark Survey

 Federal $92,000 2002 BLS National Compensation Survey

 Contract Tower (Salary & Benefits) $55,000 2002 House Aviation Subcommittee Hearing

Airfield Operations Specialist $40,850 2002 BLS National Compensation Survey

 A&P Maintenance Technician $57,614 2002 NBAA Compensation & Benchmark Survey

 Aviation Technician $56,238 2002 NBAA Compensation & Benchmark Survey

 Manager of Maintenance $84,488 2002 NBAA Compensation & Benchmark Survey

 Maintenance Foreman $72,013 2002 NBAA Compensation & Benchmark Survey

 Maintenance Technician Helper $29,671 2002 NBAA Compensation & Benchmark Survey

 Avionics Technician $47,900 2002 Aviation Today

 Lead Mechanic $51,500 2002 Aviation Today

 Line Mechanic $47,500 2002 Aviation Today

 Maintenance Directors $64,900 2002 Aviation Today

 Mechanics & Technicians $48,500 2002 Aviation Today

 Mechanic's Assistant $38,000 2002 Aviation Today

Aircraft Maintenance and Technicians

Air Traffic Controller

Flight Attendant
7-12 Labor Cost Factors

This Page Intentionally Left Blank
Aviation Accident Investigation Costs 8-1

SECTION 8: AVIATION ACCIDENT INVESTIGATION COSTS70

8.1 INTRODUCTION

All costs incurred (or costs avoided) by all parties that may result from proposed 

FAA investments, regulations, and Airport Improvements Program (AIP) grants should 

be considered in the conduct of benefit-cost analyses. Avoided accidents are one of the 

principal benefits of FAA investment and regulatory programs. These are valued using 

the avoided injury and property damage costs. However, there are other costs to 

society imposed by aviation accidents. One such cost is the expense of investigating 

aviation accidents. Investigations involve the expenditure of resources by several 

entities, including the National Transportation Safety Board (NTSB), the FAA and the 

private sector. It is assumed that these resources would be put to alternative uses if an 

accident could be avoided. This analysis estimates costs incurred by governmental 

entities for accident investigation.71 It also provides approximations for costs incurred 

by the private sector.

8.2 DEVELOPMENT OF FEDERAL ACCIDENT INVESTIGATION COST 

ESTIMATES

The National Transportation Safety Board (NTSB) is responsible for the 

investigation of all aircraft accidents. It conducts two types of investigations: major 

investigations which are directed by NTSB headquarters in Washington and field office 

investigations which are conducted by its field offices. Major investigations are 

conducted primarily for major air carrier accidents involving numerous fatalities and 

substantial property damage. These investigations are characterized by the dispatch of 

an investigative party—“go team”—to the accident site and usually involve substantial 

support by the FAA and involved private parties such as the airline involved, airframe 

and engine manufacturers, avionics manufacturers, component and sub-component 

suppliers, organized labor representatives, and so forth.

 

70 This estimate of costs is based primarily on an analysis and model developed in 2000 by the FAA Office 

of Aviation Policy and Plans (APO). That analysis was not published at the time, but it is used here as a 

baseline that was updated to include data through 2002. The analysis also takes into account input from 

the Aviation Rulemaking Cost Committee (ARCC) members as to specific costs associated with major 

accidents. Data provided by ARCC members on the subject of their accident investigation costs related to 

private party costs were limited, but consistent with the cost estimates developed herein. 

71 Aviation incident investigation costs are not analyzed in this report no incident investigation data were 

available.
8-2 Aviation Accident Investigation Costs

Field investigations are divided into regular investigations and limited 

investigations. Field office regular investigations are much smaller in scope than major 

investigations. They are conducted for air carrier accidents involving limited loss of 

human life and for most fatal general aviation accidents. Limited field office 

investigations are conducted for most other general aviation accidents. FAA provides 

significant support to NTSB in the conduct of field office investigations.

