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World Financial Symposium 2017World Financial Symposium 2014

World Financial Symposium 27 – 28 September 2017

Convention Center Dublin (CCD) – Ireland


E-Fueling, Making the Industry Even More Competitive

World Financial Symposium 2017


Moderator: Hemant Mistry, Director Global Airport Infrastructure and Fuel, IATAPanelists: Shakti Chopra, Senior Director, Procurement & Fuel Management, Atlas Air Mark Johnson, Partner, Ebits Thorsten Lange, Director Fuel Purchasing, Deutsche Lufthansa AG



Hemant MistryDirector Global Airport Infrastructure and Fuel

IATA


ContractsTenders

FX Rates

Invoices

ACARS

Ops Control

Scheduling

Payments

Suppliers

Budgets

Demand

Risk

Accruals Calculatio

n

Cost Reporting

Emissions

Forecast vs actual

Finance

Procurement

Strategic planning

Reporting

Market data

Operational planning

Operations Monitoring

Ops Planning

Fuel Tickets

Inventory and supply

Fuel management is complex


Standardization• facilitates early adoption of digitalization &• improved processes through adoption of best practices

CommrclSystems

Op Systems

Volume Forecast Reports Tender Inventory Flight &

Fuel Data Tankering

Budget Forecast

Flight Allocation Contract Supply

Chain Emissions Resale

Flight Profile &

Speed

Aircraft design

Maintain Aircraft

Operating procedure

Weight and

balance

Routing

Invoice Verificaton

Accrued Liabilities

Pre-Payment

Credit Notes

Planning Procurement Commercial Ops Technical Ops Finance

CommrclSystems

Op Systems

Commrcl

Systems

Op System

s Flight & Fuel Data

Supply Chain Resale

Flight Profile

&Speed

Aircraft design

Maintain Aircraft

Operating procedure

Weight and balance

Routing

Pre-Payment

Credit Notes

Technical OpsVolume

Forecast

Budget Forecast Commrc

lSystem

s

Op System

s

Digitalization - Enabler

Digitalizing Fuel Process Data


Session details

• Introduction to the Fuel Data Standards Group & the standards

• How to implement and why use standards

• Benefits from an airline perspective


Benefits• Airlines – Accuracy, Efficiency, On-time operations,

Reduce turnaround times, • Suppliers - Accuracy, Efficiency, Improved cash-flow,

Improved services to customers• Employees – Reduced tedious data entry, time to spend

on value added activities


Where can I get more information?Fuel Data Standardshttp://www.iata.org/whatwedo/ops-infra/fuel/Pages/data-standards.aspx

Fuel Data Standards Group http://www.iata.org/whatwedo/workgroups/Pages/fuel-data-standards.aspx

Other inquiries: [email protected]

http://www.iata.org/whatwedo/ops-infra/fuel/Pages/data-standards.aspx

http://www.iata.org/whatwedo/workgroups/Pages/fuel-data-standards.aspx

mailto:[email protected]

World Financial Symposium 20172 October, 2017 FDSG 8

Thank You!


Shakti ChopraSr Director, Procurement & Fuel ManagementAtlas Air

Fuel Data Standards


Aviation Fuel Data Standards Group – Objectives & MandateIdentify and develop the technical data standards and the related

o commonly associated terms, o definitions and o codes,

to facilitate the aviation fuel processes in an efficient and effective manner.Identify digital transformation opportunities and drive industry movement towards

leveraging these.Act as steering committee on fuel digital projects to ensure project completion and

success.

The Group was founded and mandated by the IATA Commercial Fuel Working Group (“CFWG”), and receives business input, guidance and support from the CFG Members.


