Operational Interruption Cost Assessment Methodology · PDF fileOperational Interruption Cost Assessment Methodology ... IFTB cost for A330-200 higher than the A330-300 one although

Operational Interruption Cost Assessment Methodology IATA -Airline Cost Conference 2016

August 2016 Maintenance Economics - OI Cost Assessment Methodology

Maintenance Economics Annika WOLF

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Content


#2 Scope #3 Model Parameters #4 OI Cost Illustration #5 Pitfalls #6 Key Message & Outlook

#1 Definition & Context


#1 Definition & Context

*Flight dispatch delays greater than 15min. This incl. ground turn-backs, aborted take-offs and aircraft substitutions if causing delay greater than 15 min


Diversions

Airborne Interruption

Delays* Cancellations In-Flight Turn-Backs

Operational Interruptions are composed of :

Ground Interruption

as per ATA SPEC2000 definition

The OI Cost Model aims at… making the hidden cost visible

fostering awareness about the cost drivers

supporting prioritization of OI reduction initiatives to efficiently increase the operational reliability of a given fleet


#2 Scope


Impact on

Total Operating Cost

Focus on additional & avoidable costs triggered by interruptions of scheduled revenue flights. “

” AIRPORT &

NAVIGATION FUEL GROUND CREW

& HANDLING SERVICES PASSENGER

INCONVENIENCE OWNERSHIP FLIGHT CREW MAINTENANCE


#2 Scope


AIRPORT & NAVIGATION FUEL HANDLING SERVICES

PASSENGER INCONVENIENCE OWNERSHIP FLIGHT CREW MAINTENANCE

Overflight charges

Terminal Navigation charges

Landing & Noise charges

Parking charges

Passenger & Security charges

Fuel consumption - At gate (APU/GP) - On-ground - In-cruise - Aborted take-off

Pilot- & Cabin crew:

Overtime Accommodation &

Meal allowance

Substitution/ re-scheduling

Air Transport [DIV]

Troubleshooting at Line Maintenance

Deferred items of Light Maintenance checks

Components repair and pool access fee for additional flying time [IFTB&DIV]

Communication

Refreshments

Miles voucher

Financial compensation

Accommodation & Transport Re-booking fees

Fares for refund

Delayed luggage fees

Ground Passenger Service staff

Technical Ground Support staff

Aircraft Towing Tractor

Passenger Bridge/Bus

Baggage container vehicle

DRY Lease rate for % A/C change

Depreciation

Interest

Insurance

Loss of revenues due loss of passenger loyalty or -competitiveness

OI impact on direct & indirect operating cost


#3 Model Parameters


Selection Mission Aircraft

Parameters

A/C type

Airline geographical zone

Airline Cost Profile

Selection

Annual utilization

Flight duration

Load factor (%)

no of cabin crew

no of pilot crew

no of Line maintenance staff

Mission

Cabin configuration Economy Business First

MTOW

Aircraft Parameters Labour rate pilot & cabin crew

Line Maintenance staff labour rate

Dry lease rate per day

Airport charges

Navigation charges

Fuel price

Cost Profile

Default values are set based on average In-Service Data

OI characteristic Cost

Profile

% of aborted take-off per DY duration

% of A/C change per DY duration

DY duration

add. FH for IFTB&DIV

OI characteristic


#4 OI Cost Illustration


Major cost drivers contribute to ~60-70% of the OI cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIV

IFTB

Cancellation

1 H DelayFlight crew

Passenger Services

Handling Services

Airport & Navigation

Maintenance

Fuel

Ownership

Operating Cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIV

IFTB

Cancellation


Passenger Services

Handling Services


Maintenance

Fuel

Ownership

Operating Cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIV

IFTB

Cancellation


Passenger Services

Handling Services


Maintenance

Fuel

Ownership

Operating Cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIV

IFTB

Cancellation


Passenger Services

Handling Services


Maintenance

Fuel

Ownership

Operating Cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIV

IFTB

Cancellation


Passenger Services

Handling Services


Maintenance

Fuel

Ownership

Operating Cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIV

IFTB

Cancellation


Passenger Services

Handling Services


Maintenance

Fuel

Ownership

Operating Cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIV

IFTB

Cancellation


Passenger Services

Handling Services


Maintenance

Fuel

Ownership

Operating Cost

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIV

IFTB

Cancellation


Passenger Services

Handling Services


Maintenance

Fuel

Ownership

Operating Cost

CN 55% 21% Passenger

Inconvenience Flight Crew

IFTB

41% 23% Passenger

Inconvenience Operating Cost

DIV

42% 23%

Passenger Inconvenience

Operating Cost

Cost Distribution – Long Range Aircraft




Cost Illustration per DY Duration | Long Range Aircraft

3 3

Steeper increase in Europe compared to North America due to EU regulation

1st at 1.5h-2h limitation of application on Passenger compensation & -care services

2nd at 4h limitation on Flight & Ground crew substitution

3rd at ~6h question to be asked whether to cancel the flight

Decision points to be considered

1 1

2 2

DY duration

$


| Passenger Load Factor & Cabin Configuration - Single Aisle Aircraft

The Passenger Load Factor influences the CN cost at almost same rate with



Cost Influencing Parameter

+8.7% increase of CN cost

Both Load Factor and cabin configuration* directly impact the Passenger Inconvenience cost

* Cabin configuration: Total number of seats and class distribution

DY duration

$

75% 85%

~1%


#5 Pitfalls

August 2016

Maintenance Economics - OI Cost Assessment Methodology

A simple estimation can lead to a fast overestimation of the avg. cost. Example: Your LR aircraft is grounded in GVA after an IFTB. Decision of CN as Engine to be changed. CN cost of your flight:

Simplification

Pitfalls to avoid

Linearization Smoothing the OI cost curve per DY duration would delete the decision points.

Linearization Simplification Rule of proportion

Rule of proportion More seats = higher cost? As in-service data is different per A/C type depending on specific context, this rule cannot be applied. Example: IFTB cost for A330-200 higher than the A330-300 one although less seats and lower SL and annual utilization Reason: Higher DY duration & CN rate.

PAX Accommodation & re-routing = (150USD+350USD) * 260PAX = 130.000USD


#6 Key Message & Outlook

OI cost assessment is a powerful method to improve your aircraft economic health Identify where the pain lies Prioritize and quantify subsequent healing

initiatives


Key Message

We look to continuously improve our model with operators experiences , to incorporate industry changes and are ready to support OI cost customization.

Outlook your



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Contact


Annika Wolf [email protected] Maintenance Economics Manager

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mailto:[email protected]

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Operational Interruption Cost Assessment Methodology · PDF fileOperational Interruption Cost Assessment Methodology ... IFTB cost for A330-200 higher than the A330-300 one although