Oil price drives environmental agenda for airlines

GENEVA - Soaring oil prices have brought environmental issues to the forefront of airlines' strategies as they seek to use less fuel and find alternative energy sources to trim costs, industry executives said yesterday.

Giovanni Bisignani, head of the global airlines body IATA, told a Geneva environment summit that record crude oil prices had spurred new enthusiasm to cut emissions.

"It's adding much more pressure on the airlines to do more on fuel efficiency," said Bisignani, whose International Air Transport Association represents 265 airlines.

Others stressed air travel is already much more fuel efficient than even hybrid cars.

"We are the most efficient way of transportation," said Christian Scherer, executive vice-president of Airbus, noting the industry represents just 2 per cent of global carbon dioxide emissions despite making up 8 per cent of the world economy.

Still, he said airline manufacturers needed to lighten aircraft weights and improve aerodynamic design "to reduce the fuel burn and thus the emissions" as companies seek to remain competitive in a high-oil price environment.

Robert Milton, chief executive of Air Canada and chairman of IATA's board of directors, said simple changes like cruising longer at high altitudes and turning off engines during ground delays could also help.

IATA's member airlines have already improved fuel efficiency by about 5 per cent in the past two years, Milton said, adding "voluntary, efficiency-based agreements" with governments - not higher taxes or ticket surcharges - were the best way to ensure the industry reaches green standards.

"Imposing more costs on airlines won't do anything to help the industry meet its environmental objectives," he said.

- REUTERS