Use of The Cost Index

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Use of the Cost Index

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Page 2
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Quizz!
PROFIT MARGIN : 22.4 %
Use the right tools
Use them well!
PROFIT MARGIN : 12 %
PROFIT MARGIN : 2.4 %
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What’s New?
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0
1
2
3
4
0,5
1,5
2,5
3,5
4,5
Jun 1994
oct-94
US$ / gallon
Feb 1995
Jun 1995
oct-95
Feb 1996
Jun 1996
What’s New?

oct-96
Feb 1997
Jun 1997
oct-97
5%
Feb 1998 95%

Jun 1998
oct-98
Feb 1999
Jun 1999
oct-99
Feb 2000
Jun 2000
Users of Cost Index
oct-00
Feb 2001
No
Jun 2001
Yes
oct-01
Feb 2002
Jun 2002
oct-02
Feb 2003
Jun 2003
oct-03
Feb 2004
Jun 2004
oct-04
Feb 2005
Jun 2005
Jet Fuel Price
oct-05
Feb 2006
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Jun 2007
oct-07
Feb 2008
Jun 2008
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Feb 2009
Jun 2009
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Feb 2010
Jun 2010
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Feb 2011
Jun 2011
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Feb 2012
Jun 2012
oct-12
Feb 2013
Jun 2013
oct-13
U.S. Gulf Coast Kerosene-Type Jet Fuel Spot Price FOB, US$ per gallon - Source : US energy Information Administration
Feb 2014
Contents
Cost Index: the Basics
Operational Use
Alternative Use
Page 6
Contents
Operational Use
Alternative Use
Page 7
Costs & Profits: Dependence on Speed

Time dependent costs Fixed costs Fuel cost
Variable pay Administration Depends on
Time dependent Fixed salaries - fuel price
maintenance … - fuel flow
…
The faster the cheaper Independent of speed The slower* the cheaper
Page 8 * Above MMR
Costs & Profits: Dependence on Speed

Time dependent costs Fuel cost
ECON Mach
Variable pay Depends on
Time dependent - fuel price
maintenance Optimized - fuel flow
… speed
-
Optimized
Overall Cost
The faster the cheaper The slower* the cheaper

Page 10 * Above MMR
From Costs to ECON Mach

Cost of time 𝑪𝑪𝑪𝑪 𝒐𝒐 𝒕𝒕𝒕𝒕 Cost of fuel
CI =
$ / min of flight 𝑪𝑪𝑪𝑪 𝒐𝒐 𝒇𝒇𝒇𝒇
$ / kg of fuel
FMS
Aircraft
Performance Winds, temperature,
aircraft weight, …
ECON Mach
& vertical flight profile
Page 11 FMS : Flight Management System
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. CI : Cost Index
The Cost index is in kg/min

So it is a FUEL FLOW!!!
$�
𝑪𝑪𝑪𝑪 𝒐𝒐 𝒕𝒕𝒕𝒕 𝒎𝒎𝒎 $ ×𝒌𝒌 𝒌𝒌
CI = = $� = =
𝑪𝑪𝑪𝑪 𝒐𝒐 𝒇𝒇𝒇𝒇 𝒌𝒌 $ ×𝒎𝒎𝒎 𝒎𝒎𝒎

CI =
$ / min of flight 𝑪𝑪𝑪𝑪 𝒐𝒐 𝒇𝒇𝒇𝒇
$ / kg of fuel
Page 12

The Cost index is in kg/min

So it is a FUEL FLOW!!
$�
𝑪𝑪𝑪𝑪 𝒐𝒐 𝒕𝒕𝒕𝒕 𝒎𝒎𝒎 $ ×𝒌𝒌 𝒌𝒌
CI = = $� = =
𝑪𝑪𝑪𝑪 𝒐𝒐 𝒇𝒇𝒇𝒇 𝒌𝒌 $ ×𝒎𝒎𝒎 𝒎𝒎𝒎
CI = 100 kg / min 1 min 100 kg

Page 13

The Cost Index is just a

tool to control
the
• Changing the cost index is not the
right way of selecting a speed. speed of the aircraft.
• Use selected speed!
Page 14
There is no need to
calculate the Cost Index, it
is already provided by
Airbus in the QRH!
Page 15
There is no need to
Airbus in the QRH!
Page 16
There is no need to
Airbus in the QRH!
Not representative of YOUR AIRLINE!

