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The importance of ETS Strategies for Airlines
 

The importance of ETS Strategies for Airlines

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    The importance of ETS Strategies for Airlines The importance of ETS Strategies for Airlines Presentation Transcript

    • European Emission Trading Scheme (EU-ETS). The importance of an integrated ETS-Strategy. Aviation Experts Premium Consulting Services Moscow, 10th February 2010
    • Agenda Introduction of Aviation Experts What is an ETS Strategy? Why do Airlines need an ETS Strategy? How to setup an ETS Strategy 2 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Aviation Experts. Premium Consulting Services dedicated to the Aviation Industry. To help leading-edge aviation businesses gain lasting operational, strategic and competitive advantage through a Our Mission combination of innovative thinking, clear analysis, and practical creativity With our pure dedication to the aviation industry and our long- Our Focus standing experience in the area, we have built our practice on logical and practical leadership, and has helped change the way many of our clients approach & engage in competition Aviation Experts was founded in 2009 by Benjamin Walther & Our History Christian Lambertus. After one year our team of consultants, all graduated with a proven track record in the industry is steadily growing. As Aviation Experts we want to become a leader in process, Our Goal strategy and IT consulting in the aviation industry. 3 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Strategy – IT – Process. Our service offerings to support you. Service Offerings Consulting Modules Strategy Customization of Governance Business Case Strategy Evaluation and Product- & Structures Modelling Optimization Service Portfolios Requirements Software Test- & Quality Project IT Management Development Management Migration Management Process Process Process Process Process Analysis Standardization Optimization Automization 4 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • We are talking your language and understand your processes. Airlines Airports MRO Provider Service Provider Collaborative Decision Operations Control Performance Optimization Ground Handling Making Arrival / Departure Production Planning & Hub Management Catering Management Control Material & Components Baggage Management Airport Operations Air Traffic Control Management Check In Baggage Management Flight Scheduling Resource Management Network Planning Airport Management 5 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • We support airlines in all areas of the Emission Trading Scheme. Monitoring Plan Strategy Initial preparation of MP. Development of Customization of MP. ETS-Strategies. Quality Assurance. Reduction of financial impact. Reporting IT Support • Complete preparation Development & of annual required Integration of ETS Emission Reports. IT-Systems. 6 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Agenda Introduction of Aviation Experts What is an ETS Strategy? Why do Airlines need an ETS Strategy? How to setup an ETS Strategy 7 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Airlines have to integrate ETS to there current global strategic planning. Facts Illustration The ETS strategy is one integral part of an Global Strategy airline’s global strategy. Customization of the global strategy leads to necessary changes of the ETS strategy and vice versa. The ETS-Strategy is highly influenced by further strategic decisions (fleet planning, network, pricing, etc.) and can’t be considered solely. ETS Strategy ETS is a new cornerstone in the business process environment of any airline! 8 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • An ETS strategy consist of three main parts defining a base for all further ETS activities. Allowance Management Financial Aspects Key Performance Indicator Impact of global strategy to Financial impact of each Performance Management ETS strategy. trading period under Program monitors the Estimated demand of consideration of: strategic ETS activities: allowances for both periods Fleet development Average acquisition 2012 and 2013-2020. Network price of allowances Identification of feasible Allowance price Annual amount of allowance acquisition Etc. allowances channels with pro and cons Etc. Risk factors and Financial and cost reduction Risk Management. opportunities. Counteractions to handle Emissions Reduction potential risk factors. Management. 9 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • In conclusion. An ETS strategy clearly states: How many additional allowances your airlines requires in the next years and the financial impact linked to the amount of required allowances. Which acquisition channels are reasonable together with pros and cons of each acquisition channel. Possibilities to reduce the amount of additional required allowances. Important risk factors and counteractions. How to measure the success of your ETS management. 10 10.02.2010 Reducing the Financial Impact, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Agenda Introduction of Aviation Experts What is an ETS Strategy? Why do Airlines need an ETS Strategy? How to setup an ETS Strategy 11 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • The development of an ETS Strategy is the first and most important step towards a successful integration of ETS. Facts Status of ETS Strategies Including EU-ETS into an airline’s 100 strategic decisions is essential for its future development and competitiveness. 75 85% Without a strategy it is impossible to 68% develop proper actions to reduce the 50 impact of ETS. Many Non-European airlines currently 25 consider short-term milestones (i .e. Monitoring Concepts) and neglect the 0 long-term implications of EU-ETS. Major EU Mid-Sized Small-Sized Major Non- Mid-Sized Small-Sized Airlines EU Airlines EU Airlines EU Airlines Non-EU Non-EU Non-consideration of EU-ETS will be a Airlines Airlines high risk for Non-European airlines. Already developed Currently developing Not yet considered The development of an ETS strategy will directly lead to competitive advantage in the future. 12 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • A well-defined ETS-Strategy is the starting point for all ETS- relevant activities. Why is an ETS Strategy needed? Example The ETS Strategy is the core element of all ETS Activities ETS activities! Without a well-defined strategy it is impossible to coordinate required ETS activities and only a reduced benefit can be achieved. The ETS Strategy defines the framework of all ETS activities and describes the collaboration Without With ETS ETS Strategy of all activities in order to achieve the best Strategy results. Furthermore the ETS Strategy contains performance indicators to verify the benefit of all activities. 13 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • The ETS-Strategy is linked to numerous benefits enabling airlines to reduce the impact of EU-ETS. Outcome Benefits Rating Interaction of Global & Adapt to changes in either environment ETS Strategy affecting business goals of the organization. Annual Effort Avoid unforcasted additional efforts. Reduce price per allowance and overall ETS Acquisition Channels cost. Reduction Potential Reduce overall ETS cost. Monitor all ETS-activities and initiate Key Performance Indicator necessary actions in real-time. Develop scenarios to be rolled out in real- Risk Management time, before financial impacts incur. 14 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Agenda Introduction of Aviation Experts What is an ETS Strategy? Why do Airines need an ETS Strategy? How to setup an ETS Strategy 15 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Three actions which are build upon each other are necessary to establish an ETS-Strategy. Develop Actions Identification of feasible acquiring Determine ETS-Impact methods to reduce effort linked to additional required allowances. Determination of impact of global Development of Key Performance Analyze Global Strategy strategy to required allowance. Indicators and recommendation. Detailed definition of annual Analyze global strategy with additional required allowances respect to future… and related efforts from 2012 to What are the best ways fleet structure 2020. 3 to acquire allowances network and reduce the impact? expansion plans Offering. How many allowances Definition of general ETS goals. 2 are required for each year from 2012-2020? What are the basic 1 parameters for allo- wance calculations? 16 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Conclusion Operating ETS without an ETS strategy will lead to… …higher efforts due to higher allowance cost. …higher financial risk as the impact and the amount of required allowances is unknown. …higher workload as ETS activities are not coordinated. 17 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February
    • Thank you for your attention. Your contacts: Benjamin Walther T +49 (0)170 354 365 8 Managing Partner bwalther@aviationexperts.de www.aviationexperts.de 18 10.02.2010 ETS Strategy, EU-ETS Conference “Facing the Challenge”, Moscow, 10th February