Financial Times Europe - 28.08.2019

(Michael S) #1
Wednesday28 August 2019 ★ FINANCIAL TIMES 7

FT BIG READ. AVIATION


Spurred on by environmental activists such as Greta Thunberg, there is a growing consumer backlash


against air travel. However, the industry has few easy technological solutions to reduce its emissions.


By Janina Conboye and Leslie Hook


planes that run on a combination of fuel
and battery power.
At this year’s Paris Air Show, Israeli
start-up Eviation unveiled an electric
aircraft taxi called “Alice” that can carry
nine passengers for up to 1,050km.
EasyJet is also confident about these
technologies, which tend to be suitable
for the type of short-haul flights that the
low-cost carrier specialises in. The com-
pany is advising Seattle-based start-up
Wright Electric as it designs an electric
plane that could serve the airline for
flights of less than 500km.
“We know what we think would work
for easyJet, so that’s why we’re looking
at electrification and hybrid,” says Gary
Smith, director of operations transfor-
mation at the carrier. He adds that bio-
fuels are “not going to solve [easyJet’s]
problem”.

Meeting objectives
Budget carriers such asRyanair, easyJet
andWizz Airpoint out that their flights
tend to be some of the most efficient, in
terms of CO2 emissions per passenger
per km, because they have newer fuel-
efficient aircraft, no first class service
and are usually full.
However, the total emissions for the
budget carriers are still high. EU data
this year revealed that Ryanair was
Europe’s tenth biggest polluter in 2018.
The other nine were power plants.
Electric aircraft are not going to be
available anytime soon. Furthermore
the heavy batteries required for electric
aircraft mean that they will not be suita-
ble for long-haul flights.
For these reasons, not everyone in the
industry is enthusiastic about electric
planes. Mr Walsh, of IAG — whose flights
include a relatively large proportion of
long-haul trips — says electric and
hybrid technologies will not be relevant
to the business for another 25-30 years.
Whatever the technological chal-
lenges, industry executives realise that
the passenger focus on airlines’ emis-
sions is only likely to grow.
“There is going to be more awareness
of climate change,” saysJoszef Varadi,
chief executive of Wizz Air, the Hungar-
ian low-cost carrier. He points to the
recent EU parliamentary elections
where Europe’s green parties gained
ground.
Flygskamactivists are also growing
more impatient with an industry which
has set lofty objectives but which does
not yet have the tools to meet them.
Without solutions that can reduce the
climate impact of flying in the immedi-
ate future, they say that people just have
to fly less.
“We are really seeing a growing no-fly
movement, and that is because, even
though there might be some technologi-
cal solution in the long-term horizon, we
really do have to tackle the growth that
is happening right now,” says Lucy Gil-
liam, an aviation and shipping expert at
Transport and Environment, a Brussels
based non-profit group.
“We are seeing that all around, people
are going, ‘oh crikey, aviation is actually
part of my footprint’,” she adds.
“And when they look at things that
they have direct control of, aviation
comes up in the top three things that
you can actually do to reduce your
impact.”

The financial impact of “flight shame”
has so far been limited: global air
travel is still growing healthily, driven
by demand in Asia, particularly China.
But investors are starting to pay
attention — during the latest round of
corporate results in the sector,
environmental issues were among the
most prominent questions for
executives.
Analysts say that if theflyksgam
movement spreads beyond Europe —
or if governments introduce punitive
taxation in response — it could begin
to pose financial risks. Countries such
as Sweden have already seen a drop in
air travel, and an increase in train
travel, because of the movement.
Daniel Röska, analyst at Bernstein,
says there is often a discrepancy
between people’s vocal support for
less pollution, and their willingness to
actually reduce their air travel habits.
But governments could still use
emissions concerns as a pretext to
increase air taxes in the future, he
adds.

