PPRuNe Forums - View Single Post - Air Asia Indonesia Lost Contact from Surabaya to Singapore
Old 13th Jan 2015, 21:04
  #1947 (permalink)  
Join Date: Dec 2014
Location: Schiphol
Posts: 339
On seach costs .. answer to John in YVR

John, all the points that you mention are valid. They show part of why it is complex.

In my view there is no such thing as 'true' costs. In all cost calculation (and its foundation on costs collection and allocation) there is a lot of subjectivity.

Subjectivity returns at the beginning of the 'top' search costs calculation. P.M. Tony Abbott used a 'common' (common in both government and industry) statement early on in MH 370 when he said something like "we have these (navy) ships anyway, so there is no (extra) cost". That is a different viewpoint from what I would take, that is starting with the statement that all activities and all asset uses carry costs.

When the search took longer, the costs came 'out in the open', because part of the search was outsourced (costs published). And part of the naval assets had to return to the missions/activities they were on when it all started. If not, then they would have to add a line item in the navy budget for new assets and for certain deepwater search systems.

One of the easy parts of this is, that many or most of the costs are known or familiar. In aerospace design that can be different, there you sometimes have to calculate with 'technical costs' because the systems or components have never been manufactured before.
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