Fuel Efficiency Program Development and Implementation
IATA has been closely supporting the airline industry to identify and implement operational solutions and savings to reduce CO2 emissions and increase fuel efficiency. Since its initial launch, the program helped the industry to identify more than 15 million tonnes of CO2 annual emissions reduction equivalent to USD $3.8 billion annually.
The whole new IATA Fuel Efficiency Program is built upon four operational phases being further supplemented by three
financial control initiatives (pdf) to provide a holistic approach to fuel management. The four operational phases follow the line of the Define-Measure-Analyze-Improve-Control (pdf) (DMAIC) Process, based on Lean Six Sigma managerial concept.
Phase One - Establish Baseline
As a first step IATA’s subject matter experts review all operational areas, including but not limited to flight dispatch, flight operations, maintenance & engineering, commercial and ground operations and try to identify gaps between airline’s current procedures and industry’s best practices. Upon their findings IATA experts establish preliminary savings targets and produce a high level Business Case.
Phase Two - Establish Fuel Program
With potential savings opportunities identified, IATA engages the airline’s executive management to define a corporate fuel process, establish a fuel team within the organization and to help select the program methodology.
Phase Three - Plan Implementation
This phase is designed to help managing the change, establish a fuel baseline and prioritize initiatives based on a benefit-effort analysis. A product of this phase is the implementation plan that will guide the airline through the next activities.
Phase Four - Manage Implementation
Managing the implementation means to define the relevant KPIs and OPMs, identify data requirements and sources as part of a self-sustainable process. In this phase quick win results are also tracked and company policies and procedures adjusted accordingly.