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Revenue Sales: These are only intended to give an idea of what this could be.
Note: This estimation does not take into account the market for either Military Aircrafts or Business Jets: if we were to add these to this consideration it would more than double size of the actual market
- Royalty geared to value of the Aircraft of 1%.
- Royalty geared to the cost and considered worth of the system per engine.
- The average cost of new Aircraft to be $70 million U.S dollars at 1997 exchange rate.
- Licensing Income should not be expected before the end of the second year.
- That the capacity to handle possible licensing demand is not a limiting factor.
Reference Appendices No.s 1, 2, & 3.
APPENDIX. No.1
Parts 1 & 2
POTENTIAL REVENUE
Scenario No.1
Commercial & Cargo Aircraft
Excluding
Military & Business Jets.
Period 1998 - 2017.
Part No.1
Total Number of Aircraft. 26,950
Comprises: New: 18,040, Existing: 8,550.
Estimated total Worth. $1.25 Trillion U.S Dollars at 1997 exchange rate.
Average Cost Per Aircraft. $ 70 Million U.S Dollars.
Average No. of Aircraft per year. 18040 / 20 = 902
Average No. Aircrafts per month. 902 / 12 = 75
Value of Aircraft per Month. 75 x $70 million.
= $5,262 million per Month.
Assumption a 1% Royalty on the value of each Aircraft.
Revenue Income per month. = $52.62 million
Revenue per Year. $52.62 x 12
= $631.44 million
Revenue per 20 Years. $631.44 x 20
= $12.628.8 billion
Part No.2
Total No. of existing Aircraft = 8,550
1998-2017.
No. existing Aircrafts, per year 8,550 x 20 = 427 Aircrafts, per year.
Average value of Aircraft $50 million U.S. dollars.
Average No. of Aircraftsper month. 427 x 12
= 36 Aircrafts, per month.
Value of existing Aircraft per month. 36 x $50 million = $1,800 million .
Assumption a 1% Royalty on the value of each Aircraft.
Revenue Income per month. = $18. million.
Revenue per Year. $18 million x 12
= $216 million , per year.
Revenue for 20 years. $216 x 20
= $4,320 million , 20 years.
Total Revenue over 20 years. = Part No.1 + Part No.2
= $12.69 billion + $4.432 billion
= $17.122 billion U.S. dollars.
Note: This is even using existing conventional applied technology in both Airframe and t Engine manufacture.
APPENDIX No.2.
POTENTIAL REVENUE.
Scenario No.2.
Based on the cost of New and Existing Jet Engines required.
Commercial Aero Engines
only.
Period 1998-2017.
Part A.
Total Number of Aircraft 26,950
Comprises: New: 18,040
Existing: 8,550
Assumptions;
1. In view of the fact that total comprises principally of both twin and four engine Aircrafts, for the purpose of calculated estimate there is assumed an average number of 3 engines per Aircraft.
2. Estimated cost of each Jet Engine is conservatively set at $12 million U.S. dollars throughout the 20 years period.
3. In order to convey a very conservative picture of potential, an allowance for spare engines is ignored.
Total number of engines for new Aircrafts:
4. Assumed average of 3 Engines across all new
twin & four engined Aircrafts. 18,040 x 3
= 54,120 Engines.
Assumed conservative cost of each new engine over the period
1998-2017 $12 million U.S. dollars.
Total cost of New Engines
Covering period 1998-2017. 54,150 x 12 million dollars.
= 649,800 million dollars.
= 649.8 billion dollars.
Cost of New Engines per Annum. 648.8 x 20
= $32 billion dollars, per annum
Assume a 1% Royalty $320million dollars, per Annum.
Over 20 years. $6.4billion dollars on New Engines.
Part B
Total No. of existing Fleet 8,550 Aircraft.
Engines assuming average of 3 engines per Aircraft.
Total No. of Engines 8550 x 3
= 25,650 Engines.
Assumed average value ofexisting engines at $10 million dollars.
Total value of existing Engines. 25,650 x $10 million dollars.
= $256,500 million dollars.
= $256.5 billion dollars.
Assume Royalty of 1% on worth of engines = $2.56 billion dollars.
Total Royalty Parts A & B. $6.3 + 2.56 billion dollars.
= 8.86 billion dollars.
Royalty Income based on 1% of Aircraft and Jet Engine worth
Aircraft = $17.122 billion: Engines = $8.86 billion.
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