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December 2005
IATA Global Press Briefing
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Mitigating The High
Price of Fuel
Günther Matschnigg
Senior Vice-President Safety,
Operations and Infrastructure
•5 years ago fuel costs represented 10-15% of an airlines bottom line– today, it is 25%
•fuel costs has an enormous effect on profitability
•Our industry has started to measure every single opportunity to save fuel
•U nderstanding the cost drivers helps us all to help each other
•Let me tell you that no saving is too small. Airlines are counting their savings almost by the drop!
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December 2005
IATA Global Press Briefing
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Fuel Efficiency Campaign
Focused on three areas:
Route Improvements
Flying direct
makes a difference
Move from Ground based Nav Aids to Sat-based Nav
Save-a-minute
Develop efficient Departure and Arrival Procedures
Use of new Technology
Industry Best Practices
Go Teams
IATA initiated the Fuel Efficiency Campaign in August 2004 as oil prices started to sky rocket.
There are many areas to address on fuel efficiency but IATA choose to focus on three specific areas
that would provide the best return on investment.
•Route Improvements
•Flying direct
makes a difference!
•Save-a-minute
Working w ith Air Navigation Service Providers
Develop efficient new Departure and Arrival procedures
Make use of new technology, RNP, RNAV, Satellite Navigation
Industry Best Practices
Go Teams and use of industry best practices
Expect Total more than 2,4bn$ savings by year end
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December 2005
IATA Global Press Briefing
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ATC Maastricht 2005
Future Systems Award
Global ATM Roadmap
IATA Route Improvement Proposal
Standardardisation
to maximize safety, efficiency and capacity
Satellite based Navigation
RNAV everywhere, RNP where needed
Improved efficiency and access in the TMA
Random Routing
minimize fuel burn enroute, no pre-planning
Flexible Tracks
flight planning according to optimum trajectory
IATA together with other Industry stakehoders developed the Global ATM/cns Roadmap, which aims
to increase safety, more efficiency and increased capacity
• Standard RNP Values:
• to maximize safety, efficiency and capacity
• RNAV everywhere, RNP where needed:
• RNAV SID’s and STAR’s
•improved efficiency and access in the TMA
• Random Routing
• minimize fuel burn enroute, no pre-planning
• Flexible Tracks
• flight planning according to optimum trajectory
• RVSM – increased capacity & optimum altitude
• Collaborative Airspace Planning
• regional approach, not State by State aligned with user needs
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December 2005
IATA Global Press Briefing
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Route Improvements
Working with ICAO &
Air Navigation Service
Providers
Incremental savings
accumulate to
significant industry
benefits
Urgency has been
recognized globally
Route Improvements:
•Working with ICAO & Air Navigation Service Providers to develop optimum International air traffic
routes
•Small incremental savings accumulate to significant total saving.
•U SA: direct routes, new techniques $225 million savings to the industry
•Europe: more 70 route packages $200 million in benefits to airspace users
In the chart you can see how in Europe, traffic volume continues to grow at a very high rate but also
delays are being addressed successfully. But clearly, the need to continue efficiency improvement is
vital.
.
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DI
DI
India
Pakistan
India Pakistan Border Crossing
Distance saved = 94 NM
Operational Savings = US$23 m
IATA had secured a new border crossing agreement between India and Pakistan in 2001. However,
the Dec 2001 terrorist attack on Parliament in Delhi resulted in politics intervening and prohibiting the
implementation of this new route/border crossing point.
Earlier this year the Airports Authority of India indicated that the political climate should once again
allow the border crossing point. IATA visited Pakistan and secured an agreement in principal to the
previous border crossing point agreed in 2001. We are still awaiting AAI final commitment as they
have yet to secure IAF agreement for the India portion of the route.
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Romanian
Border
North/Central Europe – Greece/M. East
Distance saved = 70 NM
Operational Savings = US$6.4 m
The new RNAV (area navigation) route avoids the conventional routes which were over established
ground based navigation that required significant deviation from the optimum track
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Global Navigation Satellite System
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NYC
GRU
BGI
ANU
Sao Paulo - New York/Toronto
Distance saved = 52 NM
Operational Savings = US$1.2 m
Americas:
•In addition to the RVSM implementation which will save more than half a bn $
annually there is a whole suit of route improvements in the Americas
•Here is one example: Late October the new route between Sao Paulo and New
York/continuing to Toronto was approved. This new route saves more than $1 Mio to
our members.
Time saving: 9 minutes,
Distance saved: 52NM
Operational savings: USD $1.2M
Average fuel savings per flight: 2000 -4000Lbs.
Airlines operating: CO, AA, RG, JJ, JAL, TAM, AC
Sao Paulo - New York/ Toronto
Time saving: 9 minutes,
Distance saved: 52NM
Operational savings: USD $1.2M
Average fuel savings per flight: 2000 -4000Lbs.
