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Attachment 3-2

The total national net cost benefits attributable to the elements quantified by this study range between the following values; the earlier the implementation date and the larger the number of airports equipped, the greater the net benefits:

Category II, from +$4 to +$56 million/year.
Through Category IIIa, from -$24 to +$43 million/year.
Through Category IIIb, from -$26 to +$61 million/year.
Through Category IIIc, from -$57 to +$19 million/year.

The cost benefits are subject to some variance in their values because of the numerous intangibles which could affect the program and its economic. The foregoing listed benefits are based upon conservative data and judgment factors. It is believed that the loss values could be appreciably reduced and the gains could be increased by 50-100 percent.

Indirect or less tangible benefits would also be realized. Military benefits from R&D savings should approximate $20 to $30 million, and operational benefits could approximate an additional $20 million per year without regard for active major war or mobilization benefits. The AWLS would also provide substantial safety benefits, as well as benefits to General Aviation and to balance of payment sales.

The element of increased operating safety accruing to Category IIIa, plus the fact that many aircraft will have this equipment in any event, makes justification of Category IIIa capability more attractive than the quantitative analysis indicates.

The relatively small occurrence of Category IIIc weather identified in the analysis, plus the belief that the data overstates the actual Category IIIc weather exposure, makes such capability significantly less attractive than the Category IIIab capability.

The economic benefits to airline operations and to the national economy of advanced all-weather capability are compared to the costs of achieving that capability. The greatest single benefit is additional airline revenue resulting from increased reliability of service. The airlines will also benefit from reduction of operating costs imposed by weather disruptions. There are benefits to the national economy from improved reliability and avoidance of lost passenger time.