IATA's Four Pillar Strategy and Possible Integration

IATA’s Four Pillar Strategy and its integration IATA’s Four Pillar Strategy and possible Integration. Paper under Module - EEC Submitted to: Dr. Mutthu Krishnan Submitted By: Baqar Raza Student ID: 1042342 MBA – Aviation (Delhi Cohort) University of Applied Sciences – Frankfurt Germany. Page 1 of 17 IATA’s Four Pillar Strategy and its integration INDEX TableI....... IATA’s Carbon neutral growth.................................................5 TableII......List of Airlines Tested Bio Fuel............................................7,8,9 Table III....Climate Change..........................................................................10 FigureI......Sustainability Matters...............................................................12 FigureII...Airport operations working with ATM....................................13 FigureIII....Emission reduction Roadmap.................................................15 EXECUTIVE SUMMARY............................................................................3 IATA’S FOUR PILLAR STRATEGY AND ITS INTEGRATION..........4 1-Technology...................................................................................................5 2- Operational Efficiency..............................................................................10 3-Infrastructural Efficiency.........................................................................11 4- Positive Economic efficiency ...................................................................14 IATA’s Short term and Long term Plans...................................................15 CONCLUSION.............................................................................................16 References.....................................................................................................17 Page 2 of 17 IATA’s Four Pillar Strategy and its integration EXECUTIVE SUMMARY Beside safety and security new challenge for Aviation industry is also climate change. A vision has been outlined for international Aviation industry comprising of zero carbon emission growth in the future. Challenge is equally distributed along all stake holders of industry to achieve the goal of zero carbon emission by 2050. At present Aviation contributes 2% of CO2 emission in over all emissions which can reach up to 3% by 2050. To achieve this goal IATA has been playing leading role to bring all industry partners on common platform that includes manufacturers, Airports, Airlines, Governments, infrastructure providers, technology and economy etc. A growing carbon footprint is a big concern for the whole world. To achieve a carbon neutral growth of aviation industry IATA has planned a Four Pillar Strategy which has been accepted by aviation and government regulations. These four Pillars are Infrastructure, Technology, economic instruments and operations. To achieve this goal is not impossible for the aviation industry as industry has a record of achieving impossible in the past. Aviation industry has achieved 70% fuel efficiency in last 40 years. This strategy helps industry to asses and implement the measures for carbon neutral growth by improvement in Air Traffic Management, Air frames, Airport operations and achieving fuel efficiency or finding out substitute fuels which will not contribute towards carbon emission. This framework also elaborates on increasing cooperation and coordination among different industry partners and governments for carbon neutral growth. Whole industry is united moving towards common goal of zero carbon emission. In this document details are given about that how industry is getting united and moving towards a goal by modernising the aviation infrastructure, operations, developing new technologies and what contribution economic elements have in achieving this goal. IATA’s Four Pillar Strategy and its integration. Page 3 of 17 IATA’s Four Pillar Strategy and its integration It was in year 2007 that IATA compiled its strategy towards green house gas emissions caused by Aviation.  Within 50 years achieve a zero emission commercial aircraft manufacturing.  To achieve this target adopt a Four Pillar strategy. 1 – Technology Improvement 2 – Operational efficiency 3 – Infrastructural efficiency 4 – Positive economic efficiency It was in June 2009 when Airline took a collective decision to set targets.  From year 2020 a cap on CO2 emissions  From year 2009 – 2020 an average improvement of 1.5% in fuel efficiency.  In comparison of 2005 a reduction of 50% in CO2 emissions by 2050. In year 2009 in an ICAO submission these collective goals were endorsed by whole aviation industry. HOW THESE GOALS CAN BE ACHEIVED In every nation these goals can be achieved by government regulating the local aviation industry. All the measures government can take are explained as below:  By ensuring that international aviation is included in these regulations.  