Carefully managing your fuel has never been so important
Fuel is one of an airline’s largest expenses so ensuring you buy the right amount at the right price and using it or storing it efficiently, is critical to your profitability. Good fuel management also has a positive environmental impact, because it can increase fuel efficiency and reduce wastage.
Now that the initial phases of CORSIA are underway, the careful monitoring of emissions will become more important than ever, and this too is impossible to achieve without good fuel management systems in place.
In our experience, most airlines understand the value of fuel management and have some form of fuel management process in place, but few airlines are operating as efficiently as they could be in this area. We frequently see airlines struggling with inaccurate or missing fuel data, slow manual processes, or IT systems that aren’t fit-for-purpose. Does this sound like your airline?
These problems can make effective fuel management a real challenge and cost airlines a substantial amount of time and money.
But where there are challenges, we see opportunities. We’ve worked with over 60 airlines to overcome fuel management pitfalls so they can achieve greater efficiencies, streamline operations and reduce their costs. How?
Here are our four essential elements of best-practice fuel management:
1. Consolidate your fuel data into one platform with real time updates
Effective fuel management relies on different business areas in the airline working together to plan, forecast, monitor and analyze the overall fuel demand, supply, consumption and expenditure. To do this teams need access to one centralized and up-to-date repository of flight and fuel data, which includes information from planning, finance and accounts, procurement, audit and compliance, and operations.
2. Automate data collection and routine tasks/communications
Routine manual tasks like data capture, data consolidation and cleansing are resource-intensive, prone to error and not transparent. By automating as many of these tasks as possible, you create more time for activities that add real value.
3. Implement robust, consistent and automated processes
The complexity of an airline’s fuel management process and the number of teams involved, make it difficult to control from beginning to end. Yet airlines must do this to ensure the information they are acting on is accurate, and to ensure they are compliant with internal and external policies.
Fuel management software that has standardized, compliant processes built-in, gives you control over how critical activities (such as invoice payment approval) are performed and by whom. This then allows you to optimize these processes and where possible, automate or semi-automate them for ultimate efficiency.
4. Use the software that best fits your needs
This sounds obvious but far too many times, we’ve seen airlines struggling with legacy systems that aren’t fit-for-purpose, or generic ERP systems that haven’t been built for the unique characteristics of the aviation industry. For more on the benefits of specialized fuel management software, read this blog post.
We’ve built FuelPlus Cloud: the most complete, feature-rich fuel management platform available for airlines. It offers a single source of real-time data for fuel and has powerful applications which automate processes, provide business insights and enable collaboration.Find out more
More effective fuel management could reduce your fuel bill by 2-3%. That’s equivalent to a medium-sized airline selling an extra 300,000 seats. But where do these savings come from and how much could your airline shave off its total fuel bill?Find out more
We are the world’s number one provider of fuel management solutions for airlines and their partners. Over 67 airlines and suppliers, on four continents, use our platform to manage their fuel. This represents around 28% of the total fuel consumed by commercial aviation.Find out more
Different airlines have different needs, which is why our software packages are so flexible. Our aviation fuel management experts can help you find the right solution for you.Find out more