Why is the C-17 so much more expensive than a C-5?

Question

A c-5 is much larger and more powerful, but the C-17 is something like 100 million dollars more. why is this?

Answer 1

Number one, the C-5's not built anymore.

They are still debating whether to re-engine the A models, or use the money for more C-17's.

Part of the cost of the C-17 is the newer technology, and the equipment to carry it off comes at a price.

Answer 2

Inflation.  When the C-5 was being developed Lockheed got the contract but Boeing used their research into large aircraft to develop the 747.  When introduced a new 747-100 cost $24 milliion. The latest 747-8 will set you back $285 million.

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Answer 3

Essentially inflation.

Unit cost of C-5B was $167.7 million in 1989, when it was last built. Adjust for inflation and that is $253 million in 2007; the unit price of a C-17 is $258 million in 2007.

That is pretty close. And the unit cost of the C-5B does not include the R&D as those were already paid for with the C-5A; whereas the C-17 has to include all the design effort.

To that, add the additional tech introduced in the 18 years between the two planes, and you got the slight price premium.

Size of an aircraft is not the most significant component of the price, assembly of smaller parts costs about the same as assembly of larger parts.

Answer 4

"The C-17 is a new bird, and as such it gets used a lot to show it off. The generals are playing with their new toy, so to speak. It has some advantages over the C-5. It has shorter takeoffs & landings, shorter downtime, easier to maintain, etc. But it's obvious just by looking that the C-5 is still the big boy on the block. Both planes have their own roles to fill, but a C-5 can just plain move a lot more things then the C-17 can." -http://ezinearticles.com/?Is-The-Air-For...

anyhow, like any other fad it's price will eventualy rise during its season but later on it will wear off, as the 'consumers' will realize that quality comes first.. but probably if they do some revisions with C-17 models, it will turn out to be a better aircraft than C-5.. but i dare say that the pricing is totally unfair.. big boy C-5 totally performs way better than C-17 at the moment.. well, good news for the 'smart buyers' though.. haha..