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IATA Environment Management Systems
(IEMS)Operational Efficiency
IATA Ops Forum 2008 Madrid, Spain
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Moderators

• Capt. Chris Schroeder, MSc, MBA, Dipl
• A/ Director Flight Operations, IATA
• IEMS Ops Project Lead
• 20 years flying exp. and 13000 hours
• B 707/747, A320,332,343,345
• Capt. Mike Senior (ret)
• President Cyintech Inc.
• IATA LSS Project Lead
• 40 years flying exp. and 20000 hours
• DC-8,9, MD-82,88, B-727,757,767,767ER

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IATAs Green Vision

• Zero Carbon Emissions!

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From Vision to Strategy

• Climate change task force
• 4-pillar strategy
• Medium term carbon neutral
• Long term carbon-free

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4 Pillar Strategy

• Technology
• Operations
• Infrastructure
• Economic measures

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Operations Infrastructure
Routes Infrastructure
Fuel Quality
Enhanced
Aviation Regulatory ICAO ANNEX 6
Operational Efficiency
Implementation Support
Alternative Fuel
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The Good
in terms of revenues and traffic volumes we are
a growth industry again...
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The Bad
continuing high oil prices have prevented a
return to profitability
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• The Ugly

fuel now accounts for over a quarter of total
airline costs
Fuel costs over 150 billion this year
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airlines increase the fuel efficiency
significantly

• But there is worse to come..

116 USD per barrel jet fuel!!
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European Union Emission Trading Scheme

• While the next threat is already looming.

• EU ETS to come into effect in 2012 for all
  airlines operating into or within the EU without
  an impact analysis
• IATA opposes this unilateral approach and pushes
  for a global inclusion of aviation into the
  ETS under the guidelines of the IPCC
• The impact of the EU ETS could be as high as USD
  60 per ton of CO2
• Airlines are assessed based on their 2005-2006
  schedule
• Other countries look at similar unilateral
  actions i.e. Australia

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Climate change policies are a serious threat to
future expansion (EU ETS)
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• What does that mean for the industry..?

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Environment and Fuel Burn

• For example, a 1 fuel saving for an A320 will
  reduce fuel consumption by 100 tons per year,
  resulting in 80,000 cost saving
• IN ADDITION decrease atmospheric emissions by
• 319 t. of CO2
• 124 t. of H2O
• 2.112 t. of NOx
• 98 kg of SO2 and
• 56 kg of CO
• IATA Members committed to achieve a 10 fuel
  efficiency improvement by 2010

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IATA Fuel Conservation Go Teams

• By mid 2004 IATA Director General CEO, Mr.
  Giovanni Bisignani was mandated by the IATA Board
  of Governors to assist airlines in saving fuel
• There is a need to enlist the support of ALL
  industry stakeholders, not just airlines but
  airports, ATS providers, OEMs
• Guidance Material and Best Practices for Fuel
  Management created in December 2004
• The Fuel Efficiency Gap Analysis (FEGA) project
  and Green Teams have been operational since
  October 2005

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The Fuel Book 3rd Edition

• Provide airlines with Best Practices
• Developed by IATA Fuel Conservation experts
• The third edition reflects the experience from 70
  GO -Team visits strong environmental focus
• Integrated in IATA Fuel Conservation Training
• 3rd edition will be launched at the IATA Ops
  Forum 2008 in Madrid, Spain
• www.iata.org

3rd edition
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FEGA Results

• Completed 70 airline assessments since October
  2005 till Dec. 2007
• Airlines located worldwide, regional to major
  carriers with a fleet size ranging from 3 to 500
  plus aircraft including the worlds largest
  airline group
• Individual reports indicate savings potential is
  between 2 to 15 of airline fuel budget
• Total identified saving potential exceeds USD 2
  Billion to date which relates to over 7 Million
  tons of CO2

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FEGA Achievements (Oct. 2005 till Dec. 2007)

• Flight Operations Total Potential Savings
• 685,223,302 36
• Flight Planning Dispatch Total Potential
  Savings
• 904,045,647 48
• Engineering Maintenance Total Potential Savings
• 289,455,889 16

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Gap Analysis

• Is based on Guidance Material and Best Practices
  for Fuel Management
• Investigates operational areas of the airline,
  assessing Operational Efficiency, not only fuel
• Challenges airline personnel to create their own
  solutions
• IATA is not telling industry how to run airline
  business
• This is an objective assessment not an auditIATA
  is on your side!