Aviation Fuel Data Standards GroupFDSG Steering Group• Promote IATA fuel XML standards • Define the value proposition of the

standards• Develop implementation plans• Ensure that implementation efforts

are on track• Approve technical developments

or changes that impact business processes

FDSG Technical Group• Modifications to the standards • Version control• Code directory maintenance• Documentation• Revisions to implementation guide• Provide implementation guidance• Ensure technical alignment of the

standards


Members

Christian Mietz LH

Shakti Chopra Atlas Air

Thorsten Lange LH

Alan Goodman BA

Antioco Piras Air Total

Valerio Ferro Air BP

Tobi Pardo CEPSA

Yulia Selezneva Gazprom-Neft Aero

Olesya Smirnova S7 Group

Ilya Yakimov RN-Aero

Observers

Mark Johnson Ebits

Klaus Peter Warnke FuelPlus

Russell Huth Openlink

Alex Mattos I6

FDSG Steering Group


FDSG Technical Group

Christian Mietz LHHeiko Teerling SkybitsStefan Casapu FuelPlusMark Johnson EbitsAlan Goodman BAAlex Mattos I6Dmitry Makarov Gazprom-NeftAeroRussell Huth Openlink


E-Fuelling holistic data cycle Delivery Data

•Generate uplift data•Transmit uplift data

Invoice•Generate invoice•Transmit invoice•Check invoice

Order & Physical Refuelling•Ordering fuel•Generate ticket•Hand over ticket•Signature

Tender & Long Term Forecast


Implementation by IndustryStandard Airline Supplier Vendor Total

Tender/Bid 4 5 2 11

Pre-Transaction 7 5 6 18

Transaction 60 14 6 80

Invoice 60 38 3 101

Source: Fuel Data Standards Group


What are the issues?

Convincing Management is a

problem – 9%

Business case not strong enough – 11%

Using other standard/Counterparty

not using standard –30%

Not Aware – 50%


• Regional Workshops• Webinars• Enhanced website

Not Aware

• Encourage use of XSL Adapters that transform to/from standard,

Using other standard/Counterparty not

using standard

• Provide testimonials • Publicize business case projections from POC• Demonstrate Use Cases

Business case not strong enough

•Convincing Management is a problem

Action Plan


Workshops

New York - 12 July 2017 Singapore – 30 August 2017

Geneva – 20 October 2016 Moscow – 30 March 2017


E-Fueling Standards


E-Fueling holistic data cycle

Video to follow – IATA FHD and new


Thank you!


Making Savings Using Standards

Shakti ChopraSr. Director Procurement & Fuel Management, Atlas Air

Making Savings Using Standards

Overview

Fuelling Cycle and IATA Standards Coverage Common methods of data interfaces Introducing XML Why we use and the importance of standards How using standards can make cost savings and benefit your

organisation Using data hubs

Fuel Cycle

Ord

er

Short Term Forecast

Delivery Data•generate uplift data•transmit uplift data

Invoice•generate invoice•Transmit invoice•Check invoice

Settle•Initiate payment•Payment advise•Manage receivable

Order & Physical Refueling•ordering fuel•generate ticket•hand over ticket•signature

2 October 2017

Tender & Long Term Forecast

IATA Standard XML - What is XML?

A worldwide standard data format that allows information to be passed between systems:

Benefits:

Identification of data is self explaining unlike other formats such as CSV

Enforce Rules e.g. mandatory information and lengths Not just aviation Widely used and easy to integrate

CSV Sample

AIR,Airline Refueller,LTN,344811,AA5464,JUYTT,0,744,LAX,LAX,CAIR,Airline Refueller,LTN,344571,BA145,HUYGG,0,737,CDG,CDG,CAIR,Airline Refueller,LTN,415674,EZY454,IJKJH,0,320,GVA,GVA,CAIR,Airline Refueller,LTN,145677,VS4478,UGGGF,0,321,BCN,LIS,CAIR,Airline Refueller,LTN,157988,SK445,RTGFG,0,737,STN,STN,C

Not clear what each field indicates (without referring to

external specification

Not possible to create hierarchical groups

Cannot enforce mandatory fields, data lengths and restrictions

Exchanging Data (Proprietary Methods)

$$$$ Company A

(CSV A)