Coordinate through ICAO to work on international sectoral approach of aviation to ensure that competition among airlines is not distorted.  Treat aviation as a whole global industry rather country wise.  Think globally to achieve these goals from Aviation.  Approach should be applicable on both International and domestic aviation.  Allow unrestricted and full access to the available measures outside the aviation industry.  Don’t adopt punitive measures which don’t help the environment rather adopt cost effective and economic measures which really help the environment.  Set legal and fiscal frameworks which will promote investment in low carbon emission alternative jet fuel. Page 4 of 17  Take help of research to achieve more fuel efficiency.  Take the necessary investment which will help in modernising the Air traffic Management.  All airlines should be treated equally.  All parts of aviation supply chain should be addressed in regulatory efforts to ensure homogenised participation of all sectors within the industry. IATA’s Four Pillar Strategy and its integration IATA’s FOUR PILLAR STARTEGY 1 – TECHNOLOGY (Aerospace, ATC’s and R&D) Any industry’s growth is dependent on development of its technology. Modern concepts and alternative measure for cleaner jet fuel, highly advanced technology for Airframe engines and air traffic management is the need of the time. Fuel Suppliers and Aerospace Manufacturers should jointly work on finding an action plan for long term and short term measures. In short term plans potential lies for modernising the air fleet and carbon reduction by identifying and applying modern fuel technologies. Modernising the fleet and replacing it as widely as possible should be considered under medium range measures. Airlines are expected to invest USD 1.5 Trillion in new fleet by 2020. This will result in replacement of some 5500 aircrafts by 2020 which will be 27% of total industry fleet. This drastic fleet modernisation will help in reduction of CO2 by 21% in total. Roadmap of Technology: This is a task to identify the roadmap of technology which can reduce the CO2 emission from 20 – 35% per aircraft. This looks into overhaul of technology of engines and system technology, aircraft that can help in reduction of CO2 emission and carbon burn. This includes the modern technologies which are being used right now including retrofitting of winglets, as well further advancement in technology like new engine architecture and use of other composite material and laminator Flow. Advancement of current technologies (drag reduction and winglets etc.) can further reduce an extra 1% carbon emission by 2020 on an investment of USD 200 Billions. Bio Fuels: on a full carbon life cycle basis use of sustainable bio fuels can help in reduction of CO2 emission up to 80%. IATA’s focus is on extraction bio fuels from second generation or new generation biomass. These fuels can be produced Page 5 of 17 IATA’s Four Pillar Strategy and its integration with affecting the food crops. Advantage of bio fuel is also that aircraft does not need and major adaptation for use of them.     Examples of Technologies and Times Line Retrofits Mounting of winglets on wing tips of an aircrafts supports in reduction of fuel and improve aerodynamics a lot. For better air flow and better fuel combustion more advanced engines. Light matter is being used for in cabin fittings. In flight entertainment and lights to be introduced that will consume less energy. Production Updates  Light weight composite material is being used instead of Airframes in airframe manufacturing.  For current airplanes manufacturing series more advanced engines to be used.        Before 2020 new designs of Aircrafts 10 -15% reduction can be seen in fuel consumption is general turbofan engines. 15-20% reduction can be seen in open rotor engines. 10 – 15% reduction can be seen in counter rotating engines. 10 – 15% less fuel burn by laminar flow which reduces aerodynamics drag. After 2020 new designs of aircrafts Instead of classical tube and wing architect blended wing body. Architecture of revolutionary engine. For non board energy fuel cell system. Impact 7-13% 7 -18% 25 – 35% 25 – 50% Table I: Source IATA’s carbon neutral growth by 2020. Page 6 of 17 IATA’s Four Pillar Strategy and its integration Without the will power of stake holders its not possible for industry to achieve carbon neutral growth. However, aviation industry has shown its capacity to achieve the impossible. It current scenario while annual passenger growth is 5% carbon emission growth is 3%. This 2% reduction in CO2 emission would not have been possible without the initiatives taken by the industry partners. A number of airlines have already taken test flight on their commercial flights by using bio – fuel. A list of such airlines is given here below. Carrier Aircraft Flight path Date Feedstock News Notes (Supplier) B737 A321 A321 A320 B777 A320 B757 A321 737-800 200 city pair flights Amsterdam - 22 