Using data for fuel efficiency at Cebu Pacific - OpenAirlines

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Using data for fuel efficiency at Cebu Pacific - OpenAirlines
28 | CASE STUDY: CEBU PACIFIC | AIRCRAFT IT OPERATIONS | MARCH-APRIL 2017

                           Using data for fuel
                           efficiency at Cebu Pacific
                           Francesc Torres, Director Flight Operations Technical Support & Dispatch at Cebu
                           Pacific and Alexandre Feray, CEO of OpenAirlines explain how a fuel preservation
                           program was implemented at Cebu Pacific
Using data for fuel efficiency at Cebu Pacific - OpenAirlines
MARCH-APRIL 2017 | AIRCRAFT IT OPERATIONS | CASE STUDY: CEBU PACIFIC | 29

“Fuel represents the largest single expense for any
 airline which means that it is very important to work
 at managing and, through that, reducing the volume
 and cost of fuel used.”

I
   N THIS ARTICLE we will cover how Cebu Pacific established its fuel
   program and how it’s not necessary to be a large airline in order to set up
   a successful fuel management program. Fuel represents the largest single
expense for any airline which means that it is very important to work at
managing and, through that, reducing the volume and cost of fuel used.
 Cebu Pacific airline is based in the Philippines and operates long-haul
international flights (including to the Middle East and ETOPS services)
as well as an extensive domestic network. It makes for an often complex
operation. There are currently 60 aircraft in the fleet with another 50 on
order which will take the fleet to about 100 aircraft (mainly Airbus and
ATR types). With some 10,000 flights a month, the airline carries around
20 million passengers a year.
                                                                                 of initiatives?’ They vary from company to company but largely (and this                          The first challenges in all of this were that Cebu Pacific was starting with
FUEL OPTIMIZATION PROGRAM                                                        is our second basic concept) they could be described as the ‘low hanging                          Big Data. So there was the challenge of data availability. A lot of readers will
THE APPROACH                                                                     fruits’; those changes that it will be easier to implement and that everybody                     still operate a lot of manual processes with paper and manual input which,
Cebu Pacific didn’t want to dictate to pilots how they should perform their      in the process will understand so that it’s possible to get momentum into                         when embarking on a fuel management program based on data, poses the
job as far as fuel is concerned; there was no wish to force them to do any of    the program. The problem with things that are very complex and need                               challenge of how to get all of that information into an electronic format and
the procedures required. Rather the airline wanted to change the company         years to implement is that, if they’re the first initiatives in the program,                      how to get it into the system so that it’s possible to analyze what is going
culture to one that is fuel conscious, where everybody understands that          they’ll never be completed.                                                                       on for Operations. There was also the challenge of generating positive
fuel is a limited and costly resource. So, where to start?                                                                                                                         information feedback; establishing KPIs, measuring them, analyzing them
 There was no previous experience of fuel management in Cebu Pacific                                                                                                               and, where necessary, biting the bullet and modifying them if they didn’t
prior to this project nor any experience of ‘Big Data’ but Cebu Pacific is            Fuel Optimization Program                                                                    contribute anything useful to the program or if the information they
growing fast and needed something that would be easy to implement and
quick so that it wouldn’t be necessary to spend multiple years achieving the          Starting with Big Data                                                                       delivered was not really needed.

desired company culture. The first step was to define a road to success, how                                                                                                       CULTURE AND COMMUNICATION
the airline was going to get to the final objective and the first requirement                                                                                                      It’s necessary to look at data objectively: data is not generated to apportion
                                                                                      General Concepts on Initiatives
in that was communication to the operational staff that was continuous,                                                                                                            blame, KPIs are not measured to judge people; the objective is to improve
concise and transparent – easy for everybody to understand from pilots                We strongly believe:                                                                         what we do using real information to view outcomes objectively. In some
to ground staff to management; right across the organization. It was also                Pareto Principle - 20% of the fuel efficiency policies will                              airline cultures, people are sensitive about ‘pointing fingers’ but that should
important to define objectives and KPIs (key performance indicators); to                  produce 80% of the potential savings.                                                    never be the way data and KPIs are used. If that is an issue, it will be necessary
measure them and to evaluate their success openly so that if something was                                                                                                         to first change the company culture so that people see KPIs as a positive
not working, it could be changed. However, to do all that, data was needed,                                                                                                        resource to help them improve the process and perform their job better.
                                                                                                                            Var CI
                                                                                                                            phase
                                                                                         “Low-hanging fruits” first
in pursuit of the end point which would be a company culture where                                                          RNP AR
                                                                                                                                              RNP AR
                                                                                                                                                                                     An important step along the road to success is to get all the big data and

