Are you aware of the impact of fuel loss, or how to measure and manage it?
Achieving profitability in the airline industry is challenging: competition, regulations, organized labor, fuel prices and maintenance are all factors. In addition to these challenges, the industry has languished in poor methods and standards for controlling jet fuel losses, which has been amplified by poor stewardship of fuel contractors.
Trindent brings an approach to eliminating fuel loss by implementing operational and financial controls in a sustainable manner. Our consultants focus on the point of execution, from the storage tanks at off-airport locations to into-plane fueling. We recognize deficiencies immediately whether they are process related (enhancing accounting reconciliations) or behavior related ( tank level and temperature gauging procedures compliant with API/ASTM). We assess your accounting and physical reconciliation process looking for gaps preventing a rigorous, comprehensive daily accounting of all owned fuel.
Our process-based Fuel Management Improvement approach is unique in this industry and has created considerable value for some of the world’s leading airlines through:
- Fuel Management
Learn more about our previous work in Fuel Management.
HOW WE MAKE IT HAPPEN™
• Improve process and management system to prevent significant gain/loss at custody transfer points
• Revise measurement procedures to align with best practices and guidelines (API, ASTM, AFA)
• Establish / Redesign escalation and claims procedures for receipt movements
• Re-conciliate out-of-tolerance measurements and settlement tools
• Redesign accounting reconciliation process to increase financial accuracy and management
Airline Fuel Management
The fuel committee of a consortium of airlines operating at a major US airport with over 2,000 departures daily, engaged Trindent to evaluate the airport’s fuel management practices due to significant inventory write-downs caused by both physical and accounting losses. Trindent delivered 81% increase in error detection rate and $1,100,000 in annualized savings.