28th Congress of the International Council of the Aeronautical Sciences, 23 - 28 September 2012, Brisbane, Australia
Paper ICAS 2012-6.3.2

A COMPETITIVE AND REAL-OPTIONS FRAMEWORK FOR THE ECONOMIC ANALYSIS OF LARGE AEROSPACE PROGRAMS

C. Y. Justin, S. I. Briceno, D. N. Mavris
ASDL, Georgia Inst. Of Technology, USA

Keywords: design valuation, competitive analysis, real-options

Aircraft developments are major endeavors often driven by fixed assumptions when business plans are conceived and the abundance of technical and market uncertainties. Standard capital budgeting methods are not well suited to overcome these challenges. The research proposes a dynamic competitive and real-options based methodology to optimize aircraft development strategies.

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