Fuel Conservation

IATA Fuel Efficiency Gap Analysis

Peter Lay
Assistant Director, Operations
IATA, Montreal
 IATA Fuel Efficiency Gap Analysis

Individual on-site assessments NOT an audit !

• IATA experts from Flight Operations, Dispatch, Engineering
and Maintenance
• Detailed joint analyses of airline procedures and practices
• Comprehensive recommendation report including potential
calculation for each action

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 Fuel Efficiency Calculator

• Flight Operations fuel budget

• Develop the cost of weight

XXX Fuel Initiative Calculator

Aircraft US$/gal US$/kg Gal Kg Liter Lb Total Budget

Types $1.975 $0.65 $0.000 ₤0.000 ₤0.000 ₤0.000 $1,003,601,943
₤0

Fuel Budget # A/C Flt Hrs Burn Kg/Yr Fuel Budget

A/C Hrs/Yr Hrs/Yr Hr Price
xxx 16 4.874 77,984 8,750 682,360,000 $0.650 $443,601,382
xxx 6 4.204 25,224 6,750 170,262,000 $0.650 $110,687,113
xxx 13 5.171 67,223 10,000 672,230,000 $0.650 $437,015,882
Taxi Fuel 5,339,988 $0.650 $3,471,519
APU Burn 170,431 13,576,469 $0.650 $8,826,046
₤0
Total A/C 35 340,862 1,543,768,457 $1,003,601,943
₤0

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 Cost of Weight

• How much does it cost me to carry?

• Newspapers
• Magazines
• New seats
• Fly away kit
Aircraft Cost of C of W
Type Weight 100 kg
xxx $2,028 $202,789
xxx $656 $65,592
xxx $1,748 $174,806
$4,432 $443,188
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 APU - Air Conditioning

• Optimize use of APU

• Single pack
• No packs

APU Single Pack # A/C Savings Act APU Tgt Sav Fuel Tgt Sav Target Final
Present Utilization 1 Pack Kg Hrs kg Price US$ Improvement Savings
xxx 15 65 17,520 1,138,800 $0.650 $740,332 50% $370,166
xxx 6 35 11,049 386,716 $0.650 $251,404 50% $125,702
xxx 13 65 31,026 2,016,690 $0.650 $1,311,048 50% $655,524

34 59,595 3,542,206 $2,302,784 $1,151,392

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 Route Optimization

• Legacy Flight Planning Systems

• Enroute navigation charges
• Proper fuel, cost, time optimization

Route Optimization A/C Flt Hrs Average Saving Pot Sav Target Final
Long Range Flights Hrs/Yr Hrs/Yr Cycle Per Flight US$ Improvement Savings
xxx 16 4,874 77,984 11.22 $500 $3,475,223 50.0% $1,737,611
xxx 6 4,204 25,224 8.15 $500 $1,547,485 50.0% $773,742
xxx 13 5,171 67,223 6.5 $500 $5,171,000 50.0% $2,585,500

35 14, 249 170,431 $10,193,707 $5,096,854

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 Idle Reverse Thrust

• Less fuel
• Less noise
• Reduced brake wear
• Better passenger comfort

Idle Reverse A/C Fuel Flow Rev Time Fuel Used Kg/Yr Fuel Pot Sav Target Total
on Landing Hrs Full Reverse Sec kg Price US$ Improvement Savings
xxx 16 8,750 25 61 422,336 $0.650 $274,560 50.0% $137,280.09
xxx 6 6,750 25 47 145,077 $0.650 $94,314 50.0% $47,157.09
xxx 13 10,000 25 69 718,194 $0.650 $466,897 50.0% $233,448.65

35 1,285,607 $835,772 $417,886

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 Flap Settings

• Less fuel
• Less noise
• Better passenger comfort

Reduced Flap A/C Saving Kg/Yr Fuel Pot Sav Target Total
Landing Hrs per approach Price US$ Improvement Savings
xxx 16 60 417,027 $0.650 $271,109 0.0% $0
xxx 6 40 123,799 $0.650 $80,481 50.0% $40,241
xxx 13 70 723,940 $0.650 $470,632 50.0% $235,316

35 1,264,766 $822,222 $275,557

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 Total Potential Savings

• Usually in the region of between 4% - 8% of fuel budget

• Identify high priority items
• Quick wins
• There is no overnight solution
• The alternative is no fun!

