Damages assessment: Aircraft component manufacturer

An aircraft component manufacturer required litigation support against a supplier for providing faulty parts.
Challenge: To calculate the direct and “reputational” cost of damages arising from aircraft crashes caused by the faulty components.
Solution: CRA embarked on a comprehensive GA market analysis to isolate the impact on aircraft sales.  We also engaged in a discounted cash flow (DCF) analysis of the resulting “but-for” financial model to calculate final damages assessment.  CRA calculated a comprehensive estimate of the amount required to make the client whole by using a discounted cash flow analysis of the incremental cash flows from the “but-for” financial model compared to the company’s actual cash flows.