Jetrader - Autumn 2016 - 55

On top of that, you have carriers that are
showing their carbon impact when one
books a flight. Some of the carriers will
show you how much carbon each flight
contributes. The carriers' websites, like
Southwest's, will also tell customers about
their eco-friendly cabins and the materials
that have been used. Many larger carriers
have been experimenting with bio-fuels.
The big difference is that the industry
has retired of hundreds of fuel inefficient
airplanes. That's creating a much more
environmentally-friendly industry. All of
the new technology that is being introduced, namely the new models, are much
more fuel efficient and therefore much
more environmentally friendly.
The industry is addressing the carbonreducing rules that are being implemented
in Europe and in other countries. It's rather
timely, as recently the U.S. EPA has determined that greenhouse gases from aircraft
endanger public health and accordingly
they need to be regulated under the Clean
Air Act. This is probably the catalyst that
will cause the U.S. to adopt the ICAO
emissions standards, or if they don't, to
at least enact standards as stringent as
the ICAO standards.
The industry has done an enormous
amount to become much more environmentally friendly, largely driven by the
replacement of fuel inefficient aircraft and
the introductions of fuel efficient technology. On top of that, you have regulatory
changes and a general change in direction
that the industry is focusing efforts to be
more environmentally friendly.
JT: You mention technological breakthroughs taking some time to be fully
implemented in the aviation field. What
are some green breakthroughs that are
currently affecting the industry?
DT: There is nothing that's affecting
the industry going green more than fuel
efficiency. Therefore, the new technology aircraft that were announced several
years ago are now being produced or soon
will be produced. We have the MAXs, the
NEOs, the A350s, the 787s and the CSeries.
They're all much more fuel efficient than
the technology that they succeeded. We've
got new engines like the geared turbofan and the new versions of the CFM, and
they're all seeing significant reductions, up
to 15 percent reductions in fuel consumption. Improvement is causing the industry

to go green, tied to the penetration and
introduction of new technology.
I still expect that the industry will continue to seek ways to become more fuel
efficient and to make it greener. They will
continue to use eco-friendly materials in
the airplanes. They will work with airports
and headquarters to pursue sustainable
energies to power themselves. But the main
driver is the new technology in airplanes.
JT: In 2008, the cost of fuel was higher,
thus causing planes to reduce flying
time. Now, the cost of fuel is noticeably
lower, and many reports indicate airlines
and the aviation industry at-large are
flourishing. Despite these positive outcomes, does the lower cost of fuel now
negatively impact companies' efforts to
be environmentally conscious?
DT: I would agree that the lower cost of
fuel has impacted the aviation industry's
efforts to become more environmentally
conscious. However, that doesn't change
the long-term trends. If we put together
a chart, you would see that fuel burn per
ASM or ASK has been falling and continues
to fall. So even though there are some
incentives to continue to operate older
airplanes that burn a bit more fuel because
of the recent fall in fuel prices, that hasn't
changed the long-term trends of overall
fuel efficiency improvement.
The new technology in airplanes is only
now being introduced and you can't get
the airplanes fast enough. As a result,
many of the industry's airlines are continuing to operate current technology

airplanes, but still retire the more fuel
inefficient airplanes.
I don't think that the impact of the
recent fall in fuel prices is having a measurable impact on the long-term trend. I would
generalize that the industry is favoring
both new and current technology airplanes
while retiring older technology airplanes
as fast as they can be retired. We still have
the long-term trend of lowering fuel consumption and increasing fuel efficiency.
JT: You predicted five outcomes in
2008: a replacement of fuel inefficient
aircraft, the elimination of unprofitable
hubs, a smaller industry, a less competitive industry and an effort to develop
a carbon neutral industry. Could you
address each prediction and evaluate
how it has come true or has not?
DT: The replacement of fuel inefficient
aircraft has certainly occurred. I didn't
expect all fuel inefficient aircraft to be
replaced nor did I think it would happen
overnight; however, there has been an
enormous reduction in fuel inefficient
aircraft. The 727s have largely been completely retired and the classics are almost
gone. The MD-80s are largely gone. That
prediction was spot-on.
Elimination of unprofitable hubs certainly occurred in the U.S. There's been
major route rationalization, and carriers
have taken down unprofitable hubs such as
Cleveland and Memphis to name a few. In
Europe I would say it's not quite as apparent, as the hub and spoke systems are still
evolving, especially in Southern Europe.
Jetrader * Autumn 2016 55