Fuel taxes
Politicians could seek to
raise funds from air travel

W


hen cyclist Anna
Hughes stopped flying
10 years ago, it seemed
like a radical idea. But
now the founder of
Flight Free UK has convinced thousands
of people to join herin a bid to mitigate
the climate impact of air travel.
Her campaign is just one part of a no-
fly movement that is spreading rapidly
across Europe and has given birth to a
new phrase:flygskam, or Swedish for
flight-shame, which means feeling
guilty about jetting off on holiday. “It
has become a social norm that you think
holiday, you think flight,” says Ms
Hughes, who no longer goes anywhere
that cannot be reached by bike, train or
boat. “Most people are unaware of how
flying affects the environment.”
That awareness is growing fast
though, as climate concerns have
sparked a public backlash against flying
that would have been almost unthinka-
ble even a year ago. One of its most
prominent advocates isGreta Thun-
berg, the 16-year-old Swedish activist,
who issailingto New York to attend a
climate summit next month because
she has forsworn air travel. She is set to
complete the journey today.
For airlines, the sudden take-off of
this movement presents a potentially
dangerous challenge. Passenger growth
shows signs of weakening in countries
whereflygskamis catching on.There was
a 3 per cent fall last year in the number of
passengers for domestic flights going
through 10 of Sweden’s state-owned air-
ports, compared with the year before.
The movement has not only taken aim at
summer holiday flights, but also atair-
port expansionplans including Heath-
row in London.
“This is an existential question for us,”
says Rickard Gustafson, chief executive
of Scandinavian Airlines (SAS), which is
based near Stockholm. “If we don’t
clearly articulate a path to a sustainable
aviation industry, it will be a problem.”
He says the issue of passengers’ atti-
tudes to emissions was not considered a
priority when he brought it up at the
board of the International Air Transport
Association, on which he sits. But that
has now changed. “Six months later this
was a hot topic,” says Mr Gustafson.
Airline executives have begun to take
the impact of emissions and climate
risks more seriously. “Aviation needs to
reinvent itself,” admitsJohan Lundgren,
chief executive ofeasyJet, the European
low-cost carrier.
The problem for the aviation industry
is there are fewtechnological solu-
tionsavailable that will help it reduce
emissions and address the potential
consumer backlash.
“The basic trouble is that humankind
has not worked out how to put a passen-
ger jet on a long-distance flight yet with-
out burning through something on the
order of 100 tonnes of fossil fuels,” says
Mike Berners-Lee, a carbon footprint
specialist and professor at Lancaster
University. “We have to bite the bullet
on aviation, because we just don’t know
how to do it in a low-carbon way.”

Not just a CO2 problem
Airlines account for about 2 per cent of
carbon dioxide emissions globally. But
the headline figures obscure the broader

aviation and surface transportation,
which doesn’t have these additional
effects.”
The threat of a consumer backlash
over emissions is not a complete sur-
prise for the industry. Some executives
have been trying to focus attention on
emissions for at least a decade. Iata, the
aviation industry body, made a commit-
ment in 2009 that the entire industry
would halve emissions by 2050, relative
to 2005 levels.
“It’s very ambitious,” says Chris
Goater, an Iata spokesman. “We have a
big responsibility and it is a huge chal-
lenge to deal with this.”
Some airlines, especially in European
countries with particularly environ-
mentally-engaged customers, have
made their own specific pledges. SAS
has said it will cut emissions by 25 per
cent by 2030 and is aiming to run
domestic flights on biofuels.
IAG, which ownsBritish Airwaysand
Spain’sIberia, has pledged to invest
$400m on developing alternative fuels
over a 20-year period, whileUnited Air-
lineshas said it will spend up to $2bn
annually on fuel-efficient aircraft and is
working with biofuel producers.

Exploring other options
Dutch carrierKLMeven launcheda
campaignurging passengers to fly less.
It includes tips such as “consider mak-
ing video calls instead of meeting face to
face” and “explore other travel options”
like the train for shorter trips.
With the rise of flight shame, airlines
are racing to find an answer for how to
decarbonise and reduce their climate
impact. But the challenge is that there
are no easy ways to reduce emissions
meaningfully — at least not in the near
term.
Underscoring the difficulty of the
problem, different airlines are taking
quite separate approaches to reducing
the emissions of their flights.Willie
Walsh, chief executive of IAG, acknowl-
edges that there are no simple, short-
term solutions for the airline industry.
“Therefore aviation needs to use some
of its money to provide incentive to oth-
ers and we’ll only do that where, you
know, these are real carbon reductions,”
he says.
Some airlines, including IAG, believe
one of the most promising areas is alter-
native low-carbon fuels, which could be
used in existing aircraft, but with a
lower carbon footprint. These include
biofuels, which can be made from
plants, waste or algae, and synthetic
fuel, a substance resembling jet fuel that
can be manufactured using renewable
energy. Others are pinning their hopes
on electric aircraft and hybrid bat-
tery-fuel designs.
At present, the only one of these
technologies that is being used
commercially isbiofuels, albeit at
a very small scale. California-
based AltAir Fuels supplies
United Airlineswith biofuels
made from agricultural
waste.
United has also
partnered with
Fulcrum BioEn-
ergy, which is
developing waste-
to-fuel refineries.

