loke wrote:
You cannot compare different deals like that; first, the offer to Holland was some years ago; inflation by itself increases the costs. Second, you have to look at what is included in each deal. Unless you know the details of that, you cannot compare.
Since this is the F-35 forum; 48 Norwegian F-35 was said to cost 18 billion NOK (2008) (roughly 3 billion USD).
However now it's said that the price for the Norwegian F-35 is not 3 billion USD but 10 billion USD!
This increase is due to: real increase in the cost of the F-35; inflation; and other "technical" adjustments (i.e. exchange rate).
Using your simplified way of thinking, the F-35 project looks doomed with such huge increase in costs... a factor of more than 3!
loke,
As I'm sure you are aware, the $3 bn. (NOK18 bn.) figure represents only the (then) pr. plane unit cost. The new $10 bn. figure, however, is the total acquisition cost for the programme including a 30-year support- and logistics deal, weapons, spares, equipment etc.
As you mention it also accounts for technical economical ajustments. This includes inflation and new currency rates, but is chiefly due to a conversion from real to nominal dollars as the programme has transversed from a fighter competition into an aquisition programme which requires future budgetary planning.
And as you are probably also aware, the recent reports by the Aftenposten newspaper alleging a 90 bn. NOK life-cycle cost overrun was simply a confusion of these terms -- which is all too often the case with this newspaper.
B. Bolsøy
Oslo