Jetrader - Autumn 2016

Table of Contents for the Digital Edition of Jetrader - Autumn 2016

A Message from the President
Calendar/News
Q&A: Mike Williams, Jetaire Group
Wish Upon a Star
Sunshine, Rain and Mixed Feelings
ISTAT’s 2016 Farnborough Airshow Chalet and Reception Continue to Achieve Record Attendance
Legal Status of Aircraft Engines and Effects on Financing and Leasing Transactions
Survival of the Fittest
Weathering Economic Gusts: Copa Airlines’ Pedro Heilbron Advocates Flexibility and Smart Growth
5 Places to Visit While Attending the ISTAT Latin America Forum
From the ISTAT Photo Archives
From the Jetrader Editorial Archives
Aviation History
Aircraft Appraisals
ISTAT Foundation
Advertiser Index
Advertiser.com
Jetrader - Autumn 2016 - cover1
Jetrader - Autumn 2016 - cover2
Jetrader - Autumn 2016 - 3
Jetrader - Autumn 2016 - 4
Jetrader - Autumn 2016 - 5
Jetrader - Autumn 2016 - 6
Jetrader - Autumn 2016 - A Message from the President
Jetrader - Autumn 2016 - 8
Jetrader - Autumn 2016 - 9
Jetrader - Autumn 2016 - Calendar/News
Jetrader - Autumn 2016 - 11
Jetrader - Autumn 2016 - Q&A: Mike Williams, Jetaire Group
Jetrader - Autumn 2016 - 13
Jetrader - Autumn 2016 - 14
Jetrader - Autumn 2016 - 15
Jetrader - Autumn 2016 - Wish Upon a Star
Jetrader - Autumn 2016 - 17
Jetrader - Autumn 2016 - Sunshine, Rain and Mixed Feelings
Jetrader - Autumn 2016 - 19
Jetrader - Autumn 2016 - 20
Jetrader - Autumn 2016 - 21
Jetrader - Autumn 2016 - 22
Jetrader - Autumn 2016 - 23
Jetrader - Autumn 2016 - ISTAT’s 2016 Farnborough Airshow Chalet and Reception Continue to Achieve Record Attendance
Jetrader - Autumn 2016 - 25
Jetrader - Autumn 2016 - 26
Jetrader - Autumn 2016 - 27
Jetrader - Autumn 2016 - 28
Jetrader - Autumn 2016 - 29
Jetrader - Autumn 2016 - 30
Jetrader - Autumn 2016 - 31
Jetrader - Autumn 2016 - Legal Status of Aircraft Engines and Effects on Financing and Leasing Transactions
Jetrader - Autumn 2016 - 33
Jetrader - Autumn 2016 - 34
Jetrader - Autumn 2016 - 35
Jetrader - Autumn 2016 - 36
Jetrader - Autumn 2016 - 37
Jetrader - Autumn 2016 - Survival of the Fittest
Jetrader - Autumn 2016 - 39
Jetrader - Autumn 2016 - 40
Jetrader - Autumn 2016 - 41
Jetrader - Autumn 2016 - 42
Jetrader - Autumn 2016 - 43
Jetrader - Autumn 2016 - Weathering Economic Gusts: Copa Airlines’ Pedro Heilbron Advocates Flexibility and Smart Growth
Jetrader - Autumn 2016 - 45
Jetrader - Autumn 2016 - 5 Places to Visit While Attending the ISTAT Latin America Forum
Jetrader - Autumn 2016 - 47
Jetrader - Autumn 2016 - 48
Jetrader - Autumn 2016 - 49
Jetrader - Autumn 2016 - From the ISTAT Photo Archives
Jetrader - Autumn 2016 - 51
Jetrader - Autumn 2016 - 52
Jetrader - Autumn 2016 - 53
Jetrader - Autumn 2016 - From the Jetrader Editorial Archives
Jetrader - Autumn 2016 - 55
Jetrader - Autumn 2016 - 56
Jetrader - Autumn 2016 - 57
Jetrader - Autumn 2016 - Aviation History
Jetrader - Autumn 2016 - 59
Jetrader - Autumn 2016 - 60
Jetrader - Autumn 2016 - 61
Jetrader - Autumn 2016 - 62
Jetrader - Autumn 2016 - Aircraft Appraisals
Jetrader - Autumn 2016 - 64
Jetrader - Autumn 2016 - 65
Jetrader - Autumn 2016 - ISTAT Foundation
Jetrader - Autumn 2016 - 67
Jetrader - Autumn 2016 - 68
Jetrader - Autumn 2016 - Advertiser Index
Jetrader - Autumn 2016 - Advertiser.com
Jetrader - Autumn 2016 - cover3
Jetrader - Autumn 2016 - cover4
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