8.3 METHODOLOGY

NTSB cost estimates were derived from budget, staffing, and activity data. A 

twelve-year period—FY1991 through FY2002—was selected so as to capture a wide 

range of accident experience, both in terms of numbers of accidents and complexity of 

the investigations required. For this period, the total amount of the NTSB budget 

devoted to aviation safety was first determined. This involved taking the portion of the 

budget dedicated directly to aviation safety and adding to it a proportional allocation of 

costs that applied jointly to aviation as well as other forms of transportation, including a 

portion of policy, administration, and research and development expenditures. Total 

aviation safety costs were then assigned to five different types of investigations 

conducted by NTSB: 

Major air carrier investigations

Field regular investigations

Field limited investigations

Foreign major investigations 

Other foreign investigations 

This assignment was based on the number of full time equivalent employees dedicated 

to or supporting each type of investigation relative to the total full time equivalent 

employees involved in aviation accident investigations. The costs assigned to each type 

of accident were then divided by the total respective number of accidents in each 

investigation category to arrive at a per accident investigation cost.

Because FAA is a much larger organization than NTSB and has many 

responsibilities, only one of which is accident investigation, budget data was not used 

directly. Rather, it was necessary to determine the amount of costs across FAA that are 

attributable to accident investigation. This was done by undertaking a special study of 

accident investigation costs based on models developed for a prior report, A Cost 

Allocation Study of FAA’s FY 1995 Costs.

72 This special study identified accident 

investigation costs attributable to FAA’s Office of Accident Investigation, Flight 

 

72 Prepared by GRA, Incorporated for FAA’s Office of Aviation Policy and Plans (March 1997).
Aviation Accident Investigation Costs 8-3

Standards Service, Aircraft Certification Service, Office of Aviation Medicine, and to the 

conduct of flight inspections.73

Costs attributable to the Office of Accident Investigation, Flight Standards, and 

Aircraft Certification were assigned to the same accident categories as NTSB costs. This 

assignment was made utilizing data on hours expended by FAA to investigate various 

accident types relative to total investigation hours as compiled by the FAA Office of 

Accident Investigation’s Accident Investigation Quality Assurance Program. Office of 

Aviation Medicine and flight inspection costs were assigned to major investigations and 

regular field investigations by dividing their respective amounts by the total number of 

these types of accidents. This was done to reflect that these cost are approximately 

constant across these accident investigation types. 

8.4 FEDERAL GOVERNMENT ACCIDENT INVESTIGATION COSTS

Allocated Federal costs74 by type of accident investigation and entity incurring 

the cost are reported in Table 8-1. The weighted cost is also reported because some air 

carrier accidents are followed by NTSB major investigations and others by field office 

regular investigations. It is a weighted average cost of major and field office regular air 

carrier investigations. Similarly, a general aviation average is presented. It is a 

weighted average of NTSB field office regular investigations and limited investigations 

where the weights are the respective number of such investigations conducted.

 

73 “FAA FY 1995 Accident Investigation Costs,” GRA Incorporated, April 28, 1997. The base year 1995 

cost analysis was used, but the dollar values were scaled up to 2002 by applying two factors. The first 

was the percentage change in the overall budget for the Office of the Associate Administrator for 

Regulation and Certification (AVR) from 1995 to 2002. This factor accounts for wage changes and 

increased AVR staffing. The second factor was the 2002 aviation accident count as a percent of the 1995 

aviation accident count. The combined factor indicates an eight-year cost increase of 71 percent.

74 Assumes that resources could be put to alternative uses.
8-4 Aviation Accident Investigation Costs

Table 8-1: Federal Accident Investigation Costs by Component

(2002 Dollars)

8.5 PRIVATE SECTOR ACCIDENT INVESTIGATION COSTS

The NTSB go team conducts an investigation by forming as many as twelve 

investigative sub-teams. Each sub-team, led by an NTSB investigator, is responsible for 

a particular subject matter area such as power plants, airframes, avionics, control 

systems, operations, human factors, weather, survivability, and air traffic control. Most 

sub-team members, known as “parties,” are from private industry and are invited to 

participate in the investigation by the NTSB. The party system allows the NTSB to 

leverage its resources and personnel by bringing to the investigation the technical 

expertise of the companies and entities (labor representatives, airlines, manufacturers, 

suppliers of components and sub-components, etc.) of the individuals and equipment 

that were involved in the accident, or parties that might have specialized knowledge to 

assist the investigation.