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FEGA Process
On-siteFinal Briefing
Off-siteReporting
Off-site Data Collection
On-siteInitial Briefing
On-siteArea Analysis

• Gather and brief team
• Send Airline Briefing Sheet to customer
• Collect data information for visit preparation

• Go-Team introduction
• Project presentation
• Airline team creation and definition of contact
  person

• Conduct interviews, visits in
• Flight Ops
• Flight Planning, Ops Efficiency and ATC
• Engineering Maintenance

• Calibrate fuel efficiency calculator
• Develop cost index
• De-brief airline on on-site visit with first
  quick-hit suggestions

• Analyse collected data
• Document findings, improvement measures, savings
• Send report to customer

FEGA project
6 weeks prior to on-site visit
0,5 day
2,5 - 3 days
1 days
Within 2 weeks of on-site visit
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How to measure?
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Go Teams - Flight Operations

• Review of possible initiatives
• APU and Air Conditioning Pack management
• Fuel additives (Pilots, Dispatch)
• Pilot technique
• Mission management (Tactical Cost Index)
• Low Noise Low Drag approaches (decelerated)
• Optimal flap settings
• Idle reverse on landing
• Engine out taxi
• Training / fuel conservation awareness
• Crew proficiency monitoring

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FEGA Conclusions Flight Operations

• Aircraft weight higher than necessary ( water ,
  kits )
• Reserve fuel calculations too conservative
• Lack of training and awareness of line pilots
• Extensive use of Auxiliary Power instead of
  Ground Power
• Missing statistical data
• Lack of implementation management and monitoring

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Flight Operations

• APU Fuel Savings- 237,341,292
• Pilot Technique Flight Management- 172,287,388
  
• Engine Out Taxi Out- 108,921,640
• Engine In Taxi In- 61,202,706

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Flight Operations Potential Savings
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Go Teams - Flight Dispatch

• Flight planning system
• Optimization method (Min cost, Min Time, Min
  fuel)
• En-route Navigation Charges
• Dynamic Use of Cost Index
• Re-dispatch technique
• Reduce fuel and increase payload
• Alternate airport selection
• Reserve fuel policy
• Zero Fuel Weight Accuracy
• It is very inefficient to load fuel for
  non-existent payload.

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FEGA Conclusions Flight Dispatch

• Lack of sophisticated Flight Planning
• Missing procedures and policies for Flight
  Preparation
• Clear risk management strategy
• Significant individual variations on fuel
  consumption calculations
• Lack of training and awareness at Flight
  Dispatchers
• Lack of implementation management and monitoring
• Missing statistical data base

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Flight Dispatch

• Cost Index Optimized- 349,475,870
• Pilot Dispatcher Additional Fuel- 114,762,413
• Alternate Selection(Closest)- 113,010,703
• C of G Management- 70,341,332

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Flight Dispatch Potential Savings
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Green Teams - Engineering Maintenance

• Aircraft performance monitoring
• Application of modern communication ( Datalink)
• Criteria for underperformance / alert levels
• Regular review with Flight Operations
• Maintenance program
• Engine overhaul planning
• Structural alignment (flaps , doors)
• Training on fuel conservation
• Cross divisional cost benefit analysis

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FEGA Conclusions EM

• Lack of structured communication between Flight
  Operations and EM often only in case of
  significant performance loss
• Limited knowledge about cost benefit relation
  between additional maintenance efforts and fuel
  savings
• Missing overall operational performance
  monitoring and analysis
• Lack of training and awareness at maintenance
  staff

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Engineering Maintenance

• Aerodynamic Airframe Drag- 70,925,770
• APU Maintenance Savings- 62,497,966
• Empty Weight (Galley/Cabin Equip./Catering)-
  48,393,629
• Engine Compressor Water Wash- 33,942,113

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EM Potential Savings
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Enhanced FEGA Campaign in 2008

• Green Teams
• Aircraft/ Engine Modifications for fuel
  efficiency and emission reduction
• Fleet Renewal
• Ground Operations
• Lean Six Sigma FEGA/FEC/FEIP methodology

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Enhanced Green Team FEGA
Engineering Maintenance
Lean Six Sigma Methods Tools
Flight Dispatch
Flight Operations
Ground Operations Towing Taxi times APU
versus Grd Power De-icing Refueling Airport Ops
Flight Planning Tools ATC Interface
Technology Changes Modifications
LSS FEGA/FEC Implementation Project Methodology
Take-off , Approach procedures
Fleet Invest Infrastructure Renewal Footprint
Requirements Training Spares
New Elements in 2008
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Aircraft / Engine Modification

• Define airframe / engine combinations for
  inclusion in the databank
• Limited to aircraft manufactured in the last 20
  years
• Modifications to be included in the databank
• Airframe and Engine Service Bulletins and
  optional modifications issued by OEMs
• Re-engining offered by OEMs
• Estimated ROI is less than 5 years
• Note IATA will only make recommendation to
  airlines. Any contractual discussions will always
  take place between the airline and the OEM.

