SCRIPT:

So now let’s go the core of this case study. We will now discuss the recommendation
we have formulated in line with the point of view of the Chief Operating Officer and the
stated objective.

So, in order to cater the aforementioned considerations, we would like to recommend a

plan called Aircraft-related Technology Development Program, or ATDP for short. This
program consists of 8 major steps or activities which will be implemented for the next
five years or so.

So, these are the major activities which I will be discussing one by one later on:

1. Retrofitting and upgrade improvements on existing aircraft

2. Avionics (Aviation + Electronics)
3. Reduce fuel usage
4. Training of officers and staff
5. Reduce aircraft weight
6. Retune flight planning system
7. Optimized aircraft maintenance
8. Purchase of a new aircraft

Retrofitting and upgrade improvements on existing aircraft

Retrofitting means modifying the aircraft by adding new technology, such as latest
models of components, to the overall design of the existing or older aircraft. We would
like to call this plan Aircraft Performance Improvement Program. Basically, the
objectives of this course of action are:

 To upgrade the existing aircrafts; and

 To reduce further maintenance cost

What will happen is that the operations team shall identify and select major aircrafts and
retrofit these airplanes by modifying these parts of the vehicle:

 Wing vortex generator

  High speed aileron
 Ram air exit/Inlet door

Take note that this is still a plan and it is possible that during the actual inspection that
there will be additional parts of the aircraft that will also need further modifications

This activity is set to start on January 2004 and is expected to end in January 2008 with
the estimated cost would be US$50 million. So, there will be a US$10 million annual
expense allocated for this plan; and most likely, the stakeholders involved would be
Kingfisher Airlines and, of course, the aircraft’s manufacturers themselves.

Avionics (Aviation + Electronics)

So, for the information of everyone, avionics are the electronic systems used on aircraft,
artificial satellites, and spacecraft. Avionic systems include communications, navigation,
the display and management of multiple systems, and the hundreds of systems that are
fitted to aircraft to perform individual functions. This plan is called Avionics Maintenance
Technology Program and its objectives are:

 To make flight safer

 To provide better and improved services
 To make operations more efficient

So, this plan is heavily relying on avionics technicians since they are trained to remove,
troubleshoot, repair and install aircraft electronic systems, including the associated
wiring and structural mounting of the systems. After repairing avionic systems,
technicians are responsible for performing operational checks of the system to ensure
the system works as designed.

Just like the first action, this is set to start on January of 2004 but this one is expected to
last indefinitely. The expected annual cost of this project is US$5million; so within the
span of years, this program will cost the company a total of US$25 million.

Reduce fuel usage

For the record, studies show that 10%-12% of the operating expenses of an airline
company comes from the fuel alone. Yes, jet fuel is really expensive and at the same
time crucial in the operations of the airlines. In order to reduce the fuel consumption, we
would like to introduce One Engine Taxi. It is a fuel efficiency practice that can be
applied during the taxi-in phase.

What will happen is that there will be a form to be recorded. The pilots are expected to:

1. Add the “One Engine Taxi” record form in Flight Log.

2. Pilot check in record form.
3. Keep record and summary and calculate the reduced fuel from one engine taxi
in.
4. Report to the Flight Operations Control Director.
5. Monitor and evaluate.

Just like the first two courses of action, this is expected to start in January 2004 and
there will be no cost since it is just a practice.

Training of officers and staff

We call the fourth suggested course of action Annual Training. By the name itself, it is
an annual training solely for the officers and staff under the operations department in
order to improve their competence by exposing them further to technological
advancements.

This will be done annually indefinitely, probably every June and the desired date may
vary each year. This activity will cost the company US$10,000 annually; and of course,
the expected stakeholders would be the Kingfisher’s Operation Department staff and
officers.

Retune flight planning system

For this course of action, we would like to introduce to the Kingfisher airlines the N-
Flight Planning, an Innovation Award Winning Aviation Technology Achievement
recipient.
So, the N-Flight Planning software suite is a multi-tiered and fully scalable web-based
flight plan optimization solution that creates the safest and most cost-effective routes for
operations. The acquisition of this software aims to:

 To reduce cost of operations

 To cut IT cost
 Optimize flight plans further

The company is expected to purchase this on January 2005. This will cost them around
US$1 million. This is a product of NAVBLUE company. It is an Airbus company.

Reduce aircraft weight

For the information of everyone, weight reduction is crucial especially during flight
operation. An aircraft is subjected to several stress especially during flights and one of
the heaviest baggage an aircraft can have is water. Therefore, in order to maximize its
operation, we would like reduce the potable water of the aircraft by following the Water
Loading Matrix table. We call this plan Reduce Potable Water.

What will happen is that the airline will simply follow the Water Loading Matrix table.
This is set to happen from June 1 to June 30 in the year 2006. The estimated cost of
this project is US$100,000.

Optimized aircraft maintenance

Second to the last is the optimization of aircraft maintenance through Aircraft Wash.
This course of action aims to:

 To promote more efficient operations of aircrafts

 To optimize the maintenance and reduce further cost
 To reduce fuel consumption

So, aircraft and engine wash can reduce friction and improve fuel efficiency which
results in 0.4% reduction in fuel consumption. Apparently, this is a project designed to
support the maintenance system of the airlines.
This is set to be executed from June 1 to 30 of the year 2007 which will cost the
company around US$100,000.

Purchase of a new aircraft

And last but not the least, after we have executed cost-reducing activities, of course, we
plan to purchase the latest model of aircraft.

So, the airline shall buy a new passenger aircraft, Airbus A350-1000, to replace the old
aircraft A320-200 in the fleet. The latest commercial airplane shall replace the oldest
aircraft and onward. We aim to:

 To improve the services with latest commercial aircrafts

 To replace the old aircraft
 To cater more passengers

This will happen during the mid of 2008. Currently, the price of the aircraft is US$366.5
million. The aircraft is a product of the Airbus Company.

So, this is the timeline of the summary of activities with their corresponding dates and
estimated duration.

And, apparently, the person responsible for the overseeing of the overall operations is
the Chief Operating Officer (COO) and, of course, along with his staff in the department.