Airline Operational Cost Task Force (AOCTF) Airline Cost Management Group (ACMG) Klemen Ferjan, MBA Cost Management Consultant, IATA Operations

Transcription

1 Airline Operational Cost Task Force (AOCTF) Airline Cost Management Group (ACMG) Klemen Ferjan, MBA Cost Management Consultant, IATA Operations Maintenance Cost Task Force (MCTF) 1 Airline Cost Conference Montreal - March 6, 2013 Geneva August 26-27, 2014

2 Agenda Recent Developments Value of ACMG FY2013 Report Structure Key Outcomes Specialized Report Future of ACMG Airline Cost Management Group (ACMG)

3 Add something about the Profitability ACMG strives to improve the bottom line through effective cost management Airline Cost Task Force (AOCTF) 3 Geneva, Aug

4 Recent Developments & Way Forward

5 Steering Committee Formed in 2013, consists of 8 airline members: Chairman, Richard W. Creagh, UIA Vice-Chairman, Josua du Plessis, SAA Dimitrios Tziortzis/Ramanpreet Boparai, Air Canada Hassan Mohamed Hassan, Egyptair Valdimar Bjornsson, Primera Air Ashraf Suleman, Saudi Airlines Luis Miguel Pestana Rosa, TAP Portugal Faik Ozan Dulger, Turkish Airlines Airline Cost Management Group (ACMG) 5

6 ACMG brings real value to airlines Throughout the past 2 years 15 recurrent airlines saved close to 1 billion dollars Airline Cost Management Group (ACMG) 6

7 ACMG Report Structure Introduction Overview of the AOCTF Airlines Airline Cost Structure Strategic KPIs Operational KPIs Aircraft Type Analysis Detailed Analysis of B737NG and A320 family Towards the Enhanced ACMG Report Airline Cost Management Group (ACMG) 7

8 Key Highlights Airline Cost Management Group (ACMG) 8

9 Global Representation 9

10 Aircraft Mix 10

11 Average Stage Length Airline Cost Management Group (ACMG) 11

12 Airline Cost Structure Airline Cost Management Group (ACMG) 12

13 Strategic KPIs Strategic KPIs* ACMG Airlines Total Operating Expenses/FH (USD) $12,040 Total Operating Expenses/ASK (US Cents) 8.84 Total Operating Expenses/ATK (US Cents) Fuel Share of Total Ops. Expenses 33.3% Total Ops Expenses without Fuel/ASK (US Cents) 5.90 Yield (Op. Revenue/RPK in US Cents) Operating Revenue/ASK (US Cents) 9.09 Operating Profit (% margin) 2.71% Passenger Load Factor (PLF) 77.9% Weight Load Factor (WLF) 67.0% Daily Utilization (Hours) 9.65 Average Fleet Age (Years) 9.97 * Based on 53 reporting airlines Airline Cost Management Group (ACMG) 13

14 Financial Performance Airline Cost Management Group (ACMG) 14

15 Operational KPIs Fuel Cost and Efficiency Staff Productivity Employments Costs Airline Cost Management Group (ACMG) 15

16 Fuel Cost and Efficiency Airline Cost Management Group (ACMG) 16

17 Fuel Cost and Efficiency - continued Airline Cost Management Group (ACMG) 17

18 Staff Productivity Airline Cost Management Group (ACMG) 18

19 Staff Productivity - continued Airline Cost Management Group (ACMG) 19

20 Aircraft Type Analysis Airline Cost Management Group (ACMG) 20

21 Airline Cost Management Group (ACMG) 21 * Please note that this diagram is based on raw data provided by ACMG airlines. As every airline operates in a unique environment, this analysis might deviate from the one provided by OEMs.

22 Airline Cost Management Group (ACMG) 22 * Please note that this diagram is based on raw data provided by ACMG airlines. As every airline operates in a unique environment, this analysis might deviate from the one provided by OEMs.

23 B737NG Detailed Analysis Airline Cost Management Group (ACMG) 23

24 Airline Cost Management Group (ACMG) 24

25 Airline Cost Management Group (ACMG) 25

26 Airline Cost Management Group (ACMG) 26

27 Airline Cost Management Group (ACMG) 27

28 Enhanced ACMG Report Incorporate feedback from the Conference Include additional ACMG members Some other features of the Enhanced ACMG Report: Special focus on impact of Fuel Hedging Special focus on impact of Exchange rates fluctuations We re not done yet! We went even a step further this year Airline Cost Management Group (ACMG) 28

29 All-New Specialized ACMG Report The standard ACMG Report offers great value at a global level Direct comparison very challenging due to many factors For the first time we offer a customized solution Unique to every airline Even more insight into industry best practices and cost efficiencies through improved benchmarking precision Airline Cost Management Group (ACMG) 29

30 All-New Specialized ACMG Report Specialized Regional Report (unique to every airline) Fully Customized Report (tailored to individual airline needs; e.g. choice of region, similar fleet size, similar stage length, etc.) USD 9,000 (if 1 airline order per region) USD 6,000 (if 2-4 airline orders per region) USD 4,000 (if 5 or more airline orders per region) USD 15,000 How do I get my customized solution? Pre-order during the ACC Pre-order at acmg@iata.org no later than Sep 5 Airline Cost Management Group (ACMG) 30

31 Way Forward ACMG has a proven track record but we want to fly even higher Participation: ACMG evolution indicates between 60 and 70 airlines will provide data FY2014, will you be among them? Support: Promote the value of ACMG, send us testimonials, consider ordering Specialized ACMG Report Involvement: ACMG Steering Committee will increase after the Airline Cost Conference, will YOU be our new SC member? Input: We need your comments and suggestions to improve Airline Cost Management Group (ACMG) 31

32 A word from our Chairman The ACMG provides an invaluable opportunity for airlines to benchmark their own performance against industry norms. It also seeks to establish and share best practices across all the main airline cost drivers. This sharing of best practices and ideas for cost effectiveness should help all member airlines to reduce unit costs and improve profitability. Richard Creagh, UIA Executive Advisor Airline Cost Management Group (ACMG) 32

33 More info on Thank you! Q/A Klemen FERJAN, MBA Consultant, IATA Operations

34 ACMG Team IATA Operations, Montreal Chris Markou, Assistant Director Klemen Ferjan, Cost Management Consultant Geraldine Cros, Operational Cost Manager Airline Cost Management Group (ACMG) 34

35 A word from our Vice-Chairman The ACMG is the most comprehensive, high level benchmarking study available that encompass different size airlines from 5 continents, operating different models that is continuously updated, and most importantly, is FREE. Because the data is available by fleet with the cost drivers it empowers Management to evaluate their performance. Josua du Plessis, SAA Corporate Strategy Airline Cost Management Group (ACMG) 35

36 Dear Richard You have been an inspiration and a driving force. Under your leadership ACMG skyrocketed from 22 to more than 55 airline members! We would like to wholeheartedly thank you for your devotion. And wish you all the best in you future. Keep in touch please! Richard Creagh, UIA Executive Advisor Airline Cost Management Group (ACMG) 36