Re: Economic Analysis

TK.Westerduin (TK.Westerduin_at_gironet.nl)
Thu, 17 Sep 1998 10:48:40 +0200


dear Joe,

Qantas Airways has done a calculation of insured and uninsured costs, not
by numbers but in categories. You can find it in the book of David Beaty
'The Naked Pilot' on page 215. Maybe this is of some help to you,

Ton Westerduin

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> Van: Joe Rizzuto <joerizz_at_ibm.net>
> Aan: crm-devel_at_db.erau.edu
> Onderwerp: Economic Analysis
> Datum: donderdag 17 september 1998 8:14
>
>
> Dear CRMers
>
> Ben Chamber's inquiry about the cost of a CRM program is no the first
made
> to the group. About a year ago one of our members from Air New Zealand
made
> an inquiry about justifying the cost of a crm program. I have been doing
> some research in this area. I am working on my Master Degree in
Engineering
> Management and hope to finish with a thesis using Engineering Economy to
> justify a CRM program.
>
> I need to find to items and wonder if anybody can help me. I need to
figure
> out what a loss of aircraft accident costs. Generically there is the
cost
> of the aircraft, payments for loss of life, damage to the ground,
training
> to replace the crew, loss of revenue, investigation, increased insurance,
> etc. Does anybody know where I can find these figures?
>
> Secondly I need to know what is spent on CRM programs, with LOFT,
industry
> wide. I will try to find the average spent industry wide. From these
two
> figures I should be able to figure out the maximum to spend on a program
and
> what rate of return the industry average is returning?
>
> I would appreciate any suggestions and figures andybody can provide.
>
> Joe Rizzuto
> USAF