IANS | 18 Sep, 2023
A new study by the Indian Institute of Management (IIM), Lucknow and
University of Liverpool has found that revenue sharing by airports and
airlines can help them become eco-friendlier and give the aviation
sector a sustainable boost of growth.
Led by IIM Lucknow, the
study sheds light on how airlines and airports can collaboratively
achieve sustainable growth through various agreements.
Moreover,
the government can also step in, acting as an overall leader -- enabling
a further greening of this sector by imposing taxes, the study has
suggested.
The study has been published in the European Journal of Operational Research and Transportation Research.
“Airlines
in India have been working on improving fuel efficiency to reduce
greenhouse gas emissions. This involves adopting more fuel-efficient
aircraft, optimising flight routes, and implementing operational
practices that minimise fuel consumption, reducing taxi times, and
implementing procedures to minimise unnecessary fuel burn during delays
in landing permissions,” said Suresh K. Jakhar, Associate Professor, IIM
Lucknow.
''With the urgency to decarbonise the aviation sector
gaining momentum, the study addresses the crucial role that
collaboration between airlines and airports plays in advancing
sustainability. The team used data collected from publicly available
secondary sources which include airline and airport schedules and
financial and other documents available with airlines,'' Jakhar said.
''We
have addressed fundamental questions about how coordinated agreements
between airlines and airports can bring better results for the economy,
the environment, and society. We have also shown the effects of
environmental and social factors on airport charges, ticket prices, and
the demand for air travel,'' he added.
The study highlights the
roles of reciprocity, fairness, and passengers' environmental awareness
in the coordination of airports and airlines.
It presents a
detailed framework for achieving triple-bottom-line growth. This
framework includes airlines investing in eco-friendly practices,
airports taking on corporate social responsibility initiatives, both
supplemented by government interventions.
According to the study,
in the aviation industry, an airline's performance determines the
airport's demand, while the airport needs to facilitate the airline by
providing the necessary infrastructure. This inter-dependency has to be
well coordinated, failure of which would lead to limited economic
growth, environmental protection and social development.