Auditor Responsible Audit Reviewed by Audit Month/Year Estimated Man Days OBJECTIVE The fuel conservation & efficiency initiatives work program is develop in order to: - To determine the adequacy of the governance structure in the administration, implementation and monitoring of the fuel initiatives - To identify, review and evaluate the adequacy and accuracy of reporting for the fuel initiatives respectively. - Assess the effectiveness of the fuel conservation & efficiency initiatives implemented by the airline. - Evaluate if the fuel conservation and efficiency initiatives include major elements of best practices in the industry. - Identify gaps in the current initiatives practices including design and compliance of controls and project governance. - To provide recommendations for improvement for areas under review. Page 1 of 24
Introduction Airlines have little or no control over the price of jet fuel. Managing fuel efficiency is an attractive strategy that can save an airline between 3 to 8 % of its fuel expense. The environmental benefits of releasing fewer emissions into the atmosphere are an added bonus. However, success requires good metrics, a multidisciplinary approach within a well structured, systematic program. From the operational perspective, the fuel efficiency initiatives derived from the recommended practices from IATA and airline manufacturers can be incorporated into the line operations by the process owners. However, to be able to measure the effectiveness of these initiatives as well as to continuous monitor and track of the progress of these initiatives, a working group will eventually have to be established Various airlines have established a working committee in developing fuel conservation & efficiency program and the committee is often made up of members from various operational departments within the airlines. The members may consist of; Flight Operations Airport Operations Engineering & Maintenance In-Flight Operations Network & Revenue Management Cargo Operations Note: The following work program encompasses the project management aspect of the fuel conservation & efficiency initiatives as well as the process improvement aspects of line operations. The improvements and the fuel initiatives within this work program do not cover all initiatives practised by participating airline auditors and it is not exhaustive in their audit scope and testing. Further enhancement is required for more specific audit procedures and detailed testing. This work program had been jointly developed by the participants of the IAAIA Fuel Workshop in Kuala Lumpur from 15-16April2008, namely: 1. Cody Santos, Continental Air 2. Furqan Kamlani, Emirates 3. Menghistu Amare, Ethiopian Airlines 4. Robert Campos, Etihad Airways 5. Robert Engelbarts, KLM 6. Nestor Macaraniag, Philippine Airlines 7. Facilitators: Yeo Hock Kim & Gabriel Chang Thai Yau, Malaysia Airlines Page 2 of 24
S.No A B C D E F Area of Audit Fuel Conservation & Efficiency Program - Fuel Conservation & Efficiency Working Committee Flight Operations - Flight Planning - Route Analysis - Standards setting (fuel consumption etc) - Flight Dispatch Airport Operations - Fueling & Tankering - Aircraft Water & Waste Servicing - APU utilization - Weight & Balance - Baggage/ Cargo Handling In-flight Operations - Catering Services - In-flight Sales (duty free items) - In-flight Services (Magazines & amenities) Operations Control Centre - Flight Monitoring - Flight Cancellations & Aircraft Swaps - Air Traffic & Terminal Control Engineering & Maintenance - Engine & Aircraft cleaning - Monitoring of Service Bulletin and Modification Bulletins - Flight Kits Page 3 of 24
A. Fuel Conservation & Efficiency Program 1. Fuel Conservation & Efficiency Working Committee Ineffective fuel initiative implementations Working committee governing structure 1. Determine if there is a cross-functional fuel conservation committee setup to monitor and manage the fuel initiatives. 2. Check if the structure of the fuel conservation committee finalized and the chairperson is selected. 3. Determine if adequate empowerment/ endorsement is given to the chairperson and committee to implement the fuel conservation initiatives. Selection of the fuel initiatives 1. Determine if the fuel initiatives are identified for implementation into the operational process. 2. Determine if the recommended practices from IATA, aircraft manufacturers are considered for implementation. 3. Determine if the initiatives are prioritize according to fuel conservation returns. Accountability assignment for the respective initiative Target setting KPIs 1. Determine if there are specific drivers/ departmental units are identified to be accountable for each respective initiative in their area. 1. Determine if the objectives of the fuel conservation working committee is set and concurred by every committee member. 2. Determine if there are specific targets/ KPI on fuel conservation is identified for each initiative. Page 4 of 24
