GLOBAL AVIATION FUEL COST REDUCTION STRATEGIES: RELEVANCE FOR NIGERIAN AIRLINES

(article written April 2007,edited 2009)

Aviation fuel constitutes about 30 to 45% of an airline’s total cost of operation and is principally a function of aircraft type, age, engine efficiency and the overall management of operations in any particular airline. If it’s not properly managed, the airline’s accounts and finances will tilt towards the red line, therefore what are the global strategies being employed by airlines and other aviation bodies to reduce cost and fuel consumption?

They cut weight carried on board aircraft - documents, papers, equipment for customer usage, complaint cards, immigration cards, catering packs, in-flight entertainment (IFE) packages etc are either reduced to the barest or much lighter models are used in place of heavier versions. Also, some airlines like Jet Blue have yanked off a row of seats while others have limited weight and height for cabin crew. On routes with light passenger load, some oxygen bottles underneath cabin seats are removed. For instance, BA simply took out some excess bottles from a B747 aircraft which seats between 400 to 500 passengers, but usually has a load range of between 250 to 300 passengers on a specific route. It is important however to state here that for flights over the Himalayas, airlines are advised to retain excess oxygen bottles. Also potable water and excess water in aircraft tanks is reduced, American Airline technicians devised a gadget that lets ground crews know when tanks are three quarters full, and quoting one of the technicians “we took 25% of water off the flights which saved the airline $2million a year”.

Reduction in quantity of fuel in aircraft tanks- but adhering to regulations regarding fuel for taxiing, trip diversion, holding, reserve and contingency (for long haul flights 5% percent contingency fuel, while for short sector flights between 5% to 10% fuel burn off is used to reduce weight and achieve more payload). Unfortunately majority of the airports in Nigeria do not have fuel so airlines are forced to tanker up from base, which reduces payload, increases drag and fuel burn. Also, it is important to note, when operating into any of the French speaking countries in the sub-region it is advisable to ferry fuel because it is so expensive that the cost of excess weight is offset by cash savings.

Increased usage of ground based power unit (GPU)-This is about the oldest and simplest method of conserving fuel. The GPU is used to supply onboard power and air conditioning instead of the aircraft auxiliary power unit (APU). Nigerian Airlines without GPU can obtain the service from NAHCO & SAHCOL at a fee. American Airlines were able to save $14million last year due to reduced usage of APU.

Purchase of newer aircraft- Airlines are ordering newer, fuel-efficient aircraft and discarding older airplanes from their fleet. New aircraft are made of composite and other lighter material (B777, 737NG, A320), easy to maintain and have much lighter Carbon Fiber Reinforced Plastic (CFRP) paneled fuselage skins.

Winglets or Shark lets- Boeing blended winglets was founded in 1991 by Joe Clark and Dennis Washington. It was introduced to the airline industry through the Gulf Stream II Business Jet so that aircraft so equipped enjoy a significant reduction in fuel burn, improved operational performance. They also look great, adding "curb appeal" to any jet. The story doesn't end there. The winglets also have been retrofitted on 737-300s and 757s. According to launch customer Continental Airlines, the 757 installation is the most significant Blended Winglet program ever: "With this technology, Boeing 757-200 operators will experience block fuel improvement of up to 5%, saving as much as 300,000 gallons per aircraft per year. Clark says the 757 program "will translate into about 180 million gallons in annual fuel savings when the entire fleet of 757-200s is upgraded."
The winglet reduces lift-induced drag and provides extra lift, with the design credited to Louis Gratzer, formerly chief of aerodynamics at Boeing. As the company explains, the aerodynamic advantage of a blended winglet is in the transition from the existing wingtip to the vertical winglet, allowing "for the chord distribution to change smoothly from the wingtip to the winglet, which optimizes the distribution of the span load lift and minimizes any aerodynamic interference or airflow separation." The Airbus just introduced a similar upgrade on the A320 called “sharklets”, to serve the same purpose with Air New Zealand being the launch customer.

Carbon Fiber Recro Seats- they are lighter aircraft cabin seats ordered as replacement to the conventional aluminum seats. Approximately about 9 kilograms of weight are shaved off each row when replaced with the recro seats. Air Tran recently ordered it, for its fleet of B737, quoting the CFO Stan Gadek “we spent extra money but we’re going to make up for it in fuel saving, which will be $2000usd per aircraft per year”.

Alternate Fuel- airlines such as AZL, Virgin, and Continental are working with aircraft manufacturers and other organizations to have sustainable alternate fuel, using variety of feed-stock. The bio-fuel programme which is the conversion of biomass to liquid is meant to reduce C02 emission and generally drive down the cost of jet fuel. The challenge is having sustainable feedstock needed to produce fuel in industrial quantities that will work with existing aircrafts, engines and infrastructure.

Taxing with One Engine- it is a situation whereby one of the aircraft engines is used in moving the aircraft to the threshold or ramp in preparation for take off or parking. Here the consumption of fuel is limited, as other engines are idling. The operational policy of the airline and experience of operating crew are needed to achieve this objective safely, British Airways use this procedure about 80% of the time and estimates $8million savings annually, while, American Airlines saves between $10-12million.in Nigeria the nauseous presidential movement that keeps airlines and passengers on the tarmac for hours, makes this option looks really good.

