Airlines 2022-02 AGM by Redactive Media Group

2022 – 02

airlines.iata.org

AIRLINES.

78th AGM and World Air Transport Summit Doha, Qatar, June 19–21, 2022

THE AGM ISSUE

2022 – 02

CEO Interviews ANA, Delta, Qatar, Virgin Australia, Vistara | SAF Jet fuel moves on | Fit for 55 EU sustainability proposals | Safety Industry record Digital ID Distribution chain redeﬁned | Airports Keeping costs down

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A 3 5 0 F. DELIVERING SMARTER W AY

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airbus.com

Offering unrivalled operational efficiency, the Airbus A350F is based on the most modern platform ever developed. And with the latest technology to reduce fuel burn and CO2 emissions by up to 40%, it’s helping to keep the world a beautiful place.

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Proud member of

IATA

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Airlines.

Contents 2022 – 02

Comment

74 With challenges come opportunities

5 Willie Walsh, Director General

Freedom for people to connect

Vinod Kannan, CEO Vistara

Features

Digest

26 Sustainable aviation fuels

10 IATA and industry update

Investment in SAF is essential if the industry is to reach its emissions targets and avoid the long haul to replace jet fuel

Europe’s step towards normality, New catering agreement, Diversity critical in Americas, Passenger recovery in 2024

40 Airline retailing

Sustainable aviation fuels

NDC is the ﬁrst step on the journey towards customer-centricity

CEO Interviews

53 Climate change

18 Not out of the woods just yet

Making Fit for 55 ﬁt for purpose

Qatar Airways Group CEO, His Excellency Akbar Al Baker

64 Aviation safety

34 Proﬁtable and sustainable business

Revamped safety strategy emphasizes leadership to make aviation even safer

14 Data: In numbers

Jayne Hrdlicka, CEO of Virgin Australia 80 Digital ID

Decentralized digital identity drives today’s travel experience

58 Diverse talent creates success

Shinichi Inoue, President and CEO, All Nippon Airways

84 Airports

Keeping airport costs down in a post-pandemic world

68 Safeguarding the future

Delta Air Lines CEO, Ed Bastian

IATA Corporate Communications Vice President Anthony Concil Creative Direction Richard McCausland Assistant Director Chris Goater www.iata.org Editorial Editor Graham Newton Head of content production DeeDee Doke Production editor Vanessa Townsend Senior designer Gary Hill Picture editor Claire Echavarry Production Production manager Jane Easterman +44 (0)20 7880 6248 jane.easterman@redactive.co.uk Publishing director Aaron Nicholls

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Advertising Business development manager +44 (0)20 7324 2763 airlines@redactive.co.uk

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Airlines. ISSN 1360-6387 The opinions expressed in this publication are those of the individual authors or advertisers and do not necessarily reﬂect those of Redactive, IATA or its members. The mention of speciﬁc companies or products in articles or advertisements contained herein does not imply that they are endorsed or recommended by IATA or Redactive. The paper in this magazine is elemental chlorine free (ECF), manufactured within ISO 4001 environmental management standards and is sourced from sustainable managed forests. All of this publication’s content is subject to copyright, design rights and trademarks of Airlines. and third parties.

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Recycle your magazine’s plastic wrap – check your local LDPE facilities to ﬁnd out how.

2022 – 02 Airlines

24/05/2022 15:36

The clear advantage Reducing CO2 emissions by 20%* compared to the previous generation, the LEAP engine family is realizing today our clear ambition for a more sustainable aviation industry tomorrow. Extraordinary together. cfmaeroengines.com/leap CFM International is a 50/50 joint company between GE and Safran Aircraft Engines

*Based on customer feedback

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13/05/2022 17/05/2022 15:59 14:55

Willie Walsh: DG Insight

Freedom for people to connect The world is moving again! We are not at pre-crisis levels of traﬃc just yet, but the recovery of air transport is well underway. In fact, in many parts of the world, the peak northern summer travel demand could look very much like 2019. And the biggest challenge for air cargo still is ﬁnding the capacity to meet demand. This is good news for airlines. This progress towards normality will be celebrated when the industry gathers for the 78th IATA AGM and World Air Transport Summit (Doha, June 19-21). The AGM will also address challenges. Where COVID-19 restrictions have been lifted, the challenges are in operations. Supply chain disruptions and the shortage of skilled labor need to be carefully managed as demand ramps up. Where COVID-19 restrictions remain, most notably China, alternatives to the zero-COVID policy are urgently needed. And in all parts of the world there is work to do with governments so that new variants or future pandemics do not elicit the same response of closing borders. airlines.iata.org

