Evaluation of Intermediate Stop Operations in Long-haul Flights

Abstract

Recent crises - both economic and geopolitical - and the rise of new competitors in the form of low-cost carriers and Middle East carriers have put a heavy strain on the profitability of traditional legacy airlines worldwide. Many airlines are struggling to survive and are looking for ways to cut their operational costs.Continuously increasing fuel prices further contribute to the financial difficulties, and although airlines (and aircraft manufacturers alike) have put a significant effort on reducing the operational fuel consumption, fuel still accounts for approximately 35% of airlines’ operating expenses. Therefore many airlines seek new ways to further reduce the operational costs through improved fuel efficiency.One of the less self-evident methods to potentially significantly reduce the total operational fuel consumption is the introduction of intermediate refueling stops. Previous studies have already shown that operating existing aircraft on a long-haul flight with one or two intermediate stops can lead to potential fuel savings varying from 5% to 25% by reducing the additional fuel burn on long-haul flights referred to as transport loss. On the other hand, the concept of intermediate stop operations will also affect the operational costs through higher landing fees, an increased required maintenance effort, a longer total flight time and different crew costs. As previous studies have not addressed the additional costs or benefits of intermediate stop operations, this study aims to identify the total potential of the concept.For this purpose, a software tool was developed to analyze individual long-haul origin-destination pairs to identify the optimal operation: either direct or including an intermediate stop. Within the tool crew cost, maintenance cost and local fuel prices are determined for simulated flights according to typical operating procedures. A Dijkstra's algorithm then selects the most suitable and cost-efficient airport from a large database if an intermediate stop proves a viable option for the city-pair.A number of case studies has shown that although in all cases intermediate stops proved beneficial to reduce the total fuel burn, reducing the total operating cost depended highly on city-pair specific conditions, mainly the local fuel prices, changed crew-composition and wind direction. Still, the case studies do indicate that the concept of intermediate stop operations may offer significant cost reductions for many typical long-haul flights across the world, and could prove a viable concept to gain a competitive advantage for specific airlines and routes.