The centralisation of load Control: optimising the cost saving benefits  and overcoming the challenges Nick Yeadon  Air Dispatch Created by Jiri Krakora

A short History of load control Generation 1 (Pre 1980’s) Totally manual process Long training process Lots of data held in the Load Controllers head Messaging sent manually Maximum output of about 10 load sheets in an 8 hour shift. Created by Jiri Krakora

A short History of load control Generation 2 (1980’s late 1990’s) Introduction cryptic systems DOS Based Complicated entry codes Automated messaging Down line stations connected. Maximum output of about 25 load sheets in an 8 hour shift. Created by Jiri Krakora

A short History of load control Generation 3 (2000 - ) Windows based systems Drag and drop Simplified training Direct data input from stakeholders and systems Maximum output about 100 load sheets in an 8 hour shift Introduction of centralisation Created by Jiri Krakora

Why centralise ? Reduced labour costs, An airline with 50 stations each having 3 daily flights will generate about 50,000 load sheets per year In a decentralised environment this is a 50 stations each with a minimum of 4 load control staff, probably more. Therefore a minimum of 200 trained staff. In a centralised environment with a new generation system we currently undertake this workload with 10 staff. 95% reduction of load control staff involved in the product. You can choose a cost effective location for the CLC hub. Created by Jiri Krakora

Why centralise ? Reduced training costs Assuming that a decentralised system required a 5 day training course 200 load control staff would require 1000 training days. In the centralised environment the training costs for the 10 staff would total 50 days. There would however need to be station training for a ramp clearance package which is a single train the trainer package is a single day. This ramp clearance package could be conceivably a CBT self study package. Approximately 85 - 90% saving on training costs. Excluding the travel and accommodation costs which generate additional savings. Created by Jiri Krakora

Why centralise ? Increased product awareness and dedication Using the previous scenario of the 50 stations three times daily operation each load controller would average about 250 load sheets per year In the centralised environment each load controller averages about 5,000 load sheets per year. Why does this matter? Created by Jiri Krakora

Why centralise ? Human error is, by far, the most pervasive cause of accidents and incidents in technologically complex systems such as air transportation. ~ http://www.caa.co.uk/docs/33/CAP720.PDF section 4.1 Centralisation means far fewer much more experienced staff conducting the safety related function of Load Control. New Generation systems can take input direct from other operational systems removing the human element. With 95% less staff involved the monitoring of the staff can be much more intense than would be possible in the decentralised environment. Created by Jiri Krakora

Fuel Savings by PRG CLC – E90 E90 savings CLC calculation on E90 DATA sheet during JAN09 We saved 3,114 kg, which means 37,368 kg per year. This is equivalent of 25 flights from HEL to ARN Created by Jiri Krakora

Fuel savings in real terms On the EM170 / EM190 we had a FYE saving of 37,368 Kgs. (12,510 USG) by July we had increased this to a FYE of 97632 Kgs. (32687 USG) At USD1.7 per USG this is a saving of USD 31,053 At USD4.5 per USG this is a saving of USD 82,200 46 hours of flying at a fuel consumption of 1500Kgs per hour This study is based on saving on short haul flights on one of the most economical aircraft families in the world. * this study is based on figures advised to us from Embraer via Finnair. Created by Jiri Krakora

Air Dispatch on time performance Created by Jiri Krakora

What are the Implications of centralization ? A change in the operational procedures for the airline Operational Processes need to be rewritten, this will require the input for several departments and probably your CAA. Reliable communications are required to the stations. Resistance from the existing staff, particularly if they are going to be outsourced. Created by Jiri Krakora

What are the Implications of centralization ? How Many Hubs? Risks from system problems Risks from Labour problems Where should you Locate your Hubs? Created by Jiri Krakora

What are the Implications of centralization ? How should the workload be distributed? By Aircraft type By point of origin By language By geographical location Created by Jiri Krakora

What are the Implications of centralization ? Business continuity procedures They need to take several levels They need to be regularly tested Created by Jiri Krakora

Thank you for your attention Nick Yeadon Managing Director Air Dispatch (T) +44 (0) 1293 572862 (E ) nick.yeadon@air-dispatch.com Created by Jiri Krakora