e-Jet

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Impact of New Generation Aircraft and Low Cost
Carriers on Airports, Fuelling Supplies and
Services John Pitts
e-Jet International Limited
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Key Issues

• Low Cost Carrier fuel characteristics (ME region)
• Next Generation Aircraft A380, B7E7 recently
  launched
• Overall cost effective fuel provision

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Cost Effectiveness vs.Gold Plating

• Criteria
• Over-Engineering
• Fitness for Purpose
• Cost Effectiveness

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FANTASIA INTERNATIONAL AIRPORT
Fantasia is a small island near Sunset Isle
G.N.P. from sugar cane, cultured pearls and
tourism
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HOPE FOR THE FUTURE

• 1998 government built a new international airport

2 wide-body aircraft leased inclusive holiday
charter flights
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THE HONEYMOON EFFECT
Initially, passenger numbers increased Aviation
Fuel volumes encouraging

• Foreign investment, new hotel resorts,
  infrastructure improvements, health care and
  living standards
• Regional stability cemented
• Good outlook

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THE TRAP SPRINGS

• Aviation Fuel facility was expensive to build,
  extravagant and over budget
• Construction planning and co-ordination were
  poor, many claims on the construction contract

Inefficient and costly to operate System fees
were high, making fuel prices higher than Sunset
Isle
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THE VICIOUS CIRCLE
Airlines started to tanker Fuel volumes became
depressed
Fixed costs had to be apportioned against lower
volumes, system fees became even higher
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THE KNOCK-ON EFFECT

• Air fares increased
• Fantasia no longer an
• inexpensive holiday location
• Passenger numbers decreased
• Fantasia Airlines was forced to
  reduce flight frequencies - one
  aircraft became redundant, but
  was still on lease
• Other airlines reduced frequencies
• Foreign currency spending decreased
• Jobs in the tourist industry were lost
• The economy suffered
• FANTASIA LOST OUT TO SUNSET ISLE

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More Than One Solution
Case A 8 tanks of total storage capacity 800,000
bbl Tank farm main supply by a single
pipeline Back up supply by road tanker receipt
facility
Case B 4 tanks of total storage capacity 300,000
bbl Tank farm main supply by a single pipeline
only
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Construction Costs
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Operational Cost Considerations over Lifecycle
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Comparison of Lifecycle Costs to Users
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Low Cost Carriers - Characteristics

• 2 hour sector maximum typical
• B737 predominant
• Fuel at one end of sector pair only
• 20 minute turn around
• Quick ITP service required redundancy
• Price driven
• Secondary airports 9e.g. Frankfurt Hahn/
  dedicated terminals (e.g. Singapore Changi)

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Middle East Impact

• MenaJet
• Middle East's first no-frills airline
• Sharjah International Airport base
• two 162-seat Airbus A320s
• Southwest Airlines model

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Next Generation Aircraft

• A380
• B7E7
• A340, B777 derivatives
• B737 replacement c 2013 Y1 (120 190 PAX)

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Airbus A380
Specifications A380-800 B747-400
Length (m) 73 70.7
Wingspan (m) 79.8 64.4
MTOW (kg) 548,000 396,000
Range (km) 15,100 13,500
Seats 555 416
Fuel capacity (litre) 330,000 213,000
Service Entry 2006 1989
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Boeing 7E7
Specifications 7E7-3 7E7-8 7E7-9
Length (m) 56 56 62
Wingspan (m) 50.3 51.8 59 59
MTOW (kg) 163,500 205,250 222,400
Range (km) 6,500 15,700 15,400
Seats 300 200 250
Service Entry 2008 2008 2010
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Impact - Other Airports Experience General

• LHR
• GBP 100 million
• T3 4 stands (incl. 2 x 2 MARS) double deck
  boarding bridges, taxiway re-alignment
• T5 5 x A380 stands for 2008 opening, 14 by 2011
• Singapore Airlines, Emirates, Virgin Atlantic
  Airways, Qantas, Qatar Airways, Malaysia Airlines
• Paris - CDG and Orly
• EUR 100 million taxiways, terminal, maintenance
  areas
• Major Middle East impact Dubai, Doha

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Impact - Other Airports Experience Fuel
Facilities at LHR

• Limited impact new fuel farm part of T5
  developments 6 x 10,000 m³ tanks
• 440,000 annual movement limit, currently 420,000
• New large aircraft still small of population (c
  5 )

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Conclusions

• Low Cost Carriers
• Middle East Region next candidate operational
  impacts not facilities
• Cost effectiveness/fitness for purpose even more
  important than ever
• New Generation Aircraft
• Middle East airports major players
• Cost effectiveness/fitness for purpose even more
  important than ever

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