Robert Q Airbus - London, Ontario - Propane Delivers Fuel-Cost Savings for Shuttle Operator

For Robert Q Airbus, an airport shuttle service operating out of London, Ontario, propane is the transportation fuel of choice. Fuel-cost savings of about $30,000 per vehicle, lower maintenance costs, excellent vehicle performance and an unblemished safety record all contribute to the company's success.

About the company

Robert Q Airbus was founded in 1977 by Robert Smith, a former radio broadcaster who inserted a "Q" in his name to distinguish himself from another announcer with the same name. The company has since been purchased by new owners and combined with its sister company - Robert Q Travel - now employs 150 full- and part-time staff.

Robert Q Airbus was originally established to provide a shuttle service between London and Lester B. Pearson International Airport in Toronto for people who booked their holidays with Robert Q Travel. The shuttle service was later offered to the general public and now serves several southwestern Ontario communities, including Windsor and Sarnia. Robert Q Airbus also operates a shuttle service to the Detroit Metropolitan Airport in Michigan. The company now transports more than 150 000 passengers per year.

The company's fleet consists of 32 maxi-wagons, most of which can accommodate 11 passengers and their luggage. It also has three minivans that will hold five passengers and their luggage. All of the maxi-wagons have been converted to run only on propane. The minivans are used primarily on short routes so it would not be economical to convert them to propane.

Fuel-cost savings of $30,000 per vehicle

The cost of fuel is one of the company's largest operating expenses. Within a year of opening, Robert Q Airbus decided to switch to a propane-only operation for three reasons. First, propane was less expensive than gasoline. Second, it offered the range needed to travel from London to Toronto and back without refuelling. (Dual-fuel conversions proved inefficient due to the different octane levels of propane and gasoline.) Range is important because it means the drivers can always refuel at the company's depot in London, rather than buying fuel at retail stations.

(Because of the volume of fuel consumed by its fleet, Robert Q Airbus can buy propane from a local supplier at a discounted price). Third, the company chose propane over natural gas because it offers a longer range and requires less space for fuel storage tanks. Space is at a premium in the maxi-wagons due to the need to carry luggage.

Propane conversions are contracted out. They cost the company about $4,000 per vehicle, including an additional fuel storage tank that increases vehicle range to about 800 kilometres. However, the company benefits from the Government of Ontario's new sales tax rebate on both the cost of the vehicle and the cost of converting it to an alternative fuel. The combined rebate amounts to about $2,700 per vehicle, which reduces the conversion cost to $1,300. Each vehicle owned by Robert Q Airbus typically lasts for three years and has been driven 650 000 kilometres. Including the cost of conversion, company General Manager David Gray estimates a fuel-cost savings of about $30,000 per vehicle (see the cost comparison box). Payback of the conversion cost is achieved in less than six months through fuel-cost savings.

A study conducted by Robert Q Airbus found that one of its vehicles running on gasoline would have a fuel consumption rating of 15.6 litres per 100 kilometres. A similar propane vehicle uses 20.4 litres per 100 kilometres. (Propane has a lower energy content than gasoline, so more fuel is needed to go the same distance.) However, the company buys propane for about $0.30 per litre, less than half the price of gasoline, which averages $0.70 per litre (2001 prices). Hence the company achieves significant cost savings.

Source : Office of Energy Efficiency - Natural Resources Canada