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Financial Benefits of a Single WheelTug system |
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| Per Flight | Per Year | |||
| Fuel | ||||
| Maintenance | ||||
| Carbon Credits | ||||
| Turnaround Benefits | ||||
| Total | ||||
| NPV |
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| Note: While WheelTug is not currently available for any airliner, we are able to offer production slots and pre-sales at this time. |
| Sources and Assumptions | |
| Fuel and Maintenance: |
http://www.southwest.com/investor_relations/fs_quarterly_earnings.html Fourth quarter of 2005 numbers were used to help calculate calculating fuel use for 737s. Fuel use for the other aircraft was based on weight proportions of the various aircraft. A direct relationship was assumed. All fuel and maintenance calculations assume that the APU will be running with WheelTug (and not running with turbine propulsion) and that the jets will need to warm up during the final 5 minutes prior to takeoff. http://www.passur.com/pst/report_app_c.htm This graph shows costs of around $1,750/hr for ground costs. This includes labor, fuel, gate costs etc. For our baseline 737, we assumed fuel use of 20 lbs/minute (from the operations manual) and we assumed that maintenance costs/minute would be equivalent both in the air and on the ground. Built into the maintenance savings are costs associated with tug accidents, dirt and other small debris getting into the engines and cycling of engines speeds through the taxiing exercise. As our cost/minute for fuel and maintenance works out to $540/hour our numbers are conservative. Considering that their ground costs would not include indirect costs like ticketing or gate management, the major costs under consideration are labor, fuel and maintenance. Our fuel and maintenance numbers only use about 31% of this total. Assigning 70% to labor and other captured expenses seems very conservative. This is particularly so because labor is only 50% of all operational costs for an airline like AMR. http://www.airlines.org/econ/d.aspx?nid=5806 Jet fuel prices http://www.bts.gov/programs/airline_information/airline_ontime_statistics/ To determine turnaround times. |
| Emissions and Kyoto: |
http://www.eia.doe.gov/oiaf/1605/factors.html Emissions per gallon of aviation fuel http://www.epa.gov/otaq/regs/nonroad/aviation/r99013.pdf EDMA v. 4.11 FAA, 2003 Kyoto credit prices supplied by Point Carbon (www.pointcarbon.com). |
| Turnaround Savings: |
http://www.bts.gov/press_releases/2004/bts016_04/html/bts016_04.html Used to determine industry revenues per available seat mile (10.75) and costs per available seat mile (11.26). http://www.aa.com/content/images/amrcorp/amrcorp2004ar.pdf page 31 Showed that about 50% of all costs are removable with 'free' additional flights. This is because extra labor, for example, is not required when more flights are squeezed into less time. This works out to a new cost/seat mile of 5.63 and revenues of 10.75 for a profit per new seat mile is 5.12. If you are reducing the operational time for the same number of flights, the calculation is somewhat more complex. You have to determine the cost of labor/minute from the cost of labor/Available Seat Mile (which is 3.9 cents). You can then calculate the number of saved minutes and determine overall savings. |
| Yearly Calculations: | Flights/yr come from the Air Transport Association of America, 2004 Annual Report |
| NPV: |
http://www.aa.com/content/images/amrcorp/amrcorp2004ar.pdf
Shows the expected life of aircraft as 30 years. Used for NPV calculation. As of last check: AMR Bonds are yielding 11%, Southwest are yielding 5% |
| Other: |
Data about individual aircraft came from Aviation Week & Space Technology's Aviation Source
Book 2006. Tug savings were not factored in due to the difficulty estimating tugs/flight. It is estimated that the yearly savings for 767-sized plane are about $50,000. But it is very hard to pin down on a flight by flight basis without knowing more operational data about an airline. Collecting this data on the form to do the calculation was not reasonable considering the relatively small values involved. We were conservative on APU use. We assumed no APU usage if WheelTug was not being used. We used only public information for this tool. Privately gathered information on fuel use, for example, is not disclosed here. This does not capture the importance of WheelTug to Boeing's Automated Airport Initiative. By enabling planes to move without ground vehicle support, the automated airport and its savings becomes realizable. |
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