The team procedure results in significant investigation costs for the private 

sector. No systematic measures are available for this cost. However, an approximation 

may be made based on NTSB’s cost. Discussions with NTSB and examination of NTSB 

accident reports suggested that about six private sector parties participate in major 

accident investigations and three private sector parties in regular field investigations. 

Assuming that each of the private sector parties supports half of the investigative subteams at the same level of cost as incurred by NTSB for each sub-team, private costs 

may be approximated as three times NTSB costs for major investigations and 1.5 times 

NTSB costs for regular field investigations. In addition, the private sector typically pays 

to remove aircraft wreckage. Aviation insurance industry sources placed this cost at 

about $138,000 per major accident.75

 

75 Clearly, there are major exceptions to this cost such as the expenses of recovering, moving and storing 

the parts of the TWA 800 wreckage.

FAA Grand

Sub-Total Total

Major $1,931,800 $680,100 $1,000 $600 $681,700 $2,613,500 59

Field Office:

 Regular $38,300 $24,100 $1,000 $600 $25,700 $64,000 6,016

 Limited $300 $13,800 0 0 $13,800 $14,100 18,648

Weighted Average by 

User Type

 Air Carrier (including $110,300 $56,200 $1,000 $600 $57,800 $168,100 1,551

 Air Taxi)

 General Aviation $7,700 $15,900 $200 $100 $16,200 $23,900 23,172

Type of Investigation NTSB

Number of

Accidents

1991-2002

FAA

AVR Flight

Inspection

Aviation

Medicine
Aviation Accident Investigation Costs 8-5

Applying these assumptions and values yields the approximation of private 

sector cost and total costs presented in Table 8-2. They range from an average of 

$14,100 for a limited investigation of a general aviation accident to $8.5 million for a 

major investigation of an air carrier accident.76 For major investigations of some 

particularly noteworthy accidents, such as TWA 800, the investigation can well exceed 

$8.5 million per accident. 

Table 8-2: Aviation Accident Investigation Costs

(2002 Dollars)

 

76 Assumes that resources could be put to alternative uses.

NTSB FAA Total 

Federal Private Total

Major $1,931,800 $681,700 $2,613,500 $5,933,400 $8,546,900 59

Field Office:

 Regular $38,300 $25,700 $64,000 $57,400 $121,400 6,016

 Limited $300 $13,800 $14,100 0 $14,100 18,648

Weighted Average by User Type:

 Air Carrier (including Air Taxi) $110,300 $57,800 $168,100 $280,900 $449,000 1,551

 General Aviation $7,700 $16,200 $23,900 $11,200 $35,100 23,172

Number of

Accidents

1991-2002

Cost

Type of NTSB Investigation
8-6 Aviation Accident Investigation Costs

This Page Intentionally Left Blank
Adjustment Methodology to Update Economic Values 9-1

SECTION 9: ADJUSTMENT METHODOLOGY 

TO UPDATE ECONOMIC VALUES

9.1 INTRODUCTION

The values developed in this report are expected to change with the passage of 

time, primarily because of price and income level changes, and to a lesser extent, 

improvements resulting from future empirical or theoretical research. This report will 

be revised periodically to account for such changes and advancements. Between 

revisions, users may desire to adjust the base year values to future year values based on 

the recommendations outlined in this section. 

9.2 SECTION 1: VALUE OF TIME

Updated values are provided periodically by DOT. FAA will place updated 

information on the FAA website 

http://www.faa.gov/regulations_policies/policy_guidance/benefit_cost

or 

http://ostpxweb.dot.gov/

under a link for reports.

9.3 SECTION 2: VALUE OF LIFE

Updated values are provided periodically by DOT. FAA will place updated 

information on the FAA website 

http://www.faa.gov/regulations_policies/policy_guidance/benefit_cost

or 

http://ostpxweb.dot.gov/

under a link for reports.

9.4 SECTION 3: AIRCRAFT CAPACITY AND UTILIZATION FACTORS 

These values, developed in Section 3, are based on the physical makeup and 

operation of the fleet. No economic index approach can be used to easily update these 

values, as there is no known correlation between the sundry values and general 

economic indices. 
9-2 Adjustment Methodology to Update Economic Values

Please note that if revisions or projections of these values are required, the 

annual FAA Aviation Forecasts series provides many of the air carrier and general 

aviation values for capacity and utilization. The following values are available for 

scheduled commercial air carriers (both Form 41 and Form 298c) directly from the 

annual Forecast:

Load factors

Aircraft Size (seats)

Aircraft Utilization Hours

Daily Utilization (Airborne Hours/(Aircraft x 365))

Flight hours are also available for GA and air taxi operations from this source.

