Fuel Impact
PLAN
Abstract……………………………………………………………..2
Introduction…………………………………………………………2
Impact of fuel on the airline’s operation and management…………3
Risks and opportunities……………………………………………..6
Biofuel’s emergence………………………………………………...9
Conclusion………………………………………………………….10
List of references
Appendix
Abstract
This project is completed in order to analyze the impact of fuel on the airlines. It studies the operational and managerial decisions that follow the slightest waving of the oil prices, indicates opportunities and threats related to fuel usage.
The study reflects how the airlines have succeeded to organize their operations and implement new strategies that let them cut on fuel costs and use it more efficiently.
Various fuel-saving techniques and policies are discussed followed by examples of their application by flag carriers. The project also touches on biofuel emerging the aviation industry and major difficulties that are slowing down its worldwide use.
Introduction
Airline business is known for being extremely sensitive to any global event from weather disasters to economic/political crisis regardless of how remote the airline physical location is.
‘Fuel plays major role in modern airline 's operating costs. Only a company that does strictly monitor its fuel usage and is aware of the costs can stay in business.’( smart4aviation.aero 2012) Today jet fuel accounts for 40% or more of an operating cost of an airline up from historical change of 10% - 15%. Fuel saving enthusiasm drives the managerial decisions of which aircraft to order, cabin interior design and material choice, sometimes even management style. With its ever-changing nature it will always keep its leaders tense and profits unstable. It has immediate impact on well-being of the airline and its profit/loss statements.
‘Airlines are trying other measures as well to deal with higher fuel costs, including raising fares, adding fuel surcharges to tickets and charging extra for a
Abstract……………………………………………………………..2
Introduction…………………………………………………………2
Impact of fuel on the airline’s operation and management…………3
Risks and opportunities……………………………………………..6
Biofuel’s emergence………………………………………………...9
Conclusion………………………………………………………….10
List of references
Appendix
Abstract
This project is completed in order to analyze the impact of fuel on the airlines. It studies the operational and managerial decisions that follow the slightest waving of the oil prices, indicates opportunities and threats related to fuel usage.
The study reflects how the airlines have succeeded to organize their operations and implement new strategies that let them cut on fuel costs and use it more efficiently.
Various fuel-saving techniques and policies are discussed followed by examples of their application by flag carriers. The project also touches on biofuel emerging the aviation industry and major difficulties that are slowing down its worldwide use.
Introduction
Airline business is known for being extremely sensitive to any global event from weather disasters to economic/political crisis regardless of how remote the airline physical location is.
‘Fuel plays major role in modern airline 's operating costs. Only a company that does strictly monitor its fuel usage and is aware of the costs can stay in business.’( smart4aviation.aero 2012) Today jet fuel accounts for 40% or more of an operating cost of an airline up from historical change of 10% - 15%. Fuel saving enthusiasm drives the managerial decisions of which aircraft to order, cabin interior design and material choice, sometimes even management style. With its ever-changing nature it will always keep its leaders tense and profits unstable. It has immediate impact on well-being of the airline and its profit/loss statements.
‘Airlines are trying other measures as well to deal with higher fuel costs, including raising fares, adding fuel surcharges to tickets and charging extra for a
References: Clark, P.(2008) Buying the Big Jets. Ashgate Publishing Limited IATA (2013) Jet Fuel Price Development [online] available from <http://www.iata.org/publications/economics/fuel-monitor/Pages/price-development.aspx> [10 March 2013] Biofuels for Air Travel (2013) Biofuels for Air Travel [online] available from< http://www.biofuelstp.eu/air.html> [27 February 2013] Strahan, D