THE EFFECTS OF REDUCING AIRCRAFT WEIGHT ON PROFITABILITY AND FUEL CONSUMPTION

Abstract

This paper represents an estimation of the annual profits generated by minimizing fuel burn during a flight by reducing the amount of weight carried prior the departure of an aircraft. Operational costs are one of the main factors affecting profitability in any aviation industry thus, it is vital to find a strategy to reduce such cost. One of the factors increasing operational costs is fuel consumption which is mainly triggered by weight carried during a flight. This study improves the fuel efficient of an aircraft through reducing baggage weight carried by passengers. The weight carried by an aircraft must be frequently managed and monitored. An equation taken from Flynas airlines will be used to determine the number of annual profits generated from an aircraft’s weight reduction and its effects on fuel consumption. A new baggage policy will be suggested and tested then a new pricing strategy for flight tickets will be implemented in order to support the changes in the new baggage policy. A numerical and an analytical study will be conducted to Flynas airlines, the leading low-cost carrier of the kingdom of Saudi Arabia. A mixed method approach will also be followed including an in-depth investigation and observation of the airline. The result demonstrated proposed strategy can increase the annual profits about 90 million riyals and 14 million riyals for the economy-extra light category and business class respectively