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

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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