ECONOMICS

Cost
Global aluminium alloy price is $1650 per
tonne.1 Based on figure aside, manufacturing
of wing is the second largest in cost
contributions of an aircraft. This is mainly
because the wing is a critical part in aircraft
production. Average aluminium alloys demand
in aircrafts in 2015 was 47% by weight. Total
weight of aerospace materials demand in 2015
was 1.56 billion pounds (~708,000 tonnes),
which resulted in aluminium alloys demand of
733.2 million pounds or ~351,000 tonnes. The
market value of aluminium alloys quantity is
~US$3.1 billion (ICF analysis).
Figure 1: Manufacturing Cost Model by Parts
Figure is retrieved from MITs website
(https://ocw.mit.edu/courses/aeronautics-
and.../16...aircraft...fall.../pres_willcox.pdf)
Availability
Aluminium is the third most abundant element in the Earths crust (~8%), but does not occur
as a metal naturally. The step in producing aluminium is mining its ore i.e. bauxite. Bauxite
occurs mainly in tropical and sub-tropical areas, like Africa, the West Indies, South America
and Australia. It is also known that there are some small deposits located in Europe2. Known
reserves of bauxite are around 29 billion metric tons. At the current rate of extraction, these
reserves will last more than 100 years. When we include undiscovered bauxite resources, this
number is estimated at 55-75 billion metric tons. This extends the time perspective to 250-340
years. Thus, the availability of aluminium and its alloy will always be accessible at the moment.
As for our country Malaysia, our aircrafts were not made by locals. We buy our aircraft from
other country because of low resources of raw materials-aluminium. We are also not
generating enough wealth to be an aircraft supplier. However, Malaysia have two main aircraft
manufacturers that are registered by The International Civil Aviation Organisation (ICAO)
which are SME Aerospace Sdn Bhd (SMEA) and Composites Technology Research Malaysia
(CTRM). These two companies produce and supply parts of aircraft components to be sold to
multinational companies all over the globe. Hence, even though Malaysia still far from being
an aircraft supplier, we are still able to participate in this industry by producing aircrafts
components.
All in all, commercial aircrafts is a worldwide network cooperation that relies on a network of
regional facilities for design and engineering activities across the companys full family of
modern aircraft. This high-tech work is divided across design offices and engineering centres
located throughout Europe and North America, along with additional sites in India and China.3

1
https://www.quandl.com/collections/markets/aluminium
2
http://aluminium.org.au/flowchart/bauxite-mining.html
3
http://www.airbus.com/company/aircraft-manufacture/how-is-an-aircraft-built/design-offices-and-
engineering-centres/
Impact on Product
The wing of an aircraft must be able to withstand the bending and twisting load (shear stress)
that it encounters during flight caused by lift, weight and inertia. As mentioned in description
of the material and description of the application, an aircraft requires small weight, having high
specific strength, heat resistance, fatigue load resistance, crack resistance and corrosion
resistance. Aluminium is one of the lightest metals in the world as it is almost three times
lighter than iron but it is also very strong, extremely flexible an corrosion resistant because its
surface is always covered in an extremely thin and yet strong layer of oxide film. It does not
magnetise, it is a great electricity conductor and forms alloys with practically all other
metals.Application of aluminium alloy meet all the requirements desired in manufacturing wing
of an aircraft. Thus, demand of aluminium in manufacturing is high.

Possible Environmental Consequences

As the bauxite is located close to the surface, mining disrupts the surface. Every year, the
worldwide use of new land related to bauxite mining is 40-50 square kilometres4.
Environmental consequences caused by bauxite mining include change of landscape and
impact on biodiversity. However, after mining operations have been completed in one area, it
is normally re-vegetated with local species.
The wing of an aircraft does not contribute to observable or significant environmental affect.
However, the aircraft itself contribute disturbance towards its surrounding. Aircraft noise has
historically been the principal environmental issues in aviation. It remains high on the agenda
of public concern.5 Noise disturbance is a difficult issue to evaluate as it is open to subjective
reactions. Its impact have significant adverse effects on people living close to an airport,
including: interference with communication, sleep disturbance, annoyances responses,
learning acquisition, performance effects and cardiovascular and psycho-physiological
effects.Besides, aircraft engines emit heat, particles and gases which contribute to climate
change and global warming. Most forms of aviation release carbon dioxide (CO 2) and other
greenhouse gases into the earth atmosphere. Comprehensive research shows that despite
anticipated efficiency innovations, there is no end in sight - even many decades out to rapid
growth in CO2 emissions due to projected continual growth in air travel. There are also other
consequences such as water pollution, air pollution and radiation exposure.

4
http://www.hydro.com/en/about-aluminium/Aluminium-life-cycle/Bauxite-mining/
5
http://www.eurocontrol.int/articles/environmental-issues-aviation