connected planning on the ground delivering fuel burn reductions of 2%

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008

Connected Planning on the Ground

Delivering Fuel Burn Reductions of 2%

Kevin Pryor

Founder & Joint Managing Director


Presentation Theme Introduction to Liberator.aero Airlines - Challenges & Operating Environment View from the Cockpit – Standard Initiatives Smart Use of Simple Technology Adopt ‘Measure to Manage’ principle Attitude is everything – Savings or Cost Reductions Fuel is now ‘Centre of Gravity’ for airlines


Liberator.aero• 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• Member of the IATA Strategic Partnership

Programme• Exhibitor at the recent IATA Ops Forum in MAD

• Exhibitor at AACO Fuel Conference in CAI


Airlines with whom we have worked


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

• Fuel Spikes – heading for $200 per barrel ?


Operating Environment

• Sky high 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• Practical technology can help airlines work smarter and communicate

better within their community


The View from the Cockpit


Standard Fuel Burn Reduction Initiatives

• Air Traffic Management• Continuous Descent• Single Engine Taxi • Weight Reduction.


The View from the Ground up


Aircraft Weight and BalanceA source of 2% savings

The two are so closely entwined that you seldom hear one without the other

- the Yin and the Yang of aircraft performance


Loading Efficiency – ‘Measure to Manage’ • Airlines can do more to reduce fuel burn and costs by paying

more attention to aircraft loading for all departing flights.

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

• Measure and highlight performance in weight and balance management from a fuel burn perspective.

• Target the measurement of ‘below wing’ performance

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


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


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


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)


CG

% FWD1

ZFW

% Range2

ZFW

DFC

Kilos3

North American Carrier Trial 77 -1.5 to 4.44 0.98 136

Asian Airline Trial 69 -0.5 to 19.49 1450

Middle Eastern Flag Carrier Trial 71 -1.5 to 14.23 1040

European Low Cost Carrier Trial 67 -1.63 to 4.56 0.49 N/A

Caribbean Carrier Trial 57 -7.38 to 14.23 908

2006 90 -4.48 to 17.22 N/A

2007 45 -3.31 to 5.02 0.08 N/A

European Regional Carrier Trial 91 -9.42 to 3.39 750

4 Current LFI user indicating their success in reducing fuel burn and costs over the last 12 months.

3 Median value of Discretionary Fuel Carried in kilos

LFI Comparison Chart

1 % of Flights that had a FWD Centre of Gravity2 Difference between EZFW and ZFW as a range of percentages

Notes:

European Flag Carrier4


Our own extensive research over the last two years has shown us that 66% of flights

dispatched with a forward trim resulted in higher fuel burn per block hour.


‘Measure to Manage’ - The Psychology of 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


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


• Share Progress - keep everyone in the loop.

• United approach through managing a common threat.

• Smart use of simple technology will help the team deliver.


The Benefits

• Target fuel cost savings of 2% annually

• Save 3kg of CO2 for each1kg of fuel

• Improved ground handling

• Increased fuel costs awareness

• Competitive advantage through enhanced operational efficiency


“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


Thank you for listening folksAny questions are welcomed.

You are kindly invited to visit my colleagues Gerard Berry and

Mary Grady at the Liberator.aero

Exhibition Table over the coming days.

connected planning on the ground delivering fuel burn reductions of 2%

Documents

additional fuel

fuel savings programme

iata fuel bookour

aaco fuel conference

loading communitymonitor

ground upaircraft weight

outstationsmore airlines

emissionscarrying extra