9.4.1 Commercial Aircraft – Air Carriers 

The analyst can also use the primary data sources to update capacity and 

utilization factors. Form 41 and Form 298c data are available from the Bureau of 

Transportation Statistics of the U.S. DOT.77 These data are also made available by 

various commercial services including Data Base Products (Dallas, TX) and Back 

Associates (Stamford, CT). 

Data Base Products, Inc. (DBP) used their 2002 Form 41 product to generate the 

data for air carrier tables in Section 3 of this report. The following paragraph outlines 

steps taken in preparing freight and passenger air carrier capacity and utilization tables 

that can be followed in order to update the material.

The first step in preparing air carrier capacity and utilization data was to specify 

the thirteen economic values categories for air carriers:

1. Two-engine narrow-body jet

2. Two-engine wide-body jet

3. Three-engine narrow-body jet

4. Three-engine wide-body jet

5. Four-engine narrow-body jet

6. Four-engine wide-body jet

7. Regional jet under 70 seats

8. Regional jet 70-100 seats

9. Turboprops under 20 seats (Part 23)

10. Turboprops under 20 seats (Part 25)

 

77 DOT is investigating changes in reporting for air carrier data. The guidance below is predicated on use 

of existing data systems.
Adjustment Methodology to Update Economic Values 9-3

11. Turboprops with 20 or more seats

12. Piston Engine (Part 23)

13. Piston Engine (Part 25)

Each aircraft type with reported data was then assigned to one of the thirteen

categories. Having selected the appropriate aircraft types and categories, a user-defined 

report was generated for all passenger air carriers with the following output categories:

1. Economic Values Class

2. Aircraft Days – Carrier Routes

3. Average Aircraft in Service

4. Revenue Departures Performed

5. Revenue Passenger Miles

6. Available Seat Miles

7. Revenue Aircraft Miles

8. Average Available Seats

9. Passenger Load Factor

10. Revenue Ton Miles

11. Available Ton Miles

12. Average Available Capacity (Tons)

13. Capacity Load Factor

14. Flight Crew

15. Block Hours

16. Average Block Speed (MPH)

17. Aircraft Utilization (Block Hours/Day)

18. Gallons of Fuel 

19. Gallons of Fuel per Block Hour

20. Airborne Hours

21. Average Airborne Speed (MPH)

Similar economic value categories and aircraft type selection processes were generated

for all freight carriers with the following output categories:

1. Economic Values Category

2. Aircraft Days – Carrier Routes

3. Average Aircraft in Service

4. Revenue Departures Performed

5. Revenue Aircraft Miles

6. Revenue Ton Miles

7. Available Ton Miles

8. Average Available Capacity (Tons)

9. Capacity Load Factor

10. Flight Crew
9-4 Adjustment Methodology to Update Economic Values

11. Block Hours

12. Average Block Speed (MPH)

13. Aircraft Utilization (Block Hours/Day)

14. Gallons of Fuel

15. Gallons of Fuel per Block Hour

16. Airborne Hours

17. Average Airborne Speed (MPH) 

9.4.2 Commercial Aircraft - Commuters

The following steps were taken to analyze commuter carrier data for the present 

report and can be followed in order to update the material.

Data were obtained from the Bureau of Transportation Statistics of the DOT. 

Any update of data should begin with a discussion of data availability from the BTS, as 

reporting conditions are subject to change. Quarterly data from RSPA Form 298-C 

Schedule F-2 covering financial data by equipment type should also be collected. 

Traffic and capacity data for small commuter operators, reported on Form 298-C until 

September 2002, are now reported on Schedule T-100 of Form 41, and will have to be 

accumulated by carrier from that source. 