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Airline ﬁnances now face challenges with high oil prices, economic uncertainty, and inﬂated debt levels. Controlling costs has never been more important. Longer term, airlines are determined to achieve net-zero emissions by 2050. Governments will be able to set a similar ambition at the ICAO Assembly later this year. That will create a critical framework for policies to better support a ramp-up of sustainable aviation fuel production, deliver the Single European Sky, and promote carbon-reducing technologies. Lastly, the globalized world, built in part by aviation, is under tremendous stress. As an industry that brings the freedom for people to connect, above all else this will be a reminder of our common hope for peace. There will be much to discuss in Doha.

“The IATA Passenger CO2 Calculation Methodology is ready for airlines, travel agents, and passengers to adopt. By creating an accepted industry standard for calculating aviation’s carbon emissions, we are putting in place essential support to achieve net zero by 2050.”

On changes in mask guidance in Europe “Mask requirements on board aircraft should end when masks are no longer mandated in other parts of daily life, for example, theatres, oﬃces, or on public transport. We welcome EASA’s recommendation to relax the mask mandate. It’s an important step on the road back to normality.”

On travel restrictions “We need a data driven approach and a cost/beneﬁt mentality. A recent report by OXERA and Edge Health, looking at the spread of the Omicron variant in Europe, concluded that travel restrictions may only delay the peak of a wave by a few days.”

On the conﬂict in Ukraine

Willie Walsh IATA Director General

“I am appalled by the unlawful invasion of Ukraine by Russia and stand in solidarity with the Ukrainian people under siege. Aviation promotes peace and freedom by bringing people together.”

2022 – 02 Airlines

24/05/2022 15:38

Qatar has a busy year ahead. In November, teams and supporters from 32 countries will gather for the month-long soccer FIFA World Cup—an event that could not exist without aviation. Connecting the world will also be highlighted by the IATA AGM in June. Airline leaders will discuss sustainability, diversity, and other crucial issues to pave the way for a net-zero carbon emissions future.

The Big Picture

Airlines 2022 – 02

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Digest Europe’s step toward normality IATA welcomed new guidance from the European Aviation Safety Agency (EASA) removing its recommendation that masks should be required in-flight. EASA’s updated Aviation Health Safety Protocol calls for the mandatory mask rule to be relaxed where rules have been relaxed for other transport modes. This important shift reflects the high levels of vaccination, natural immunity levels, and the removal of domestic restrictions in many European nations. The updated guidance also acknowledges the need to move from an emergency situation to a more sustainable mode of managing COVID-19. “We welcome EASA’s recommendation to relax the mask mandate, which is another important step along the road back to normality for air passengers. Travelers can look forward to freedom of choice on whether to wear a mask. And they can travel with confidence knowing that many features of the aircraft cabin, such as high frequency air exchange and high efficiency filters, make it one of the safest indoor environments,” said Willie Walsh, IATA’s Director General. Several jurisdictions still maintain mask requirements. That is a challenge for airlines and passengers flying between destinations with different requirements. “We believe that

Removing masks: The recommendation to relax the mask mandate is another step on the road back to normality

11 mask requirements on board aircraft should end when masks are no longer mandated in other parts of daily life, for example, theatres, oﬃces or on public transport,” continued Walsh. “Although the European protocol comes into eﬀect next week, there is no globally consistent approach to mask-wearing on board aircraft. Airlines must comply with the regulations applicable to the routes they are operating. The aircraft crew will know what rules apply and it is critical that passengers follow their instructions. And we ask that all travelers be respectful of other people’s decision to voluntarily wear masks even if it not a requirement.”

IMAGES: ISTOCK/SHUTTERSTOCK

UPDATED CATERING AGREEMENT IMPROVES EFFICIENCY IATA and the Airline Catering Association (ACA) have released an updated Standard Inflight Catering Agreement (SICA). The use of the standardized SICA template helps improve the efficiency of inflight catering procurement across the world. The release of the updated template is the result of an agreement to deepen the collaboration between IATA and ACA. The two organizations will also jointly promote the use of SICA among their members. “The updated SICA is a significant achievement. Catering requirements are complex and a unique

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part of an airline’s service standard. SICA helps both airlines and caterers manage that complexity eﬃciently to achieve the results that travelers expect. And the collaboration between IATA and ACA has improved SICA by bringing together the expertise of both ACA and IATA. This was a successful ﬁrst-time collaboration that we intend to continue and expand,” said Nick Careen, IATA Senior Vice President for Operations, Safety, and Security. IATA and ACA will be presenting the new template at a joint session at the 34th IATA Ground Handling Conference (IGHC), which will take place in Paris, France from May 31 to June 2, 2022.