Company B

(CSV B)

Company C

(TAB A)

Company D

(IATA A)

CSV ACSV BTAB AIATA ACSV A CSV B

TAB A IATA A

Each implementation:- Can take 6-9 months to implement- Scoping and setting up Project etc- Bespoke documentation for specific requirement- Development- Testing- Increased Maintenance costs for bespoke

implementation

IATA Sample

<Header><IntoPlaneCode>AIR</IntoPlaneCode><IntoPlaneName>Airline Refueller</IntoPlaneName><AirportCode>JFK</AirportCode><TicketNumber TicketType="O" TicketSource="M" TicketStatus="P">344811</TicketNumber><UniqueTicketID>JFK_0_TO_O_1476883</UniqueTicketID><TransactionDate>2015-10-08T06:30:00+01:00</TransactionDate>

</Header><FlightInformation>

<AirlineFlightID>AA5464</AirlineFlightID><AircraftIdentification>JUYTT</AircraftIdentification><InternationalFlight>0</InternationalFlight><TicketReferenceValue TicketReferenceValueType="AC">744</TicketReferenceValue><TicketReferenceValue TicketReferenceValueType="NDT">LAX</TicketReferenceValue><TicketReferenceValue TicketReferenceValueType="FDT">LAX</TicketReferenceValue><FlightType FlightServiceType="S">C</FlightType>

</FlightInformation>

Mandatory Data

Limit Number of Characters

Self Descriptive Names

Group and Repeat Information

IATA Sample

<MovementInformation Direction="TO"><Plant>LTN</Plant><StorageLocation>LTN</StorageLocation><Equipment>

<FuelingEquipmentID>8775</FuelingEquipmentID><FuelingType>REF</FuelingType><AverageFuelTemperature TUOM="C">15.0</AverageFuelTemperature><DensityInformation DensityType="MEA"><Density DensityUOM="KGM">800.00</Density>

<Temperature TUOM="C">15.0</Temperature></DensityInformation><MeterReading MeterID=“15478">

<MeterReadingStart>25002511</MeterReadingStart><MeterReadingEnd>25008561</MeterReadingEnd><MeterQuantityDelivered MQDUOM="LT">6050</MeterQuantityDelivered>

</MeterReading><MeterReading MeterID=“15479">

<MeterReadingStart>10001000</MeterReadingStart><MeterReadingEnd>10003500</MeterReadingEnd><MeterQuantityDelivered MQDUOM="LT">2500</MeterQuantityDelivered>

</MeterReading></Equipment><TotalQuantity TQDFlag="GR" TQDUOM="LT">38000</TotalQuantity><TotalQuantity TQDFlag="NT" TQDUOM="LT">37801.0000</TotalQuantity>

</MovementInformation>

Group and Repeat Meter Information as

many times as required

Self Descriptive Names

Limit Values entered into fields

Mandatory Data

Exchanging Data (Using a Standard)

$ $ $ $

Company A

(IATA XML)

Company B

(IATA XML)

Company C

(IATA XML)

Company D

(IATA XML)

Each implementation:- Minimal time to implement (within days)- Partner testing maybe required- May require minor data adjustments- Maintenance costs reduced for common interface

Network of Standards

IATAIATAIATAIATAIATAIATAIATAIATA

IATA

IATA

IATA

IATA

IATA

IATA

IATAIATAIATAIATAIATA

Business Scenario – Office Tools

Use conversion tool to convert from Excel to XML

Use conversion tool to convert back to Excel from XML

EMAIL

• Requirements ◦ • Access to Microsoft Office and XML

converter tool ◦ • Email account to send and receive XML

documents

• Area of Application ◦ • Small operations

• Use case ◦ • User: Produce business document using provided

Excel template ◦ • User: Convert Excel business document to XML

using converter tool ◦ • User: Send XML business document via email to

business partner ◦ • User: Receive XML business document via email ◦ • User: Convert XML business document to Excel

using converter tool ◦ • User: Process Excel business document

Business Scenario – Back Office Integration

• Requirements ◦ • Backoffice IT systems are enabled to process IATA XML messages ◦ • Data connections are established individually with each business partner

