Vol. 11 No. 119                                  #INTHEAIREVERYWHERE                                      Thursday December 13, 2012

1975—Founded Air Cargo News. We are the Original.
1986—Responsible for saving the Marine Air Terminal, LaGuardia Airport. Only publication to be honored by the U.S. Department of Transportation for outstanding contribution to transportation and aviation.
1997—Credited with China Airlines Cargo service into the Miami market.
1999—Air Cargo Americas Award for Excellence.
2001—Responsible for saving Building One, Newark International Airport historic first generation administration building.

    

IATA Too Many Rings Around Rosie Tony Tyler

It is a diverging picture. Economies of scale are helping larger airlines to cope much better with the difficult environment than small and medium sized carriers, which continue to struggle
With GDP growth close to the 'stall speed' of 2% and oil at $109.50/barrel we expected much weaker performance.
     But airlines have adjusted to this environment through improving efficiency and restructuring.
     That is protecting cash flows against weak economic growth and high fuel prices.
     Prospects for 2013 will be largely unchanged from 2012.
     Net profits are expected to rise to $8.4 billion leaving the industry with a 1.3% net profit margin.
     It is good that we are moving in the right direction, but the year ahead is shaping up to be another tough one for the industry.
     We need to make sure that cash strapped governments understand aviation is a catalyst for economic growth and ensure that light touch regulation does not become a license for infrastructure providers to let costs get out of control.
     We will also maintain pressure on governments for important infrastructure improvements - including the Single European Sky so that hard won cost efficiencies are not lost to battles with congestion.


Chuckles for December13, 2012

Delta Airlines Richard Anderson Virgin Atlantic Julie Southern
Face of Business . . . Delta Airlines CEO Richard Anderson and Virgin Atlantic CCO Julie Southern laugh during a news conference in New York on Tuesday, as DL makes its push to capture more of the New York-to-London market.

     
The news that Delta Air Lines and Virgin Atlantic Airways have reached an agreement for a new joint venture with DL, taking a 49 percent stake in Virgin for $360 million (owned by Singapore Airlines), has us wondering how the new union might affect air cargo.
     “At the moment,” a DL spokseman said, “I have no specific cargo information to share.
     “As you can imagine, there are a myriad of details to be finalized in an agreement of this scope.
     “Will advise if and when more information becomes available.”
     Ready when you are, DL!

Richard Branson Willie WalshVirgin boss Richard Branson has put a £1m wager on the airline’s future after Willie Walsh (left), chief executive of BA, predicted before the announcement that the Virgin brand would vanish within five years if Delta bought the 49 percent stake.


Alden Meyer Jennifer Morgan

     The UN Climate Change Conference in Doha concluded last weekend with nothing new from the United States about how to reduce carbon emissions or help countries cope with the impacts of climate change.
     The Kyoto Protocol was extended, but several countries, including Japan and Canada, have opted out of the protocol, which the United States never ratified.
     Conclusions from critics say that the Doha deal is far too weak to avoid the deadly impacts of catastrophic climate change.
     Alden Meyer of the Union of Concerned Scientists said:
There were some winners here.
The coal industry won here, the oil industry won here, the fossil fuel industry won here.
You saw on display the power of these industries and their short-term profit motivation to dominate the governments of the world.
     This wasn’t an environmental or a science-driven discussion; this was a trade fair.
     This was a ‘who’s going to share the spoils of the world as we drill in the Arctic and produce tar sands in Canada and mine coal in Indonesia for China.’”
     This is not the future we need to leave to our children.

     “The International Air Cargo Association (TIACA) is committed to environmentally responsible behavior, and is proud of the progress the air cargo industry has made in this regard,” says TIACA Secretary General Daniel Fernandez.

Tiffany Cordeschi Reha Erman Saniel Fernandez Rachael Negron John RoederTIACA Team—Pictured (L to R) are: Tiffany Cordeschi, Administrative Assistant; Reha Erman, Director of Sales; Daniel Fernandez, Rachael Negron, Executive Secretary; and John Roeder, Director of Operations.