3. Determine how the KPIs are formulated and its effectiveness in assessing the success of the initiatives. 4. Determine if there is an overall KPI set for the fuel conservation committee. Inadequate monitoring and tracking of fuel initiatives. No continuation in the fuel initiatives after initiation. Adverse impact on operations due to implementation of the initiatives Communication/ feedback avenue between all stakeholders Tracking of fuel efficiency/ conservation measurements Monitoring of the fuel efficiency conservation measurements Cost benefit analysis (CBA) on fuel initiatives Communication avenue for all stakeholders 1. Determine the frequency of meetings between stakeholders. 2. Determine if meeting minutes are available and all issues are captured and addressed accordingly. 3. Determine if the overall KPI for the working committee is presented to the Senior Management of the airline. 1. Determine if the fuel conservation performance data are monitored and documented for effectiveness rating. 2. Assess the effectiveness and adequacy of the data collected. 3. Assess the accuracy of the data. 4. Evaluate the fuel cost reduction or savings that have been incurred. 5. Determine the accuracy of the data being reported to the working committee. 1. Obtain the trend of fuel savings over a period of time. Determine if the trend and data is deliberated in the committee. 1. Determine if CBA is carried out on each respective fuel initiatives. If yes, obtain the reports. 2. Determine if the implementation of the fuel initiative is in breach of any regulations or company policies. 1. Determine if there were any concerns raised by the stakeholders and if all issues are addressed accordingly. Page 5 of 24
2. Assess the impact of the fuel initiatives on the service and operational standards. B. Flight Operations 1. Flight Planning Reliability and accuracy of information in the flight plans (airport conditions, weather, flight parameters) Subscription to Weather Info Services / Flight Info System (FIDS) and other flight info service providers 1. To check if there are any subscriptions to any/ latest weather info services. 2. If yes, to check if the users are using the information in flight planning. Review & Supervisory controls 1. To check if the flight plans are reviewed prior to finalization by the supervisory personnel. 2. If yes, to check if the discrepancies are noted and reported to the proper authorities. Equipment/ System failures Back up process & procedures 1. To ensure there are contingency/ backup policies and procedures in place in the event of system failures. 2. To ensure that the procedures and guidelines are clear and documented. 3. To check if the guidelines are properly communicated and understood by the users. Business Continuity Plans To check if there is a BCP developed. Page 6 of 24
Flight planners competency Training & Qualification of Flight Planners 1. To check if the flight planners are adequately trained to perform their function. 2. To ensure that the flight planners are certified and holding a valid license. 3. To check if there is a training program for all personnel at all levels. 2. Route Analysis Inadequate utilization FIDS (ie. Jeppesen documents, flight info) for route planning Subscription to Weather Info Services / Flight Info System (FIDS) and other flight info service providers 1. To check if there are any subscriptions to any/ latest weather info services. 2. If yes, to check if the users are using the information in flight planning. Review & Supervisory controls Lack of CBA on route vs. cost. SOPs on CBA requirement and the preparation of flight plans 1. To check if the flight plans are reviewed prior to finalization by the supervisory personnel. 2. If yes, to check if the discrepancies are noted and reported to the proper authorities. 1. To check if there are any procedures or guidelines to perform the CBA 2. To ensure that the procedures and guidelines are reviewed and updated on a regular basis. 3. To ensure that the procedures and guidelines are complied with. Page 7 of 24
