Are airlines ready to truly invest in CSR?

Corporate Social Responsibility and the environment will present the transportation industry with many significant choices over the coming years. As a consumer we each face decisions every time we buy a new car or appliance but what about the airline industry? Even as we gradually move toward more hybrid and electric vehicles, passenger jetliners will continue to use fossil fuels and therefore be responsible for a large percentage of CO2 emissions. Today I want to focus upon the newest passenger airliner being constructed by Airbus – the A320neo which is considered the most fuel-efficient option for passenger jets due to its newest ‘eco-engines’.

In comparison with similar sized jets in use, it is estimated  that the fuel efficiency of the aircraft will generate savings of approximately $1.1 million annually for each aircraft. As you’d expect the savings are due to fuel use, in addition to the state-of-the-art engines the plane also uses wing devices which are called “Sharklets” designed to increase the fuel efficiency and net payload to range performance for the airliner. While not to downplay the individual decisions we all face with our own personal automobile and driving choices in the years ahead – the decisions which airlines make when adding to or purchasing entirely new fleets will be a critical decision in the aim to reduce emissions. This will be especially true  in emerging markets such as China and India where air travel is expected to grow incredibly over the next decade. Consumer awareness, confidence and choice will surely help influence how airlines retool their fleets as they age neo’s fuel efficiency will yield an average annual savings of $1.1 million per aircraft.

The neo will employ wing tip devices called “Sharklets,” which enhance the eco-efficiency and payload-range performance of the A320.  According to analysts under normal service the A320neo will emit 3,600 fewer tons of CO2 per aircraft on an annual basis, that’s an awful lot of cars – approximately the equivalent of 720 cars each being driven 15,000 miles per year removed from the roads.

Therefore airlines need to continue their investment in the newest technology available to them as consumers expectations for the best in fuel efficiency will continue to rise. Fuel prices are once again back to the highest level seen in over two years and experts expect a continued escalation of perhaps 15 percent during the course of 2011. Once more we are looking at the combined cost of implementation for the newest environmentally sensitive technology being wisely balanced with internal cost savings in this example for airlines plus the caveat of demonstrating social responsibility to your passengers. The less than vibrant economy coupled with an airline industry that has overall struggled to make money in recent years means that the transfer to the newest and the best airliner technology will be much more gradual than might be ideal. Airlines with capital to invest will be able to make a huge head start in the eyes of the consumer with their fleets being newer and more efficient.

Virgin America has this week announced a confirmed order for 60 new Airbus A320 airliners to be delivered in 2013 a third of which will be the ‘neo’ model considered to be the future of eco-airliners; at least for the time being. The airline is projecting rapid growth from 34 aircraft to 111 over the next seven years but you can be sure they will be doing all they can to promote the advanced fleet that they will be operating. For giants such as United and American Airlines converting fleets can only be done on a gradual basis as planes have to be in operation for many years to make a return on the original investment. The A320neo provides a 15% gain in fuel efficiency, which of course provide mirroring improvements in carbon efficiency such as double digit reductions in NOx emissions.  The A320neo also provides lower engine noise, lower operating costs and up to 500 nautical miles more range. I also read that a new airline in India is close to placing a firm order for 150 Airbus A320’s which would make that the largest single order of one type of passenger aircraft in history. At the time of writing I’m not sure what percentage will be the more efficient ‘neo’ version but will write more about that in the future.

As consumers we should know as much about the operating fleet of airlines as possible rather than shopping for a seat just based upon saving $15 which is where the airline industry currently stands. It will be fascinating to see whether the industry is prepared to provide all the information that consumers need over the coming years, but as I’ve written before I believe we are getting closer and closer to a proper CSR evaluation and ‘score’  industry by industry so apples can be compared with apples. Then we can truly evaluate which airlines are demonstrating the best in CSR.

Virgin America provides far more information about the new aircraft and their overall corporate sustainability program via their official website

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