IATA Fuel Consulting
Swapping red in for black in the world of fuel
IATA’s fuel consulting experts achieved impressive reductions in aviation fuel consumption and emissions during the course of 2010, reducing fuel burn by an average of 6% and typically saving each of its clients some USD 28 million every year.
”We conservatively estimate that our work with IATA Consulting has eliminated tens of millions of dollars’ worth of waste from our fuel spend.”
Harpreet De Singh, General Manager Quality, Air India
Over the past 15 years, the price of crude oil and jet A1 fuel remained relatively stable and moved in tandem; however, since 2004, the cost of both commodities has become increasingly volatile, with crude oil almost tripling in price and jet A1 fuel rising even faster. Political unrest in the Middle East and North Africa has only served to further drive up prices; since March, IATA’s forecast price of a barrel of Brent crude has risen by 15%, from USD96 to USD110 per barrel. And given that every dollar increase in the price of crude oil adds some USD1.6 billion to the industry’s fuel bill, this has rapidly become the single largest challenge facing the leaders of the world’s airlines.
Throughout the last decade, airlines have made great strides in reducing almost every aspect of their operating costs on an available seat kilometer (ASK) basis, including labor, aircraft ownership, maintenance, and passenger services. The one notable exception is fuel costs which have increased sharply, both in absolute terms and also as a proportion of total operating expenses.
With a 20% rise in the cost of fuel in the last twelve months, the airline industry is expected to spend about USD 166 billion on fuel during the course of 2011, a figure that represents about 30% of total airline operating costs, double what it was a decade ago. When viewed in this light, IATA Consulting’s record of having saved the industry some USD10 billion looks particularly impressive; and as carbon taxes become a reality for many parts of the world, airlines stand to save even more money by reducing their emissions.
“We are extremely satisfied with the recommendations, which go a long way towards our committed drive to advocate environmentally friendly measures.”
Akbar Al-Baker, CEO of Qatar Airways
IATA Consulting is the leader in aviation fuel conservation and combines a neutral perspective with a global awareness of best practice, drawn from a membership base of 230 of the world’s leading international airlines. It delivers success through an unmatched network of the finest minds in the industry and, since 2007, has helped 107 airlines to achieve fuel savings of more than USD2 billion across a combined fleet of some 4,000 aircraft.
So what’s the secret to their success? Very simply put, IATA Consulting achieves these remarkable results by thoroughly analyzing their clients’ operations and in areas as diverse as flight operations, aircraft dispatch, flight planning, maintenance and engineering. From flap settings to potable water levels and from paint finishes to in-flight magazines, IATA Consulting sets the standard in optimizing the performance of every aspect of an airline’s operations.
”The results of the study by IATA Consulting were astonishing and provided us with an incredible insight into this vital aspect of our business.”
Gustavo Cuesta, Chief Executive, TAME
IATA Consulting uses a systematic approach to manage each assignment, but focuses initially on securing the commitment of the airline’s leaders. A detailed assessment follows, which identifies opportunities and forms the basis of an implementation plan that sets goals, priorities and ownership and leverages proven methods and tools to transform plans into reality.
For more information, or to request a personalized fuel conservation proposal along with an estimate of potential savings for your airline, go to www.iata.org/ps/consulting/Pages/fuel-consulting.aspx. It could be the wisest investment you ever make.
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