Points to consider: 1. To ensure that the flight plans are prepared at the optimum flight level. 2. To check if there are any other alternative routes considered. 3. To check if the plans are properly approved by the supervisors or the managers. 4. To check if there are any justifications on the routes/ deviations chosen. 5. To check if the approved plans are analysed with the actual utilization. 6. To check if there are any investigations and reporting of all violations from the final approved plans. 7. To ensure that all discrepancies in the various flight plans are explained and documented. Inefficiency utilization of Cost Index for specific routes Updated Cost Index Info Training for the pilots 1. To check if efficient cost index utilization is part of the flight planning. 2. To check if the appropriate cost index is being used in the flight plans. 3. To check if the CIs are updated and reviewed for planning purposes. 4. To determine if all the cost elements/ factors are considered in the calculation of the cost index. 1. Determine if the pilots are given sufficient training on cost index utilization in the flight management system during flight. Page 8 of 24
3. Standards setting (Fuel Consumption, etc) Incorrect aircraft specific standards used (taxi, alternate, reserved fuel, etc) Review and updating of standards used 1. To determine how the fuel standards are developed. 2. To check if there are regular reviews on the standards and to determine the last review date. 3. To ensure that the standards are compared with the actual consumption of fuel. 4. If yes, to ensure that the discrepancies or variances are reported and investigated. Incorrect fuel specifications (fuel specs density) Complete quality / product specification & certification 1. To determine if there are formal written policies & procedures. Points to consider: 1. To check if there are any fuel specifications from the suppliers. 2. To determine if the specifications of the fuel product are clearly indicated in the contract with the supplier. 3. To determine if there is inspection, testing and measure of the quality and volume of the fuel delivered. 4. To check if the fuel density is measured at the source or at the point of delivery (mass versus volume density variances) 5. If there are inspections, testing and measurements carried out, are there any review on the rejected delivery, if any. 6. To check if the proper equipment are utilized to test the quality of the fuel delivered. 7. To check is the fuel receiving personnel are trained in the quality testing of the products delivered. Page 9 of 24
Excessive fuel burn Benchmarking with other airlines and engine manufacturers Monitoring, analysis and reporting of fuel burn (by a/c type, pilot & route) 1. To determine if there are any benchmarking of the fuel burn data with other airlines, aircraft manufacturers, or IATA. 2. If yes, to check if the information is used to improve the fuel conservation initiatives. 1. To determine if there is a system used to track and monitor the fuel consumption. 2. If yes, to check if the fuel burn data is regularly monitored and reviewed. 3. To determine if the excessive fuel burn reports are investigated and addressed. 4. To determine if there are any initiatives or programs implemented to address the excessive fuel consumption. 4. Flight Dispatch Inefficient flight planning Review of distribution, coordination and dissemination of final approved FP 1. To ensure that the latest flight plans are received from Flight Planning department on a timely basis. 2. To ensure that the flight plans are duly executed, complete, and filed accordingly. Review & Supervisory controls Penalty/ corrective action policy 1. To determine if the flight plans are reviewed by the supervisors. 1. To determine if there are any penalty policies on flight plan violations. Page 10 of 24
Incorrect or delay in dissemination/receipt of information (e.g. payload, weather, etc) Performance monitoring for third party service providers Written formal SOP for internal use. 1. To determine if the SLAs are signed and complied with. 2. To check if the SLAs are regularly reviewed. 3. To determine if there are any violations and applicability are reported and investigated. 4. To check if any last minute changes are recorded, considered, and effected accordingly. 5. To check if there is any review of the work performed. To determine the adequacy of the level of review. 1. To determine if the standard operating procedures are documented for reference. 2. To determine if the SOP are regularly reviewed and updated. 3. To ensure that the SOP are complied with. C. Airport Operations 1. Fuelling & Tankering Incorrect refuelling of aircraft (Mismatch between equipment & aircraft-type) Training of Fuellers & Technicians 1. To ensure that all the fuellers & technicians are properly trained and licensed to service the different types of aircraft and equipment. Page 11 of 24