Three fields should be added to the BTS records. One field should be added 

identifying carriers as Alaskan or Non-Alaskan. The identification of carriers as 

Alaskan or Non-Alaskan is obtained from BTS in an electronic file. A second field for 

the equipment classification of each equipment type should also be added. The 

equipment classification can be obtained from the detailed tables provided in the base 

report, bearing in mind that new equipment entering the fleet in the future will have to 

be classified by the analyst updating the material. The third field to be added should 

indicate whether the carrier is operating under Part 121 or Part 135 of the FARs. This 

determination is made by FAA, and a file can be obtained from Flight Standards (AFS40) with this information.

After the database for commuter carriers is modified as outlined above, creation 

of the detailed data tables requires summations as appropriate of the database. The 

output categories (block hours and airborne hours) are established for Alaskan and 

Other carriers, and sorted either by equipment type and aircraft class, and so forth. 

Once the utilization factors for the commuter airlines have been established using the 

Form 298-C, capacity factors are obtained from Jane's All The World's Aircraft (various 

issues).

9.4.3 General Aviation and Military Aircraft
Adjustment Methodology to Update Economic Values 9-5

Capacity factors for general aviation aircraft were obtained by analyzing the 

National Transportation Safety Board (NTSB) accident and incident data from 1982 to 

2003. The average capacity and persons on board GA aircraft are not expected to 

change frequently. The best source of aircraft flight hour utilization data for the GA 

fleet is the FAA’s annual General Aviation and Air Taxi Activity Survey.

Fleet data for military aircraft can be obtained from Aviation and Aerospace 

Almanac, published by McGraw-Hill. Hours of operation can be obtained from military 

services.

9.5 SECTION 4: AIRCRAFT OPERATING COSTS 

Aircraft operating costs, developed in Section 4, are presented in terms of 

variable and fixed costs. The costs are reported for air carrier and commuter aircraft, 

general aviation aircraft and military aircraft. The best way to update operating cost 

data is to use the original data sources as cited in the main body of the text:

For commercial operations: Form 41 and Form 298c data from the sources 

cited above

For GA operations, The Aircraft Cost Evaluator published by Conklin and de 

Decker (Orleans, MA) or PlaneQuest.com for aircraft types not covered by 

Conklin and de Decker.

For military operations, the various websites indicated in the text.

If an update of original data sources is unavailable, the analyst can use the appropriate 

forecast prices (as discussed in subsequent sections of this report) in conjunction with 

the values for the base year to develop an update using the following equation:

(Pc/Pb) x Cb = Adjusted Aircraft Operating Cost

where:

Pc and Pb are the prices or price indices in the current year and base year, and

Cb is the cost per block or airborne hour of operation in the base year. 

It is recommended that updated operating costs per hour be rounded to the 

nearest dollar.

9.5.1 Commercial Aircraft – Air Carriers
9-6 Adjustment Methodology to Update Economic Values

The analyst can use the primary data sources to update air carrier operating 

costs. Form 41 and Form 298c data are available from the Bureau of Transportation 

Statistics of the U.S. DOT, and, as previously stated, are also made available by various 

commercial services including Data Base Products (Dallas, TX) and Back Associates 

(Stamford, CT). 

Data Base Products used Form 41 to generate air carrier operating and fixed cost 

data in Section 4 of this report. Below are the steps to follow when updating these data.

The two carrier groups (passenger and freight) were divided into two subcategories: 

1. Majors and nationals

2. Regionals

A user-defined report was generated for each economic values category for all 

passenger air carriers in each subcategory. The list below presents all the cost 

categories obtained by running this report:

1. Pilots and Copilots

2. Other Flight Personnel

3. Personnel Expenses

4. Employee Benefits and Pensions

5. Taxes-Payroll

6. Total Crew Cost

7. FO-AC Fuel

8. FO-AC Oil

9. Total Fuel & Oil

10. Maintenance – Airframe Labor

11. Maintenance – Airframe Outside Rep.

12. Maintenance – Materials-Airframe

13. Total Airframe

14. Maintenance – Engine Labor

15. Maintenance – Engine Outside Rep.

16. Maintenance – Materials – Engines

17. Total Engines

18. Maintenance – Appl. Maintenance Burden -Flight Equipment

19. Total Maintenance

20. Total Variable Costs

21. FO-AC Rentals

22. Amortization – Amortization Cap. Leases Flight Equipment

23. Total Rentals

24. Depreciation – Depreciation Airframes

25. Depreciation – Depreciation Aircraft Engines

26. Depreciation – Depreciation Airframe Parts
Adjustment Methodology to Update Economic Values 9-7

27. Depreciation – Depreciation Engine Parts

28. Depreciation – Depreciation Other Flight Equipment

29. Total Depreciation

30. FO-Insurance Purch. – General

31. FO-Insurance Purch. – Other

32. Total Insurance

33. Total Fixed Costs

34. Total Costs

35. Block Hours

Each cost category represents yearly operating costs and was divided by the number of 

block hours in order to obtain hourly operating costs. The same report was then 

generated for all freight carriers.

