Monday, March 28, 2011

Ways to cut Fuel Bill on Jet Aircraft

(Study based on one of the leading airlines )


Fuel expenditure is around 40 to 50% of the revenue generated per day other than wages of the employees. Wages are the fixed component in the balance sheet with hardly less than 1% variation on annual basis.
Fuel cost is a variable component and it is on the increasing trend .This varies from 3 to 6 % every month.
Fuel prices are revised on every 16th and last day of the month at 0000hrs.Trend of increasing or decreasing prices are intimated to the operator’s finance department on 30th&15th day of the month. Thus finance knew very well in advance about the increasing or decreasing rate of the fuel on 1st & every 16th of the month. Management must focus to reduce the fuel bill per day. This can be done by increasing the fuel efficiency.
a. Mass reduction
b. Improvement in engine efficiency and
c. Reduction in aerodynamic drag

With regard to point b, it’s a design feature and not in the control of operator but initiative must be taken with regard to point a & b.

Step 1:-
Finance department should take an initiative to intimate engineering department on the 15th day of the month regarding the increase of fuel price. Based on this a decision can be taken to uplift the fuel prior to 23:59 hrs or after 00:00hrs (If it decreases).Based on average increasing trend of fuel price of 3%, a lot of saving can be achieved.

Step 2:-
This is a standard practice to uplift 0.2 ton of fuel more than the actual fuel requirement on each flight. This is the practice which no operator follows world wise. No one knows why and when it has become the part of our technician to always uplift 200kg of fuel.
Unnecessarily upliftment of 200kg or 250 litres of fuel goes unaccounted financially, technically no effect as it remains in the tank but raises the fuel bill daily.Carrying each 100Kg of fuel,It burns 10Kg fuel.

Step 3:-
Ensure that aircraft external surfaces are kept cleaned to cut down the drag. Reduction of drag contribute a considerable amount of fuel saving.saving of fuel by 0.41% is achieved annually.

Step 4:-
Optimize the use of water on board instead of flying with full tank. Doing this reduces the weight of the aircraft hence the drag. Fuel reduction is achieved.

Step 5:-
Reduce the running time of APU on ground especially during night halt. Make it mandatory to provide ground power to the aircraft on which the maintenance works in progress. This reduces the fuel consumption apart from achieving longer life of APU and its component.

Step 6:-
Reduce the cruising speed.
By lengthening the time by 8mts at cruise, fuel can be saved by 613 litres. Thus, just by avoiding the over speeding of the aircraft at cruise and reducing the cruising speed,Huge saving on these account can be achieved.

Step 7:-
Taxying on the ground by only one engine.

Step 8:-
Reducing the weight of the inflight magazine.

By taking the above measures to cut the fuel bill,A leading airline is expected to save INR 200, Crores annually.

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