About Fuel Management

Want Your Fuel Spend To Go Further?

How about saving US$4 million for every US$100 million you spend on fuel? It’s possible. Our clients achieve, on average, 4 percent savings on their yearly fuel bills when they implement a fuel management program.

With these savings going directly to your bottom line, a comprehensive fuel-management program may mean the difference between making a profit or a loss.  It can help you complete your picture of success.

For example, IATA recently reported that fuel represented approximately 32.3 percent of the total airline operating costs in 2008, up from 27.4 percent in 2007 (based on a sample of 45 major global passenger airlines).

Lower fuel consumption also reduces your carbon footprint and, with customers becoming ever more carbon conscious, it can increase customer loyalty and differentiate your brand.

Examples of yearly savings per aircraft type:

Bombardier CRJ
US$58,000 - US$143,000 in fuel cost
600 tons of CO₂ emissions

ATR 72
US$35,000 - US$86,000 in fuel cost
350 tons of CO₂ emissions

Airbus A320
US$140,000 - US$350,000 in fuel cost
1,500 tons of CO₂ emissions

Airbus A340
US$630,000 - US$1.5 million in fuel cost
6,000 tons of CO₂ emissions

Boeing 747
US$1 million - US$2.4 million in fuel costs
10,000 tons of CO₂ emissions

Based on US$62 - US$152 per barrel

Depending on the solutions selected to be a part of your fuel-management consulting program, you can increase fuel savings by as much as 8 percent. Download your InfoPac today to learn more or contact your account manager.

Solutions

Control and reduce fuel utilization and associated costs with our solutions and consulting services.

To learn more about each of the solutions or our services, simply click on the link to view additional information.

Though down from their highs in 2008, fuel prices are still more than 300 percent higher than they were just 10 years ago. Fuel expense accounts for 20 percent to 30 percent of an airline’s total operating costs, and the unpredictability of oil prices during the last few years makes fuel an airline’s single most important expense item.

Consider the following:

• World fuel reserves are rapidly being depleted with no current viable substitutes.
• The world’s energy needs are steadily increasing.
• Investors may use fuel as a hedge against inflation.
• Government initiatives to tax carbon emissions may further increase costs.

The bottom line: fuel is an essential resource for any airline, so why waste it?

Results

Regional U.S. Carrier And Flight Plan Manager

Live flight plans were collected over the course of two days and then run in Sabre® AirCentre™ Flight Plan Manager, which identified the optimum cost index schedule and flight level using the company route, fuel and hourly costs. The Flight Plan Manager results as compared to the competitor’s plans include:

Based on an average time en route of 2 hours and 3 minutes and an average estimated fuel burn of 5,162 pounds.:

• Burned 96 pounds less en route (1.9 percent),
• Flew ETE, or estimated time en route, 8 minutes shorter (6.5 percent).

Consulting Engagement At A Latin American Carrier

Profitability of client was deteriorating as fuel prices skyrocketed. An aggressive fuel-expense containment program was needed.

Analysis
Consulting conducted thorough analysis of client’s fuel burn, fuel-on-board levels, fuel-over-destination requirements and other fuel-related considerations such as fuel purchasing and fuel-use procedures.

Recommendations
Using the results from the review and analysis, and working with the airline, consultants developed a fuel-management program. Organizational challenges were also addressed — in particular, in the department that governs fuel purchasing and monitoring.

Implementation And ROI
By applying extensive airline business experience and knowledge, consultants helped the airline achieve fuel-cost reductions of 5 percent.

How We Do It

Along with world-class solutions, we analyze an airline’s current processes and procedures to define improved processes and procedures that more align with industry best practices to help you achieve increased fuel savings and operational efficiencies. The focus is on both achieving results and effective knowledge transfer. Throughout the implementation, our experts work side by side with airlines to achieve the most successful results. In this way, the delivery methodology is cooperative, collaborative and results driven.

• More than 300 leading airlines globally rely on us to better market their schedules, sell their products, serve their customers and operate efficiently.
  
  
• We have a wealth of experience in the aviation industry and have accumulated a deep knowledge of airline operations.
  
  
• More than 200 leading airlines around the world have turned to our solutions for strategic, commercial and operational consulting.

Each year, we work with leading airlines around the globe to generate fuel savings. Here are a few examples:

Central/South America
Airport redesign, third-party MRO business plan, and operations, crew, airport, M&E and dispatch assessments

North America
Fuel, operations, dispatch and crewing assessments

Europe/Middle East
Operations, crew, airports, dispatch redesign, electronic flight bag solution and startup services

Asia
Fuel assessment; SOC design and operations, crew, load control and dispatch redesign; dedicated terminal design; and crew, operations and dispatch redesign

Africa
Fuel management program including operations, crew, M&E and airport consulting, and dispatch redesign