An end to air tax proposals

Citation

(2007), "An end to air tax proposals", Aircraft Engineering and Aerospace Technology, Vol. 79 No. 5. https://doi.org/10.1108/aeat.2007.12779eaf.002

An end to air tax proposals

An end to air tax proposals

It would appear that to many of the world's governments the perceived threat of “Global Warming” gives them a license to impose ever more taxes on the travelling public. The lure of extra tax revenue outweighs a growing body of scientific opinion that states that global warming is not a man- made phenomena but a recurring natural event.

easyJet recently urged an end to the seemingly endless cycle of ill-conceived, unworkable tax proposals that are being threatened to air travellers.

According to the Stern Review, aviation contributes only 1.6 per cent of global greenhouse gasses, rising to only 2.5 per cent by 2050. The imposition of unilateral tax schemes on an international business risks damaging the economy and incentivising perverse behaviour as companies look for ways around the local tax regimes.

Ideas such as, imposing VAT on domestic tickets, adding a fuel duty to domestic flights or limiting people's ability to travel have been suggested in the past, but always rejected as unworkable, costly, complex to manage and easy to abuse.

It is for this reason that easyJet has long supported the European Union's Emissions Trading Scheme as the right way to bring down emissions across the industry. Politicians of all colours in all European countries appear to have recognised that a market-based mechanism is the right way to approach aviation and local taxes have no place in an international industry – especially in an island so very dependent on air links for its international mobility.

Andy Harrison, easyJet Chief Executive, said: “There is a more measured and more efficient approach than simply asking people to pay more tax. Air passenger duty (APD) is ripe for reform, but politicians must learn the lessons of history and realise that an island economy in a globalised world needs international solutions in an international industry.”

“Indeed, the industry is working towards the introduction of aviation into the European Union's Emissions Trading Scheme from 2011 which will provide a financial incentive for airlines to operate the cleanest aircraft available – this is the right way to balance aviation's huge social and economic contribution with its impact on climate change. Anything else just looks like meaningless political posturing”

“Green Landings” to be the future of more eco-friendly air travel

Governments cannot be relied upon to solve the issue of global warming (if it does exist) after all, most of today's politicians are either lawyers or accountants, not engineers, the answer can only come from experts from the aerospace industry.

Scandinavian Airlines (SAS) for instance, is calling for greater international governmental support for aviation research and technology to help with managing the impact air travel has on the environment. The airline did so as it announces the ongoing success of “green landings” which it believes is set to be the future of aircraft landings across the world.

While governments continue to look to financial instruments such as taxes and charges to help the environment, SAS has been implementing a series of trials in Sweden working to find technological solutions to reduce the environmental impact of aviation travel.

Lars-Ove Filipson, General Manager United Kingdom and Ireland, SAS said: “The UK Government's recent increase in airport passenger duty imposes a greater financial burden on the travelling public, while there is still no proof that the UK tax will go toward environmental protection. This is a tax on passengers travelling from the UK and as such will do little to help the environment. SAS has been working for the last year on an innovative approach to the future of air travel, and we believe governments around the world should be working with companies such as SAS in endeavours like our green landings initiative and not penalising passengers with increased taxes”.

SAS recently became the first airline in the world to introduce green landings – also known as green approaches. Working with Stockholm Arlanda airport, SAS has invested in new technology which sets the aircraft's landing time and exact runway specifications within minutes after takeoff. It allows landing times to be correctly calculated to within a few seconds of accuracy. When fully implemented up to 200kg of fuel can be conserved on each landing compared with today's operations, reducing the carbon emissions and dramatically cutting down noise levels.

SAS' new technology allows for the landing time and requirement to be calculated at the time of take off and communicated to the controller at the destination airport. Landing is forecast by the aircrafts computer, taking into account prevailing weather conditions and the aircrafts exact weight and total mass. This information is provided through a continuous data link from the aircraft to the airport. With the new system, the landing sequence will be determined at an earlier stage, and the aircraft will be allowed to perform optimised descent with reduction in the engine revolutions.

