OST CONTROL
We further cemented our cost advantages. In 2014, we strengthened our cost controls by improving
efficiency, optimising cost structure and implementing dedicated controls on key cost items, which reduced
our transport cost by 7.2% year-on-year. The utilisation rate of our core resources such as aircraft was further
raised. The daily utilisation rate of our B777-300ER models was raised to 13.68 hours, representing an
increase of 0.36 hour from the previous year. We enhanced the co-ordination of our production resources
with the A330 and B737 models achieving 56,000 hours and 49,000 hours of flight sharing respectively.
To continue optimising route structure,
fleet structure and route-aircraft
matching, we increased capacity
in international routes and increased use of wide-body jets on international long-haul routes, which saved
RMB510 million from our variable costs. The extensive use of System Operation Control (SOC) helped
rationalise aircraft deployment, while the use of Quick Access Recorder (QAR) data also helped optimise the
computation of flight plan and increased load capacity. We focused on analysing our major cost items and
proactively searched for room to squeeze costs. The further promotion of Flight Management Computer (FMC)
application in flight optimisation helped enhance our fuel management capability