Inﬂight food: An updated catering agreement will improve catering procurement eﬃciency

2022 – 02 Airlines

24/05/2022 20:22

Digest

“The progressive removal of restrictions is giving a much-needed boost to the prospects for travel.”

0.63m

Willie Walsh, Director General, IATA

2021 safety performance shows strong improvements All accident rate (accidents per 1 million flights): In 2021, 1.01 (1 accident every 0.99 million flights), compared to 1.58 (1 accident every 0.63 million flights) in 2020 Airlines 2022 – 02

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Piloting change: Airlines are committed to increase the number of women in senior positions

Diversity critical to airlines in the Americas IATA welcomed the continued focus on diversity and inclusion of airlines based in the Americas region, illustrated by their renewed commitment to the industry-wide 25by2025 initiative, in which participating companies commit to increase the number of women in senior positions and in underrepresented jobs and report annually on key diversity metrics. IATA’s Wings of Change Conference Americas, held in Santiago, Chile, featured a panel discussion on gender diversity under the banner of “Breaking the Airline Industry’s Glass Ceiling.” This included a signing ceremony of the 25by2025 commitment at which Azul and

GOL joined airlines based in the Americas region that have already pledged their support. Moreover, Airports Council International Latin America and the Caribbean will be the ﬁrst non-airline entity in the region to join the initiative. “The growing number of airlines signing up to 25by2025 illustrates a strong momentum to make aviation stronger with a more diverse workforce. That is a very solid base to attract even more airlines to make the commitment and, more importantly, to report improving gender balance, particularly in senior roles,” said Jane Hoskisson, IATA’s Director, Talent, Learning, Engagement and Diversity.

PASSENGER NUMBERS SET FOR RECOVERY BY 2024 IATA expects overall traveler numbers to reach 4 billion in 2024, exceeding preCOVID-19 levels. “The trajectory for the recovery in passenger numbers from COVID-19 was not changed by the Omicron variant. People want to travel. There is still a long way to go to reach a normal state of aﬀairs, but the forecast for the evolution in passenger numbers gives good reason to be optimistic,” said Willie Walsh, IATA’s DG.

In 2021, overall traveler numbers were 47% of 2019 levels. This is expected to improve to 83% in 2022, 94% in 2023, 103% in 2024 and 111% in 2025. In 2021, international traveler numbers were 27% of 2019 levels. This is expected to improve to 69% in 2022, 82% in 2023, 92% in 2024 and 101% in 2025. In 2021, domestic traveler numbers were 61% of 2019 levels. This is expected to improve to 93% in 2022, 103% in 2023, 111% in 2024 and 118% in 2025.

airlines.iata.org

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Energia Energia Hybrid Hybrid

2025 2025

2030 2030

Energia Energia Electric Electric

2035 2035

E2 E2H2 H2

2040 2040

2045 2045

2050 2050

TODAY TODAY

E2 E2––Most Mostefficient efficient single-aisle single-aisleaircraft aircraft

E2 E2100% 100%SAF SAF

NG NGTurboprop Turboprop100% 100%SAF SAF

Energia EnergiaH2 H2Fuel FuelCell Cell

Energia EnergiaH2 H2 Gas GasTurbine Turbine

NGTurboprop TurbopropH2 H2 NG

SUSTAINABILITY IN ACTION. Net zero carbon emissions by 2050. Making regional aviation cleaner and quieter. Our sustainability roadmap and product development plan have been constructed to help us achieve these goals. Our new generation E2 is the most fuel efficient single-aisle aircraft in the market today with a potential reduction of CO2 emissions up to 30%. In 2025 we are planning the first flight of our hydrogen-powered electric demonstrator. Between 2027 and 2030 expect to see our next generation turboprop and E2 flying 100% SAF compatible. By the

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mid-2030s we are planning to introduce the sustainable Energia family of aircraft, powered by revolutionary propulsion architectures. 2045 will likely see the flight of our first hydrogen-powered turboprop and finally, in 2050, a hydrogen-powered E2 or similar sized aircraft will take to the skies. Undoubtedly these are bold and ambitious steps, but with over 50 years of market knowledge and expertise behind us, we are confident that we will deliver what we set out to do, transforming the way we all fly.