Excessive fuelling (Quantity) Training 1. To ensure that all the fuellers & technicians are properly trained and licensed to service the different types of aircraft and equipment. Malfunction in fuel gauges (bowsers, aircraft, equipment breakdown, etc) Incorrect levelling of the aircraft Lack of/ inadequate fuel uplift policy (tankering, fuel order) Delay in ACARS transmission (fuel details, payload details) Correct and accurate fuelling info in the flight plan Approval of additional fuel uplift Preventive maintenance program Initial & Refresher Training of Refuellers Checklist for a/c refuelling Clearly defined Fuel Policy Clear SOPs on ACARS usage 1. To check if there is any regular review performed on the flight plan to ensure that the fuel quantity uplifted complies with the fuel requirement as stated in the flight plan. 1. To check if the request for additional fuel quantities is reported, justified, and approved. 1. To ensure that the equipment is properly maintained. 2. To determine if there are records of maintenance and maintenance schedules. 3. To determine if the fuel gauges have undergone regular calibration. 1. To ensure that the fuellers are properly trained and licensed to perform their function. 1. To determine if there is a checklist for completion before refuelling the aircraft. 2. If yes, to ensure that the checklist is regularly reviewed and updated. 1. To determine if there are any policies on fuel uplift. 2. If yes, to ensure that the fuel policies are clearly defined. 3. To determine if the policy is reviewed, updated, and approved on a periodic basis. 1. To determine if there are any delays in the ACARS transmission. 2. If yes, to ensure that the delays are being monitored and Page 12 of 24
addressed. 2. Aircraft Water & Waste Servicing Excessive/ inadequate uplift of water/waste SOPS on water/waste servicing 1. To determine if there are any Standard Operating Procedures (SOP) for water servicing and if it is regularly updated. 2. To ensure that the SOP are clearly communicated. 3. To determine if there are any comparison on actual practice and the standards as per the SOP. 4. If yes, to ensure that the deviations are investigated, reported, and addressed. Poor performance on the aircraft water & waste servicing Availability of SLAs / internal SOPs 1. To determine if the SLAs are signed and complied with. 2. To check if the SLA are regularly reviewed. 3. To determine if there are any violations and applicability are reported and investigated. 4. To check if any last minute changes are recorded, considered, and effected accordingly. 5. To check if there are any review of the work performed. To determine the adequacy of the level of review. Page 13 of 24
3. APU utilization Non-availability of GPU at stations Update on station resources 1. To check if there are regular (annual) review/ inspection conducted on the stations. 2. If yes, to check if the review results are adequately addressed and closed. 3. To determine the adequacy of the scope of review. Availability of the SLAs with the GHA 1. To determine is the SLA are being reviewed. 2. To check if there are any penalty clauses for nonperformance/ compliance of the GHA. Excessive use of APU SOPs on APU usage 1. To determine if the APU data are collected, reviewed, and analysed. 2. If yes, to ensure that the root causes are analysed and adequately addressed. 3. To determine if there are any monitoring and reporting of APU utilization/ data. Points to consider: 1. To determine if there are any requirements on APU usage in the SOP. 2. To check if the SOP are regularly updated. 3. To ensure that the deviation/ violations of the SOP are investigated and reported. 4. To check if there any penalties imposed on these violations. Page 14 of 24
4. Weight & Balance Un-manifested/ Inaccurate payload information Standard Operating Procedures of Ground Handling Agent and Airport Service Team 1. To ensure that the SOP is available and is most current to address the potential risk. Pre/ Post-Flight check procedures 1. To ensure the cargo is re-weighed before uplift. 2. To ensure that the weight is correctly reflected in loadsheet. 3. To ensure that the GHA correctly updates the passenger and baggage load in the loadsheets. Oversight Audit (Safety audits) 1. To check on the frequency of the audits. 2. To review the latest safety audit report. 3. To ensure that any outstanding issues are addressed as highlighted in the previous audit report. Obsolete Dry Operating Weight used Uncertified load planners - inefficient load planning, safety Regular review of weight schedule (As per regulatory requirements and after major modifications) Regular training plans 1. To ensure that the aircraft maintenance check report is available and any impact on the weight is recorded. 2. To ensure that there are calibration reports available. To ensure that it is certified by technical services approval holders. 3. To ensure that the aircraft weighing schedule is available. To check on the last weighing date of the individual aircraft and any major modification activities. 1. Determine the frequency of the training programs. 2. To ensure that the content of the training programs are current. Page 15 of 24
