Friday, November 18, 2016

Aviation Emissions


Aviation has great impact on the world’s carbon emissions. Carbon emissions is created when jet fuel is burned. When jet fuel is ignited, the carbon in the fuel is released ad bonds with the oxygen in the air forming carbon dioxide. Along with carbon dioxide, water vapor, nitrous oxides, sulphate, and soot are also released into air when jet fuel is burned (David Suzuki Foundation, 2014).  Transportation is the second biggest contributor of carbon emissions in the United States, the energy industry is the first. Transportation makes up about 34% of carbon emissions and within that 34%, aviation makes up for nearly 9% of carbon emissions (Center for Climate and Energy Solutions, n.d.). The only other source of carbon emissions that is greater than aviation are vehicles. Medium and heavy-duty vehicles produce 23%, of emissions and light-duty vehicles produces 60% of emissions (Center for Climate and Energy Solutions, n.d.). By 2050, aviation could generate up to 43 gigatonnes of emissions consuming 5% of the world’s carbon budget, the United States itself is responsible for generating for nearly half of the world’s carbon dioxide emissions from aircraft (Center for Biological Diversity, n.d.). While the burning of jet fuel is the most obvious way aviation contributes to the release of carbon emissions, it is not the only way. Contrails are fumes of exhaust that are released when an aircraft is flying at higher altitudes which also have an impact on emissions. As contrails are formed, they essentially trap heat, which contributes to global warming (David Suzuki Foundation, 2014).

                Under the proposed reduction plan, participation is voluntary and will only affect international flights. The first stage which will take place between 2021 to 2023 will consists of those who voluntarily participate. There will be a review conducted in 2022 to determine if any changes are needed before applying the plan to other countries. Between 2024 to 2026, the first implementation phase will be initiated. Between 2027 to 2035, the second phase will be implemented which includes most States (Aviation Benefits, n.d.). The plan states that airlines that voluntary participate in the reduction plan must reduce the amount of emissions being released and may purchase carbon credit (Lampert, 2016).

                 The Paris Agreement an agreement in which signed nations pledge to reduce their carbon footprint over the next 10 to 15 years (Romm, 2016). President-elect Trump has stated in his campaign that he plans to pull the U.S from the Paris Agreement. Instead, Trump wants the U.S to invest in coal, oil, and natural gas which would release more emissions into the atmosphere (Doyle & Davis, 2016). I do not believe that it will adversely affect the aviation industry that much. Aviation business like Rolls-Royce, Embraer, Boeing, and etc. are embracing corporate social responsibility. Manufacturers are always trying to improve their product by building more efficient jets and engines that used less fuel, thus reducing the amount of carbon emissions being released into the atmosphere. 

                I believe that all industries should do whatever they can to lower carbon emissions. Allowing carbon emissions to increase will cause irreparable harm to the planet. The consequences of climate change are well known and governments and businesses need to acknowledge and do what is right to lessen those consequences. The reduction plan that ICAO is proposing in not good enough because it allows airlines to purchase carbon credit which is essentially allows companies to pollute as long as they have the money to purchase credit.  





References


Aviation Benefits. (n.d.). A proposal from ICAO. In Aviation Benefits. Retrieved November 18, 2016, from http://aviationbenefits.org/blog/2016/04/a-proposal-from-icao/

Center for Biological Diversity. (n.d.). Airplane emissions. In Center for Biological Diversity. Retrieved November 18, 2016, from http://www.biologicaldiversity.org/programs/climate_law_institute/transportation_and_global_warming/airplane_emissions/

Center for Climate and Energy Solutions. (n.d.). Reducing carbon dioxide emissions from aircraft. In Center for Climate and Energy Solutions. Retrieved November 18, 2016, from http://www.c2es.org/federal/executive/epa/reducing-aircraft-carbon-emissions

David Suzuki Foundation. (2014). Air travel and climate change. In David Suzuki Foundation. Retrieved November 18, 2016, from http://www.davidsuzuki.org/issues/climate-change/science/climate-change-basics/air-travel-and-climate-change/

Doyle, A., & Davis, M. (2016, November 9). Trump win boosts coal, hits renewable stocks. In Reuters. Retrieved November 18, 2016, from http://www.reuters.com/article/us-usa-election-climatechange-idUSKBN1342E0

Lampert, A. (2016, August 2). Exclusive: U.N. aviation emissions pact may be voluntary at first -sources. In Reuters. Retrieved November 18, 2016, from http://in.mobile.reuters.com/article/idINKCN10D22N?irpc=932

