Carbon Remediation for the Airline Industry via ATF Drop-in Substitution: Strategic and Operational Perspective 2012-01-1509

The need to address environmental challenges by aviation industry is apparently obvious. As evidenced within the industry, it takes a three pronged strategy - more efficient aircraft, improving operational efficiencies and development of sustainable biofuels. In terms of actual growth of airline business, the two major drivers are domestic air service expansion within BRIC economies and rapid spread of Low Cost Carrier (LLC) models. Focusing not only on environmental challenges, even sustainable business development and growth of LCC depends critically on ATF substitution by alternative fuels. The inherent need for carbon subsidy and airline-airport partnership towards sustainable substitution with bio-alternatives is discussed in first part of the paper. A framework for such an airline airport win-win partnership is delineated. In the second half of the paper, focus shifts to complexity of operationalisation of blended ATF strategy for airlines as well as manufacturer from a sophisticated operational safety and liability perspective. The need for aircraft manufacturer and airline cum airport partnerships for globally acceptable and operational safety for partial drop-in substitution on the lines of biofuel certification standardisation and usability is examined. The authors highlight that carbon neutral strategy by aviation industry is not just critical in terms of environmental dimension but as would be evidenced in the coming decades critical in terms of capitalistic interests as well.