                                                                                                                                                                            2019
everybody was conscious about fuel. It’s a limited resource, it’s not feasible                                                       Opt FL             ?                          all the KPIs, yes, but, as important is how are they displayed, how are they
                                                                                                                                                 ?
to simply burn as much fuel as we might want but, within that, safety and                                                                                                          measured, how is the database built? This is where Cebu Pacific looked
                                                                                                                                      tool

                                                                                                                             2nd tier
efficiency cannot be compromised.                                                                                            EFZW                                                  for a partner to work with them in developing the program and chose

                                                                                                                                                                            2018
                                                                                                                             SOP
                                                                                                                           Monitoring
                                                                                                                                                            Taxi policies
                                                                                                                                                                                   OpenAirlines.
STARTING WITH BIG DATA
                                                                                                                                                                                   HOW OPENAIRLINES’ SKYBREATHE CAME TO HELP
                                                                                                                            PWI
Cebu Pacific’s program is predicated around two basic concepts (figure 1).
                                                                                                                                                       RNP App
                                                                                                                                                                            2017
                                                                                                                                  Var CI         Airports
First is the Pareto principle1 that twenty percent of actions taken will                                                                          policy
                                                                                                                                                                                   COLLECTING DATA
account for eighty percent of outcomes. In this case, it means that twenty                                                                                                         In reality, airlines have, for a long time, been sitting on a mine of data:
                                                                                                                                                                            2016

                                                                                                                              EOTI                 EFZW

percent of fuel efficiency initiatives should account for eighty percent of                                                                                                        their problem is that they are data rich but information poor. However, in
fuel savings which leads to the question, ‘what are those twenty percent         Figure 1                                                                                          order to make good decisions and improve processes and performance,
Using data for fuel efficiency at Cebu Pacific - OpenAirlines
30 | CASE STUDY: CEBU PACIFIC | AIRCRAFT IT OPERATIONS | MARCH-APRIL 2017

companies need information based on data not just opinions based on
experience. The good news is that, with modern technology, advances
in IT technology and so-called big data technology there are now the
means available to exploit all of that data and turn it into information.
OpenAirlines has designed a sophisticated IT system that processes a lot of
data and turns it into information about fuel efficiency. In the case of Cebu
Pacific, the fuel efficiency software had to interface with and integrate data
from seven different sources:
   1. QAR (quick access recorder) data was used extensively;
   2. OFP (operational flight plan);
   3. AOC (airline operation control/center);
   4. ACARS (Aircraft Communications, Addressing and Reporting
      System);
   5. Load sheets;
   6. Fuel prices;
   7. Active Diretory (authentication infrastructure).
This process (figure 2) includes merging the data, cleansing it (there will
often be mistakes in the sources) and, most importantly, interpreting
that data. At Cebu Pacific, the seven different sources generate some
2 gigabytes of data each day so it’s not a simple task to turn those data
into information. Having done that, it’s then important to have a clear
communication of the data and information in order to ensure that                         OpenAirlines’ SkyBreathe                                                                OpenAirlines’ SkyBreathe
decisions are based on correct and correctly understood information.                      Quickly identify the savings                                                            Detailed metrics to improve
      OpenAirlines SkyBreathe
      Automated data consolidation                                                        Quickly identify the savings                                                            Compute detailed metrics to go get the higher hanging fruits

