A time to consider using clean energy for flying amidst global aviation shutdown
Airlines can also move towards less reliance on the volatility of oil price and fuel hedging
Every once in a while, a huge event happen. Some events are so tremendous that create an impact on our lives and change how the way we live. In the year 2020, there is one such event that is no stranger to anyone across the globe. It has disrupted our daily norms, social lives and businesses. People are restricted to stay indoors; roads empty; planes lying on the tarmac — grounded. The aviation industry has been severely impacted by the coronavirus pandemic.
With aviation recovery task force being set up across the globe to discuss on getting the airlines going again post-pandemic, most said that the flight experience will change forever. This is also a time where the push for aviation to use clean energy for flying can discuss.
Clean energy — Reducing carbon emissions
Increase in air travel and CO2 pollution
Air travel is seeing an increase in demands over the years and is expected to increase exponentially in the future. An increase in flight demands results in more CO2 emissions being released into the air from the aeroplanes. With global climate change a threat to the environment, the aviation industry should do its part to reduce pollution as well.
Less fuel hedging and reliance on the volatility in prices of fuel
Most international airlines hedge fuel costs to protect themselves from volatile oil costs and against the anticipation of rising fuel prices by purchasing future contracts. In the first half of 2020, the world had to battle with a coronavirus pandemic across the globe. As countries shut their borders with restrictions on travel, air travel demands have declined sharply. Airlines had to ground their planes and there was virtually no flights. The entire oil demand collapsed, crashing the oil prices along with it.
Collaborations within the industry
Boeing — Etihad Airways
Etihad Airways has joined forces with Boeing in an industry-leading strategic partnership, focusing on innovation, cost efficiency and minimising the impact of aviation on the environment. Touted the “Greenliner”, the project aims to reduce the number of CO2 emissions by using biofuel and sustainable aviation fuel to improve flight efficiency.
Boeing — COMAC
Despite Airbus and Boeing duopoly over the skies for most of the countries and airlines, the third-largest manufacturer COMAC — Commercial Aircraft Corporation of China has also joined the fight in reducing air travel pollution. While COMAC is only operating in China, the collaboration of Boeing and COMAC willingness to work together despite their political differences showed the commitment towards less polluting air travel.
More on the collaboration can be found in the article below.
Airbus
While there are no official announcements from Airbus having any collaborations with airlines, they have already started research and development into sustainable aviation fuel (SAF).
SIA stood at the highest possibility to collaborate with Airbus on this clean energy project given the joint venture with SIAEC and also being the launch customer to many of Airbus new fleets including the exclusive A350–900ULR.
Electric aeroplane and the future
While the automotive industry is undergoing a paradigm shift to electric vehicles (EVs), the same can be said for the aviation industry to achieve climate change goals.
While the main purpose of the task forces being set up at this juncture is to get the airlines flying again and recover the short term losses, there should be plans going forward to reduce one factor that adds to high costs of flying — fuel hedging. Despite the negativity of COVID-19, airlines should take this opportunity as a positive to rebuild the industry with the relevant technologies.
