Originally Posted by
D-IFF_ident
KC-10s are only £45.3M each at the current FFR!
I know I'm only a pilot & accountancy is a bit of a mystery to me, but if a KC 10 costs £45.3 million, how come FSTA is £13 billion for 14 aircraft? I know that's a PFI for the running of the aircraft too, but procurement of 14 aircraft is approx £634 million, which leaves just over £12 billion for the contract - that's alot of fuel & spares!
Have they factored in an exponential rise in the price of fuel over the life of the contract? Does FSTA really present value for money for the RAF or the taxpayer?
Or does my misunderstanding of accounting practice go even deeper?
Enlightenment in simple non-jargon terms please!