    “With fuel representing around 40-50 percent of the operating costs of airlines, they have every incentive to operate more cost efficient and environmentally efficient aircraft—and this is what the majority of airlines are doing. The aviation industry in general has made significant progress in reducing its impact on the environment since the beginning of the jet age nearly 40 years ago. Advancements in technology have resulted in a 70 percent reduction in fuel consumption, and therefore CO2 emissions, which are directly proportional to the amount of aviation fuel consumed, compared to original commercial jets.
     “Aviation currently accounts for 2 percent of man-made global carbon emissions, and with global demand for passenger and cargo traffic forecasted to increase this is predicted to grow to 3 percent by 2050, according to the UN’s Intergovernmental Panel on Climate Change. TIACA supports the joint industry targets developed by the International Air Transport Association (IATA) and endorsed by the Air Transport Action Group (ATAG) for an average annual fuel efficiency improvement of 1.5 percent to 2020, carbon neutral growth from 2020, and the aspirational goal of a net 50 percent reduction in 2005 carbon dioxide emission levels by 2050.
     “Our industry works in an environment of continuous improvement that has already delivered substantial and measurable reductions in noise, emissions, and fuel consumption, and it will continue to seek more enhancements.
     “The challenge is to continue our environmental progress in economically feasible and operationally rational steps, particularly given the continuing uncertainties in the global economy. TIACA felt strongly that the EU Emissions Trading Scheme was the wrong way to pursue lower emissions, so we entered into direct dialogue with the EU’s Climate Action Commissioner, Connie Hedegaard, to make our position clear. Along with our fellow members of the Global Air Cargo Advisory Group (GACAG), we have consistently campaigned for multilateral efforts to develop international CO2 emissions standards within ICAO.
     “We therefore naturally welcomed the announcement by Commissioner Hedegaard on November 12, 2012, to suspend the inclusion of international aviation in the EU Emissions Trading Scheme (EU ETS) and to allow ICAO to press ahead with creating a global solution for managing aviation’s carbon emissions. TIACA believes it can play a role in supporting ICAO in this initiative. In fact, in October 2012, TIACA and ICAO agreed to enhance our cooperation in the field of air cargo transportation following the participation of ICAO Secretary General, Raymond Benjamin, in our Air Cargo Forum in Atlanta.
     “Environmental change, along with air cargo security improvements and customs and trade facilitation progress is most likely to succeed if all of the stakeholders work together. TIACA believes there is a growing recognition by governments, global and regional regulators, and the industry as to the importance of collaboration on these key issues.
     “We encourage all parties to work diligently to agree a global framework for emissions reduction under the auspices of ICAO.
     “On this and other environmental issues, TIACA members accept their responsibility to influence positive change that leads to measurable environmental benefits. However, these changes must also take into account the importance and role of the transport industry and its positive economic impact on the global community and economy and must balance the needs of all stakeholders.
     “For example, TIACA has challenged night-flight restrictions at airports; the restrictions not only hinder the next-day delivery of products but also the ability of that city or country to compete in the world economy. The Association’s preferred approach is to treat noise as an ‘airport specific’ issue in accordance with the ICAO Balanced Approach guidelines.
     “We are also championing the modernization of air traffic management (ATM) systems which can play a major factor in reducing aviation CO2 emissions. If the aviation industry can reduce every flight’s duration by just one minute, it would prevent 4.8 million tons of CO2 emissions each year. We have also voiced our support of the Single European Sky plan to create a single European airspace. As well as the operational and cost benefits this offers, the European Commission estimates that Europe's air management inefficiencies add 42km (26 miles) to the average flight. Reducing this flight time will make another valuable contribution to cutting CO2 levels.
     “The airline business and all suppliers in the air cargo supply chain are professional, responsible, and essential businesses. An appreciation of the vital role of our industry is critical because growing and profitable aviation and air cargo businesses will be in a far stronger position to reinvest more in the technological advancements that are continually being developed and deliver environmental benefits.”
Geoffrey Arend

     At the 49th conference of Directors General of Civil Aviation, Asia Pacific Regions, recently held in Delhi, India’s Civil Aviation Minister Ajit Singh declared “the call for suppressing aviation growth to reduce its environmental impact is not acceptable to us as a solution.”
      His comment might seem controversial to environmentalists, but he was only emphasizing what the country had been demanding: scrapping of the EU ETS scheme. Calling upon the delegates, Singh went on to say, “We need to facilitate growth of aviation along with finding innovative solutions to addressing environmental concerns… we would request the delegates to oppose any unilateral environment measures imposed by a State or a group of States like the EU ETS and work with ICAO to evolve global environment protection on basis of equity and consensus.”