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Fleet Renewal

• Define baseline airframe / engine combinations to
  be used in the databank
• Limited to aircraft manufactured in the last 30
  years
• Current production models and types to be type
  certificated within the next 24 months
• Since actual environmental footprint depends on
  seat density, payload and how the airlines
  operate their aircraft, the baseline (fuel burn
  and CO2) shall be based on cruise conditions and
  MTOW. NOx data will be provided for T/O and
  landing.

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Fleet Renewal

• Notes
• Databank will only be used by IATA Green Team
  members
• IATA will only make recommendation to airlines of
  availability of new production aircraft with
  improved environmental footprint in general terms
  without providing actual OEM information or
  reference to any specific aircraft type.
• All technical / contractual discussions will
  always take place between the airline and the OEM.

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Ground Operations

• Areas of ground operations to be addressed
• Ramp services (standards, procedures, effect on
  turn time and emissions)
• GPU (vs. APU)
• Conditioned air unit (vs. APU)
• Potable water servicing (weight reduction
  considerations)
• Toilet servicing (frequency)
• Fuelling, handling of fuel spills
• Loading and unloading
• Aircraft cleaning (interior exterior)
• Catering
• Commissary items (weight reduction considerations)

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IATA LSS FEGA/FEC/FEIP Methodology
Determine the Organizations Fuel Efficiency
Emission Reduction Goals
Set strategies to meet the goals
targeting the elements, stabilizing variability,
eliminating defects, improving operations...
by identifying Critical-to-Quality fuel
savings elements
integrating and aligning technology, resources
and the organization..
to sustain and control the improvements.
Technology HW, SW, Facility
Fuel Savings from a LSS Approach across the
Organization
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Fuel Conservation / Emissions Reduction
Initiatives require a systematic approach to
Implementation and Managing the Change
FUEL EFFICIENCY IMPLEMENTATION

• Executive Commitment
• Focus on priority projects
• Use proven methods and tools
• Leverage success
• Measure the improvements
• Sustain and Control the improvements

IATA Lean Six Sigma Approach
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8 Reasons why airlines usually fail with the
internal implementation

• Fuel Conservation requires Change Management
  and a Top-Down approach
• Many airlines fail due to
• 1) Not Establishing A Great Enough Sense of
  Urgency
• 2) Not Creating a Powerful Enough Guiding
  Coalition
• 3) Lacking vision
• 4) Under-communicating the Vision by a Factor of
  Ten
• 5) Not Removing Obstacles to the new Vision
• 6) Not Systematically Planning For and Creating
  Short-Term Wins
• 7) Declaring Victory Too Soon
• 8) Not Anchoring Changes in the Corporations
  Culture
• John P. Kotter, Konosuke Matsushita Professor
  of Leadership at Havard Business School

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IATA Fuel Efficiency Implementation Support
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The IATA approach to Fuel Efficiency is
structured in two separate phases
Fuel Efficiency Gap Analysis (FEGA) Fuel
Efficiency Consulting (FEC)
Fuel Efficiency Implementation

• Detailed assessment of the airlines fuel
  management processes and procedures
• Subject Matter Experts visiting airline over a
  3-4 day period, interviewing senior airline
  management and front-line operational staff,
  observing operational procedures
• Comprehensive report (delivered within 4 weeks)
  with potential cost saving measures and estimated
  savings

Objective

• Support airline in establishing priorities and
  launching implementation
• LSS and SME expertise onsite for multiple periods
  within several months working with and providing
  assistance to the airline implementation team and
  airline management
• Development of an Implementation Plan and
  approach, Measurement system, Benchmarks,
  Guidance material

Content
Deliverables
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The IATA Fuel Efficiency Program is designed to
assist from inception to Continuous Improvement
Legend
IATA on-site support
Execution by client, IATA off-site support
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IATAs Green Vision
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Iceland
Great Britain
Atlantic Ocean
France
Spain
Italy
AFRICA
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Atlantic Ocean
Bela Horizonte
Salvador
Rio de Janeiro
Grand São Paulo
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Fortaleza
Brasília
Recife
Goiânia
Salvador
Uberlândia
Bela Horizonte
Rio de Janeiro
Grande São Paulo
Florianópolis
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North America at night
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Saguenay
Sept-Iles
Thunder Bay
Toronto
St.John
Ottawa
It is still day light in California
Québec
Montréal
Boston, New York, Philadelphia andWashington.
Detroit
Dallas
Puerto Rico
Miami
Houston
Mexico City
Havana
Port-au-Prince
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Canary Islands
Morocco
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Malaga
Spain
Gibraltar
Morocco
Tangier
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Neuenburger Lake
Lake Geneva
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Reykjavik
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Ukraine
Romania
Black Sea
Bulgaria
Istanbul
Turkey
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Nile
Saudi Arabia
Egypt
Red Sea
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Thank you for your attention