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In Detail —— Strategic Airlift Boeing C-17 and Antonov An-124-100 : a comparison ——

by  Herman A. Kurapov MA MBA

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Strategic Airlift Capability  –  Procurement  –  February 2006 Strategic Airlifters: a Comprehensive Comparison between the Boeing C-17 and the Antonov An-124-100   [Appendix] Herman A. Kurapov,  Candidate,  Master of Engineering in Logistics, MIT [ NB :  for details on how Herman Kurapov arrived at his costing of An-124-100s,  see:  Average and Median Historic  An-124-100 Acquisition / Purchase Costs.] Appendix A:  Some Practical Details on Antonov An-124-100 Operations Short-Term Lease Arrangements The common form of short-term lease of commercial aircraft is called ACMI (for Aircraft, Crew, Maintenance, and Insurance). •  Current market An-124-100 ACMI per hour rates  –  US $6000 to US $7500 •  Average sales generated by one block hour  –  US $14000 •  Average cost per block hour (ACMI rate + direct expenses)  –  US $11000 Available Business for An-124-100 Services in North America: •  Bombardier  –  800 hours per year for 10 years to come •  UN contracts (on average)  –  2000 hours a year •  Other relief / humanitarian movements  –  1500 hours a year •  US & Canadian outsize market (excluding Bombardier)  –  7500 hours Total: 11,800 hours per year or around $165 mln in sales  –  the estimate is conservative, without any adjustment for the market growth  –  12% a year. Typical commodities for An-124-100 (as percentage of total annual sales): Aerospace equipment - 30% Relief / humanitarian shipments - 25%   (including 15% for UN) Industrial equipment - 20% Oil and gas equipment - 10% Miscellaneous (entertainment industry, auto parts, complete vehicles, etc) - 15% Reasons for Requiring Special Charters: Cargo Related – heavy loads, outsize cargo, urgent shipments, high-value goods, hazardous goods. There are also other considerations, such as  'just-in-time'  (JIT) production,  relief  and  humanitarian  programs,  and  restricted  access  areas. An-124-100 Existing and Potential Clients in Canada: ABB  (Asea  Brown  Boveri),  Air  Canada  ( and  other  air  carriers  for  aircraft - on - ground deliveries ),  Atco Frontec;  Atomic Energy  of  Canada  Ltd, Bell Helicopters,  Bombardier Aerospace,  CAE Electronics,  Calgary Overseas Development,  CHC,  Canatom NPM (Canada),  Department of National Defence, EADS,  Ford  Motor  Company  of  Canada,  GE / GE  Hydro,  IBM  Canada, Minamar Machine Ltd., Nexen Inc, Nortel Networks, Pathfinder Air Resources, SNC-Lavalin, Toyota of Canada, Western Combine Corporation. An-124-100 Benefits for Canada: The Antonov is a feasible candidate for:  the Canadian Forces Strategic Airlifter, dedicated Bombardier transporter, current Canadian business transport airlift, US / international  business  airlift,  United  Nations  missions,  Canadian / US governments and governmental agencies,  relief  and  humanitarian  missions, North  American  oil  and  gas  projects  (such  as  the  Mackenzie  River  Delta Project,  as  well  as  the  Alaskan  oil  fields  and  gas  lines).