Airlines operating: CO, AA, RG, JJ, JL
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Snowbird Routes
Distance saved = 30 NM
Operational Savings = US$18 m
A significant route improvement which is very important for many Canadians going
south was achieved this year. The so called “Snow Birds Routes” have been
shortened by 30nm and ground delays have been reduced saving 18Mio$
annually.
Canadians that go south for the winter are affectionately known as the “Snow
Birds”…named after the Canada Goose that migrates to warm climates in the
winter.
Affects all flights south-bound through Washington Centre (ZDC), November-May
every year
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December 2005
IATA Global Press Briefing
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Save-a-minute
Need efficient operating
procedures to:
Reduce delays
Allow direct routing wherever
possible
Allow optimum altitude as A/C
burn off fuel
Optimize approach and departure
procedures and profiles
IATA is asking Air Navigation Service Providers to develop operating procedures that maximize
efficient aircraft operations such as:
Minimizing delays – aircraft should spend the minimum amount of time circling in holding patterns or
idling on taxiways
Allow direct routing wherever possible – use of GPS based area navigation to route direct rather than
following zig zag tracks using conventional ground based navigation aids.
Allow optimum altitude as aircraft burns off fuel – alert pilots and Air Traffic Controllers can manage
the aircraft in order to operate at the highest altitude possible below the aircraft operating ceiling. This
is where the aircraft uses least amount of fuel.
Optimize approach and departure procedures and profiles so that approaching aircraft can descend
along a smooth, optimum decent path, (known as a Continuous Decent Approach or C DA)
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BEFORE
Atlanta Area Navigation departure procedures
AFTER
Consistent Track
Reduced Track dispersion
Here is an example in the USA at Atlanta, one of the busiest airport in the world:
You can see in the first diagram, on the left, the actual spread or dispersion of traffic using
conventional approach procedures. In the second diagram, the result of implementing area
navigation (RNAV) Standard Instrument Departures.
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Modern Aircraft Are Highly Accurate
0.02 NM is about 40m
Modern Aircraft
systems allow for very
accurate navigation
without the need for
ground based
navigation aids
Cockpit Display
View in the Cockpit of a modern aircraft
The flight display indicates the status, which is RNP 1.00, that means the accuracy is 0.02 nm or40
metres
Modern Aircraft systems allow for very accurate navigation without the need for ground based
navigation aids.
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US$10 million in savings for
airlines flying to Quito
Area Navigation Procedures - Quito
Another example where safety are efficiency was improved: Quito, Equador a new more efficient
approach and departure procedure, based on GPS technology has been implemented. This will save
airlines more than $10m a year by avoiding 98% of diversions to alternate airports in low visibility.
Last year 187 diversions (58 AA). RY 17 new procedure, was Visual only
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Modern Aircraft Are Highly Accurate
Landing Capability with
without ground based
navigation aids.
Allows for very accurate
navigation
Again, a look at the Cockpit Instruments. The aircraft symbol is totally aligned w ith the runway. There
is no need for a ground based Nav Aid.
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December 2005
IATA Global Press Briefing
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Distributed to airlines and Air
Navigation Service Providers
Freely available on IATA WEB
site
IATA offering Training
programmes
Basis for the “Go Team”
reviews
Airline Best Practices
IATA has developed the Guidance Material and Best Practices for Fuel and Environmental
Management. This applies to airlines mainly but also Air Navigation Service Providers (ANSPs).
It has been distributed to airlines and ANSP’s around the globe
It is freely available on IATA WEB site
IATA is offering Training programmes in fuel management. More than 105 airline representatives
have completed the training.
The Checklist in the Guidance material is used by the IATA Go Team reviews
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December 2005
IATA Global Press Briefing
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“Go Team” expertise
Help airlines implement ‘Best
Practices’
GAP analyses for five airlines
by end 2005
Saving: 0.2% to 8% of fuel
budget
2006: Requests from 40 airlines
“GO Team” Initiative
The Go Team initiative addresses airline fuel efficiency. The IATA Guidance Material and Best
practices has been made available to all member airlines and is now in use.
Our GO Teams consist of experienced pilots, flight dispatchers, engineers and air traffic controllers
working with member airlines to improve their fuel management practices.
By year end we will have completed 5 airline assessments (Air Seychelles, Aeropostal and Air
Canada done, Virgin Atlantic today and Kuwait Airways this week) identifying savings up to 8% of the
airlines fuel budget.
In 2006 we received requests for a fuel assessment from additional 40 airlines. We will establish two
additional GO Teams next year to cope w ith the increasing demand.
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December 2005
IATA Global Press Briefing
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Mitigating The High
Price of Fuel
Günther Matschnigg
Senior Vice-President Safety,
Operations and Infrastructure