The $102 million is the LMC or the lifetime maintenance cost or sometimes also known as the Life Cycle Cost and around $40 is the flyaway cost. Most jets have such ratios but the MKI has a higher cost curve mainly because of the additional parts that are installed on it by the IAF. All these parts have a fixed upgrading period and the LMC accounts for that. Such cost are normally amortized over a period of 5-10 years therefore the $102 price tag, nothing to worry about. Infact I wont be surprised that the cost is even higher, my estimate is around $120 million altogether. If you want the best, you need to pay for it. Other jets like the JF-17 will have a lower LMC curve. Just for example an F-22 has a far higher lifetime cost than any fighter jet in the world. This is a truly stupid report by an idiotic tv channel who does not know zit about aircrafts, they just want to create some masala. Russia just cant raise prices like that, prices for Aircraft's are fixed for certain amount of time and their price rise has to be justified also. There would be sheer chaos in the MOD if something like this actually happened but I have heard absolutely nothing. So all our Pakistan friends please relax, we are still getting the 300+ jets just as before lol Please refer to the following pics for more info -
Managing the preparation of a life-cycle cost estimate requires continual coordination among all of the stakeholders. Normally, cost estimates are sponsored by a system program office and are prepared by a multi-disciplinary team with functional skills in financial management, logistics, engineering, and other talents. The team also should include participants or reviewers from major affected organizations, such as the system's operating command, product support center, maintenance depot, training center or command, and so forth. Typically, the analytic approach to the cost estimate is documented in a written study plan that includes a master schedule (of specific tasks, responsible parties, and due dates). For sufficiently complex efforts, the estimating team may be organized as a formal Integrated Product Team. Throughout the preparation of the estimate, coordination with all interested parties remains important. Frequent in-progress reviews or meetings are usually a good practice.
For independent cost estimates, the team may be smaller and less formal, but the basic principlecomplete and continual coordination of the cost estimate with all interested partiesstill applies.
Altogether there is much more to pricing in an aircraft that meets your eye. This new station probably got hold of a report showing the whole LCC cost and then jumped up saying that Russia raised the prices lol Dont worry about this friends.
Cheers
if so the air frame would be greatly strengthened to carry an extra 1.5++ tons of Cruise missile.
and the worst part is it is based on a report by page 3 Journalist's report.
