Question : PLANNED YEARLY FLYING RATE UNDER LCC METHOD

(a) the details of methodology adopted for calculation of planned yearly flying rate under the Life Cycle Cost (LCC) method;

(b) the methodology for comparison of the current planned annual flying hours with those used for the purpose of LCC calculations as the pro-date of the total technical life;

(c) the number of hours of annual utilization assumed for calculations of LCC for the medium multi role combat aircraft (MMRCA) and flight refueling aircraft (FRA); and

(d) the methodology adopted for comparison of these assumed hours with experience of the Indian Air Force in respect of MMRCA as compared to Jaguar and Mirage actual historical deployment and FRA as compared to IL-78 deployment and heavy lift helicopter as compared to MI-26 deployment?

MINISTER OF DEFENCE (SHRI ARUN JAITLEY)

(a) to (d): The total flying hours specified in the RFP for the Aircraft / Helicopter is used for Total Cost of Acquisition (TCA) model on the Life Cycle Cost (LCC) approach.

The “planned yearly flying rate” is not used to determine the TCA.

The planned annual flying hours / rate are not compared for LCC calculations as irrespective of the annual flying hours, the aircraft will be flown for the complete hours it is designed for.