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AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing Director

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Page 1: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

Connected Planning on the GroundDelivering

Fuel Burn Reductions of 2%

Gerard BerrySales & Marketing Director

Page 2: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

Presentation Theme Introduction to Liberator.aero Airlines - Challenges & Operating Environment View from the Cockpit & the Ground The Liberator perspective Adopt ‘Measure to Manage’ principle Attitude is everything – Savings or Cost Reductions

Page 3: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

The Company• Formed in 2003 and is owned and

managed by airline professionals with in excess of 100 man years experience

• Based in Dublin with IT expertise in Hyderabad

• Investment by Irish Government Agency - Enterprise Ireland

• Member of the IATA Strategic Partnership Programme

Page 4: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

Airlines with whom we have worked

Page 5: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

The Challenges for Airlines• Economic Downturn and Fluctuating

exchange rates.• Mergers and company consolidation

for survival• Managing costs in an ultra

competitive market• Order delays for new aircraft• Extending further use of costly older

aircraft• Shortage of pilots to match fleet

expansion

Page 6: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

Operating Environment• Fluctuating fuel costs – airlines

have to re-examine ops processes.• Airlines are withdrawing own

staff from outstations• More airlines moving to

centralised load planning• Operational efficiency delivers

competitive advantage

Page 7: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

The View from the Cockpit

Page 8: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

• Flight Operations• Variable Cost Index / Aircraft Performance & Engine Health

Monitoring / Continuous Descent / Single Engine Taxi

• Design• Blended Winglets

• Innovation• Bio Fuel initiatives

Combating Fuel Costs – Current Initiatives

Page 9: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

The View from the Ground up

Page 10: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

• Maintenance • Engine Wash / Aircraft Wash

• Ground Operations• Aircraft tow to runway

• Conservative APU usage

• GPU upon arrival

• Culture• Cargo

• IT / Commercial / Marketing

Combating Fuel Costs – Current Initiatives

Page 11: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

Combating Fuel Costs – The final piece

Ground Operations• Weight & Balance

A source of 2% savings of the fuel bill

Page 12: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

The Question…

How can we achieve cost penalty reductions of

2% of the annual fuel bill ?

Page 13: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

                                         

Measure and highlight performance

in

Weight and Balance Management from a fuel

burn perspective.

The Answer…

Page 14: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

‘Measure to Manage’

The Liberator.aero philosophy

Page 15: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

Loading Efficiency & Weight Reduction• Airlines can do more to reduce fuel burn and costs by paying

more attention to aircraft loading for all departing flights from all airports.

• Target the measurement of ‘below wing’ performance• Planning Gaps – EZFW versus Actual ZFW

• Discretionary Fuel

• Achieve an optimised initial CG on the ground - Before the aircraft takes off.

Apply a US$ value to the inefficiencies / cost penalties that are identified.

Page 16: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

The Focus• Create awareness of how loading increases costs

• Express cost penalties in US$ for each departing flight

• Highlight ground handlers role in Fuel Savings Programme.

• Include loading efficiency as part of Service Level Agreements

• Consistently deliver optimised loading

• Start at home base and roll out to all airports

Page 17: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

LFI System

Data Requirements (Automated)

MVT/Fuel InfoLoadsheets

Flight Plans AHM560Web-based,located in

Dublin

Flight / Weight / Balance / Seating

EZFW / Required Fuel

Fuel on board - O/O/O/ITimings

Page 18: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

LFI SystemPerformance Monitoring

Tool

Finance &Budgetary

Pilots & Fleet Captains

All Bases

Flight Planning&

Operations

Load Planning&

Dispatch

ExecutiveManagement &

Departmental Heads

Ground Handlers&

Outstations Network

Air TrafficManagement

Sales & Marketing

Cargo

Page 19: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

W&B Fuel Management Programme Steps

Evaluate and confirm Ideal Trim policy for each aircraft type Communicate loading policies to the loading community Monitor loading performance across the network Identify and fix any performance gaps Sustain effective loading performance for all flight departures Adopt a continuous monitoring programme to save fuel and

emissions

Page 20: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

Carrying extra weight on board will result in additional fuel burn equivalent to about 4% per hour of the extra weight carried.

(Source: Airbus)

On a 7 hour flight for every extra 5,000 kg of fuel, it burns 1,300

kg of that fuel just to carry it. (Source: IATA Fuel Book)

Our own extensive research over the last three years has shown us that 66% of flights dispatched with a forward trim resulted in

higher fuel burn per block hour. (Source: Liberator.aero 2006-2009)

Page 21: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

‘Measure to Manage’ - The Psychology of Airline Cultural Change• Respect for Pilots on issue of Discretionary Fuel

• Attitude of accountable business owner is key

• Requires opening up – ‘stand up and be counted’

• Deliver Savings – seen as a threat

• Deliver Cost Reduction – seen as an opportunity

• A collective challenge for survival

Page 22: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

The Benefits• Target fuel cost savings of 2%

annually

• Save 3kg of CO2 for each 1kg of fuel

• Improved ground handling

• Increased fuel costs awareness

• Competitive advantage through

enhanced operational efficiency

Page 23: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

“Keep it simple but focussed. Starting from the ground up, use

technology to build a team approach to reducing fuel burn and emissions”

The Liberator.aero recommendation

Page 24: AACO 5 th Technical Forum – Cairo 10-13 November 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Gerard Berry Sales & Marketing

AACO 5th Technical Forum – Cairo 10-13 November 2008

Thank You