Fuel Efficiency The Industry, IATA and You
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1 Fuel Efficiency The Industry, IATA and You Captain Pat Jordan Airline Cost Conference
2 The Industry Airline Cost Conference
3 Still high fuel price Industry Challenges 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
4 Airport and ANSP Cost Reduction Campaign New Distribution Capability Airline Industry Costs Airline Distribution Improvement Operational Cost Efficiency IATA Training & Qualification Initiative Aircraft Leasing Advisory Group Paperless Supply Chain Maintenance Cost Benchmark Total :US$ 665B (2012 est.) Fuel Campaign Airport & ATM Efficiency Improvement Source: IATA
5
6 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!
7 Biojet Fuel Test Flight Program Carrier Aircraft Partners Date Biojet Fuel Blend B Boeing, GE Aviation 23 Feb 2008 Coconut & Babassu FAME B Boeing, Rolls-Royce B Boeing, GE Aviation, CFM, Honeywell UOP B Boeing, Pratt & Whitney, Honeywell UOP 20% one engine 30 Dec 2008 Jatropha HRJ 50% one engine 07 Jan 2009 Algae and Jatropha HRJ 30 Jan 2009 Camelina, Jatropha, and Algae HRJ 50% one engine 50% one engine B GE, Honeywell UOP 23 Nov 2009 Camelina HRJ 50% one engine A320 Airbus, Honeywell UOP 22 Nov 2010 Jatropha HRJ 50% one engine A Honeywell UOP 01 April 2011 Jatropha HRJ 30% one engine
8 IATA Airline Cost Conference
9 Aviation & Climate Change Aviation is facing the challenge IATA s Four-Pillar Strategy Invest in new technology Fly more efficiently Build & use efficient infrastructure Use effective economic measures
10 Emissions Reduction Roadmap + FE programs
11 IATA Fuel Efficiency Campaign All member airlines are encouraged to participate in the Fuel Efficiency and Environmental Campaign Campaign components: Green Team Assessment Regional Workshops Fuel Efficiency Webinars Fuel Book 5 th Edition & Implementation Guidance Material Green Team Remote Support Fuel Efficiency Implementation Support Fuel Efficiency Training
12 Fuel Book 5th Edition & Implementation Guidance Material Fuel Book 5 th 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 th edition Fuel Efficiency Program Implementation Guidance Material
13 IATA Green Team Achievements visits 41.3 M tons of CO 2 US $9.8 B
14 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) Potential Savings Distribution ( ) 3% 14% 46% Flight Dispatch Based on the fuel campaign statistics, major part of savings come from Flight Operations and Flight Dispatch 37% Flight Operations Maintenance & Engineering Ground Operations & Commercial
15 Fuel Efficiency Implementation Assessment Assessment Preparation Complete Fuel Efficiency Survey Coordinate Interview Schedule Submit Fuel Efficiency Metrics and Reports On-site Assessment Opening Meeting Management Interviews Line Observations Flight Dispatch Flight Operations M&E Ground Operations Cabin Out-Briefing Executive Summary of Findings & Recommendations Initiatives Progress Report Barriers to Implementation Reporting.5 days 2-3 weeks prior to visit 2.5 days.5 days May be adjusted to meet your needs
16 Are you achieving the results you expect? Airline Cost Conference
17 Self - Assessment 5 Key Questions to determine how to assess your fuel efficiency performance
18 Do you have a dedicated Fuel Efficiency Team, integrated into your organization, with a strong leader and senior management support? CEO / COO Executive Sponsor Executive Steering Committee Fuel Efficiency Manager Fuel Team Airline Departments Airline Departments Airline Departments Airline Departments
19 The Process of Using Fuel Does your airline manage fuel as a process across departments? Ground Ops Flight Dispatch Maintenance Ground Ops Flight Ops Ground Ops Request Fuel Deliver Fuel Check for Accuracy Yes Produce Flight Plan Issue Flight Plan Verify Conformance to Plan Changes Needed? Ground Mainte nance Ground Activities Taxi Out (Engine Out) Engine Start Pushback Departure Plan Check Accuracy Take Off Reduced Flap Reduced Thrust Descent / Approach / Landing Optimized Descent Low Noise / Low Drag Reduced Flap Settings Idle Reverse Taxi In (Engine Out) Engine Shutdown Ground Activities No Climb / Cruise Coordinate Add Fuel Crew Uplift Cost Index Optimized Routing Reduced Acceleration Altitude Airport / ATC / Weather Restrictions Security APU Operation / Ground Power Use
20 Are Initiatives tracked to measure implementation progress?
21 Does the airline capture and integrate operational data to produce meaningful management reports to control and sustain fuel efficiency improvements?
22 Does the culture of the airline support and embrace fuel efficiency?
23 Way Forward 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.
24 Thank you! Contact through: Airline Cost Conference
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