In order to generate operating costs by airborne hour, a user-defined report was 

generated for all passenger air carriers and the two subcategories as well as for all 

freight carriers and the two subcategories. The cost categories obtained from this report 

are identical to the above report except for the last output cost category being Airborne 

Hours instead of Block Hours. 

Major and national passenger carrier costs can also be updated through U.S. 

Airline Cost Index published by Air Transport Association. Major airlines are those 

with revenues in excess of $1 billion while nationals have revenues between $100 

million and $1 billion. U.S. Airline Cost Index summarizes costs in the following cost 

categories:

Labor (salaries, employee benefits, payroll taxes) – Cost per FTE

Fuel – Cost per Gallon

Aircraft Ownership (rentals, aircraft depreciation, amortization, capital 

leases) – Cost per Seat

Non-Aircraft Ownership – Cost per Enplanement

Professional Services – Cost per ASM

Food & Beverage – Cost per RPM

Landing Fees – Cost per Capacity Ton Landed

Maintenance Material – Cost per Airborne Hour

Aircraft Insurance (airframe insurance) – Percent of Hull Net Book Value

Non-Aircraft Insurance (total insurance – airframe insurance) – Cost per RPM

Passenger Commissions (services purchased, traffic commissions) – Cost per 

RPM

Communication (communication services purchased) – Cost per 

Enplanement

Advertising and Promotion – Cost per RPM

Utilities & Office Supplies – Cost per FTE
9-8 Adjustment Methodology to Update Economic Values

Other Operating Expenses – Implicit GDP Deflator

Interest (interest on long-term debt and capital and other interest expenses) –

Book Interest Rate

Composite (weighted average of all components, including interest)

These values can be used to update operating costs for the industry using the 

methodology described above. Because fuel and oil are such an important and variable 

part of commercial costs, these should be adjusted to current dollar values by use of 

published fuel price indices (more information on fuel prices can be found in Section 6 

of this report). Fuel prices from Form 41 filings are also published monthly on Air 

Transport Association’s website ( http://www.airlines.org/economics/energy/ ).

9.5.2 Commercial Aircraft – Commuters 

The steps to be taken in updating the commuter air carriers’ data from Form 298-

C are the same as those described in section 9.4.2 of this report. Following are the 

output categories to be obtained:

1. Crew Expenses

2. Total Cost of Fuel and Oil Consumed

3. Total Maintenance Costs

4. Total Depreciation and Rental Expenses

5. Total Block Hours

6. Total Airborne Hours

9.5.3 General Aviation and Military Aircraft

Data to update general aviation aircraft costs are much more sparse. An analyst could 

use the fuel indices from FAA Aviation Forecasts to update the cost of fuel. Jet-A and 

Avgas fuel prices can be found on Aviation Research Group’s website 

(http://www.aviationresearch.com/Free/fuel_survey.asp). The Aircraft Cost Evaluator

by Conklin & de Decker was used as a source of aircraft operating costs and is 

periodically updated. Military operating costs can be obtained by contacting numerous 

military services cited in the text of section 4. In the absence of other data, it is 

recommended that other costs for GA operating costs and for all military costs be 

updated using the Price Index for Gross Domestic Product Personal Consumption 

Expenditures,

78 unless a more specific GA operating cost index becomes available.

 

 

78 Business Statistics of the United States (Annual: Berman Press; Lanham, MD) or for the latest update on 

the Worldwide Web, go to http://www.bea.gov/ and select GDP.
Adjustment Methodology to Update Economic Values 9-9

9.6 SECTION 5: UNIT REPLACEMENT AND RESTORATION COSTS OF

DAMAGED AIRCRAFT 

Unit replacement and restoration costs of damaged aircraft, developed in 

Section 5, should be updated by either specific reference to cited sources, or by applying 

a price index. 