June Used cooking oil Read Paris 2011 (SkyNRG) more Hamburg - 15 July Mix of feedstocks Read 1,200 flights over Frankfurt 2011 (Neste Oil) more a six-month period Amsterdam - 18 July Used cooking oil Read Helsinki 2011 (SkyNRG) more Mexico City - 21 July Jatropha Read Tuxtla Gutierrez 2011 (ASA) more Mexico City - 1 August Jatropha Read Madrid 2011 (ASA) more Madrid - 3 October Camelina Read Barcelona 2011 (ASA) more Birmingham - 6 October Used cooking oil Read Arrecife 2011 (SkyNRG) more 13 October Used cooking oil Read 2011 (SkyNRG) more Toulouse - Paris from September 2011 Daily flights in early 2012 for six weeks Flight used 50% biofuel in each engine Houston - 7 November Algae Read 40% biofuel Chicago 2011 more domestic flight (Solazyme) Page 7 of 17 IATA’s Four Pillar Strategy and its integration 737s and Q400s 777-200 747 Seattle Portland, Seattle - Washington Bangkok - Chiang Mai Q400 A319 777 777 powered by 20% biofuel 22 December 2011 Used cooking oil Read (SkyNRG) more Read Washington DC 2012 (Nestle OilMi) more 7 March Used cooking oil Read 2012 (SkyNRG) more 13 April Used cooking oil Read 2012 (SkyNRG) more Toronto City - 17 April Used cooking oil Read Ottawa 2012 (Honeywell/SkyNRG) more Melbourne - 19 April Used cooking oil Read Hobart 2012 (SkyNRG) more Montreal - 18 June Toronto 2012 Toronto - Mexico 18 June City 2012 Concepcion, Adelaide, Australia A320 more (SkyNRG) Mix of foodstocks Sydney - Q400 domestic flights 2011 12 January Chile A330 Read Frankfurt - Santiago A320 75 scheduled 9 November Used cooking oil Mexico City - Sao 18 June Paulo 2012 Amsterdam - Rio 19 June de Janeiro 2012 Camelina Used cooking oil (SkyNRG) Mix of feedstocks (ASA) Used cooking oil (SkyNRG) Reduced C02 emissions by 38 tonnes Trial Flight Trial Flight Read more Read more Read more Read more Page 8 of 17 IATA’s Four Pillar Strategy and its integration 777 A320 A330 New York, JFK - 8 March Amsterdam 2013 Bogota - Calí 2013 Amsterdam - 16 May Aruba 2014 Multiple 737 21 August destinations in Brazil Frankfurt - Berlin 737-800 Helsinki - New York Stockholm - Oslo 737-800 Trondheim - Oslo Bergen - Oslo September 23 (SkyNRG) used cooking oil 2014 7 October 2014 fuel Read 20% blend as part more of a 20-flight series Read Used cooking oil (SkyNRG) Used cooking oil (SkyNRG Nordic) Used cooking oil 11 Used cooking oil November 2015 360 flights on biofuel during the FIFA World Cup 2014 Read (Amyris Total) (SkyNRG Nordic) Beijing in 2013 more more 2014 21 March operated 26 flights Farnesan sugar-based November Shanghai - Flight KL642 Read more September 2014 747-800 Used cooking oil more (Honeywell UOP) 11 737-800 Camelina 2014 2014 A330 (SkyNRG) Read Inedible corn oil and June / July 15 A320 Used cooking oil (SkyNRG Nordic) Used cooking oil (Sinopec) 10% biofuel in both engines Read more 10% biofuel Read more 10% blend Read more 48% blend Read more 50% blend Read more 50% blend Table II – List of Airlines tested Bio Fuel. Source www.aviation benefits.org Page 9 of 17 IATA’s Four Pillar Strategy and its integration 2- OPERATIONAL EFFICIENCY: CO2 emission and fuel can be saved by using more efficient aircraft engines. 1999 report of Intergovernmental climate change report identified that there is 6% inefficiency in aircraft operations. IATA’s green team since 2005 have been working hard with airlines to reduce this inefficiency. Experts from IATA’s green team keep visiting Airlines to advise them about best practices in fuel and carbon emission savings. advanced operational practices including Auxiliary Power Unit (APU) usage, efficient flight procedures, and measures used for weight reductions will bring a change of 3% reduction in emissions by 2020. 11 Million tons of CO2 was saved in 2008 with efforts of IATAs green team. New Air traffic control techniques are being introduced to save emissions and fuel. For example when an aircrafts lands on an airport with continuous descend almost 150 Kgs. of CO2 emission can be saved. Table III: Source IATA – Climate change Page 10 of 17 IATA’s Four Pillar Strategy and its integration Few operational measures identified here can be very effective in reduction of carbon emissions. On Ground: while aircraft is parked at airport power for air conditioning can be provided by airport instead of burning aircraft fuel. Also eternal power can be provided to aircraft for start up of engine instead of using engine power. It’s also possible that in near future we see development and implementation of baggage loading devices or catering devices based on natural gas power or electrical engines. Departure: To Taxi aircraft from departure gate to the run there are possibilities to enhance engine for single engine use or supporting driving devices which will carry aircraft from departure area to the runway hence, reducing the carbon combustion. Airlines, Air navigations and airports are also coordinating with each other to introduce a procedure which is called “Green Departure” which