• Use case ◦ • Backoffice IT system: Produce XML business document ◦ • Backoffice IT system: Send XML business document via established data connection to business partner ◦ • Backoffice IT system: Receive XML business document ◦ • Backoffice IT system: Process XML business document

• Area of Application ◦ • Medium to large operations

Business Scenario – Data Hub

• Requirements ◦ • Backoffice IT systems are enabled to process electronic messages ◦ • Data connection is established with Data Hub

• Use case ◦ • Backoffice IT system: Produce electronic business document ◦ • Backoffice IT system: Send electronic business document to Data Hub ◦ • Data Hub: Convert electronic business document to XML business document ◦ • Data Hub: Forward XML business document to business partner ◦ • Backoffice IT system: Receive XML business document ◦ • Backoffice IT system: Process XML business document

• Area of Application ◦ • Small to large operations

%$>

IATAX!@

X!@

X!@IATA

IATA

Communicating through a Hub e.g. Post Office

Post Office

IATA

Offers benefit of translation

service!

IATA

Connecting it all together through a Data Hub

Airlines

Airports, Airport Systems and Suppliers

%$

)(%

DATA HUB

)(%

A B C D E

1 2 3 4

DATA HUB

IATA Pre-fuel

Pre-Fuel Standard – Whole Cycle

Start Fuelling

Status Updates\Fuelling

MilestonesFuelling

Complete

ConfirmOrder

Order Received Approve

ProduceDigital Ticket

iPad App or ACARS

IATA Pre-fuel

Why a Standard?

Saving Costs◦ No time spent developing format◦ Develop interface once and re-use again and again◦ Easier to maintain single interface rather than many

Easier Interfacing with wider community Generates Transparency Greatly increases speed of implementation Greater support from parties that have already implemented Implementation◦ Start with subsection of standards and start to build◦ Support from other parties that have previously implemented


“E-Fueling” – Making the Industry Even More Competitive

Thorsten LangeDirector Fuel Purchasing, Lufthansa

Corporate Fuel Management

“E-Fueling” – Making the Industry Even More Competitive

World Financial Symposium, DublinHAM MT, Lufthansa Corporate Fuel ManagementSeptember 28th 2017

Our Mission: Saving money – fine, but where ?

Airline-Industry profit forecast2017

31,5 bn USD

Fuel Bill based on avg USD/to 550USD 220 bn

#Flights 201737,5 mn

Profit/FlightUSD 840

Fuelcost/Flight USD 5.866



Reducing fuel cost by 5%

Fuelcost/Flight USD 5.866

Savings/flight USD 293 Total savings 11 bn

But: Lack of Investments in infrastrutcure, HSSE and expertise will follow !!


Standardizationby definition is the process of implementing and developing technical

standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and

governments.

Standardizationcan help to maximize compatibility, interoperability, safety,

repeatability ...

Our Mission: Saving money – through Standardization


Typos are thepain of ourtoday's lifes.

The Human Factor


+

+

=

= 5,2 ?

7,0 ?