                                                                                             Automatically know where you stand and where you should go                             1000+ metrics computed on each flight
      Automatically transform data into information
                                                                                             Drill-down by AC type, route, airport, etc.                                            100+ predefined reports and unlimited custom reports

                                                                                                                   REDUCED ACCELERATION ALTITUDE

          Merge, check and cleanse data from 7 different sources at CEBU                    IDLE REVERSE THRUST
                                                                                                                                  CONTINUOUS DESCENT APPROACH

            QAR, OFP, AOC, Loadsheets, Fuel price, ACARS, AD                                                                                      PILOT EXTRA FUEL
                                                                                                                    ENGINE OUT TAXI IN

          Runs Big Data algorithms to interpret 100’s of records per second of flight
            Several gigabytes of data processed everyday

Figure 2                                                                                 Figure 3				                                                                 Figure 4   Figure 5				                                  Figure 6

DELIVERING INFORMATION                                                                   Of course, not all fruits are ‘low hanging’. There are also ‘higher hanging             As can be seen, information can be broken down so that, for instance, data
When users log into the software, the first thing it tells them (figure 3 and            fruits’ which are attractive and can deliver real value but which cannot                such as Acceleration Altitude can be recorded for different airports in order
figure 4) is where they can save fuel, what are those ‘low hanging fruits’ that          so easily be reached. In the matter of fuel efficiency, users will need a               to allow the airline to maximize the realizable savings in all situations.
we mentioned earlier. As can be seen, the potential savings are huge. And                software solution to exploit these ‘higher hanging fruits’. For Cebu Pacific,           Users can drill into the information by many different criteria in order to
having seen these automatically generated global figures, users will wish to             the OpenAirlines SkyBreathe solution offers the sophisticated levels                    find where all the savings can be realized. But, if users want to get to the
drill down to see how they apply to each aircraft type in the fleet, to each             of measurement for KPIs and metrics that is required. Figures 5 and 6                   ‘higher hanging fruits’, these types of tools are required.
route, at different airports, etc. to see where specific changes can be focused          illustrate examples of the type of information needed to leverage these
to achieve progress on fuel management.                                                  higher level savings potentials.                                                        BUILDING AN INCLUSIVE CULTURE; SPREADING THE WORD
                                                                                                                                                                                 Coming back to another earlier point, it is so important to build the
                                                                                                                                                                                 right company culture. If the full value of any fuel management program
 “If the full value of any fuel management program is to be realized, there must be a fuel conscious culture throughout the                                                      is to be realized, there must be a fuel conscious culture throughout the
                                                                                                                                                                                 company; maintenance, ground support, flights ops… and, for that to
  company; maintenance, ground support, flights ops… and, for that to be the case, it is important to communicate.”                                                              be the case, it is important to communicate. The software also helps here
                                                                                                                                                                                 because SkyBreathe allows users to build their own custom dashboards
Using data for fuel efficiency at Cebu Pacific - OpenAirlines
MARCH-APRIL 2017 | AIRCRAFT IT OPERATIONS | CASE STUDY: CEBU PACIFIC | 31