will help aircraft to take off and achieve height at steady rate. Cruise: Irrespective of size of an aircraft it’s known that aircraft burns more fuel when it carries more weight. Airlines are working hard to reduce onboard weight by reduction in weight of catering trolleys, replacing TV with tabs removing printed in flight magazines, reducing the seat weight by reducing the seat thickness and introduction of winglets for better aerodynamics. Arrivals: in Traditional landing, aircrafts descend at multiple levels and then increase engine power to stabilise. In latest technology in air navigation system its being considered for direct descending of aircraft to the runway. This technique need very low engine power hence, less fuel combustion. This technique also reduces engine noise by great margins hence communities living nearby airports don’t get disturbed while aircraft lands. 3 - INFRASTRUCTURAL EFFICIENCY In reduction of fuel consumption and CO2 emission infrastructural efficiency plays a major role. In year 1999 during the intergovernmental panel on climate change it was estimated that there is almost 12% inefficiency in structure of air transport system. Since these findings were highlighted almost 4% efficiency has already been achieved yet there is lots of scope for improvement. If industry is able to apply full implement of Air traffic management (ATM) and also efficiency in Page 11 of 17 IATA’s Four Pillar Strategy and its integration airport infrastructure it’s expected that further 4% efficiency can be achieved by year 2020. Efforts include considering one single European sky which will result in 70% reduction flights routes extension. 57% reduction in delays is expected by implementation of next generation Air Traffic Management system in US. In Hong Kong reorganisation of pearl River Delta Air Traffic Management System, reduced vertical separation minim in Russia and also flex track. An investment of 58 Billion will be required to achieve these efficiencies. In 2014 a total of 4 Million Tonnes of CO2 reduction was achieved with the efforts of IATA’s 2008 industry partner’s involvement. 121 enroutes and 40 airports improvements were identified by IATA and implemented in 2009. Performance based navigation which contributes towards airspace improvement were also included. Figure 1: Source www.cathapacific.com (Sustainability Matters) Airports: Airports are putting efforts to be carbon neutral. Under the same efforts ACI (Airport Council International) has introduced the certification program for Page 12 of 17 IATA’s Four Pillar Strategy and its integration carbon neutral airports. Solar and other energy suppliers are now being widely adopted by large number of airports. Flights holding in airspace before landing or Figure II: Source – www.aviationbenefits.org queuing for takeoff results in undue combustion of fuel and also inconvenience for on board passengers. Airports have been working hard to minimize the congestion for efficient airport operations. One of the way airports are working on this problem by collaborative decision making (CDM) to ensure that pilots don’t start the aircraft engines until the exact time of departure has been declared. Air Traffic Management (ATM): This is one of the most significant elements of Infrastructural Pillar. What flight path an aircraft take, what height it flies on and what weather it flies through decides the fuel combustion by the aircraft and resulting in how much carbon it will emit. All these factors are in control of Air Navigation System (ANS). In Europe its considered as single European Sky which is further divided into 45 different Air Navigation Systems all controlling the aerospace. Single European sky will help in short flight paths to be covered by an aircraft. In a country like India there are many no fly zones declared by government which mostly results in longer circuit of flights and more carbon emission. By cooperation of government many No fly zone can be turned into fly zone hence saving aircrafts from burning undue fuel. Page 13 of 17 IATA’s Four Pillar Strategy and its integration 4 - POSITIVE ECONOMIC EFFICIENCY Though first three pillars explained will bring substantial contribution in carbon neutral growth to the aviation industry yet only these three pillars are not sufficient to close the gap. Hence fourth Pillar IATA deployed was economic measures. To keep the same emission level of year 2020 even in year 2025 industry will need to offset 90 Million tonnes of CO2 emission. To achieve this goal it needs an investment of USD 7 Billion per year. From 2020 on an estimate over all industry expenditure of USD 1.6 Trillion will be required to keep carbon neutral growth. Global sectoral approach is best to achieve this goal of carbon neutral growth. Economic measures will be required for investment in R&D, deployment and development of latest technology to support the industry instead of bring down the demand. Emission