Ajit Singh India Civil Aviation Minister
      

     The minister made it quite clear that “the challenges of dealing with growth and environment are huge, but we in India are trying to deal with this in a mature manner. We need the support of developed countries, both financially and technologically, to address the environmental concerns without depriving the people of India of the economic benefits of air transport.”
      The country’s aviation sector, then, is sensitive to environmental issues and “is committed in its role to reducing the environmental impact of the rapid growth of aviation,” said Singh. There are targeted government policies on environment and to add to that there is a well-informed and vigilant civil society as well as a proactive judiciary. Perhaps, an important factor in India’s favor and one that Minister Singh has often pointed out is that since most of the country’s airlines have a relatively new fleet of aircraft, “we have a definite newcomer advantage.”
      While the national carrier, Air India, is in the process of completing a total fleet replacement program of 120 new aircraft, the international airports at Mumbai, Delhi, Chennai, and Kolkata have been remodeled with the latest environment-friendly technology. Among other measures to protect the environment, the civil aviation ministry has instituted rules and procedures for limiting fuel burn and the flexible use of air space, and the ministry has taken steps to monitor the carbon footprint in the aviation sector.
Arun Mishra India Civil Aviation Director General      A pro-active Arun Mishra, (left) Director General of Civil Aviation, is equally aware about the environment.
      “Aviation growth faces major challenges in the areas of safety, security, and environmental protection,” he said. However, he would like the ICAO to play an active role since “we recognize the leadership role of ICAO, we should be prepared to enable ICAO to take up this role efficiently”. He went on to mention that ICAO member-States should collectively convey a clear message to the ICAO Council through the Secretary General that “we would like to see enhancement of the present level of activities of ICAO taking into account the growth in several regions of the world, especially Asia-Pacific.”
      With that clear vision, the ministry has recommended that the carbon footprint of Indian aviation for 2011 should be publicized, both within the Indian aviation industry (airlines, airports, the website of the Director General Civil Aviation) and internationally (ICAO, Committee on Aviation Environmental Protection meeting in February 2013) to showcase the meaningful efforts taken by India regarding aviation and climate change. In addition, the development of an annual carbon footprint for the Indian aviation sector was necessary to implement reduction measures, monitor progress, and set targets—if necessary.
Aditya Ghosh IndiGo      Airlines stakeholders have become active as well. Low-cost carrier IndiGo, for example, became the first to land using fuel-saving technology. In collaboration with Airbus subsidiary Quovadis, which is dedicated to performance-based navigation (PBN), the Airports Authority of India (AAI) and the Directorate-General of Civil Aviation, an IndiGo plane landing at Kochi airport on its scheduled flight from Bengaluru used a procedure that saves approximately 75 km on each approach, which is approximately 400 Kg of fuel saving per landing and a corresponding amount of reduction of greenhouse gas emissions.
      Commented IndiGo’s President Aditya Ghosh, (right) “The new technology will enable tangible cost savings, which in turn will have a positive impact on our overall operational efficiency. But more importantly, we are excited about partnering in this significant step towards improving air traffic management in India and making it an even safer and greener environment to fly in.’’
      Other carriers like Jet Airways have ushered in IBM's integrated emission management system to calculate, track, and report aircraft emissions. By doing so, the airline can track each of its aircraft’s carbon emissions and maximize its fuel usage. Jet’s Chief Commercial Officer Sudheer Raghavan pointed out that while creating an energy efficient airline was a top priority, “we are committed to the environment and a greener world.” With IBM's solution, Jet Airways can evaluate the carbon footprint not only at the fleet level but also at the aircraft level. “It will help us optimize the fuel usage and thereby create a positive impact on the environment," he said.


