Environmental impacts of aviation business models in the context of Corporate Social Responsibility
Ervasti, Jani (2014)
Ervasti, Jani
HAAGA-HELIA ammattikorkeakoulu
2014
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2014112917463
https://urn.fi/URN:NBN:fi:amk-2014112917463
Tiivistelmä
Aviation is a part of the global transportation business, transporting more than 3 billion people in the year 2013. Growth pressure in the field is strong, but environmental factors are coming increasingly important. This combination of rising demand and increasing environmental concern acted as the initial motivation for this study.
The aim of the thesis is to study the extent of environmental impacts between the two main civil aviation business models: low cost carriers (LCCs) and full service network carriers (FSNCs). Focus of the study is on the CO2-emissions of airlines. The correlation between ecological behavior and financial performance is also studied. Information is also used to study the overall situation and future visions of the field. As it is so closely related to environmental aviation, this is, to a large extent, done by studying and comparing fuel efficiencies of different business models.
The literature review introduces the reader to the aviation industry, its history, policy makers, economics and airline strategies. Positive and negative impacts of aviation are explained. The industry is studied in the context of corporate social responsibility (CSR) to find the strategies linked to environmental performance of airlines.
The study is conducted as a secondary analysis, mostly by studying information published by airlines in their annual- CSR- and sustainability reports. The method of the study is qualitative analysis, which allows the author to focus on the main research questions and to study them in great detail.
Results show that low cost carriers are currently much more fuel-efficient, and thus more environmental in their operations. Their financial performance and profit margins are also much better than those of FSNCs. Differences be can partly explained by differences in business models and the CSR focus of airlines. Nearly all airlines are improving their fuel- and CO2 efficiency, but the best performers of the year 2010 have failed to make further progress. In total, the growth of supply is much faster than efficiency improvements, which leads to bigger total emissions and ecological impact.
The aim of the thesis is to study the extent of environmental impacts between the two main civil aviation business models: low cost carriers (LCCs) and full service network carriers (FSNCs). Focus of the study is on the CO2-emissions of airlines. The correlation between ecological behavior and financial performance is also studied. Information is also used to study the overall situation and future visions of the field. As it is so closely related to environmental aviation, this is, to a large extent, done by studying and comparing fuel efficiencies of different business models.
The literature review introduces the reader to the aviation industry, its history, policy makers, economics and airline strategies. Positive and negative impacts of aviation are explained. The industry is studied in the context of corporate social responsibility (CSR) to find the strategies linked to environmental performance of airlines.
The study is conducted as a secondary analysis, mostly by studying information published by airlines in their annual- CSR- and sustainability reports. The method of the study is qualitative analysis, which allows the author to focus on the main research questions and to study them in great detail.
Results show that low cost carriers are currently much more fuel-efficient, and thus more environmental in their operations. Their financial performance and profit margins are also much better than those of FSNCs. Differences be can partly explained by differences in business models and the CSR focus of airlines. Nearly all airlines are improving their fuel- and CO2 efficiency, but the best performers of the year 2010 have failed to make further progress. In total, the growth of supply is much faster than efficiency improvements, which leads to bigger total emissions and ecological impact.