trading: this scheme is basically to set an overall cap on emission also called as cap and trading scheme. ETS can provide financial incentives to the companies who put extra efforts in reduction of carbon emission and produce tangible results. There are different emission schemes currently in practice, for example European ETS cover the flights within EU, Iceland and Norway. China has also applied several ETS on domestic flights. Green Taxes: Green Taxes are applied in different forms for example on each take off of flight, Green Taxes in Tickets for each Passenger or Taxes for each leg of the flight. Green Taxes are basically focused to reduce the demand by charging Passengers higher Taxes. Disadvantage of applying these Taxes are on few routes passengers have no alternative mode of transportation. Hence, over all aviation industry is not in favour of applying green Taxes. Fuel Levies: These are additional Taxes applied on Aviation fuel. In Aviation industry Fuel is already heavily Taxed specially a country Like India where aviation fuel is most Taxed in whole of the world applying fuel levies does not seem to be an effective measure as it won’t help in reduction of carbon emissions. Market based measures (MBM) for Aviation: Next ICAO assembly in 2016 industry has planned to help government to work on market based measures.  Deciding on standard way of measuring emissions in different markets. Page 14 of 17  Deciding if all markets of industry need to participate as there are few markets where industry size is very small and don’t add much to the carbon emission such countries can be exempted.  Developed market may be asked to take higher responsibility while developing markets may not be give equal responsibility as they need to develop the aviation industry in their regions. IATA’s Four Pillar Strategy and its integration IATA’s SHORT TERM AND LONG TERM PLAN FOR CIVIL AVIATION Figure III – IATA’s emission reduction Roadmap Source: CAPA website A target of reduction in CO2 by 1.5% per year has been set by IATA which needs to be continuously achieved till 2030. This will put a cap on emission from 2020 (Carbon neutral growth) and after that emission will be halved by year 2050 in comparison to year 2005. Market based economic tools will be used in medium term however, the impact of this toll will not be significant in comparison to other three pillars of long term plan. However, lot depends on what decisions are taken in ICAO assembly in 2016 and if all developed and developing countries can come on common platform to achieve sing goal. Page 15 of 17 IATA’s Four Pillar Strategy and its integration CONCLUSION  The aviation industry is committed to cap the CO2 emission from 2020 and reaching it half by 2020.  IATA and ICAO both are working together to achieve this goal by using four pillars of industry i.e. Technology, aviation infrastructure, operations and economic measures.  In ICAO assembly of 2016 a global channel for economic framework needs to be developed to bring China, India, Russia and US along with Europe.  After bio fuel supplements were accredited by International committee for Petroleum products and Lubricants (ASTM) an important mile stone was achieved as many airlines are already using bio fuel on commercial flights. These bi fuels will soon be commercialised.  Since IATA along with ICAO, ACI and governments has channelized the plan for carbon neutral growth it’s very visible that all four pillars of the industry are working homogenously to achieve a common goal.  Industry is committed to improve its fuel efficiency by an average of 1.5% annually till year 2020 and after that reduction in carbon emission by 50% until 2050.  A global sectoral approach should be adopted through ICAO. This will allow the accountability of level players and accommodate the demands of developing nations.  United aviation industry is only possible above political framework, like shortening routes, introduction and implementation of best practices in fuel management and measure like smart flying used for efficient landing and takeoff techniques beside energy smart airports with less carbon emissions by using other sources of powers to run its operations. Page 16 of 17 IATA’s Four Pillar Strategy and its integration References 1 – www.iata.org; aviation in a carbon constraint world. 2 – www.iata.org; IATA Four Pillar strategy- Presentation to GIAC, ICAO –Montreal, Canada – February 26 - 2008 3 – www.iata.org; A global approach to reduce aviation emission. 4 – www.iata.org; A sustainable flight path towards reducing emissions. 5 – www.iata.org; Technology Roadmap (4th Edition) 6 – www.iata.org; Reducing emission from Aviation through carbon neutral growth from 2020. 7 – www.iata.org; 70 years of IATA: We trace aviation’s environmental commitment. 8 – www.centreforaviation.com; Emission Trading. 9 – www.aviationbenefits.org 10 – www.cathapacific.com 11 – www.ec.europa.eu Climate Action. Page 17 of 17