Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Connected Planning on the Ground Delivering Fuel Burn Reductions of 2% Kevin Pryor Founder & Joint Managing Director

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Presentation Theme  Introduction to Liberator.aero  Airlines - Challenges & Operating Environment  View from the Cockpit – Standard Initiatives  Smart Use of Simple Technology  Adopt ‘Measure to Manage’ principle  Attitude is everything – Savings or Cost Reductions  Fuel is now ‘Centre of Gravity’ for airlines

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Liberator.aero Formed in 2003 and is owned and managed by airline professionals with in excess of 100 man years experience Based in Dublin with IT expertise in Hyderabad Member of the IATA Strategic Partnership Programme Exhibitor at the recent IATA Ops Forum in MAD Exhibitor at AACO Fuel Conference in CAI

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Airlines with whom we have worked

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 The Challenges for Airlines Economic Downturn and Fluctuating exchange rates. Mergers and company consolidation for survival Managing costs in an ultra competitive market Order delays for new aircraft Extending further use of costly older aircraft Shortage of pilots to match fleet expansion Fuel Spikes – heading for $200 per barrel ?

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Operating Environment Sky high fuel costs – airlines have to re-examine ops processes. Airlines are withdrawing own staff from outstations More airlines moving to centralised load planning Operational efficiency delivers competitive advantage Practical technology can help airlines work smarter and communicate better within their community

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 The View from the Cockpit

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Standard Fuel Burn Reduction Initiatives Air Traffic Management Continuous Descent Single Engine Taxi Weight Reduction.

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 The View from the Ground up

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Aircraft Weight and Balance A source of 2% savings The two are so closely entwined that you seldom hear one without the other - the Yin and the Yang of aircraft performance

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Loading Efficiency – ‘Measure to Manage’ Airlines can do more to reduce fuel burn and costs by paying more attention to aircraft loading for all departing flights. Achieve an optimised initial CG on the ground - Before the aircraft takes off. Measure and highlight performance in weight and balance management from a fuel burn perspective. Target the measurement of ‘below wing’ performance Apply a US$ value to the cost penalties that are identified.

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 The Focus Create awareness of how loading increases costs Express cost penalties in US$ for each departing flight Highlight ground handlers role in Fuel Savings Programme. Include loading efficiency as part of Service Level Agreements Consistently deliver optimised loading Start at home base and roll out to all airports

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Fuel Management Programme Steps  Evaluate and confirm Ideal Trim policy for each aircraft type  Communicate loading policies to the loading community  Monitor loading performance across the network  Identify and fix any performance gaps  Sustain effective loading performance for all flight departures  Adopt a continuous monitoring programme to save fuel and emissions

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Carrying extra weight on board will result in additional fuel burn equivalent to about 4% per hour of the extra weight carried. (Source: Airbus) On a 7 hour flight for every extra 5,000 kg of fuel, it burns 1,300 kg of that fuel just to carry it. (Source: IATA Fuel Book)

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008

Our own extensive research over the last two years has shown us that 66% of flights dispatched with a forward trim resulted in higher fuel burn per block hour.

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 ‘Measure to Manage’ - The Psychology of Change Respect for Pilots on issue of Discretionary Fuel Attitude of accountable business owner is key Requires opening up – ‘stand up and be counted’ Deliver Savings – seen as a threat Deliver Cost Reduction – seen as an opportunity

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 LFI System Performance Monitoring Tool Finance & Budgetary Pilots & Fleet Captains All Bases Flight Planning & Operations Load Planning & Dispatch Executive Management & Departmental Heads Ground Handlers & Outstations Network Air Traffic Management Sales & Marketing Cargo

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Share Progress - keep everyone in the loop. United approach through managing a common threat. Smart use of simple technology will help the team deliver.

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 The Benefits Target fuel cost savings of 2% annually Save 3kg of CO 2 for each1kg of fuel Improved ground handling Increased fuel costs awareness Competitive advantage through enhanced operational efficiency

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 “Keep it simple but focussed. Starting from the ground up, use technology to build a team approach to reducing fuel burn and emissions” The Liberator.aero Recommendation

Efficient Fuel Management in Aviation – Stockholm, September 18/19 th 2008 Thank you for listening folks Any questions are welcomed. You are kindly invited to visit my colleagues Gerard Berry and Mary Grady at the Liberator.aero Exhibition Table over the coming days.