For commercial aircraft, vendors such as Aviation Specialists Group can provide 

estimates of aircraft values. For general aviation and air taxi aircraft, the best source of 

updated price data is Aircraft Bluebook – Price Digest (Overland Park, KS: PRIMEDIA 

Publication). A secondary source could be Aircraft Types and Price Guidelines (Compiled 

by CTC Services Aviation (LAD)) Updates on military aircraft values can be obtained 

from the military services.

Restoration costs for commercial aircraft can be estimated using the data 

provided by Airclaims. Airclaims data may also be useful for estimating restoration 

costs of larger GA aircraft but a more complete source of GA restoration data could 

come from AVEMCO or other insurance companies.

In the absence of a more specific index, it is suggested that the Producer Price 

Index for Civilian Aircraft79 be used to adjust aircraft replacement and restoration costs to 

future year dollars. The adjustment method is illustrated below:

 Adjusted Unit Replacement Cost of a Damaged Aircraft = (PPI - CAf/PPI-CAb) x (REPb) 

where:

PPI - CAf and PPI - CAb are the Producer Price Index for Civilian Aircraft for the 

future year and base year, and

REPb is the unit replacement cost of a destroyed aircraft in the base year.

With regard to restoration costs, it is recommended that the analyst apply the 

percentages of aircraft values shown in Table 5-4 and Table 5-8 (and/or supporting 

tables where applicable) to update the aircraft values using the methods described 

immediately above.

It is recommended that adjusted aircraft replacement and restoration costs be 

rounded to the nearest $1,000 for values less than $1,000,000 and to the nearest $10,000 

for values greater than $1,000,000.

 

79 Business Statistics of the United States (Annual: Berman Press; Lanham, MD) or for the latest update on 

the Worldwide Web, go to http://stats.bls.gov/ppi/home.htm, and select Producer Price Index—Commodity 

Data. 
9-10 Adjustment Methodology to Update Economic Values

9.7 SECTION 6: ECONOMIC VALUES RELATED TO AIRCRAFT 

PERFORMANCE FACTORS

The types of aircraft operating in the NAS and the typical missions in terms of 

stage length will probably not change drastically in the near future. However, if the 

selected aircraft types and mission lengths used by the analyst in his/her analyses fail 

to represent the most frequently observed aircraft and missions, then the analyst may 

need to develop new aircraft performance profiles. This could be accomplished by 

contacting a manufacturer directly in order to obtain aircraft specific data on 

incremental fuel burn as well as the data on the amount of time an aircraft typically 

spends in each phase of flight.

Fuel price data for air carriers can be obtained from Form 41 filings. The Air 

Transport Association publishes monthly fuel prices from Form 41 filings on its website: 

http://www.airlines.org/economics/energy . Jet-A and Avgas fuel prices can be 

found on Aviation Research Group’s website 

( http://www.aviationresearch.com/Free/fuel_survey.asp ). Prices are based on a fuel 

price survey of U.S. fuel suppliers. The survey is also published monthly in Business & 

Commercial Aviation magazine. 

9.8 SECTION 7: LABOR COST FACTORS 

The best way to update the labor costs related to the aviation industry is to refer 

to the latest versions of the original sources used in developing Section 7 of this report. 

Aircraft manufacturing labor rates were obtained from Aerospace Facts and Figures, 

Aerospace Industries of America, and the Bureau of Labor Statistics. 

Crew salaries for GA pilots can be obtained from the Conklin & de Decker 

Aircraft Cost Evaluator database. Aircraft Cost Evaluator also reports fringe benefit costs 

as 30 percent of the salary costs. Conklin & de Decker also reports flight crew training 

costs.

Salary data for numerous aviation occupations was obtained from the NBAA 

Compensation & Benchmark Survey, Bureau of Labor Statistics (National Compensation 

Survey), House Subcommittee on Aviation Report80 and Aviation Today81. Some of the 

salary data sources are industry surveys that may not be available in the future, or may 

be replaced by other industry surveys.

 

80 Congress. House. Committee on Transportation & Infrastructure. Subcommittee on Aviation, Hearing 

on the DOT Inspector General’s September 4th Report on the Safety of the FAA’s Contract Tower Program, 

Washington, DC, September 18, 2003.

