The Value of the Civil Reserve Air Fleet

<p>This study evaluated the value of the CRAF program to the DOD and explored the amount that could be spent to remove potential obstacles to participation with aviation insurance and lost market share. In comparing the value of the CRAF and the cost of current incentives it was determined that up to $1.4 million could be spent on additional incentives annually. For multiple aircraft losses and liability claims the Air Force would need to tap into the Defense Business Operating Fund. Therefore a sensitivity analysis was conducted and found that for low valued aircraft such as the DC8 the cost due to loss would exceed the cost of commercial insurance at relatively low incident rates. Thus it may be appropriate for the DOD to absorb the cost of commercial war-risk insurance for certain missions thereby eliminating the expense resulting from a large claim. The cost due to lost market share was measured by the minimum cost required to re-enter a city pair market.</p><p>This work has been selected by scholars as being culturally important and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact and remains as true to the original work as possible. Therefore you will see the original copyright references library stamps (as most of these works have been housed in our most important libraries around the world) and other notations in the work.</p><p>This work is in the public domain in the United States of America and possibly other nations. Within the United States you may freely copy and distribute this work as no entity (individual or corporate) has a copyright on the body of the work.</p><p>As a reproduction of a historical artifact this work may contain missing or blurred pages poor pictures errant marks etc. Scholars believe and we concur that this work is important enough to be preserved reproduced and made generally available to the public. We appreciate your support of the preservation process and thank you for being an important part of keeping this knowledge alive and relevant.</p>