Operational Interruption Cost Assessment Methodology

Transcription

1 Maintenance Economics Annika WOLF Operational Interruption Cost Assessment Methodology IATA -Airline Cost Conference 2016

2 Content #1 Definition & Context #2 Scope #3 Model Parameters #4 OI Cost Illustration #5 Pitfalls #6 Key Message & Outlook

3 #1 Definition & Context Operational Interruptions are composed of : Delays* Cancellations In-Flight Turn-Backs Diversions Ground Interruption Airborne Interruption The OI Cost Model aims at making the hidden cost visible as per ATA SPEC2000 definition fostering awareness about the cost drivers supporting prioritization of OI reduction initiatives to efficiently increase the operational reliability of a given fleet *Flight dispatch delays greater than 15min. This incl. ground turn-backs, aborted take-offs and aircraft substitutions if causing delay greater than 15 min

4 #2 Scope Focus on additional & avoidable costs triggered by interruptions of scheduled revenue flights. Impact on Total Operating Cost AIRPORT & NAVIGATION FUEL FLIGHT CREW MAINTENANCE PASSENGER INCONVENIENCE GROUND CREW & HANDLING SERVICES OWNERSHIP

5 #2 Scope OI impact on direct & indirect operating cost AIRPORT & PASSENGER NAVIGATION FUEL FLIGHT CREW MAINTENANCE INCONVENIENCE HANDLING SERVICES OWNERSHIP Overflight charges Terminal Navigation charges Landing & Noise charges Parking charges Passenger & Security charges Fuel consumption - At gate (APU/GP) - On-ground - In-cruise - Aborted take-off Pilot- & Cabin crew: Overtime Accommodation & Meal allowance Substitution/ rescheduling Air Transport [DIV] Troubleshooting at Line Maintenance Deferred items of Light Maintenance checks Components repair and pool access fee for additional flying time [IFTB&DIV] Communication Refreshments Miles voucher Financial compensation Accommodation & Transport Re-booking fees Fares for refund Delayed luggage fees Ground Passenger Service staff Technical Ground Support staff Aircraft Towing Tractor Passenger Bridge/Bus Baggage container vehicle DRY Lease rate for % A/C change Depreciation Interest Insurance Loss of revenues due loss of passenger loyalty or -competitiveness

6 #3 Model Parameters Cost Profile Aircraft Parameters Labour rate pilot & cabin crew Selection A/C type Airline geographical zone Airline Cost Profile Selection Mission Cabin configuration Economy Business First MTOW Aircraft Parameters OI characteristic Line Maintenance staff labour rate Dry lease rate per day Airport charges Navigation charges Fuel price Cost Profile Mission Annual utilization Flight duration Load factor (%) no of cabin crew no of pilot crew no of Line maintenance staff OI characteristic % of aborted take-off per DY duration % of A/C change per DY duration DY duration add. FH for IFTB&DIV Default values are set based on average In-Service Data

7 #4 OI Cost Illustration Cost Distribution Long Range Aircraft 1 H Delay Flight crew Major cost drivers contribute to ~60-70% of the OI cost Cancellation IFTB DIV 21% 55% 41% 23% 42% 23% Passenger Services Handling Services Airport & Navigation Maintenance Fuel Ownership Operating Cost CN IFTB Passenger Inconvenience Flight Crew Passenger Inconvenience Operating Cost 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% DIV Passenger Inconvenience Operating Cost

8 #4 OI Cost Illustration Cost Illustration per DY Duration Long Range Aircraft $ Steeper increase in Europe compared to North America due to EU regulation Decision points to be considered DY duration 1 st at 1.5h-2h limitation of application on Passenger compensation & -care services 2 nd at 4h limitation on Flight & Ground crew substitution 3 rd at ~6h question to be asked whether to cancel the flight

9 #4 OI Cost Illustration $ Cost Influencing Parameter Passenger Load Factor & Cabin Configuration - Single Aisle Aircraft +8.7% increase of CN cost 75% 85% DY duration The Passenger Load Factor influences the CN cost at almost same rate with ~1% Both Load Factor and cabin configuration* directly impact the Passenger Inconvenience cost * Cabin configuration: Total number of seats and class distribution

10 #5 Pitfalls Pitfalls to avoid Linearization Simplification Rule of proportion Linearization Smoothing the OI cost curve per DY duration would delete the decision points. Simplification A simple estimation can lead to a fast overestimation of the avg. cost. Example: Your LR aircraft is grounded in GVA after an IFTB. Decision of CN as Engine to be changed. CN cost of your flight: PAX Accommodation & re-routing = (150USD+350USD) * 260PAX = USD Rule of proportion More seats = higher cost? As in-service data is different per A/C type depending on specific context, this rule cannot be applied. Example: IFTB cost for A higher than the A one although less seats and lower SL and annual utilization Reason: Higher DY duration & CN rate.

11 #6 Key Message & Outlook Key Message OI cost assessment is a powerful method to improve your aircraft economic health Identify where the pain lies Prioritize and quantify subsequent healing initiatives We look to continuously improve our model with operators experiences, to incorporate industry changes and are ready to support OI cost customization. your Outlook

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13 Contact Contact Annika Wolf Maintenance Economics Manager