RUNNING HEAD: MANAGING FUEL EFFICIENCY IN AVIATION Managing Fuel Efficiency in Aviation Kenji Gailey MGMT 203: Management for Aeronautical Science Embry-Riddle Aeronautical University Instructor: John Carmen 07/12/2016 1 MANAGING FUEL EFFICIENCY IN AVIATION 2 Managing Fuel Efficiency in Aviation The unanticipated spiraling fuel costs in the first half of 2008 caused 25 airlines to declare bankruptcy or cease operations due to an inability to reconcile their balance sheets. Approximately “every dollar increase in crude oil translates to 1.6 billion dollars … in additional costs to the aviation industry” (AFP, 2008). Fuel is decidedly the single largest variable cost that a commercial airline company will encounter during operations. The management of fuel efficiency and subsequent limitation of financial risk will be a significant factor for the future success or failure for airline businesses worldwide. Despite widespread information for best practices in fuel efficiency there is a still a large disparity between the most and least fuel efficient airlines. The International Council on Clean Transportation (ICCT) has found that the disparity was as high as 51% for transatlantic and 25% for domestic US operations (ICCT, . was Experts believe that the driving factors As of June 2016, oil prices are down 36% from their July 2008 peak (U.S Energy Information). Regardless, the price of jet fuel when indexed from the year 2000 to 2015 is on average 220% higher than the originating price. Paragraph 2 Paragraph 3 Paragraph 4 Paragraph 5 Paragraph 6 Paragraph 7 MANAGING FUEL EFFICIENCY IN AVIATION Paragraph 8 Paragraph 9 Paragraph 10: conclusion: What did you write about? 3 MANAGING FUEL EFFICIENCY IN AVIATION 4 References AFP. (2008, July 08). More airlines fold as fuel prices soar: IATA. Retrieved July 24, 2016, from asiaonenews:http://news.asiaone.com/News/Latest+News/Business/Story/A1Story2008070875407.html Kwan, I, & and Daniel Rutherford. TRANSATLANTIC AIRLINE FUEL EFFICIENCY RANKING, 2014. 1st ed. The International Council on Clean Transportation, 2016. Web. 6 Aug. 2016. ICCT. (2015, November). More airlines fold as fuel prices soar: IATA. Retrieved July 24, 2016, from asiaonenews:http://news.asiaone.com/News/Latest+News/Business/Story/A1Story2008070875407.html U.S Energy Information Administration (EIA). (2016). [Interactive graph and data table showing monthly prices from 1987 to 2016 for Europe Brent Spot Price FOB] Europe Brent Spot Price FOB. Retrieved from https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RBRTE&f=M MANAGING FUEL EFFICIENCY IN AVIATION 5