Under ordinary commercial landing conditions at large airports carriers typically descend in stages causing the engines to throttle up. In many cases aircraft are forced to adopt a circular holding pattern in order to time the approach correctly. This results in excess fuel waste and increased carbon dioxide being pumped into the atmosphere. SAS green landings not only reduce emissions but also serve to dramatically reduce noise levels for those living close to the airports.

These new, more accurate systems allow ground control more time to arrange the best landing slot, avoiding wasted fuel whilst the aircraft sits in holding patterns, circling the airport waiting for its turn to land.

SAS is leading the way in this unique project to increase efficiency and safety on flights while reducing environmental loads from air traffic. SAS' green landings have come about through the successful collaboration between SAS Sweden, the Swedish Civil Aviation Authority, Boeing and Airbus and is part of a major EU project.

SAS' inaugural green landing took place on 19 January 2006 on a flight from Luleå to Stockholm and to date SAS has successfully carried out over 700 green landings at Stockholm Arlanda. The pilot project will continue in Sweden until September 2007, and a large programme leading to green landings throughout Sweden has already been initiated. All the green landing test flights have been carried out on SAS' Boeing 737 aircraft.

SAS customers are able to contribute to a reduction in carbon dioxide emissions by more than 300kg and nitrogen oxide emissions by over 1kg per landing, meaning that since the inception of the trial SAS has successfully conserved 210,000kg of carbon dioxide and 700kg of nitrogen oxide.

“SAS is exceptionally proud of our green landing initiative. We hope to extend this project to other airports in Europe. We aim to have green landings operating at all Swedish airports by the end of 2010 and foresee this being the future of aircraft landings across the world” says Flight Captain Peter Larsson, SAS Project Leader.

“Environmental responsibility is a shared one. Finding the solution to curbing carbon emissions from aircraft should not sit with airlines alone. Airport controllers, government, fuel production companies and others in Britain and across the world need to look to alternative methods of fuel consumption and innovative technology – such as our green landings – to help curb emissions” said Peter Larsson.

This project is unprecedented in both its scope and innovation and makes SAS the world leader in the most crucial area of aviation development in the twenty first century - conserving the environment and ensuring that modern aviation continues to benefit society in an ethically responsible manner.

Easy Jet's environmental strategy

Another example of the industry taking the lead is easyJet which has recently published its Corporate and Social Responsibility Report in which it outlines its strong environmental credentials and includes three “promises” to help balance aviation's huge social and economic contribution with its impact on climate change.

Andy Harrison, easyJet Chief Executive, said: “It's hard to see how anybody who has read the recent IPCC report and the Stern Review can deny that global warming is a clear and present danger and that this generation has a responsibility to take action now. Most within the aviation industry recognise that aviation pollutes and that we must improve the environmental efficiency of today's operations and work on tomorrow's technologies.”

“It is time for a proper debate of the sort that has been largely missing of late. Given that aviation CO₂ only accounts for 1.6 per cent of global greenhouse gas emissions, grounding every aircraft in the world would have a minuscule impact on climate change yet a vast impact on our economies. So, airlines have a responsibility to do what they can and governments have a responsibility to ensure that their policies incentivise the right behaviour.”

“It is for this reason that easyJet has published its Environmental Code, which contains three promises – that easyJet will be efficient in the air, efficient on the ground and will help shape a greener future for the industry.”

“The same business model which gives us low fares (new aircraft, high occupancy rates, direct flights) also gives us environmental efficiency in the skies – easyJet emits 27 per cent fewer greenhouse gasses per passenger kilometre than a traditional airline on an identical route. In addition we recognise that we can and we will expect more of our ground suppliers at airports.”

“We also intend to play a leading role in improving the future environmental performance of our industry – reforming Europe's famously- inefficient air traffic system, implementing a meaningful European emissions trading scheme, working on the next generation of aircraft, giving customers the most comprehensive range of environmental information available for travel to a particular destination, and helping them to offset the carbon emissions of their flight.”

