Analysis of Canadian Armed Forces CH149 Aircraft Replacement/Overhaul Options#

Abstract

Aging aircraft present significant technical, economical, and operational challenges for military decision makers. As aircraft mature beyond their planned service lives, their maintenance needs may become less predictable and their overall operational availability tends to decrease. Operations and Maintenance (O&M) costs normally increase over time and eventually become prohibitive, thereby providing strong evidence that the aircraft should be replaced. This paper presents an analysis of the Canadian Armed Forces CH149 aircraft replacement and overhaul options. The analysis identified three potential decision regions for the aircraft replace/lease/upgrade options, depending on the O&M cost reduction factor and the lease cost. Sensitivity and risk analyses were conducted to assess the impact of key parameters on the decision regions.