How is New Aircraft RDT&E Funded?
The development of a new product, known as Research, Development, Test and Evaluation (RDT&E), has an associated cost which must be funded for a new product to enter production and satisfy customer needs. Traditionally aircraft manufacturers fund most RDT&E costs associated with a new aircraft concept by one of five principal mechanisms: 1) Company Funded, in which the aircraft manufacturer pays for the development cost of a new aircraft. The Boeing B-17, KC-135, Northrop F-5, Cessna Citation family and Gulfstream G650 are examples of aircraft developed through Company Funded RDT&E. 2) Investment Community Funded, in which a company raises external capital from the Investment Community to fund new aircraft RDT&E. The Cirrus SR20/22, Eclipse 500, Adam A500/A700 are examples of aircraft developed through Investment Community Funded RDT&E. 3) Joint-Venture, in which two or more aircraft manufacturers partner and finance the development costs of a new aircraft. The McDonnell Douglas DC-9 i