Valid licence by load planners 1. To ensure only valid license holders are performing the load planning functions. 5. Baggage/ cargo handling Inefficient utilization of ULDtypes Valid training carried out (available license or certificate of approval) 1. To ensure that only competent GHA staff are responsible for the cargo build-up (training and license holders) 2. To ensure that the baggage is captured correctly in the baggage system. Oversized/ overweight carryon/ hand-carry baggage Oversight by airline service team Compliance with policy and procedures on check-in in regards to carry-on baggage. (size & volume of carriage) 1. To ensure load plans are signed off by airline service team. 2. To ensure that the loadsheets are certified by the pilots. 1. To ensure that the policies and procedures (p&p) are available. 2. To ensure that the p&p are communicated to the check-in staff and enforced. 3. To ensure that there is constant vigilance of the check-in staff on the carry-on baggage. Page 16 of 24
D. In-Flight Operations 1. Catering Excessive carriage of catering equipment/ meals Catering of meals as per booked/ forecast load 1. To check if the meal wastage/ top-ups are monitored and tracked. 2. To ensure that the catering chits are signed off by the cabin crew. Weight reduction opportunities not explored (equipment specifications, galley design) Available standards of catering equipment uplift CBA carried out on the catering service (double or single catering) Airline initiation on galley weight reduction 1. To check the actual uplift of equipments with the standards. 2. To ensure that the standards are current. 1. To check on the frequency of review (CBA) on catering requirements. 2. To ensure that the establishment of the new caterers are communicated to the In-Flight department/ Head Office. 1. To ensure that there is review of the service bulletins/ modification bulletins on galley equipment. 2. To check if there are any CBA on galley equipment change Page 17 of 24
2. In-Flight Sales & Services Unnecessary carriage of inflight sales items/ over provisioning of in-flight sales items Uplift standards are available 1. To ensure that the standards are available and current. 2. To ensure that the standards are reviewed on a periodic basis. To ensure the actual sales of items are reviewed by route. 3. To ensure the standards are enforced. To ensure adjustments are made to the uplift as per the analysis. Excessive uplift of in-flight service items (magazines, newspaper etc) Benchmarking of uplift standards against other airlines Customer preference survey on in-flight items Availability of loading guide for in-flight items 1. To check on any market research carried out. 2. If yes, obtain reports and ascertain if the findings are being analysed for consumption. 1. To check on any market research carried out. 2. If yes, obtain reports and ascertain if the customers preferences are being analysed in the decision making process. 1. To check on policy and procedures/ standards are complied with. (Uplift items versus standard uplift) 2. To ensure the uplift of minimum/ required items. Page 18 of 24
E. Operations Control Centre 1. Flight Monitoring Ineffective/ inaccurate flight monitoring Comprehensive training plans/ programs 1. To check on the training schedules for effectivity and completeness. 2. To ensure the training program contents are current. Inadequate information/ data for tactical decision making (Ground Handling rates, cost index etc) Documentation of flight monitoring experience Regular oversight by the managers/ senior flight controllers Updates of flight/ ground details (ground handling rates, cost index etc.) in the flight management system Communication of connecting flight schedules 1. To check on experience as per aircraft type/ route specific. 2. Assignment of flight controllers according to aircraft-type 1. To check on flight report review by the senior flight controllers/ managers. 2. To ensure action points are carried by relevant departments involved in flight planning. 1. To match latest ground handling rates/ civil aviation charges against system details. 2. To ensure that the information is available and used in flight monitoring. 3. To ensure procedures are available and complied with for regular updates. 1. To ensure that the information is available and taken into consideration. 2. To ensure CBA is carried out on utilization of cost index. Page 19 of 24
