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This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization. 1 Snecma Optimizing Airlines Costs Focus on engine maintenance and fuel IATA Airlines Cost Conference 2015 Geneva, August 26-27 This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization. IATA Airlines Cost Conference 2015

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Page 1: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

1

Snecma

Optimizing Airlines CostsFocus on engine maintenance and fuel

IATA Airlines Cost Conference 2015

Geneva, August 26-27

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

IATA Airlines Cost Conference 2015

Page 2: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

AIRLINES ECONOMICS

50+%

DIRECT OPERATING COSTS 2014

IATA Airlines Cost Conference 20152

MaintenanceCosts

FuelCosts

OtherCosts

August 2014 – Fuel price 100$/b

Page 3: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

ENGINE ECONOMICSENGINE RESIDUAL VALUE

IATA Airlines Cost Conference 20153

Data Source: VAS Aero Services, AeroEngines USA, Feb 2013

1 5 10 15 20 25

0

20

40

60

80

100%

Asset value lifecycle (years)

Asse

t va

lue

($)

Whole asset valueEngine value % vs whole asset Engines value

Lessor’s view …

• 15% of new aircraft

• 50% at year 10

• 100% at year 20

85%50% At 15 years

Page 4: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

OPTIMIZING ENGINE COSTS

4 IATA Airlines Cost Conference 2015

A great challenge: finding the best tradeoff

MaintenanceCosts

Engine ResidualValue

EngineEfficiency

Page 5: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

OPTIMIZING ENGINE COSTS

ENGINE HEALTH

MONITORING

FLEET

MANAGEMENT

FLIGHT OPERATIONS

ENHANCEMENT

OTHERS(CONSULTING, SPECIFIC COVERAGE, ETC)

IATA Airlines Cost Conference 20155

Building on engineering and consulting services

Page 6: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

OPTIMIZING ENGINE COSTS

6 IATA Airlines Cost Conference 2015

Engine removal forecast

EGTM retention curves analysis

Comparison with CFM ref.

LRU removal analysis

Reliability analysis

Recommendations for

low utilization

(ACJ/BBJ operations)

Maintenance recommendation

Line SB/AD analysis &

recommendation

Coordination with CSC & EMOS

Shop Visit Management

Workscope customization

ON-WING & IN-SHOP

MANAGEMENT

SPECIFIC

STUDIES

FORECASTING

FLEET MANAGEMENT

Page 7: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

OPTIMIZING ENGINE COSTS

IATA Airlines Cost Conference 20157

EXAMPLE #1: WORKSCOPE CUSTOMIZATION

USM LLP

Savings

Repair &

Exposure

SV Cost

OEM

USM

LLP

build

standard

SB &

Upgrades

Engine

Value

Time On

Wing

Reliability

Cost per

Event

Fuel

Efficiency

Which

factors to

optimize ?

In which

phase of the

engine life

cycle ?

Engine

Residual

Value

Page 8: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

OPTIMIZING ENGINE COSTS

IATA Airlines Cost Conference 20158

EXAMPLE #2: THE DERATED TAKEOFF

En

gin

e M

ain

ten

an

ce

Co

st

Takeoff

Climb

Cruise

Flight Leg

%$

/EF

H

Reduced thrust (%)

1 hour

2 hours

3 hours

0 1 5 10 15 20 25

90%

80%

70%

60%

Page 9: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

OPTIMIZING ENGINE COSTSEGT MARGIN DETERIORATION: IMPACT ON SFC

IATA Airlines Cost Conference 20159

EG

T (

°C)

Engine Flight Cycle

Cockpit Reading

Engine

Restoration

EGT

Margin

Red Line / Operational Limit (OEM)

Actual rate of deterioration is impacted by:

– Thrust rating

– Engine derate

– Average flight leg flown

– Ambient Temperatures

– Environment

Increasing Gas Path

Flow Losses

Increases EGT Margin

Deterioration

Increases Fuel Burn

Page 10: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

1% saving = $420,000 per year for the fleet

REDUCING THE FUEL BILL

8,400 TONS/YEAR PER A/C

$4,200,000/YEAR PER A/C

2,400 KG/HOUR PER A/C

$1,200/HOUR PER A/C

IATA Airlines Cost Conference 201510

*As of 24/08/2015

EXAMPLE: IMPROVING THE SFC

Hypothesis

Page 11: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

15 mof slats missing seal

(span-wise)

15 mmexternal slat

misalignment

8 m² of leading edge slat

paint peel

0.3 mmof skin roughness

over ~50 m² of fuselage

or ~15 m² of wing

~2’ additional taxing time

M0.01flight speed deviation

vs optimum speed (~5 kt)

5 ktadditional head wind

(~9 km/h)

2000 ftdelta flight level

vs optimum altitude

~1’additional holding

time at cruise level0.5 mmincrease in HPC blade

tip clearance

1 mmincrease in HPC

effective CDP seal

clearance

0.3 mmincrease in HPT blade tip

clearance

10 cm² increase in HPT inlet

nozzle area

REDUCING THE FUEL BILL

WINGS & SLATS FLIGHTHPC & HPT

IATA Airlines Cost Conference 201511

1% FUEL BURN DELTA

Page 12: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

GLOBAL COST SAVINGS

IATA Airlines Cost Conference 201512

Global Cost Savings=

Fuel Savings – Implementation Costs – Other Costs Impacts

FuelSavings

ImplementationCosts

Other CostImpacts

FUEL CONSERVATION PROGRAM

Page 13: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

26,300 lb

0

5000

10000

15000

20000

25000

30000

19,725 lbTa

ke

off

th

rus

t (l

b)

GLOBAL COST SAVINGSBEST PRACTICE: DERATED TAKEOFF

IATA Airlines Cost Conference 201513

-25%6,575 lb

FuelCosts

MaintenanceCosts

Page 14: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

GLOBAL COST SAVINGSBEST PRACTICE: PACK OFF AT TAKEOFF

IATA Airlines Cost Conference 201514

MaintenanceCosts

FuelCosts

To improve

performance when

TOGA is used

Pack OFF

at takeoff

To reduce EGT

when reduced

takeoff thrust

Is performed

Page 15: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

GLOBAL COST SAVINGSEXPERTIZE NEEDED

IATA Airlines Cost Conference 201515

Engine

Perf.

Flight

operations

Maint.

costs

Software

Flight

Operations

Eng.

Data

analysis

Fuel

Efficiency

Page 16: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

®

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

SNECMA & SAGEM EXPERTIZE…

IATA Airlines Cost Conference 201516

Engine

Perf.

Flight

operations

Software

Data

analysis

Maint.

costs

Flight

Operations

Eng.

Page 17: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

®

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

EngineFlight

operationsSoftware

Data

analysis Nacelle

… SUPPORT OF SAFRAN COMPANIES

Landing

gear

Wheels

& brakes

Thrust

reverser

IATA Airlines Cost Conference 201517

Page 18: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

®

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

IATA Airlines Cost Conference 201518

Page 19: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

®

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

BE SMART, BE GREEN

READY TO TAKEOFF?

IATA Airlines Cost Conference 201519

Page 20: Optimizing Airlines Costs - · PDF file1 5 10 15 20 25 0 20 40 60 80 100% ... – Engine derate – Average flight leg flown ... at takeoff To reduce EGT when reduced takeoff thrust

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

20

KEY MISSIONS, KEY TECHNOLOGIES, KEY TALENTS

This document and the information contained are the property of Snecma and shall not be copied or disclosed to any third party without Snecma’s prior written authorization.

IATA Airlines Cost Conference 2015