1. ACAC Seminar - Civil Military Coordination Rabat, 15-16 September 2005 Jehad Faqir Director, Safety, Operations & Infrastructure AVIATION FUEL CRISIS Mitigating the Effect

2. FUEL EFFICIENCY  No control over fuel price  No substitute for Jets in near term  Only hope is gains through better fuel efficiency…. ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

3. THREE PRONGED APPROACH  Educate about the cost effect  Engage the whole aviation community  Develop the environmental opportunity ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

4.  Educate the cost effect  Engage the whole aviation community  Develop the environmental opportunity ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

5.  Fuel price sensitivity  What does 1%;  1 minute; or  $1 savings, represent for the industry?  Fuel – 20-25 % of Operations cost  Start Measuring and efficiency curve moves in right direction  No savings too small - Drop by Drop! ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

6. SIMPLE FACTS: Average Cost Per BarrelTotal Airline Annual Fuel Bill USD$ 60 USD$ 70BN USD$ 50 USD$ 60BN USD$ 40 USD$ 45BN USD$30 USD$ 30BN BREAK EVEN POINTCURRENT PRICE 32 47 62.50! USD80 – 100BN! ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

7. MACS Sales Meeting Airline Break Even Point USD$32.00 ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

8. SPECIFIC ACTION  Infrastructure and Route Improvements  The “Fuel Book”  The Fuel Audit Program ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

9. INFRASTRUCTURE IMPROVEMENTS  Route Enhancements targeting over USD$ 1BN in annual savings  Targeted Terminal Area enhancements  Targeted Airport and TMA Re-design  2005 over 2004 target: $700M ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

10. THE “FUEL BOOK”  Industry Best Practices  ‘Self-Check’  By professionals - for professionals  Identifies potential for > 5% average savings  Realistically expect ≈ 2% fuel savings/year…..  ….. >USD$1BN in recurrent annual savings ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

11.  Emphasize the cost effect  Engage the whole aviation community  Develop the environmental opportunity ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

12. SPECIFIC ACTION  “Save One Minute” Campaign  Working with Other Agencies  Training  Fuel Audit Program ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

13. “SAVE ONE MINUTE”  Average air transport flight time is 97 minutes  40 million operations per year = USD $400BN  Saving just ONE MINUTE per flight would potentially save over USD $4BN annually  Realistically targeting USD $1BN+ net annual savings  Targeting all Air Navigation Service Providers ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

14. WORKING WITH OTHER AGENCIES  Focused program engaging major agencies including ICAO, ACI, CANSO, Eurocontrol  Feedback:  Potential for greater collaboration from many ANSPs  Improving responses from ICAO Regional offices  IATA Regional offices playing a major role in engaging the wider community  Hiring of new personnel  Special funding for fuel projects at the regional level ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

15.  Emphasize the cost effect  Engage the whole aviation community  Develop the environmental opportunity ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

16. ENVIRONMENT AND FUEL BURN  1% saving in average annual fuel burn:  100 tonne fuel saving,  $50,000 in cost; and decrease pollutants by:  318.7 tons of CO 2 ;  123.9 tons of H 2 O;  2.112 tons of NO x ;  98 kg of SO 2 ; and  56 kg of CO  CNS/ATM improvements reduce greenhouse gas emissions by 6-12%.  IATA Members to achieve an additional 10% fuel improvement by 2010 ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

17. ENVIRONMENTAL EFFECTIVENESS  2002 cross fleet fuel effectiveness = 4.5 litres per 100 p.km  By 2008 this will be 4.0 l/100 p.km  New aircraft effectiveness is 3.5 l/100 p.km  New aircraft are on average as fuel efficient as modern compact cars – but 6 times faster! ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005

18. HOW CAN YOU HELP?  Encourage FUA  Reduce prohibited areas to minimum  Cooperate with CAAs to expedite implementation of future ATM Help us to help you! ACAC Seminar – Civil/Military Coordination Rabat,15-16 September 2005