Rejection of pilots on recommendations from Ops Control Poor real-time tracking or monitoring Poor communication of flight details to pilots (fuel consumption) Available policy on the review of pilots performance on fuel consumption Availability and utilization of ACARS Review on fuel consumption of the flight. 1. To ensure that the policy is available and current. 2. To ensure the policies are enforced. 1. To check on the availability of the ACARS 2. To ensure that the ACARS is used. 3. To check on alternative system if ACARS are not available/ used. 1. To carry out benchmarking or analysis on fuel consumption of the pilots. 2. To check if the communication of fuel consumptions is carried out to the pilots (de-brief). 2. Flight Cancellation & Aircraft Swaps Incorrect aircraft-type utilization (route specific, payload consideration) CBA on aircraft utilization on specific routes 1. To ensure that CBA is carried out and updated periodically. 2. To ensure authorization is given for any deviation against CBA results. Necessity for de-fuelling CBA on de-fuelling against assignment to other routes 1. To ensure that there are procedures for last minute fuel topup. 2. To ensure that there are authorization for the fuel top-up and de-fuelling. Page 20 of 24
Lack of policy on flight cancellation (low seat factors etc) Available policy on minimum load factors 1. To ensure that the policy is available and current. 2. To ensure the policies are enforced. 3. Air Traffic & Terminal Control Lack of air traffic control modern facilities at station and infrastructure (runways, aerobridges, bays) Benchmarking on air traffic control facilities at stations Selection of airports to service the aircrafts 1. To obtain the benchmarking reports from IATA, if available. 2. To check if there are any liaison with airport authorities on the facilities. (AOC meeting minutes, etc) 1. To check if there are standards for minimum requirements on airport facilities. 2. To check if there are any CBA carried out on the selection of airports (cost considerations, facility availability etc). 3. To check if the standards are complied with. Contracts with airport authorities on assigned terminals/ parking bays. 1. To check if there is any offer by the local civil aviation authorities on designated parking bays. 2. To check if there are any contracts with the airport authorities. 3. To check if the contract is valid/ current and enforced. Page 21 of 24
F. Engineering & Maintenance 1. Engine & Aircraft Cleaning Engine degradation poor engine performance, untimely communication of maintenance schedules and engine conditions Compliance to the aircraft engine maintenance manual 1. To ensure that the engine maintenance manual is available. 2. To check on compliance and current revision of the manual. 3. To check if the service bulletins and modifications are reviewed and action is taken. 4. To ensure that there are constant monitoring of engine performance. Untimely/ Irregular water wash of aircraft/ engines (aerodynamic deterioration) Schedules for water wash for the aircraft/ engines 1. To review the schedules are current and aircraft/ engine age are taken into consideration for the frequency of water wash. 2. To ensure that the water wash schedules are taken into account during maintenance work plans. 3. To ensure that the logs are maintained for water wash and signed off by supervisory personnel. 2. Monitoring of Service Bulletins & Modifications Bulletins Improper CBA on execution of SB/ MB Review of the SB/ MB received 1. To ensure that there are CBA carried out on the SB/ MB received. Page 22 of 24
2. To check if there is an oversight function on the selection SB/ MB. 3. To ensure that the technical manuals are updated with the SB/ MB 4. To ensure that the SB/ MB are executed, if selected. Poor monitoring of aircraft/ engine developments (CBA) Monitoring of SB/ MB received 1. To check if there are any departments responsible for the SB/ MB receipts (Technical services department) 2. To ensure that the SB/ MB receipt are logged in the system. 3. To ensure that the SB/ MB are communicated to the relevant technical services section/ department. 3. Flight Kits Non-availability of spares at line stations Spares inventory (bonded stores) 1. To check if there is any CBA carried out for the stores versus flight kits. 2. To check if the spares inventory are sufficient against trend of usage. Excessive provision of spares in flight kit Lack of leverage on pooling arrangements Availability of the MEL (Minimum Equipment List) items Availability of pooling arrangements 1. To ensure that there are standards in the MEL listings. 2. To check if the MEL listing is reviewed and complied with. 1. To check if there is any CBA carried out for flight kit, own spares, or pooling arrangement. 2. To ensure that the available spares are suitable for the aircraft. Page 23 of 24
3. To ensure that the pooling arrangements are reciprocal. Page 24 of 24