The Communication-Case


A typical week in Lufthansa

FROM_DATE TO_DATE DEPARTURE NFF CUST NOFUEL EVT ANTEIL

------------------ ------------------ --------- --------- --------- ---------- ---------- ----------07-MAR-17 13-MAR-17 AMS YES DLH 35 66 .5307-MAR-17 13-MAR-17 ARN EWG 6 18 .33307-MAR-17 13-MAR-17 BEG DLH 8 23 .34807-MAR-17 13-MAR-17 BHX DLH 22 40 .5507-MAR-17 13-MAR-17 BHX EWG 11 17 .64707-MAR-17 13-MAR-17 BIO DLH 4 30 .13307-MAR-17 13-MAR-17 BLQ YES DLH 23 25 .9207-MAR-17 13-MAR-17 BRE YES DLH 48 61 .78707-MAR-17 13-MAR-17 BUD YES SWR 2 16 .12507-MAR-17 13-MAR-17 BUD YES DLH 33 51 .64707-MAR-17 13-MAR-17 BUD YES EWG 24 27 .88907-MAR-17 13-MAR-17 CDG YES DLH 29 70 .41407-MAR-17 13-MAR-17 CDG YES EWG 17 38 .44707-MAR-17 13-MAR-17 DRS YES DLH 34 57 .59607-MAR-17 13-MAR-17 DRS YES EWG 27 35 .77107-MAR-17 13-MAR-17 DTM EWG 9 19 .47407-MAR-17 13-MAR-17 DUB DLH 4 24 .16707-MAR-17 13-MAR-17 DUS YES SWR 2 16 .12507-MAR-17 13-MAR-17 DUS YES DLH 22 106 .20807-MAR-17 13-MAR-17 FMO YES DLH 6 50 .1207-MAR-17 13-MAR-17 GRZ DLH 21 25 .8407-MAR-17 13-MAR-17 GVA YES SWR 34 197 .17307-MAR-17 13-MAR-17 GVA YES DLH 22 42 .52407-MAR-17 13-MAR-17 GVA YES EWG 16 19 .84207-MAR-17 13-MAR-17 HAJ YES DLH 29 73 .39707-MAR-17 13-MAR-17 HAM YES DLH 37 164 .22607-MAR-17 13-MAR-17 KBP DLH 11 24 .458


Refueling-Process

Time to pump fuel into aircraft depends on the uplift-quantity – it is determined.

Fuel-Start depends on how soon the fuel-order gets to the Into-Planer.

Fuel-End depends on how soon the Into-Planer gets the signature on the delivery slip. TIME TO

PUMPFUEL

ORDER

PRINT&

ACK.


Facts Fuel Invoicing (2016)

• 4 Bill. € invoice-volume

• 24,000 invoices

• Over 8,000 invoices with separate, manual checks

• Check and correction of over 8,000 items for ETS (Emission) – with

zero fault tolerance (500 T€ fine in case of wrong declarations)

• Delivery of posting data for 6 customers

• Support & conducting of month- & year-end-closing

• Shoring of processes established – close collaboration with MEX &

MNL & KRK



The IATA Fuel Working Group has established a four-pillar strategy

• Tender-Automation

• Pre-Transaction-Standards

• Transaction Standards

• Fuel XML-Invoicing

Forecast• Short Term• Long Term

Order & physical refueling•ordering fuel•generate ticket•hand over ticket•signature


Standardizationby definition is the process of implementing and developing technical

standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments.

Standardizationcan help to maximize compatibility, interoperability, safety, repeatability ...



• Tender-Automation


E-Tender – No Misunderstandings – more Efficiency




• Pre-Transaction-Standards

• Transaction Standards

Why ?


Our Mission: Saving money – through cost avoidance

*Produced by University of Westminster for PRU, EUROCONTROL 109 pax / 160 USD – 334 USD

Passenger hard costs of delay per minute, by three cost scenarios*


Our Mission: Saving money – through cost avoidance

*Produced by University of Westminster for PRU, EUROCONTROL 109 pax / 40 USD – 196 USD

Passenger soft costs of delay per minute, by three cost scenarios*



Profit/FlightUSD 840

Delay Cost (15 min.):

Hard 334 USDSoft 196 USD

Total cost 530 USD

Potentially 63% of net profits eaten up by delays


BOARDINGDE-BOARDING

Refueling-Process

ARRIVAL

ON-BLOCK

GROUND - TIME DEPARTURE

OFF-BLOCK

Time to pump fuel into aircraft depends on the uplift-quantity – it is determined.