The report from the Ministry of Civil Aviation outlines, in a comprehensive and detailed manner, the first-ever Carbon Footprint of Indian aviation for 2011. It identifies the main stakeholders of Indian aviation involved in the creation of the carbon footprint. The conclusions of the report:
The carbon footprint of Indian scheduled airlines to/from domestic destinations was 6,755,000 tonnes of CO2. The carbon footprint of Indian scheduled airlines to/from international destinations was 5,949,000 tonnes of CO2. Therefore, the carbon footprint of Indian scheduled airlines for domestic and international operations was 12,704,000 tonnes of CO2. This represented a six percent increase compared to 2010 (11,990,000 tonnes).
The carbon footprint of foreign airlines serving international destinations from Indian airports, which is based on Aviation Turbine Fuel (ATF) uplift from India, reached 3,623,000 tonnes of CO2.
The carbon footprint of scheduled Indian airlines and foreign airlines (to international destinations) represents approximately one percent of the country’s total CO2emissions, which is significantly lower than the global average contribution of airlines, which represent approximately 2 percent of global anthropogenic emissions.
Emissions of Indian scheduled airlines to/from domestic destinations are forecast to grow to 14,500,000 and 111,000,000 tonnes of CO2 in 2020 and 2050 respectively if no emission reduction measures are adopted. When both domestic/international operations of these airlines are considered, the respective forecast emissions are 27,000,000 and 209,000,000 tonnes of CO2.
Emissions from Indian airport operations are estimated in the range of 700,000 tonnes of CO2.

Pakyong Airport Sikkim

Artist rendering of Pakyong Airport in Sikkim.

      Other than the carriers, the AAI—which manages 125 airports around the country—has set benchmarks in environmental conservation. For example, in one of the airports it is in the process of constructing, the Authority has used novel measures. For the Sikkim airport, the emphasis has been to preserve the flora and fauna. The airport building was designed using local stone in keeping with the surroundings. A system has been designed to tap natural water and make it available through a well-designed network of non-woven, geo-synthetic pipes. The AAI has been able to integrate sustainability in such a way that it is beneficial to the local inhabitants; it is environmentally sound, but it also adheres to project construction requirements.
      Today, in keeping with sustainability goals, the AAI pays special attention at the planning and design stage to conserving top soil, preventing erosion during construction, avoiding noise, water, solid wastes and air pollution, and protecting existing trees and plantation of trees in and around building after construction.
V.P. Agrawal       In fact, some time ago, the AAI almost decided to stop operations of Airbus 320s and Boeing 737s at Patna airport because of its proximity to the zoo. It was only after a firm assurance from the Bihar Chief Minister (Patna is the capital of Bihar province) that the trees on one side of the airport’s runway would be pruned that the AAI allowed operations to continue.
      Other than that, AAI has initiated a novel program to recycle its waste paper into material for use in its offices across the nation. Brainchild of AAI Chairman V. P. Agrawal, (left) who believes in “giving back to the community where we live and work,” the products made by the recycling unit include folders, letter heads, visiting cards, and a wide range of corporate gift items, which have brought laurels for AAI like the Golden Peacock EcoInnovation Award, a prestigious national award.
Tirthankar Ghosh

 

     It’s kind of amazing when you think about it.
     Last week several hundred environmental ambassadors met in Doha, a place that emits more carbon per capita than anywhere else on earth.
     The meetings were conducted against the backdrop of recent, unspeakably catastrophic weather events that racked various locations, from New York City to the Philippines.
     And the most conferees could come up with was a watered-down statement, as we have detailed here?
     People all over the world of air cargo are coming forth with statements filled with possible solutions, hopes, and dreams about what to do about our big, dirty airline business to make it cleaner and more responsible. We’ve been compiling those stories and statements as they’ve come in, including one from TIACA, The International Air Cargo Association.
     We received many of the stories that have appeared in our issues simply because we asked our readership for answers to these environmental questions.
     Many thanks go out to all those who wrote in, because as we see it, these governmental suits have done bupkis in forging any real change in the status quo, and it seems to us that time is indeed running out.
     It looks like it will be up to responsible people and industries like air cargo to go above and beyond if we are to leave a decent, clean world for future generations.
     The time to bring the environment center stage in air cargo—at every meeting, every club event, and every trade show—is now.
     There is no place to run and hide anymore.
Geoffrey
     


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