“We see this as the future in this space,”
says Aaron Robinson, senior sustaina-
bility manager at United Airlines.
He is optimistic about using waste for
biofuels given that it is cheaper to
develop than crops.
However, the disadvantage of biofuels
is that they are still much more
expensive than regular fuels, and would
face seriouslandconstraintsto being
scaled up.
At present biofuels can be manufac-
tured on a small scale using agricultural
and household waste, but to reach the
level of production that would have a big
impact on aviation emissions much
more land would be needed to grow the
crops to convert into biofuel.
As a result, many environmentalists
are dismissive of biofuels as a long-term
solution, particularly because a growing
world population will need more food.
To limit global warming to a 1.5C

increase in temperature would require
so much biofuel that it would take up to
7m square kilometres of arable land —
roughly the size of Australia — to pro-
duce that much feedstock, according to
a recent report from the UN
Intergovernmental Panel on Climate
Change.
“If you were to replace all today’s
aviation fuel with biofuel, with first-
generation biofuel, it would be at the
expense of 2,100 calories per person per
day for everyone on the planet,” says
Prof Berners-Lee.
“It would take almost all of human-
kind’s calorific requirements... So that
is absolutely not a solution.”
There is one area where airlines have
managed to make considerable progress
in reducing emissions — by improving
the efficiency of aeroplanes. United Air-
lines, for example, says it has improved
its fuel efficiency by 45 per cent since
1990, thanks in part to more efficient
planes.
However, these gains have been out-
stripped by the total rise in global air
travel — airline CO2 emissions in
Europe increased 26 per cent between
2013 and 2018, according to the EU. And
Iata predicts annual passenger numbers
will double to 8.2bn by 2037.
Electric and hybrid aircraft could gen-
erate another major reduction in emis-
sions. Several of the industry’s biggest
manufacturers, such asBoeingand
Rolls-Royce, are working on electric-
powered aircraft, including hybrid

“I expect air travel to become more
expensive, and this in turn will reduce
the cheapest, least valuable demand in
the market,” says Mr Röska. “Likely it
will lead to a period of slower growth
for aviation in markets that push the
emissions agenda.”
Last month France announced an
environmental tax on all flights leaving
the country, part of President
Emmanuel Macron’s efforts to win over
the increasing green vote.
The tax is initially quite low — it
starts at roughly €1.50 for economy
flights and goes up to €18 for business
tickets — but it provides a signal
that politicians are picking up on the
issue.
Activists have also started
to push for more attention
on fuel taxes — especially
as jet fuel is exempt from
taxation in many EU
countries. Sweden and the
Netherlands have
been
calling for
an EU
agreement to
introduce an
aviation fuel
tax.

Source: FT research

How planes cause pollution


Take-o
The aircraft’s initial
climb is the most
energy-intensive
part of the journey,
consuming as much
as one-quarter of the
plane’s total fuel on
short flights
In-flight
The water vapour
from the engine creates
contrails, long thin
clouds of frozen water,
which have a warming
eect. Aircraft also emit
nitrogen oxides, which
interact with other
particles to form
ozone, a warming gas

Landing
Aircraft engines emit
particulate matter and
soot, which contributes
to pollution near
airports. Sulphur
pollution can also be a
problem because of the
high levels of the
chemical in jet fuel

impact of air travel. When planes fly
through the sky theyemit other sub-
stances that have a significant warming
effect — such as nitrogen oxide and con-
trails, the long thin clouds of frozen
vapour that are visible from the ground.
A growing body of research shows the
climate impact of aeroplanes is about
twice as much as their CO2 emissions
alone would suggest — closer to 5 per
cent of human-caused warming.
Volker Grewe, professor of atmos-
pheric physics at the German Aerospace
Centre (DLR), says these “non-CO
effects”, such as particle emissions,
nitrogen dioxide and contrails, are a
major contributor to the warming
impact of planes.
“Aircraft are flying at higher altitude
of 10-12km and whatever emissions
they produce at that altitude remains
longer in the atmosphere,” Mr Grewe
says. “That is the big difference between

‘We are seeing that all


around, people are going,


“oh crikey, aviation is


actually part of my


[carbon] footprint”’


Airlines face flight


shame turbulence


Research suggests
the climate impact
of aircraft is about
twice as much as
their CO2 emissions
alone would suggest.
Below: climate
activist Greta
Thunberg—Getty Images

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RELEASED


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RELEASED


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RELEASED


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TELEGRAM:

Airlines account for about 2 per cent of

TELEGRAM:

Airlines account for about 2 per cent of
carbon dioxide emissions globally. But

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carbon dioxide emissions globally. But
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on aviation, because we just don’t know

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how to do it in a low-carbon way.”

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how to do it in a low-carbon way.”

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