Dynamic Tankering Model for Minimizing Fuel Costs in Aviation Operations

HRMARS - This study develops a dynamic tankering model aimed at minimizing fuel costs in aviation operations and evaluates its economic effects under different operational scenarios. A quantitative research approach was adopted, considering fuel price differences between airports and the additional fuel consumption caused by carrying extra fuel. The model is based on the fuel penalty approach and a break-even condition that determines when tankering becomes economically rational. The proposed algorithm was implemented as an Excel-based decision support tool. Total fuel cost, additional consumption, and net cost advantages were calculated by comparing scenarios with and without tankering. The results indicate that tankering can reduce total fuel costs when the fuel price difference between airports exceeds a specific threshold. However, carrying additional fuel increases aircraft weight, resulting in extra fuel consumption and operational constraints that may limit economic benefits. Sensitivity analysis shows that the model is particularly sensitive to fuel price differences, the additional fuel consumption coefficient, and flight distance. The findings suggest that tankering decisions should consider not only fuel price advantages but also flight distance, aircraft performance, operational limitations, and sustainability objectives. The proposed model provides a practical analytical framework for supporting fuel procurement and flight planning decisions in airline operations.