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164 HELICOPTER AIR SERVICE PROGRAM Marine VH-3A, the first turbine helicopter to be entrusted with the mission of transporting this Nation's highest Government officials. Some of these developments include: Engine development The new GE-T58-8C engine was first installed, tested, and put into service in the S-61L helicopter. Because of the high usage in a commercial airline operation, this improved engine was ready for installation in the Marine and Army VH-3A. Cabin vibration absorbers he unique vibration absorbers developed for the S-61L cabin for additional passenger comfort have been utilized on the Marine and Army executive VH-3A helicopters. Air-stair doors The specially designed air-stair doors first appearing on the S-61L permitting ease of entrance and egress were subsequently utilized on the Marine and Army executive VH-3A helicopters. II. SAVINGS AND BENEFITS TO THE U.S. MILITARY ATTRIBUTABLE TO THE OPERATIONAL EXPERIENCE OF SCHEDULED HELICOPTER OPERATORS Due to the fact that scheduled helicopter airline operators typically fly three to four times as many flight hours per aircraft in a year as do military users, even greater savings accrue to the military customer. The effect of this high commercial utilization benefits the military in two ways. First is through substantial savings in total program investment which are obtainable through the technical improvements made from recommendations by scheduled helicopter airlines. These savings can be demonstrated by considering the investment in capital equipment and fixed costs associated with the total quantity of S-61 type helicopters being procured by the U.S. military. These costs are listed as follows: Average S-61 aircraft cost, fully equipped ----------------------------- $800,000 Initial investment in spares, tools, and test equipment at 40 percent -- 320,000 Follow-on spare part purchases at 15 percent --------------------------- 120,000 Personnel training ----------------------------------------------------- 75,000 Investment in ground equipment ----------------------------------------- 9,000 Total cost per helicopter ---------------------------------------------- 1,324,000 Multiplying the total cost per helicopter by the approximately 200 S-61 type helicopters which will be delivered to the U.S. military through 1966, a total program investment of $530 million is obtained. By taking 10 percent, as a conservative amount that scheduled helicopter airlines service experience has increase overhaul periods, reduced maintenance and thereby increased utilization, we arrive at a potential savings of $53 million which can accrue to the military. Thus, by increasing utilization by 10 percent, military units are able to accomplish their missions with fewer vehicles and therefore can reduce the total procurement of helicopters. The second way in which high commercial utilization benefits the military through increases in TBO's (time between overhauls) is the resulting savings in maintenance labor and spare parts. For example, in the approximate 2-year period of Los Angeles Airways S-61L operation, Los Angeles Airways has flown a total of over 7,400 hours, or an average of 1,850 hours per aircraft. This service has been the basis for FAA substantiation of 1,000 hours' time between overhaul for dynamic components. If this service experience was not available, numerous components of the U.S. Air Force's CH-3C helicopter would undoubtedly be entering service with less than 600-hour TBO's. From the attached, exhibit I, the difference between the former military TBO average of 600 hours and the current 875 hours produces a reduction of overhaul cost equivalent to approximately 6 percent of the aircraft value over a 7-year period. As previously shown, the cost of an S-61 helicopter in military service is estimated at $800,000. Hence, the 6 percent cost reduction established above would mean a saving of about $48,000 per aircraft or nearly $19 million for the overhaul cost on the 400 S-61's which will be in military inventory by 1966. Since the experience of helicopter operators has shown that overhaul costs comprise less than 30 percent of the total maintenance costs, the likely figure for maintenance savings to the U.S. military by virtue of TBO increases and by the reduction in line and periodic maintenance would be at least three times this, a figure of $57 million.
