Citilink Case Study PDF
Citilink Case Study PDF
I
n this article I want to share with readers what Citilink has achieved with its
fuel efficiency program. First, though, it will be useful to explain a little about
the airline. Citilink is a low cost carrier in Indonesia operating a fleet of 50
Airbus A320 aircraft. We are particularly proud of the awards that the airline
has gained including a ‘Best Transportation Safety Management Award’ in 2017
from the Indonesian Ministry of Air Transportation; a four star rating from Skytrax
as ‘Best Low Cost Airline in Asia’; and ‘Best Low Cost Carrier in Asia‘ from Trip
2018 ROUTE NETWORK
Advisor. Citilink is also the airline with the best on-time record in Indonesia and
theSCHEDULE
secondFLIGHT
best for on-time performance in Asia. Our scheduled route network
(figure 1) focuses very strongly on the domestic market in Indonesia.
New Route : Additional Frequency :
• CGKBWX • CGKBDJ
• CGKLBJ • CGKJOG
• DJJWMX • SUBBDJ
• CGKPEN • CGKSOC
BANGKOK
• CGKPKY • CGKDPS
• CGKSOC • CGKPLM
BANDA ACEH PENANG
• CGKDMK • CGKKNO
MEDAN
• SUBSRG • CGKPKU
• CGKLOP • CGKPDG
SILANGIT
MANADO
• UPGDPS 2018 ROUTE NETWORK
PEKANBARU BATAM GORONTALO CHARTER FLIGHT
PADANG PONTIANAK
JAMBI
PANGKAL PINANG
PALANGKARAYA
BALIKPAPAN
JAYAPURA
When looking at our fuel
management program, we have made a
TANJUNG PANDAN
BANJARMASIN
PALEMBANG KENDARI
BENGKULU
WAMENA
JAKARTA
SEMARANG
SURABAYA our fleet of 50 A320s completes
100,800 sectors each year with 180,000
BANDUNG SOLO
BANYUWANGI
LABUAN BAJO
YOGYAKARTA
DILI
MALANG DENPASAR
KUPANG
Adding freq 2018
New Route 2018
New Route B735 2018 that every 100 liters of fuel burned
Figure 1: 2018 ROUTE NETWORK — SCHEDULE FLIGHT 21 26 > 500 produces 233kg of CO2, 219g of CH4
Cities Routes Flights
As a result, most of Citilink’s scheduled flights are two to three hours but we also and 23g of NOX.
China : Kunming, Wuxi, Guiyang, Nanjing,
operate charter flights to China, Japan, Malaysia, UAE and within Indonesia Wenzhou, Hon g Kong, Shantou,
In sharing how we have managed to
(figure 2). Changsa, Fuzhou, Wuhan, Xiamen, achieve our fuel efficiency targets in
Chengdu, Nantong, Ningbo,
Changzhou, Dhongsheng Citilink, I’m aware that readers will
Japan : Fukuoka already know how to be efficient but
Malaysia : Kuala Lumpur might well face the same problem that
UAE : Jeddah we faced in Citilink: how to implement
Indonesia : Batam, Manado
efficiency initiatives in the daily
“We have approached that challenge by focusing on how Figure 2: 2018 ROUTE NETWORK — CHARTER operation of the airline and across the
FLIGHTS different areas in the business. We have
cost and efficiency can be driven across four divisions: As far as cost per available seat approached that challenge by focusing
Ground Operations, Maintenance, Flight Operations and kilometer (CASK) goes, Citilink is on how cost and efficiency can be
number two in Asia, a very important driven across four divisions: Ground
Finance.” statistic for me as my job is to Operations, Maintenance, Flight
manage costs. Operations and Finance. (figure 3)
exchange rate. This is not led by the fuel efficiency project manager but by the INTERACTIVE Click here for full product details
appropriate department heads who work with their staff to make it happen.
We also endeavor to achieve an accurate estimate of zero fuel weight (ZFW)
while computing the flight plan. As readers will know, deviation from the zero fuel
weight can add 35 kg of fuel use per hour of flight for every 1 ton of extra weight.
We use big data analytics and the characteristics of Citilink’s routes which has
achieved a big saving of fuel.
One big fuel saver is fuel tankerage policy which is used to optimize the
difference of fuel price between Citilink Indonesia’s stations. The calculation is
made every two weeks with the updated fuel price and already taken with the
factor from the fuel burn per extra weight (1 ton fuel ‘cost’ of 35 kg burn of fuel).