Only enables to fly at Long Range Cruise speed.
Not the best OVERALL COST!
Page 17
Example
CI = = 80
80 $ / min of flight 𝑪𝑪𝑪𝑪 𝒐𝒐 𝒇𝒇𝒇𝒇
1 $ / kg of fuel
CDG
KUL
Page 19
Example
CI = 80 kg/min
LRC ECON MACH

Trip fuel 73 621 kg 74 017 kg
Cost of fuel $ 73 621 $ 74 017
Trip time 12h 38min 12h 31min
Cost of time $ 60 640 $ 60 080
Total cost $ 134 261 $ 134 097
$ - 164
Page 20
Contents
Operational Use
Alternative Use
Page 21
From Cost Index to Optimal Route
Cost Index
Page 23
Flight
profile
• ECON Mach
• Opt FL
Cost Index • Top of Climb
• Top of Descent
Page 24
Optimal
route
Flight • Vertical
profile • Lateral
• ECON Mach
• Opt FL
• Top of Descent
Page 25
Flight Preparation
The Cost Index
defines
the Route Profile
Optimal
route
Flight • Vertical
profile • Lateral
• ECON Mach
• Opt FL
• Top of Descent
Page 26
Flight Preparation
The Cost Index
Most cost efficient routing defines
Optimized flight levels the Route Profile
Optimized routing(1)
High fuel planning accuracy

Improved flight crew confidence
Reduced extra fuel
Reduced fuel consumption
Page 32
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. (1) Routing optimization depends on flight planning provider.
Flight Management
Page 33
Flight Management
The Flight Planning
was based on
Optimal route for overall costs
the Cost Index Reduced/Increased speed will lead to
increased costs
Increased speed could lead to reduced fuel
reserves
If winds change compared to dispatch, adjust

OPT FL but do not change Cost Index
Minimum Fuel is not minimum cost!
Page 34
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. (1) Routing optimization depends on flight planning provider.
Key messages
Page 35
Contents
Operational Use
Alternative Use
Page 36
Alternative use?
𝑪𝑪𝑪𝑪 𝒐𝒐 𝒕𝒕𝒕𝒕
Cost of time CI = Cost of fuel
𝑪𝑪𝑪𝑪 𝒐𝒐 𝒇𝒇𝒇𝒇
ATC time constraints may For some operations, fuel

Cost of delays may not be not be well taken into efficiency may be improved
part of the cost of time account in the cost index without degrading time
concept efficiency
Page 37
Alternative use n°1 : cost index depending on flight phase
CI = 80
CI = 30 CI = 10
Page 39
Alternative use n°1 : cost index depending on flight phase
REASONS
ATC requirements for climb/descent gradients or speeds
Reaching flight levels closer to the optimum faster/sooner
Improved fuel burn with negligible increase in flight time
RULES & CONSTRAINTS

The multiple cost index should be included in flight planning
Specific studies should be performed, taking into account operational specificities
The cost of the acceleration/deceleration should be assessed.
Page 40
Alternative use n°2 : dealing with time constraints
LRC ECON MACH

Total cost $ 134 261 $ 134 097
Departure time 10.00
Trip time 12h 38min 12h 31min
Arrival time 22.38 22.31
Slot constraint Not before 22.35
Holding time 00.00 00.04
New Total cost $ 134 261 $ 134 723
$ + 462
Page 42

Modifying the cost index in Use of the RTA function
flight
Page 43

Modifying the cost index in
flight
HOW?
Flight planning re-computation by OCC
Successive iterations by the flight crew
RULES & CONSTRAINTS

Always check that Dest. EFOB is sufficient
Ensure that the gain is not offset by the non-optimal flight profile and speed
E.g. : cost of pax transfer per class, cost of holdings, …
Cannot be used after the top of descent