Towing of Aircraft- this is a new initiative being spear headed by Virgin Atlantic whereby the aircraft will be towed to the end of the runway before starting its engine this will reduce pre-take off fuel consumption and CO2 by 50%.the technique might work for low frequency long haul operators but might be logistically impossible for a high frequency hub-spoke carrier. Further more, Delta Airlines is to develop a system with Wheeling Plc which will enable pilots to taxi from take-off and landing points without using jet engines. Presently, bell view is about the only domestic carrier with an ICAO certified tow vehicle, other airline might have to contact SAHCOL and NAHCO (recognized handlers) for such services if they are considering this option.

Engine Wash- engines pick up a lot of effluent en route and atmospheric gunk gathers on compressor blades. This has made airlines turn to engine water-washing. Engine manufacturer Pratt&Whitney contends it works best when you get to the core of the matter. Its ecopower system delivers atomized water droplets “that pass all the way through the core and better penetrate the engines. The system is a closed loop process that collects engine wash effluent, purifies it and reinvests it into the power plant without the use of detergents or chemicals. It’s just water. Hawaiian Airline just expanded its engine wash contract with Pratt&Whitney to cover all aircrafts. On the benefits, Charlie Nardello, vice president for maintenance at Hawaiian Airlines, said “washing service produced greater fuel savings and reduced emissions. The fuel savings from power washing 31 Boeing 767 engines is2.8 million lbs. of fuel a year, or $1 million annually in fuel costs”.

Silver Bullet Aircrafts- this is a situation whereby paints are stripped off the fuselage of an aircraft, which makes it lighter. Cathay Pacific Airways (CX) placed into service its first "silver bullet" freighter, a 747 stripped of almost all of its paint that made the aircraft approximately 200 kg lighter, saving more than HK$1.5 million ($193,450) in annual fuel costs. All 14 of its freighters will be stripped of paintings over the next couple of years but, Passenger aircraft will maintain their full livery. Again, Nigeria cargo and non schedule operators can take a clue from Cathay pacific airways.

Flight Management Systems (FMS) - these are systems provided to aid airlines in flight management, with optional varieties depending on an airlines specific need. The system works through a dynamic cost indexing of each route by massaging speed, flight-path and altitude to maximize efficiency. The FMS calculates the cost-of-time profile and keeps the Mach number. For interested Nigerian airlines they can simply look at the varieties presently offered by smiths, lido, universal, Lufthansa Systems e.t.c.

Fuel Hedging- The practice, is often employed by airlines, it requires making advance purchases of fuel at a fixed price for future delivery to protect against the shock of anticipated rises in price. The most successful airline in fuel hedging is Southwest Airline. It is a very sensitive practice with high risk which can be attested to by the failure of Delta and Austrian airlines to hedge successfully. Also you must have spare cash to participate in hedging.

Linear Holding- this is a system being developed by the United Kingdom national air traffic services, in conjunction with British Airways to bring aircraft down without having to engage in fuel guzzling holding patterns. This concept is known as linear holding. Rather than holding by going round in circles, it can hold farther from the airfield by slowing down earlier. It is a controlled decrease in speed such that the arrival sequence of aircraft is determined 100 miles from the airfield. According to BA the process can shave off $2.5million per year on fuel bill. Also, Airways New Zealand, the country's navigation services provider, is experimenting a glide descent approach procedure, otherwise called tailored approach, for Air New Zealand and Qantas 747s when landing at Auckland International. Engines will be set at idle from the top of the descent point in order to "significantly" reduce fuel burn and emissions. Similar trials have been run at Melbourne and Amsterdam, with a third currently operating in San Francisco. These organizations are the equivalent of our own Nigeria Airspace Management Agency (NAMA).

Advanced Technologies and Oceanic Procedures (ATOP)- The Advanced Technologies and Oceanic Procedures (ATOP) system replaces the FAA’s existing systems and procedures responsible for separating aircraft over the oceans, enabling controllers to reduce spacing between aircraft flying while preserving passenger safety and improving efficiency. When fully deployed, it will manage approximately 80 percent of the world's controlled oceanic airspace, including approximately 24 million square miles over the Atlantic, Pacific and Arctic oceans. New capabilities offered by the initial phase of the ATOP system will increase capacity for international air travel and automate the manual processes now in use. The system will allow aircrafts fly more direct routes, save fuel and better on-time performance.


Reduced Vertical Separation Minima (RVSM) - RVSM reduces the vertical separation between flight levels (FL) 290–410 from 2000 ft to 1000 ft and makes six additional FL’s available for operation. The additional FL’s enable more aircraft to fly more time/fuel efficient profiles and provides the potential for enhanced airspace capacity. RVSM operators must receive authorization from the appropriate civil aviation authority. RVSM aircraft must meet required equipage and altitude-keeping performance standards. Operators must operate in accordance with RVSM policies/procedures applicable to the airspace where they are flying. Countries that are not RVSM compliant should hasten with the process of compliance.

It is evident that gone are the days when fuel management is seen as an operational thing alone. The management of airlines, regulatory authorities and service providers in Nigeria need to put their acts together to tackle this monster and its effect on the bottom line, which is grossly underestimated. If airlines are not operating all other institutions in the industry will be mere public or private shacks, depending on the ownership.