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 Cost Index

• Cost Index can offer an airline a unique flight path optimization

solution which can save money by achieving more efficient flight
operations
• Cost Index systems will enable an airline to achieve:
– Minimum cost operations (Normal Ops) by optimizing the
fuel/block time tradeoff
– Absolute maximum range from the aircraft for actual flight
conditions (Minimum Burn Ops)
– Absolute minimum flight time for actual flight conditions
(Minimum Time Ops)
• In short, Cost Index flying will enable an airline to provide better
passenger service and improve the bottom line!

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 Cost Index (continued)

• The Cost Index is a ratio between the costs of time

versus the cost of fuel
• For instance, operating at very high relative Mach (High
Cost Index) will increase the fuel cost but the time cost is
lower
• Conversely, at lower Mach (Low Cost Index), the fuel
cost is reduced but time cost increases
• So how are these costs balanced

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 Cost Index (continued)
• Cost Index = Time Cost/Fuel cost
• The time costs include any item where the flight time
has a direct impact on cost such as crew cost, incremental
maintenance costs, etc. It is normally expressed in $/min
• Example:
– Crew cost $ 7.10/min
– Incremental maintenance $15.70/min
– Total time cost $22.80/min
– The cost of fuel is expressed in $/Kg
e.g.: $0.60/kg (Metric)
• So the Cost Index should be $22.80/min
divided by $0.60/Kg = a Cost Index of 38
• Note: English system: $/hour over cents/pound
– Or Metric value x 1.33
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 Cost Index (CI)
CI solutions for CI=0 and CI=15 versus Mach 0.76
Generic Regional Jet – 42,000 lb – FL290
Specific Ground Range Data
0.6 Cost Index 0
+1.20 kt
Cost Index 15 Mach 0.76 +120 kt
0.65
+80 kt
0.5
+40 kt
.045 15%
0 kt
Specific
ground 0.4 40 kt
0 kt +1.20 kt
range 0.35 80 kt
(ngm/kg) 120 kt
0.3 0 kt
MRC
0.25
-1.20 kt
-1.20 kt
0.2
0.45 0.5 0.55 0.6 0.65 0.7 0.75 0.8 0.85
Mach number

AASI CMC Electonics RAA Flight Technical Committee

Cost Index Operations
IATA Melbourne, FL August 19, 2004 Lay_Forum.13
 Cost Index Profiles

Lateral Optimization

CI 50 and CI 0

CI 600

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 Impact of Cost Index on
Vertical Optimization

Profile CI50

Profile CI600

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 Cost Index Profile

• As can be seen, airlines that have low time cost structure

and high fuel prices should operate at low CI and
consequently lower speeds and visa versa

• Since the price of fuel is different at every airport, it would

be reasonable to adjust the CI to be route specific

• An efficient flight planning system should have the full range

of CI planning capability with appropriate vertical and lateral
optimization

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 Cost Index Calculator
AIR XXX COST INDEX CALCULATOR

US$/G US$/kg US$/Litre Time Fuel Cost Index CI

$2.150 $0.708 $0.566 Cost Cost Metric Present
$18.59 $0.708 26 90
A/C Type Pilots F/A Ttl Crew MTC Ttl Cost Total Time
Cost Cost Cost Cost Cost
$/Hr $/Hr US$/Hr US$/Hr US$/Min
XXX $439.20 390.22 $829.42 $286.00 $1,115 $18.59

Pilots MTC
Ave Ave Ave Ave Ave Avg
Month Month Month Monthly Hourly xxx
Pay Pay Pay Hard Hrs Pay Pool
Capt F/O Cruiser xxx $286.00
$15,000.00 $8,300.00 $4,150.00 62.5 $439.20

Flt Att.
Ave Mth Total Total Total Avg Hr
Hard Hrs Flt Att Salary Salary Pay
Purser Fit Att In-Fit On Board Flt Att Crew Crew
$3,500 $2,050 56.25 9 $18,450 $21,950 $390
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 Challenge?