Fuel-Start depends on how soon the fuel-order gets to the Into-Planer.

Fuel-End depends on how soon the Into-Planer gets the signature on the delivery slip. TIME TO

PUMPFUEL

ORDER

PRINT&

ACK.

TIME TO PUMP

FUEL ORDER

PRINT & ACK.

TIME TO PUMP

FUEL ORDER

PRINT & ACK.

TIME TO PUMP

FUEL ORDER

PRINT & ACK.

Solution: Save time during pre- and post-fueling process.


Refueling Process / Systems Communication

Data Link Ground Dispo-SystemInto Plane Agent

Fuel Data Hub

Skybits, i6, Ebits…..

Fuel OrderPilot‘s-Entryin Cockpit

Briefing

Fuel Ordermanual EntryRamp-Agent

Fuel OrderPilot‘s-Entryin Cockpit

Delivery Slip eTicket

ReceiptReceipt

Fuel OrderDelivery SlipeTicket

Fuel OrderFuel OrderPilot‘s-Entryat Briefing

LH*WaB

FuelMilestones

FuelMilestones

Ops Control Center

ALLEGRO Services

FuelMilestones


Refueling Process / Aircraft Communication

GROUND CLIMB EN-ROUTE APPROACH GROUND

TAKE-OFF T O C T O D TOUCH DOWN

ENGINES'SHUTDOWN

REFUELLING

UPLIFT-Report

ETIC

PROGRESS • Destination Change• ETA-22 Min / FL 170• ETA-18 Min / FL 140• ETA-7 Min

FLIGHT LOGORDER


No-Fuel-Indication

Block-Fuel-Quantity> Enough for flight A to B only?

> Enough for flights A to B and B to C?

YES => Info to Into-Planer in B that probably

no refuel-service is required.

On-Board-Quantity via ACARS> Still enough for flight B to C?

> YES => Confirmation to Into-Planer in B that

no refuel-service is required.

> NO => Info to Into-Planer in B that some

refuel-service is required.

GROUND

Airport ARefueling for

Flight A to B

CLIMB

TAKE-OFF

T O C

EN-ROUTE APPROACH / LANDING

T O D

Airport BRefueling for

Flight B to C

GROUND

LANDING


Benefits for Service-Provider

normal peaksoften peak

pre work

no refuelingNo refueling required

Optimized planning and workload for the Intoplane dispatch center- improved Aircraft / Truck-Type matching, due to shorter „post-fueling“ time- remaining volumes in trucks and tank farm reloadings are optimized

More reliable information for operational peaks during the day

- de-peaking, e. g. pre-fueling for long-haul-aircraft, and consideration of No-Uplift-events

- easier priorization

- more flexibility for already delayed aircraft and "rescue" of the slot- improved operation grade of trucks and staff


Traditional Electronic08:27 aircraft arrives on block at Gate A1208:30 Min. Block Fuel received08:32 Truck No. 208 arrives at aircraft08:39 Ready for Fuelling Fuel flow starts08:40 Final Block Fuel received

08:48 Fuel verbally orderedFuel flow starts

08:52 Fuelling finished and eTicket generated

08:53 Acknowledgement

09:00 Truck leaves A/C

09:01 Fuelling finished andDelivery Slip generated 25%

Time-Savings /Buffers

09:03 Signature received

09:11 Truck leaves A/C

LH4812 FRA – MAD / 9.230 LT

decrease of fuel-related delaysAMS 2% of flights were fuel-dalayed > 15 minutes

problem disappeared at the day of implementation

NFI (No Fuel Indicator)sent during aircraft's approach saves Lufthansa 0,5 Mio

€ / year (avoidance of truck in vain)

rise of data qualityreduction of typos improves data quality in down-

stream systems and processes, e. g. automized

invoice-checking or emissions-trade

transparency increasesprocess-analyzis and ervice-level-agreements

Time is money

Thank you for your attention!

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