81 Kathleen Kocks, “2002 Aviation Maintenance U.S. Salary Survey,” Aviation Maintenance, July 2002. 

Rickey, Patricia, “Salary Survey 2002: Hard Realities,” Rotor & Wing, June 2002.
Adjustment Methodology to Update Economic Values 9-11

9.9 SECTION 8: AVIATION ACCIDENT INVESTIGATION COSTS

In order to completely update the aviation accident investigation costs presented 

in Section 8, the analyst will have to replicate the budget analyses of FAA and NTSB 

data. However, most of the accident investigations are labor related. Thus, government 

costs can be updated using the index of labor costs. The same method could be used for 

private sector costs using a labor cost index for private sector aerospace engineers. A 

labor cost index for government and private sector employed aerospace engineers can 

be constructed using wage estimates found on the Bureau of Labor Statistics web 

page.82 For example, an aerospace engineer labor cost index for period t is calculated 

using the following formula:

x 100

Wb

Wt 

where:

Wt = mean wage at time t

Wb = mean wage for base year b

Labor cost index is then multiplied by the old labor costs in order to update them:

Updated costs = ( x 100

Wb

Wt ) x old costs

 

82 http://www.bls.gov/oes/2003/may/oes172011.htm The site has average annual wages for both 

industry and government employees. The site is updated regularly and yearly data can be accessed by 

varying the year number in the following link: http://www.bls.gov/oes/2002/oes172011.htm For 

example, year 2000 data is on http://www.bls.gov/oes/2000/oes172011.htm
9-12 Adjustment Methodology to Update Economic Values

This page intentionally left blank.
Appendix A: Aviation Rulemaking Cost Committee (ARCC) A-1

APPENDIX A: AVIATION RULEMAKING COST COMMITTEE 

(ARCC)

Tony Broderick, Independent Consultant, Airbus of North America, Inc.

Joseph E. (Jeb) Burnside, Vice President, National Air Transportation Association

Eric Byer, Director of Government and Industry Affairs, National Air Transportation 

Association

Douglas Carr, Director, Government Affairs, National Business Aviation Association

James G. Draxler, Director, Airplane Certification, Boeing Commercial Airplane Group

Troy A. Englert, Senior Economic Analyst, Economic & Financial Analysis Department, Air Line 

Pilots Association, International

Rob Hackman, Manager, Regulatory and Certification Policy, Aircraft Owners and Pilots 

Association

Keith Hagy, Assistant Director, Engineering and Air Safety Department, Airline Pilots 

Association

Jens C. Hennig, Manager of Operations, General Aviation Manufacturers Association

Lisa E. Hodge, General Manager, Fuel and Air Traffic Management, Delta Air Lines

Eugene D. Juba, Senior Vice President for Finance, FAA Air Traffic Organization

David Lee, Air Transport Association

Katherine Lizotte, Economist, Contracting Officer’s Technical Representation, Systems and 

Policy Analysis Division, FAA

David Lotterer, Vice President of Technical Services, Regional Airline Association

Stan Mackiewicz, Representative, Government and Industry Affairs, National Air 

Transportation Association

Thomas E. McSweeny, Director, International Safety and Regulatory Affairs, Boeing 

Commercial Airplane Programs

Nan Shellabarger, Director, Office of Aviation Policy and Plans, FAA

Ronald Swanda, Vice President of Operations, General Aviation Manufacturers Association 

(GAMA)

David A. Swierenga, Consultant, AeroEcon

Margie Tower, Director, Regulatory Affairs, American Association of Airport Executives

George R. Thurston, Economist, Systems and Policy Analysis Division, FAA

Jeffrey Wallace, Director, Programs Finance, Gulfstream Aerospace Corporation

David T. Watson, Director – Pilot Resources and Scheduling, Delta Air Lines

Andrew Werking, Associate Director, Air Traffic, Regulatory and Certification Policy, Aircraft 

Owners and Pilots Association (AOPA)

Wesley Craig Williams, Jr., Fleet Planning Advisor, FedEx Aviation Services
A-2 Appendix A: Aviation Rulemaking Cost Committee (ARCC)

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