Sustainability Challenges To The Airline Sector Of The Economy
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Sustainability challenges to the airline sector of the economy
Date of delivery:
05/03/2008
TABLE OF CONTENTS
SUMMARY
INTRODUCTION
1. WHAT CHALLENGES DOES AVIATION FACE IF THE GOAL IS LONG TERM SUSTAINABILITY FOR THE SECTOR?
1.1 ECONOMIC CHALLENGES
1.2 ENVIRONMENTAL CHALLENGES
1.2.1 The challenge of air pollution
1.2.2 The challenge of noise
1.2.3 The link between environmental and economic challenges
1.3 SOCIAL CHALLENGES
1.3.1 Principles and characteristics of Social Sustainability
1.3.2 Challenges to long term social sustainability
1.4 GOVERNANCE CHALLENGES
2. WHICH OF THESE CHALLENGES ARE ALSO CHALLENGES IF THE GOAL IS TO BE A RESPONSIBLE CORPORATION?
2.1 ECONOMIC CHALLENGES
2.2 ENVIRONMENTAL CHALLENGES
2.3 SOCIAL CHALLENGES
2.4 GOVERNANCE CHALLENGES
3. DESCRIBE THE SECTORS PROGRESS TOWARDS, OR (FAILURES) MOVE AWAY FROM SUSTAINABILITY OVER THE LAST 20 YEARS.
3.1 BACKGROUND
3.2 ECONOMIC SUSTAINABILITY
3.3 ENVIRONMENTAL SUSTAINABILITY
3.3.1 Progress
3.3.2 Shortcomings
3.4 SOCIAL SUSTAINABILITY
3.5 DEVELOPMENT IN GOVERNANCE ISSUES
3.5.1 Progress
3.5.2 Shortcomings
4. WHAT SHOULD AVIATION AND REGULATORY AUTHORITIES DO TO PROMOTE SUSTAINABLE DEVELOPMENT IN ITS SECTOR
4.1 ECONOMIC SUSTAINABILITY
4.2 ENVIRONMENTAL SUSTAINABILITY
4.2.1 Regulations
4.2.2 Taxation
4.2.3 Technology
4.2.4 Other ways to promote environmental sustainability
4.3 SOCIAL SUSTAINABILITY
4.4 GOVERNANCE DEVELOPMENT
REFERENCES
BOOKS
ARTICLES
INTERNET DOCUMENTS
APPENDICES
APPENDIX 1.2
APPENDIX 1.2
APPENDIX 1.3
APPENDIX 1.3
APPENDIX 1.4
APPENDIX 3.4
Summary
This paper deals with sustainability challenges to the aviation sector in the economy. Four questions are addressed and simultaneously make up the structure of the document.
In section 1 we discuss what challenges (to business and regulatory authorities) aviation is faced with if the goal is long term sustainability. Sustainable development consists of three factors (economic, environmental and social) in addition to a governance point of view. This is the basis of our dissection of the 1st section – where each factor is discussed with a linkage to aviation.
The 2nd section reviews those of the first sections challenges which also represent challenges if the goal is to be a responsible corporation. An important distinction is here done between sustainability and responsibility.
Describing aviations progress towards – or move away from – sustainability over the last 20 years since the Brundtland Commissions launch of “Our common future”, make up the 3rd section. UN milestones after this report are, in short, went through in the Appendices. Important principles, introduced during these 20 years, are included in the main text (examples from aviation are given at the same time). The majority of our response is however focused on each factor (clarified in section 1) of sustainable development and the positive or negative direction of the evolution of these.
The discussed issues culminate in a 4th section where we launch some opinions as to what aviation should or could do in order to promote sustainable development.
Introduction
Transportation by air has experienced a rapid expansion since the World War 2. Traffic growth became a result of declining operating costs and fares per unit of traffic (measured in passenger-kilometres). In 1945, 9 million passengers took to domestic or international air transportation. Today – at the end of 2005 – we find ourselves light years away from this level, as 704 million passengers choose to travel by air. On average, this tremendous enlargement of air passenger traffic has had an annually growth on ca 10 per cent in the 60 years that have passed. Comparatively, the growth in gross domestic product (GDP, the broadest available measure of world output) has been at an average of 3, 8% annually in the same period.
(Source: ICAO 2001)
When looking ahead, forecasts show a 5 – 5,5 % growth in world air traffic up till 2007 and then 4,3 – 4,9 % growth till 2017. GDP is expected to have an average
annual growth around 2,5 – 3 % over the next ten years.
(Source: IMF 2006)
The west-east longitudinal belt is the main pathway of air transportation, that is, the routes between Europe – Middle-East – South-East Asia – Japan – USA – Europe. This is where the largest markets lie (measured in the volume of scheduled traffic generated), and therefore is the focal point of