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Airline Cost Conference
Fuel Efficiency –
The Industry, IATA
and You
Captain Pat Jordan
Airline Cost Conference
The Industry
Industry Challenges
Still high fuel price
Fuel represents 32% of airline budget
Environmental regulations, e.g. EU ETS
Implementation of the aviation “CNG2020” accepted by IATA
member airlines at IATA 69th Annual General Meeting in June 2013:
The resolution provides governments with a set of principles on
how governments could:
Establish procedures for a single market-based measure (MBM)
Integrate a single MBM as part of an overall package of measures
to achieve CNG2020
Airline Cost Conference August 30, 2013
Airline Industry Costs
Total :US$ 665B (2012 est.)
Operational Cost Efficiency
IATA Training & Qualification
Initiative
Fuel Campaign
Airport & ATM
Efficiency Improvement
Aircraft Leasing Advisory Group
New Distribution Capability
Airport and ANSP Cost Reduction Campaign
Airline Distribution Improvement
Paperless Supply Chain
Maintenance Cost Benchmark
Source: IATA
Airline Cost Conference August 30, 2013
EU Emissions Trading Scheme
Created to comply with obligations of Kyoto Protocol
Cap and trade legislation within Europe
Applies to aviation from 2014
Applies to airlines landing/taking off from EU27 airports (+3 more)
Airline carbon emissions capped < 2005 levels
Biojet = zero emissions!
Airline Cost Conference August 30, 2013
Biojet Fuel Test Flight Program Carrier Aircraft Partners Date Biojet Fuel Blend
B747-400 Boeing, GE Aviation 23 Feb 2008 Coconut &
Babassu FAME
20% one engine
B747-400 Boeing,
Rolls-Royce
30 Dec 2008 Jatropha HRJ 50% one engine
B737-800 Boeing,
GE Aviation,
CFM, Honeywell UOP
07 Jan 2009 Algae and
Jatropha HRJ
50% one engine
B747-300 Boeing,
Pratt & Whitney,
Honeywell UOP
30 Jan 2009 Camelina,
Jatropha, and
Algae HRJ
50% one engine
B747-400 GE, Honeywell UOP 23 Nov 2009 Camelina HRJ 50% one engine
A320 Airbus, Honeywell
UOP
22 Nov 2010 Jatropha HRJ 50% one engine
A320-214 Honeywell UOP 01 April 2011 Jatropha HRJ 30% one engine
Airline Cost Conference August 30, 2013
Airline Cost Conference
IATA
IATA’s Four-Pillar Strategy
Invest in new technology
Fly more efficiently
Build & use efficient infrastructure
Use effective economic measures
Aviation & Climate Change
Aviation is facing the challenge
Airline Cost Conference August 30, 2013
Emissions Reduction Roadmap
+ FE programs
Airline Cost Conference August 30, 2013
IATA Fuel Efficiency Campaign All member airlines are encouraged to participate in the Fuel
Efficiency and Environmental Campaign
Campaign components:
Fuel Book
5th Edition &
Implementation
Guidance Material
Fuel
Efficiency
Training
Regional
Workshops
Fuel Efficiency
Implementation
Support
Green Team
Assessment
Fuel Efficiency
Webinars
Green Team
Remote Support
Airline Cost Conference August 30, 2013
Fuel Book 5th Edition &
Implementation Guidance Material
Fuel Book 5th edition highlights:
Time dependent maintenance costs
Aircraft performance monitoring (APM) Released: October 2011
Implementation Guidance Material:
Setting priorities
Risk assessment
Building a strong business case
Program management
Metrics for tracking implementation
Key Performance Indicators Released: June 2011
5th edition
Fuel Efficiency Program
Implementation Guidance
Material
Airline Cost Conference August 30, 2013
IATA Green Team Achievements 2005-2012
111 visits
41.3 M tons
of CO2
US $9.8 B
Airline Cost Conference August 30, 2013
IATA Green Team Identified Savings
Average identified saving is 5% of
the airline fuel budget
Savings range from 2% to more
than 14% (higher values for airlines
that did not have a structured fuel
efficiency program in place)
Based on the fuel campaign
statistics, major part of savings
come from Flight Operations and
Flight Dispatch
46%
37%
14%3%
Potential Savings Distribution (2005-2012)
Flight Dispatch
Flight Operations
Maintenance & EngineeringGround Operations & Commercial
Airline Cost Conference August 30, 2013
Fuel Efficiency Implementation Assessment
Assessment
Preparation
On-site
Assessment Out-Briefing
2.5 days
.5 days
2-3 weeks prior to visit
Complete Fuel
Efficiency Survey
Coordinate Interview
Schedule
Submit Fuel Efficiency
Metrics and Reports
Opening Meeting
Management Interviews
Line Observations
• Flight Dispatch
• Flight Operations
• M&E
• Ground Operations
• Cabin
Executive Summary
of Findings &
Recommendations
• Initiatives Progress
Report
• Barriers to
Implementation
• Reporting
May be adjusted to meet your needs
.5 days
Airline Cost Conference August 30, 2013
Airline Cost Conference
Are you achieving the
results you expect?
Self - Assessment
5 Key Questions to determine how to assess your fuel
efficiency performance
Airline Cost Conference August 30, 2013
Do you have a dedicated Fuel Efficiency Team, integrated into your
organization, with a strong leader and senior management support?
Fuel Efficiency Manager
Fuel Team
CEO / COO
Executive Steering
Committee
Executive
Sponsor
Airline
Departments
Airline
Departments
Airline
Departments
Airline
Departments
Airline Cost Conference August 30, 2013
Does your airline manage fuel as a process across departments?
The P
roce
ss of
Usin
g Fue
l
Ground Ops Flight Dispatch Maintenance Flight Ops
Verify Conformance
to Plan
Deliver Fuel
Pushback
Check for Accuracy
Add Fuel
Coordinate
Take Off
Climb / Cruise
Descent / Approach /
Landing
Crew Uplift
• Cost Index• Optimized
Routing• Reduced
Acceleration Altitude
• Airport / ATC / Weather Restrictions
• Security
APU Operation / Ground Power Use
Ground Maintenance
Taxi Out (Engine Out)
Engine Start
Check Accuracy
Taxi In (Engine Out)
Engine Shutdown
• Reduced Flap
• Reduced Thrust
• Optimized Descent
• Low Noise / Low Drag
• Reduced Flap Settings
• Idle Reverse
Ground Ops Ground Ops
Ground Activities
Ground Activities
Produce Flight Plan
Issue Flight Plan
Changes Needed?
Yes
No
Request Fuel
Departure Plan
Airline Cost Conference August 30, 2013
Are Initiatives tracked to measure implementation progress?
Airline Cost Conference August 30, 2013
Does the airline capture and integrate operational data to
produce meaningful management reports to control and
sustain fuel efficiency improvements?
Airline Cost Conference August 30, 2013
Does the “culture” of the airline support and embrace fuel
efficiency?
Airline Cost Conference August 30, 2013
When you return to your airline:
Assess the effectiveness of the fuel team and identify actions
for improving team performance.
Assess the effectiveness of your FE implementation efforts.
Identify additional opportunities for fuel savings.
Understand barriers affecting your FE
implementation efforts.
Develop strategies to effectively overcome implementation
barriers.
Way Forward
Airline Cost Conference August 30, 2013
