G4 - Group Assignment: Fuel Cost

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Presentation transcript:

G4 - Group Assignment: Fuel Cost Barış İnselel Mert Cikoglu Mert Kalaylar İzel Birce Ergez Burak Ozen

What is Fuel economy in aircraft ? Fuel economy is a measure of how much fuel an aircraft, or a fleet of aircraft of mixed types, needs to operate in relation to a service provided (i.e. number of passengers or ton of freight) and the distance between points of travel. It can be expressed in several ways, for example by the litres of fuel consumed per passenger per kilometer. What is Fuel economy in aircraft ?

Total Fuel Consumption Cost 2017 : 2,723,409 USD 2016 : 4,711,720 USD 2015 : 4,942,318 USD 2014 : 6,978,696 USD 2013 : 7,401,272 USD 2012 : 7,496,153 USD 2011 : 7,143,183 USD 2010 : 5,546,005 USD American Airlines

2017 : 3,423,765 USD 2016 : 3,391,928 USD 2015 : 3,368,545 USD 2014 : 3,247,534 USD 2013 : 3,148,573 USD 2012 : 3,057,048 USD Delta Airlines

Japan Airlines Source : Japan Airlines Report 2017 1 JPY (yen) = 0.00880790 USD 1 USD (dollar) = 113.534 JPY Total Fuel cost 2016 : 198.7 billion yen = 1.75 billion dollar ($1,750,128,967.21) Total operating cost 2016 : 1118,6 billion yen = 9.85 billion dollar ($9,852,306,761.38) Fuel costs as percentage : 17.8% 1% fuel saving -> 17.5 million dollar

Total Fuel Cost January-December (2012) 339,966 thousand euros = 396,116 thousand dollars Total Variable Costs January-December (2012) 815,193 thousand euros = 949,833 thousand dollars Total Semi-Fixed Costs January-December (2012) 193,599 thousand euros = 225,574 thousand dollars Total Fixed Costs January-December (2012) 60,555 thousand euros = 70,556.4 thousand dollars Total Cost January-December (2012) 1,409,313 thousand euros = 1,642,080 thousand dollars Fuel cost % Share = Fuel Cost / Total Cost   (396,116 thousand dollars / 1,642,080 thousand dollars) x 100 = 24.1% 1% (Total Fuel Cost) = 3,961.16 thousand dollars Vueling Airlines

1st Fuel Hedging Contracts As a Vueling we can save money through fuel hedging contracts that secure a fixed price for fuel over a certain period. If we has hedged a low fuel price and fuel prices increase we can benefit greatly from being locked into the lower price, sometimes for months or even years, consequently saving huge amounts of money. For example, the past year has seen fuel prices drop substantially (a 46.9 per cent reduction has been noted in September 2015 from prices recorded in September 2014, according to IATA), meaning those airlines that may have previously been enjoying cheaper rates through hedging are now having to pay above the odds to fly their planes. How to Reduce it ?

2nd Reducing Weight such as Lightweight Galley Carts, Galley carts also known as Trolleys are used by the crew onboard the aircrafts to serve food and beverages to passengers. The lightweight full-size carts were 5.5 kg lighter and the lightweight half-size carts 4 kg lighter than the standard carts. The costs for the lightweight carts were 100 EUR extra for each cart in comparison with the standard carts. With this information was it possible to make different business cases for different scenarios to see if lightweight carts would be preferable. How to Reduce it ?

How to Reduce it ? 3rd Route Specific Taxi Fuel The idea with this project was to have a route specific amount of taxi fuel instead of a standard amount. When the calculations for the flight plan are made Skytrack always adds 300 kg (Boeing 737-800) or 450 kg (Boeing 757-200) of fuel for taxiing. All the taxi fuel is not always used because of shorter taxi times at certain airports, why the author wanted to ask about the pilots’ thoughts and experiences and make a research of average taxi times at airports TUIfly Nordic flies to. Taxi times are available in the IDPS database where data is saved automatically direct from the aircraft computers. By collecting these and calculating an average taxi time value is it possible to get an average value of fuel needed for taxiing. Those values could be used by estimating a route specific taxi fuel How to Reduce it ?

Which Airlines most efficent ?

https://www.transtats.bts.gov/fuel.asp?pn=0&display =data4 https://www.transtats.bts.gov/fuel.asp?pn=1 https://www.transtats.bts.gov/fuel.asp?pn=0&display =data4 http://webcache.googleusercontent.com/search?q=ca che:QCV40B0qzi4J:phx.corporate- ir.net/External.File%3Fitem%3DUGFyZW50SUQ9MjA2 NzkyfENoaWxkSUQ9LTF8VHlwZT0z%26t%3D1+&cd= 1&hl=en&ct=clnk&gl=tr http://blog.rusada.com/blog/five-ways-airlines-can- reduce-operating-costs THANK YOU Resources