“I believe that we are on the cusp of major advances in aircraft and engine technologies which will lead to dramatic reductions in emissions, which have not yet been factored into the environmental forecasts about our industry.”

“In the meantime airlines have an obligation to maximise their environmental efficiency (particularly by operating the cleanest available technology). For their part, governments must ensure their policies balance the vast economic and social benefits of flying with its impact on climate change, particularly by mandating minimum environmental standards for aircraft to operate in Europe.”

“Governments should also recognise that some airlines are already more efficient than others – something that the UK's APD dramatically fails to do. APD provides no incentive for airlines to operate the cleanest aircraft; it completely omits airfreight and private jets; the proceeds are not allocated to any scheme to improve the environment; and it is disproportionate – on a UK domestic return flight, the £20 APD is now 25 per cent of the average fare and about ten times the cost of off-setting the carbon emitted on an easyJet flight.”

“Surely, it would be better to incentivise consumers to choose airlines, like easyJet, operating the cleanest aircraft available. In fact, last year we removed 22 older aircraft at a cost of over £275 million as part of our drive for efficiency and in the coming four years we will buy 100 brand- new Airbus A319s – surely this substitution is the very definition of the `Green growth' that was foreseen in The Stern Review.”

easyJet's Environmental Code contains three promises for a greener future. The first promise reflects easyJet's current environmental credentials; while the second and third outline the full and leading role that easyJet can play to improve the environmental performance of the industry.

Working together on biofuel demonstration and cutting aircraft fuel consumption at airports

Yet another example of both sides of the aerospace industry working together to protect the environment is Boeing and Virgin Atlantic who recently announced an environmental partnership, which includes an order for 15 787-9 Dreamliners, marking the largest 787 order to date for Europe.

“Virgin Atlantic is pleased to introduce the Boeing 787 Dreamliner as our aircraft of the future” said Steve Ridgway, Chief Executive Officer, Virgin Atlantic. “This aircraft will bring a step change to the industry, substantially reducing environmental impact and incorporating innovative design and advanced technology, while providing an enhanced flying experience for our passengers.”

The environmental partnership includes a joint biofuel demonstration aimed at developing sustainable fuel sources suitable for commercial jet engines and the aviation industry. The demonstration, scheduled for 2008 using a Virgin Atlantic Boeing 747-400, is being worked jointly with GE Aviation and Virgin Fuels. Further, details will be announced later this year.

In addition, Boeing and Virgin Atlantic are working together on reducing fuel burn and cutting aircraft emissions on the ground by exploring alternatives to traditional aircraft operations at airports. For example, Boeing and Virgin Atlantic are partnering on trials of towing aeroplanes to “starting grids” areas close to the active runway to start engines preflight, with a goal of reducing fuel consumption and carbon emissions by up to 50 per cent, as well as limiting community noise. Trials conducted thus far at London's Heathrow and Gatwick Airports and San Francisco International Airport have produced positive results, and work continues to develop alternative operational procedures at the world's busiest airports.

“Virgin Atlantic has demonstrated extraordinary leadership within our industry on addressing environmental impact, and Boeing is proud that the 787 Dreamliner is such an important ingredient of the airline's plan for the future” said Scott Carson, President And Chief Executive Officer, Boeing Commercial Aeroplanes. “Working together in partnership, Boeing and Virgin Atlantic will develop innovative, environmentally progressive solutions to provide greater fuel efficiency and lower aircraft emissions.”

Aerospace's green £1bn

In Europe aerospace manufacturers have joined forces with the European Commission to invest e1.7bn (£1.1bn) in a joint research programme to find ways to reduce the impact of aviation on the environment.

The programme, dubbed the Clean Sky Technology Initiative, has received the support of Airbus, the Franco- German aerospace group, Qinetiq, the British defence research company, and Rolls-Royce, among others. The European Parliament is expected to give its approval at the end of next month.

