Climate Change and Aviation:
Whats in Store?
Despite fare increases and charges for previously free in-flight amenities, more than 7 million U.S. residents during the first quarter 2008 traveled to international destinations, including Europe, the Caribbean, Asia, South America, Africa and the Middle East, according to the U.S. International Air Travel’s Office of Travel & Tourism Industries. This figure represents about a 5% increase in travel for the same period during 2007.
“Since the beginning of 2008, carriers have added a number of small fare increases here and there and many have tacked on fees for more than one bag and other services,” according to a late-April consumeraffairs.com article. “For example, United Airlines recently announced it was increasing the fee it charges passengers to change tickets from $100 to $150 in an effort to combat high fuel costs. Others have begun charging for in-flight amenities.”
According to Reuters news service, the Air Transport Association has reported that 40% of an airline ticket’s price in the United States is allocated to offset fuel prices, compared with 15% in 2000.
“Regulations are regulations, and most of the time they are set for safety reasons,” said Continental Airlines Boeing 737 Captain Leo Sherman. “But for the best point, in my opinion, I see the industry being very much overcrowded with lots of available seats and demand decreasing, thus leaving the weaker or smaller, lower budgeted operators to struggle. The variable we all contend with is fuel, and it’s precious, as important as air beneath an airplane’s wing. Companies like Continental and others hedge their fuel and fly on fixed pricing for the duration of the hedge period. For some, the hedges that were in place years ago are ending, thus adding another variable to contend with and thus more economics to work with. We are seeing staff shrinking, fleets being parked and operational costs skyrocketing. Our policymakers are somewhat out of touch with how some of these factors affect a chain of things when they do not defend what makes the engine turn. For example, when fuel costs increase, the airlines are forced to pass the problem to the customer, but not as much as what probably should be passed, because the competitor will be glad to take the unhappy person for dollars less, so we reduce something of service and increase something somewhere else.”
During a recent American Association of Blacks in Energy (AABE) meeting in Houston, Texas, Doug Hinzie, president of Chevron Global Aviation, discussed the seven principles for addressing climate change, noting that global energy demand is growing, with an estimated growth of 50% in the next 20 years.
The aviation industry, he noted, is responsible for 8% of the gross domestic product, and fossil fuels are contributing to an increase in greenhouse gases.
“Our challenge,” he said, “is to create solutions to protect the environment without undermining the growth of the global economy.”
Seven Principles for Addressing Climate Change
• Global Engagement
• Energy Security
• Maximize Conservation
• Measured and Flexible Approach
• Broad, Equitable Treatment
• Enable Technology
• Transparence
Hinzie noted the aviation industry’s footprint accounts for 2% of worldwide carbon dioxide (CO2) emissions from fossil fuel use; is responsible for 12% of CO2 emissions from all transport sources; and 80% of aviation’s greenhouse gas emissions are related to passenger flights greater than 900 miles.
“We came here and began flying and weather was weather,” Sherman said, when asked how weather and the resulting climate change affect the aviation industry.
“I want you to notice the seasons are almost out of the respected patterns we’ve designated to them. Winter is stretched a little into spring. Summer seems like it’s getting hotter a little later than it once was, and spring showers are just starting in frequency in early June. I can’t explain it, but global warming may have some effect. In my opinion, I don’t think it’s wholly responsible with respect to the aviation industry. It’s our responsibility to respect the weather and prepare our flights to see and avoid the hazardous situations we encounter. Our problems with weather may arise if we create the new frontier of weather, which is simple pollution like China is experiencing from industrial manufacturing. “
When asked what plans he’d implement to reduce environmental challenges within the industry Sherman, who also spoke during the AABE meeting, had this to say:
“I would plan my operations around the plans I’ve seen at Continental,” he said. “Leadership and fleet are essential. Location would be a prime factor to hub strong in the west as that’s where we lack presence but being aware of the diluted dollar with the low cost carriers in presence. I wouldn’t change service, as it is a cornerstone, in respect of the customer. I would decrease the frequency of some of our flying to accommodate the revenue base to make stronger operation. In short, we would shrink some but be more efficient to be structured to ride these energy issues. They will arise again, as we are a petroleum-based industry. So we have to respect that first.”
