Saturday, February 12, 2011

Nigeria-Aviation fuel: Ohunayo profers cost saving strategies



Aviation fuel-Nigeria - One factor currently determining the profit or loss airlines in Nigeria make is the cost of Jet A1 otherwise called aviation fuel which constitute 30 to 35 per cent of an airline's total cost of operation depending on oil price, aircraft type, age, engine efficiency and the overall management of operations in any particular airline. Industry stakeholder and Head of Research, Zenith Travels, Olumide Ohunayo in a paper title Relevant strategies for Nigerian Civil Aviatio
              


            n Industry said that fuel cost is a strong factor world over, highlighting the International Air Transport Association (IATA) position at a meeting in Istanbul.

IATA had forecast a loss of US $3-6 billion in the industry when the oil price was hovering at $135 per barrel with the Director General, Giovanni Bisignani taking a retrospective look at 2001 where airlines achieved massive change, fuel efficiency improved 19 per cent and non-fuel units cost dropped 18 per cent, all of which changed with the skyrocketing price of oil eaten these gains and left the industry in red.

Ohunayo who mentioned some global strategies used in combating the fuel monster and in achieving changes said that some airlines reduce weight 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.

Airlines are also reducing the quantity of fuel being ferried on flights though adhering to regulations regarding fuel for taxiing, diversion, holding, reserve and contingency (for long haul flights 5 per cent contingency fuel, while for short sector flights between 5 per cent to 10 per cent 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 weight is off-set by cash savings.

Ohunayo also cited increased usage of Ground Based Power Unit (GPU) as a means of conserving fuel. This, he said, is about the oldest and simplest method of conserving fuel. The GPU is used to supply on-board power and air conditioning instead of the aircraft auxiliary power unit (APU). Nigerian Airlines without GPU can obtain the service from NAHCO and SAHCOL at a fee. American Airlines were able to save $14million last year due to reduced usage of APU.

Purchase of newer aircraft also helped in saving fuel. According to him, 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, A380, A350), easy to maintain and have much lighter Carbon Fibre Reinforced Plastic (CFRP) panelled fuselage skins.

Ohunayo also recommended taxing with one engine, a situation where one of the aircraft engines is used for 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 away.

"The operational policy of the airline and experience of operating crew are needed to achieve this objective safely. British Airways uses this procedure about 80 per cent of the time and estimates $8million savings annually, while, American Airlines saves between $10-12million."

"In Nigeria we are getting sick of the ubiquitous presidential movement and the perennial rehabilitation of the 18 left runway that keeps airlines and passengers on the tarmac. 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 per cent. 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, Bellview (before it ceased operations) is about the only domestic carrier with an ICAO certified tow vehicle, other airline might have to contact SAHCOL and NAHCO for such services if they are considering this option.

Fuel Hedging, another method of saving fuel is a practice 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 fuel hedging airline is Southwest Airline, closely followed by Alaska Air.

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. It is informative that Southwest Airline just announced that the programme has saved the airline $3.5 billion since 1999.

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, has experimented a glide descent approach procedure for Air New Zealand and Qantas 747s 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. The asia pacific region has something similar called ASPIRE (asia pacific initiative to reduce emission).

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.

Bio-Fuel: sometimes referred to alternate fuel is being developed by airlines and other industry participants such as Airbus, Boeing, and Honeywell. This involves the conversion vegetation and algae based oil into aviation fuel, while the world waits for the outcome in the long run, I am not unmindful of the global food crisis.


By

NEHA JAIN
www.aerosoft.in                                                                                                                
              


            








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