The major publication for low-fare and regional airlines, LARA, featured FuelPlus in its recent piece on fuel efficiency platforms (Dec 2017/Jan 2018 issue, pages 37-38).
The article highlighted the fact that by implementing efficiency-saving software, airlines could potentially reduce their fuel bill. It featured commentaries from industry experts, including Klaus-Peter Warnke, CEO of the FuelPlus Group.
Kimberley Levey, author of the article, made the point that to date, “efforts to improve efficiency have been largely focused on the performance of new- technology aircraft” and while that was crucial, “having too narrow a perspective potentially misses the opportunity to improve fuel efficiency through the adoption of software and programmes.”
Such software includes the FuelPlus platform, which helps airlines and fuel suppliers save time and money through the automation of key fuel management activities.
Kimberley points to evidence from IATA, which has come from their work doing fuel assessments for airlines over a ten-year period: “It identified that the average airline has the potential to save 4% of its total fuel budget, and that airlines that have not started an efficiency programme have the opportunity to trim 5% or more of their fuel cost.”
Selected as an industry commentator for the article, Klaus-Peter Warnke highlighted the ability of the FuelPlus platform to save airlines 2–3% of fuel expenses. He said, “To think of it another way, a medium-sized airline would need to sell an extra 300,000 seats in order to achieve this level of cash injection.”
Klaus-Peter also summarised why he felt improving efficiency was particularly important to low-fare and regional operators. He suggested that with rising labor costs, “extra efficiencies can make a real difference to their bottom line” and that it was really about “how these cost efficiencies can translate into future growth for the company.”
WestJet, a Canadian low-fare carrier that uses the FuelPlus software, was also quoted in the LARA piece. Tim Day, WestJet’s Fuel Manager, explained how the FuelPlus platform had helped them: “The automation and analytic capabilities within the FuelPlus application have enabled us to gain a higher degree of financial control on a significantly large fuel expense…We have seen tremendous improvements in the areas of cost accounting, payment processing, fuel supply management, and fuel tender analysis – all achieved with fewer resources.”
Kimberley ends the article with her summary of the situation:
“Innovative new aircraft are important for creating a sustainable operation. However, the increased implementation of fuel management platforms and efficiency software could provide a more regular system to monitor costs and reduce fuel consumption – which builds into savings and could eventually lead to the development of more profitable routes and networks for low-fare and regional carriers.”
If you are interested in this topic, you can read more about the key inefficiencies in an airline’s fuel management process and how to reduce them in our free whitepaper, Revolutionizing the fuel management process for airlines.