• The biggest challenge most airlines face is managing

the subjective additional fuel uplift

• Why do some airlines have it under control?

• They collect and analyze fuel data
• For an airline to be fuel efficient it must track it’s use of fuel

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 Challenge? (continued)

• Additional fuel added over and above the minimum

should become a Company Decision

• Fuel management becomes corporate policy

• It is added during the planning process

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 A Statistical Approach

Statistical approach to flight planning is essential:

• To reduce the amount of extra fuel carried above
regulatory requirements on certain routes
• To minimized the boarding of ad hoc fuel additives
by dispatchers and pilots
• To board the correct taxi fuel and develop correct
taxi times
• To monitor gate holds and their fuel costs

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 A Statistical Approach (continued)

Collect and analyze planned versus actual data

• Ensures consistency
• Will result in less fuel being boarded
• More efficient

Manage what you measure

Measure what you manage

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 How Much Fuel Do We Need?
Fuel Stats for Airport: LAX

Additional fuel boarded (min) Average contingency fuel boarded

versus additional fuel required (min) 99 percent probability
45 95 percent probability
40
35
30

Additional 25
fuel (min) 20
15
10
5
0
Flight number

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 Fuel Policy

Regulations too conservative?

or
Airlines too conservative?

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 Fuel Policy (continued)
Alternates

• How often do you divert for weather ?

• Do you have a risk management based alternate policy?
– What is the real risk of a diversion?

• No Alternate IFR ?
– Europe versus North America

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 Fuel Policy (continued)
Contingency Fuel

• Some airlines flying with as little as 1% or 2 %

• Some still flying with 10%
• Don’t always blame the regulator!
• Be proactive

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 Fuel Management Information
Many departments will Some benefits from a
be able to use the Fuel Management
information Information system are:
• Flight Operations ¸ Accuracy of the Flight
Planning System
• Flight Dispatch
¸ Monitoring landing fuels
• Finance ¸ Accuracy of fuel biases
• Scheduling ¸ Use of alternates
• Maintenance and ¸ Statistical taxi times
Engineering ¸ Statistical fuel planning
• Ground Operations ¸ Efficiency of pilots and
dispatchers
This will enable you to measure the benefits
of any change of the fuel policy
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 A Coordinated Approach

Break Down the Silo’s

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 A Coordinated Approach (continued)

• A fuel conservation committee/task force should

be developed with cross departmental involvement

• Include outside agencies

• Airport, ATC, fuel company
• Chaired by a “Fuel Manager”

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 A Coordinated Approach (continued)
Requirements

• High level support

• Budget
• IT support
• Goals and visions

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 Fuel Task Force/Committee

• The group should include staff from but not

be limited to;
– Flight Operations
– Flight Dispatch
– Maintenance and Engineering
– Finance
– Scheduling/Network
– Ground Operations
– Safety Management

• This will ensure coordinated training and

implementation of new policies and procedures

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 Fuel Task Force/Committee (continued)
Mission Statement

• Reduce fuel consumption

• Benefit the environment
• Reduce costs/increase profits
• Eliminate waste

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 Simple Solutions!

A clean flying airplane saves money at little expense

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 Simple Solutions! (continued)

What's wrong with the picture!

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 Eight Steps to Fuel Conservation

1. Establish a sense of urgency

– Identify and prioritize major opportunities

2. Form a fuel task force/committee

– Work together as a team

3. Create a vision, provide direction

– Mission statement, eliminate waste

4. Communicate the vision

– Train and sensitize all staff

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 Eight Steps to Fuel Conservation (continued)

5. Remove the obstacles

– Change management

6. Plan for short term quick wins

– Helps build confidence

7. Track fuel usage

– Collect and analyze data

8. Measure and manage your success

– Articulate the results

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 A Simple Pragmatic Approach

Thank you !

Peter Lay
Assistant Director, Operations
IATA, Montreal
Telephone: 1-514-824-4577
Email: layp@iata.org

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