Every airline has a fuel tankerage policy but we know that the tankerage policy is
opposite to the company’s commercial policy because we always have to take into
account the needs of cargo department as to the load. One thing to implement
about fuel tankerage is we have a base calculation for the company plus we
incorporate understanding about our route characteristics. Each place we fly to is
different with different characteristics for passengers and different cargo revenues.
So for every route we can decrease or increase the weighting for the fuel tankerage.
On our busiest routes we are confident to increase the fuel tankerage but on the
routes to smaller cities, we are not confident to increase fuel tankerage.
The achievement responsibility of each department and division not the achievements of each individual in the business and
Up to September 2018, we were just ahead of our project manager. If any problem arises, the each department. You cannot improve what you
fuel saving target which is a saving of 14,000 tons of department can call the staff for training or coaching. don’t measure. Plus the system also helps to engage
fuel for the year and, by September, we had reached Everybody should understand that cost is our enemy. with flight dispatch and pilots as to where they can
12,700 tons with three months still to go. help to reduce fuel consumption, and this has the
Distribution channel balancing potential to drastically improve best practice
KEY STRATEGIES We maintain good and active communications with application rates and increase savings.
These are the five strategies (figure 4) that we have third parties: ground handling, Air Traffic Control and
pursued in order to implement our fuel management other carriers. ARIEF RACHMAN
program and realize our fuel efficiency targets.
KEY SUCCESS Arief joined Citilink Indonesia in 2008 as a
5 STRATEGIES System optimized flight operation specialist. His main role was
1 EXTENSIVE NETWORK 01 SYSTEM
In Citilink, staff income is in two parts, one is salary to set up and develop Ops Control. From
OPTIMIZATION
4 and one is based on performance. So we have 2013 he moved to the new position of
Increase Number Or Frequency
Of Flight On Each Station To 02 Manager Flight Dispatch and was also
Reduce Fuel Price And Optimize
Utilize Data Flight Operation
Quality Assurance (FOQA), established KPIs for employees, including pilots,
Flight Efficient.
03
Manage Fuel Management
which includes elements from the efficiency involved with the project team charged with driving cost
Information Database (CFP).
2 DISCIPLINE SOP efficiency, with the target to develop, initiate and enhance
program and safety related measures. We also utilize
Establish Sop Procedure On Operational 04 an efficiency program and ensure all employees have the
Manual, Checking To Reinforce The Sop, BRAND CULTURE
5 Flight Operations Quality Assurance (FOQA) data knowledge, initiative and culture to drive cost
Top Down Management Support. RECOGNITION
05 Brand Identity, Efficiency Based
and manage the fuel management information effectiveness and efficiencies.
3 DISTRIBUTION CHANNEL database.
Airline – Cost Is Our Enemy, Every
Point Is About Cost, Efficiency Is
BALANCING
Active Communication With Third Party
E.A Ground Handling, Air Traffic
Important Think For Lcc
CITILINK
Controller and Other Carrier Brand Culture recognition Established in 2001, Citilink is a
Figure 4 — Key success, 5 strategies Our brand identity is as an efficiency-based airline low-cost airline based in
Jakarta, Indonesia. The carrier
Extensive network THE SKYBREATHE SYSTEM is a subsidiary of Garuda Indonesia and was set up to
operate shuttle services between Indonesian cities. The
To increase the number and frequency of flights to I’ll close by explaining why we decided we needed to
airline operates a fleet of 50 Airbus A320 aircraft.
each station to reduce the fuel price and optimize have the SkyBreathe system by OpenAirlines. We
the flight efficiency. had already done the things listed above but we still OPENAIRLINES AND SKYBREATHE
had a problem about how to measure the OpenAirlines was founded in
Discipline SOP achievement of each individual member of staff and Toulouse, France, in 2006 to
We make sure that all personnel exercise the department and engage them which is something meet the needs of airlines to
discipline to work according to the SOP. This is the that SkyBreathe can deliver, i.e. we can see the optimize their flight operations and reduce their costs.
Leveraging a team of airline specialists and data
scientists, it offers innovative software solutions.
Capitalizing on its participation in the European Research
Program, Clean Sky, from 2009 to 2014, the company
developed SkyBreathe®, an innovative eco-flying solution
to save fuel and reduce CO2 emissions.
“We have implemented reduced flap landing as normal SOP if the runway
INTERACTIVE GIVE US YOUR OPINION
length is more than 2,500m, this is mandatory. It delivers quieter approaches CLICK HERE TO POST YOUR COMMENT
and, if used on one third of landings, saves 3m liters of fuel each year.” INTERACTIVE SUBSCRIBE HERE
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