Page 44


Modifying the cost index in
flight
Page 45

Use of the RTA function
Required
Time of
Arrival
Page 46

RTA
22:35
CI = 62
80
10.00 22:35
22:31
Page 47

HOW?
Enter the RTA on the MCDU
RULES & CONSTRAINTS

Always check that Destination EFOB* is sufficient
Ensure that the gain is not offset by the non-optimal flight profile and speed
Cannot be used after the top of descent
Page 48 * EFOB : Estimated Fuel On Board

Alternative use?
The cost index should not be changed

For speed control
Because of wind changes
To get lower fuel burns, without extensive studies
The cost index can be changed…

Before departure: to cope with expected delays, constraints…
In Flight: to cope with ATC or airline time constraints

Plan with the expected Cost Index Assess the cost of the change
Page 49
Conclusion
𝑪𝑪𝑪𝑪 𝒐𝒐 𝒕𝒕𝒕𝒕
Cost of time CI = Cost of fuel
𝑪𝑪𝑪𝑪 𝒐𝒐 𝒇𝒇𝒇𝒇
Page 50
Going further…
For more information
Flight Operations Community
customerservices.consulting@airbus.com
Page 51
© Airbus S.A.S. All rights reserved. Confidential and proprietary document. This document and all information contained herein is the sole property of AIRBUS. No intellectual property rights are granted by the delivery of this document or the disclosure of
its content. This document shall not be reproduced or disclosed to a third party without the express written consent of AIRBUS S.A.S. This document and its content shall not be used for any purpose other than that for which it is supplied. The statements
made herein do not constitute an offer. They are based on the mentioned assumptions and are expressed in good faith. Where the supporting grounds for these statements are not shown, AIRBUS S.A.S. will be pleased to explain the basis thereof.
AIRBUS, its logo, A300, A310, A318, A319, A320, A321, A330, A340, A350, A380, A400M are registered trademarks.
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Airbus Customer Services

Use of the Cost Index

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

PROFIT MARGIN : 22.4 %

Use the right tools

Use them well!

PROFIT MARGIN : 2.4 %

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Feb 1998 95%

Cost Index: the Basics

Cost Index: the Basics

Costs & Profits: Dependence on Speed

Costs & Profits: Dependence on Speed

The faster the cheaper The slower* the cheaper

From Costs to ECON Mach

The Cost index is in kg/min

Cost of time 𝑪𝑪𝑪𝑪 𝒐𝒐 𝒕𝒕𝒕𝒕 Cost of fuel

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

The Cost index is in kg/min

CI = 100 kg / min 1 min 100 kg

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

The Cost Index is just a

• Use selected speed!

Not representative of YOUR AIRLINE!

LRC ECON MACH

Cost Index: the Basics

From Cost Index to Optimal Route

From Cost Index to Optimal Route

From Cost Index to Optimal Route

High fuel planning accuracy

If winds change compared to dispatch, adjust

Minimum Fuel is not minimum cost!

Cost Index: the Basics

ATC time constraints may For some operations, fuel

Alternative use n°1 : cost index depending on flight phase

Alternative use n°1 : cost index depending on flight phase

Reaching flight levels closer to the optimum faster/sooner

Improved fuel burn with negligible increase in flight time

RULES & CONSTRAINTS

Specific studies should be performed, taking into account operational specificities

The cost of the acceleration/deceleration should be assessed.

Alternative use n°2 : dealing with time constraints

LRC ECON MACH

Alternative use n°2 : dealing with time constraints

Alternative use n°2 : dealing with time constraints

Successive iterations by the flight crew

RULES & CONSTRAINTS

Cannot be used after the top of descent

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Alternative use n°2 : dealing with time constraints

Alternative use n°2 : dealing with time constraints

Alternative use n°2 : dealing with time constraints

Alternative use n°2 : dealing with time constraints

Enter the RTA on the MCDU

RULES & CONSTRAINTS

Cannot be used after the top of descent

Page 48 * EFOB : Estimated Fuel On Board

The cost index should not be changed

Because of wind changes

To get lower fuel burns, without extensive studies

The cost index can be changed…

In Flight: to cope with ATC or airline time constraints

Flight Operations Community