Romm, J. (2016, November 17). The Paris agreement is an incredible deal for the U.S. Trump would be foolish to cancel it. In ThinkProgress. Retrieved November 18, 2016, from https://thinkprogress.org/trump-terrible-deal-maker-climate-83ea3c16f68a#.f3bj2b4hz




Friday, November 4, 2016

Global Airlines


                Two long-haul carriers listed in the U.S-UAE Open Skies Agreement are Emirates and Etihad Airways. Emirates, a subsidiary of the Emirates Group is the largest airlines in the world in terms of global capacity, a million passengers every week. They are also the world’s largest operator of Airbus A380 which flies out of the world’s largest terminal at the world busiest airport (Gerchick, 2016). Etihad Airways is the national air carrier of the UAE.   

                U.S air carriers have been subsidized by the government. One way the government subsidizes the airlines is trough Essential Air Service, which is a Federal program that provides airlines subsidizes to fly less profitable routes to prevent a certain location from losing air travel all together (U.S Department of Transportation, 2016). Another way the government has been subsidized is through government bailout. 9/11 caused a drop in air travel in the United States, which caused U.S Airways, United, Northwest, Delta, and American to file bankruptcy (Sasso & Yousef, 2015). To prevent the U.S aviation industry from collapsing the government bailed out the airlines. During the aftermath of 9/11, Congress passed the Air Transportation Safety and System Stabilization Act, which offered airlines $5 billion in cash assistance and $10 billion in loan guarantees (Sasso & Yousef, 2015).

                The Export-Import Bank is a credit agency that provide financing of large purchases of American manufactured exports through guaranteed loans (EXIM, n.d.). Boeing has been relying on the Ex-Im Bank to sells their aircraft to foreign airlines that otherwise may not be able to afford them. The issue is whether the existence of the Ex-Im Bank has provided foreign air carriers an unfair advantage. Since the Ex-Im Bank provides guaranteed loans to foreign airlines to purchase Boeing aircraft at a lower cost, some have argued that foreign airlines will use their guarantees to lower the ticket price of international flights thus rendering U.S air carriers uncompetitive (Weisman & Lipton, 2015). However, it is believed that should the Ex-Im Bank shutdown, Gulf carriers will be unaffected since their strategy is to diversify their source of financing. 

                I believe that the playing field is unfair towards U.S air carriers. While the U.S government does subsidizes the airline, it is nowhere near as much as the Gulf carriers. All the Gulf carriers are state-owned which means the government has a special interest its operation. The pressure to make the biggest profit while minimizing cost is not great as privately owned airlines. Boeing’s use of the Ex-Im Bank prevents U.S air carriers from upgrading or expanding their fleets are fast as their Gulf counterparts, which makes it more difficult to compete. Not only do they receive subsidies from their respective government, Gulf carriers do not use ethical business practices which gives them an unfair advantage. Trade unions are illegal in the UAE and Qatar, which means that their employees don’t have a voice in regards to their employment ultimately giving the airlines tremendous power over how they treat their employees (Britton, 2015).




References

Britton, R. (2015, July 17). Is this a luxury you want to buy?. In Huffington Post. Retrieved November 4, 2016, from http://www.huffingtonpost.com/rob-britton/is-this-a-luxury-you-want_b_7810644.html


EXIM. (n.d.). About us. In EXIM. Retrieved November 4, 2016, from http://www.exim.gov/about


Gerchick, M. L. (2016, April 30). The rise of the aerostate: U.S. carriers scramble as Persian Gulf rivals emerge. In The Washington Post. Retrieved November 4, 2016, from https://www.washingtonpost.com/business/the-rise-of-the-aerostate-us-carriers-scramble-as-persian-gulf-rivals-emerge/2016/04/29/a14da5f6-0b2c-11e6-a6b6-2e6de3695b0e_story.html


Sasso, M., & Yousef, D. K. (2015, February 18). Delta CEO’s 9/11 Comment on Open Skies Riles Gulf Carrier Chiefs. In Bloomberg. Retrieved November 4, 2016, from http://www.bloomberg.com/news/articles/2015-02-19/delta-ceo-s-9-11-comment-on-open-skies-riles-gulf-carrier-chiefs


U.S Department of Transportation. (2016, May 17). Essential Air Service . In Department of Transportation. Retrieved November 4, 2016, from https://www.transportation.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service


Weisman, J., & Lipton, E. (2015, April 6). Boeing and Delta Spend Millions in Fight Over Export-Import Bank’s Existence. In New York Times. Retrieved November 4, 2016, from http://www.nytimes.com/2015/04/07/business/boeing-delta-air-lines-export-import-bank.html?_r=1