“New Metric for Fuel Efficiency”
In a bylined piece in the June 29, 2009 issue of Aviation Week & Space Technology, Booz & Company Partners Eric Kronenberg and Andrew Tipping and Associate Justin White (North America) wrote that airlines facing a challenging future of higher, more volatile jet fuel prices can improve competitiveness and viability by optimizing fuel consumption. For better or worse, the Booz & Company authors added, permanently higher oil prices will force the airline industry to reevaluate much about how it does business, how it creates a sustainable competitive advantage, and how it measures and prioritizes decision-making. “The good news is airlines still have the power to shape their destinies,” they write. “By taking a data-driven look at their business models, focusing on and measuring their largest operating expense—fuel—and challenging assumptions around the status quo, senior management will be equipped with the analysis needed to be innovative and decisive.”