Connected Planning on the Ground Delivering Fuel Burn Reductions of 2%

1. Connected Planning on the GroundDelivering Fuel Burn Reductions of 2% Gerard BerrySales & Marketing Director

2. Presentation Theme • Introduction to Liberator.aero • Airlines - Challenges & Operating Environment • View from the Cockpit & the Ground • The Liberator perspective • Adopt ‘Measure to Manage’ principle • Attitude is everything – Savings or Cost Reductions

3. The Company • Formed in 2003 and is owned and managed by airline professionals with in excess of 100 man years experience • Based in Dublin with IT expertise in Hyderabad • Investment by Irish Government Agency - Enterprise Ireland • Member of the IATA Strategic Partnership Programme

4. Airlines with whom we have worked

5. The Challenges for Airlines • Economic Downturn and Fluctuating exchange rates. • Mergers and company consolidation for survival • Managing costs in an ultra competitive market • Order delays for new aircraft • Extending further use of costly older aircraft • Shortage of pilots to match fleet expansion

6. Operating Environment • Fluctuating fuel costs – airlines have to re-examine ops processes. • Airlines are withdrawing own staff from outstations • More airlines moving to centralised load planning • Operational efficiency delivers competitive advantage

7. The View from the Cockpit

8. Combating Fuel Costs – Current Initiatives • Flight Operations • Variable Cost Index / Aircraft Performance & Engine Health Monitoring / Continuous Descent / Single Engine Taxi • Design • Blended Winglets • Innovation • Bio Fuel initiatives

9. The View from the Ground up

10. Combating Fuel Costs – Current Initiatives • Maintenance • Engine Wash / Aircraft Wash • Ground Operations • Aircraft tow to runway • Conservative APU usage • GPU upon arrival • Culture • Cargo • IT / Commercial / Marketing

11. Ground Operations Weight & Balance Combating Fuel Costs – The final piece • A source of 2% savings of the fuel bill

12. The Question… How can we achieve cost penalty reductions of 2% of the annual fuel bill ?

13. The Answer… Measure and highlight performance in Weight and Balance Management from a fuel burn perspective.

14. The Liberator.aero philosophy ‘Measure to Manage’

15. Loading Efficiency & Weight Reduction • Airlines can do more to reduce fuel burn and costs by paying more attention to aircraft loading for all departing flights from all airports. • Target the measurement of ‘below wing’ performance • Planning Gaps – EZFW versus Actual ZFW • Discretionary Fuel • Achieve an optimised initial CG on the ground - Before the aircraft takes off. Apply a US$ value to the inefficiencies / cost penalties that are identified.

16. The Focus • Create awareness of how loading increases costs • Express cost penalties in US$ for each departing flight • Highlight ground handlers role in Fuel Savings Programme. • Include loading efficiency as part of Service Level Agreements • Consistently deliver optimised loading • Start at home base and roll out to all airports

17. LFI System Data Requirements (Automated) Loadsheets MVT/Fuel Info Fuel on board - O/O/O/I Timings Flight / Weight / Balance / Seating AHM560 Flight Plans Web-based, located in Dublin EZFW / Required Fuel

18. Flight Planning & Operations Pilots & Fleet Captains All Bases Finance & Budgetary Load Planning & Dispatch LFI System Performance Monitoring Tool Ground Handlers & Outstations Network Sales & Marketing Executive Management & Departmental Heads Air Traffic Management Cargo

19. W&B Fuel Management Programme Steps • Evaluate and confirm Ideal Trim policy for each aircraft type • Communicate loading policies to the loading community • Monitor loading performance across the network • Identify and fix any performance gaps • Sustain effective loading performance for all flight departures • Adopt a continuous monitoring programme to save fuel and emissions

20. Carrying extra weight on board will result in additional fuel burn equivalent to about 4% per hour of the extra weight carried. • (Source: Airbus) • On a 7 hour flight for every extra 5,000 kg of fuel, it burns 1,300 kg of that fuel just to carry it. • (Source: IATA Fuel Book) • Our own extensive research over the last three years has shown us that 66% of flights dispatched with a forward trim resulted in higher fuel burn per block hour. • (Source: Liberator.aero 2006-2009)

21. ‘Measure to Manage’ - The Psychology of Airline Cultural Change • Respect for Pilots on issue of Discretionary Fuel • Attitude of accountable business owner is key • Requires opening up – ‘stand up and be counted’ • Deliver Savings – seen as a threat • Deliver Cost Reduction – seen as an opportunity • A collective challenge for survival

22. The Benefits • Target fuel cost savings of 2% annually • Save 3kg of CO2 for each 1kg of fuel • Improved ground handling • Increased fuel costs awareness • Competitive advantage through enhanced operational efficiency

23. The Liberator.aero recommendation “Keep it simple but focussed. Starting from the ground up, use technology to build a team approach to reducing fuel burn and emissions”

24. Thank You