If approved, it will be funded 50 per cent by the Commission and 50 per cent by the companies and will run for an initial seven years. It is designed to allow the companies to carry out riskier research programmes than they would otherwise embark on, as well as leverage the research capabilities of several different companies.

“The programme will look at things like engine technology and wing design” said Ron van Manen, the Vice- President of Civil Aeronautics at Qinetiq. “It's a recognition that there is a need for collaboration if the industry wants to improve the emissions performance of civil aviation.”

He said the aerospace industry deserved recognition for achieving more than 60 per cent reductions in fuel burn and emissions and some 75 per cent reduction in noise since the early 1970s.

The move is the latest response by industry to what is increasing political and investor pressure to cut harmful carbon dioxide emissions.

The “Clean Sky” JTI is an innovative, large technological research programme that will improve the impact of air transport on the environment and will deliver new technologies and solutions enabling improvements in the reduction of noise, emissions and consumption for the next generation of aircraft and associated components and operations. Its purpose is to demonstrate and validate the technological breakthroughs that are necessary to reach the environmental goals set by the Advisory Council for Aeronautics Research in Europe (ACARE).

ACARE goals to be met by 2020 include a 50 per cent reduction of CO2 emissions through drastic reduction of fuel consumption, an 80 per cent reduction of NOx emissions and a 50 per cent reduction of external noise. It also aims for green product life cycle design including manufacturing, maintenance and disposal.

This research project will enable the industry to network with universities, research centres, SMEs, which work together to minimise environmental impact in the future.

The Clean Sky JTI will be managed in the same way as an industrial programme. It will be composed of a general assembly, an executive committee and a director with his staff.

Improved air traffic control

A call by G8 leaders for improved fuel efficiency in planes can be answered in part by managing air traffic more smoothly, according to the airline association International Air Transport Association (IATA).

“Worldwide, airlines could reduce their fuel consumption by up to 18 per cent with optimised air traffic control” Giovanni Bisignani, Director General And Chief Executive of the IATA, said in a statement.

That would also prevent millions of tonnes of carbon dioxide emissions, he added.

Leaders of the Group of Eight (G8) industrial nations, at a recent summit in Scotland, called for accelerated efforts to reduce air transport emissions and improve fuel efficiency.

Bisignani said leaders would help by backing the consolidation of Europe's air traffic systems: “There is no reason why a Europe that can agree on one major currency needs 35 providers of air navigation control services”.

As Europe moves closer to the 2008- 2012 timeframe it has set for meeting its 1997 Kyoto Protocol greenhouse emission reduction targets, aviation is among the industries under pressure to help meet the goals.

With air traffic in Europe set to double by 2020, planemakers such as Airbus and engine makers such as the UK's Rolls-Royce are working on more efficient designs.

“Broadly, the industry has been able to bring down aircraft fuel consumption by about 1 per cent a year for the last three decades. Each time you do that it means saving 80,000 gallons of fuel for every plane every year,” said Martin Johnson, a Spokesman for Rolls-Royce.

Europe's aerospace industry has set collective targets to make sure it complies with governmental goals.

By 2020, the ACARE has four targets: to reduce fuel use and carbon dioxide emissions by 50 per cent, to cut nitrogen oxide emissions by 80 per cent, to cut noise by 50 per cent and to reduce the environmental impact of manufacturing and maintaining aircraft.

Bisignani said the challenge for airlines was to become more efficient without impeding growth, given that air travel is a driver of tourism and commerce.

“The G8 outlined a common sense approach for aviation and climate change focused on efficiency.... The challenge is to achieve the G8's goals while building on civil aviation's valuable contribution of 4.5 per cent of global GDP” he said.

Geneva-based IATA represents 275 airlines from 136 countries representing over 98 per cent of scheduled international traffic.

Swift action by Europe's politicians, would be a more effective way of protecting the environment, not taxation.