with the KPIs they want. There can be dashboards                                                                                          INTERACTIVE Click here for full product details
for maintenance, for flight ops, for everybody; plus            FRANCESC TORRES
the software allows those dashboards to be shared                              Francesc Torres is Director — Flight
easily (on a public or a restricted basis) on the                              Operations Technical Support & Dispatch at
Internet. There’s also an iPad app for pilots that, after                      Cebu Pacific, supporting Flight Operations
each flight, provides a debriefing on each aspect of                      “we requested of Volartec
                                                                               in all related technical matters, including
fuel management during that flight so that pilots                              Fuel, performance, documentation, flight
feel engaged in the process and can apply their own                        that the implementation
                                                                               dispatch, delivery flights. His companywide
professional skills to improve fuel efficiency on later
flights. It’s not to check on them but to give them the                    project should not exceed 30
                                                                               duties include migrating flight operations
                                                                to Data-driven decision making, using Big Data Analysis
information with which they can best do this part of
their job, understand what fuel efficiency is about and
                                                                days, in order not to interfere with our
                                                                tools. Francesc holds degrees, in Aeronautical Engineering
                                                                and in Management and Business Administration.
make progress.                                                  operation.”
                                                                Currently living in the Philippines, he is a Spanish national
  And finally, it’s a good idea to take the culture of fuel     and speaks fluently English, Spanish and Catalan.
consciousness beyond the company even by engaging
with the local ATC (air traffic control) authority.             ALEXANDRE FERAY
Perhaps their approaches are designed well for safety                          Alexandre Feray, the CEO of OpenAirlines,
and for noise minimizing but take little or no account                         has 25 years’ experience in the Software
of fuel efficiency. Again, with the tool, an airline can                       and Airline Industry. He holds an MSc in
create some analyses based on real data which will                             Engineering and IT from École Centrale Paris
make it possible to present facts and figures to the ATC                       and started his career at IBM before joining
authority as the basis for a dialogue; some airlines have                      Alcatel and Air France, where he was the
already done this.                                                             head architect of Air France Operations
                                                                Control Center’s reengineering program and became the
CHALLENGES THAT HAVE INFORMED                                   head of Air France Crew Management IT Department.
THE PROGRAM                                                     In 2006, he founded OpenAirlines, providing consulting
The challenges encountered during Cebu Pacific’s fuel           and software solutions to reduce the costs of airline
efficiency program and from which the airline has               operations.
learned have included:
• CREW CULTURE: for each airline it will be different           CEBU PACIFIC
   but it’s important that the people designing the fuel                                                 Cebu Pacific, is a
   efficiency initiative understand this in order that                                                   Philippine low-cost
   they can evaluate the best way to communicate with                                                    airline based in
   crews and integrate them as active participants into                                                  Manila. It offers
   the program.                                                 scheduled flights to both domestic and international
• ORGANIZATIONAL CHANGE: it’s important to be                   destinations. The fleet is comprised of 48 Airbus (6 A319,
   transparent so that users can see for themselves what        36 A320 and 6 A330) and 9 ATR (8 ATR 72-500 and 1 ATR
   is happening.                                                72-600) aircraft. It is one of the most modern aircraft fleets
• COLLECTING DATA: with so much data to put into                in the world. Between 2016 and 2021, Cebu Pacific will
   the system, so many paper processes to change and            take delivery of 32 brand-new Airbus A320, two Airbus
   the need to ensure accuracy, it does take time; so           A330, and 15 ATR 72-600 aircraft.
   people have to be patient when the system is being
   established.                                                 OPENAIRLINES
• A SPECIAL TEAM FOR THE PROGRAM: don’t just                                                             Leveraging a team
   tag this on to other jobs; make it a role in its own                                                  of airline specialists
   right with a team who understand the challenges, the                                                  and data scientists,
   issues to target, the resources available and how to                                                  OpenAirlines offers
   get the best from the system.                                innovative software solutions to save fuel (SkyBreathe®),
In this way, an airline can get to grips with the issue         manage crews (CrewIntelligence™ and CrewPad™)
of fuel and can also use that program to support staff          and manage the fleet (OptiFleet™). Capitalizing on its
engagement in the good running of the business.                 participation in the European Research Program, Clean Sky,
                                                                from 2009 to 2014, the company developed SkyBreathe®,
FOOTNOTE: 1 The Pareto principle is a principle, named          an innovative eco-flying solution to fuel saving and reduce
after economist Vilfredo Pareto, which specifies an unequal     CO2 emissions. OpenAirlines devotes more than 25% of its
relationship between inputs and outputs. The principle states   turnover to R&D leading to more fuel saving and a better
that 20% of the invested input is responsible for 80% of the    ROI (return on investment) for users.
results obtained. (Investopedia.com)
Using data for fuel efficiency at Cebu Pacific - OpenAirlines
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