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Data

In numbers S U S TA I N A B L E A V I AT I O N F U E L

SAF, a term that generally refers to non-fossil derived aviation fuel, will play a key role in aviation’s ability to meet the 2050 net-zero CO2 goal

$17bn of forward purchase agreements for SAF and some 14bn litres of SAF are in forward purchase agreements

Indicative job creation potentials for SAF production worldwide

Airlines 2022 – 02

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North America

Middle East

Latin America & caribbean

Europe

Africa

SAF can reduce emissions by up to 80% during its full lifecycle

Global

80%

AsiaPaciﬁc

Sustainable aviation fuel not only brings environmental beneﬁts for aviation, but it can also foster the development of a new industry

Pushing technology and operations

13.5m

1.2m

5.6m

2.4m

1.9m

0.4m

2.0m

Aggresive SAF deployment

14.1m

1.2m

5.9m

2.5m

2.0m

0.4m

2.1m

Aspiratonal and aggressive technology perspectives

13.0m

1.2m

5.4m

2.3m

1.9m

0.3m

1.9m

Scenerio

airlines.iata.org

24/05/2022 20:08

Data (Source: Waypoint 2050, ATAG report)

Sustainable aviation fuel ramp-up long-term Ramp-up required for several scenarios and expected volumes of SAF required in 2050 (assuming a 100% emissions reduction factor in 2050).

Source: Waypoint 2050, ATAG report

Quantity of SAF (in Mt) 450

400

F1 – current trends, baseline F2 – pushing technology and SAF F3 – aggressive SAF F4 – aspirational technology-driven

350

Countries have a formal SAF policy, and the hope is that a global agreement will be in place by 2025

F2 F4

300 250 200

high+ 150 100 50 F1

0 2015

2020

2025

2030

2035

2040

2045

2050

The Air Transport Action Group (ATAG) estimates that aviation will need between 330-445 million tonnes of SAF per annum by 2050.

330-445mt SAF costs will come down (carbon cost included)

Costs will be able to reduce, mainly driven by economies of scale and some feedstock input reductions Production cost (USD per tonne of SAF)

2025

2030

2040

2050

$5,000

2025

$4,500 Fossil jet fuel price spread, 2000-2019 (highest and lowest points)

$4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0

Waste & Residue Lipids + HEFA

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Oil crops & trees + HEFA

Cellulosic crops + AtJ

Agricultural Residues + AtJ

Woody biomass + FT

Municipal Solid waste + FT

Industrial waste gases + AtJ

Green Hydrogen + FT (PtL)

By 2025, there will be 11 technical pathways to SAF certiﬁcation 2022 – 02 Airlines

25/05/2022 11:14

Sponsored Feature: Pratt & Whitney

ENGINES OF THE FUTURE

Pratt & Whitney is at the forefront of achieving the goal of making the aviation industry more sustainable

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25/05/2022 11:15

Sponsored Feature: Pratt & Whitney

GETTING READY FOR DISRUPTION Shane Eddy, President, Pratt & Whitney

Shane Eddy, President of Pratt & Whitney explains the long-term strategy for the company.

What are the most important new developments in existing engines? This is a very exciting time for Pratt & Whitney and the entire industry. We are embarking on the most disruptive period of commercial aviation yet, with our shared focus on achieving net-zero carbon emissions by 2050. As a leading developer of aircraft propulsion systems, we recognize that our technologies have a significant role in making net zero a reality, both through our drive to continually improve engine efficiency—for example, with hybrid-electric systems—and through our work to enable the use of non-fossil, alternative fuels, such as sustainable aviation fuels (SAF) and hydrogen. Pratt & Whitney has been at the forefront of aircraft engine efficiency, most recently with the GTF, which increased fuel efficiency 16% to 20% over prior generation engines. Since the GTF entered service in 2016, it has helped single-aisle aircraft operators save 700 million gallons of fuel and avoid 7 million metric tons of CO2 emissions. And the GTF is getting even better. Last year, we introduced the GTF Advantage engine, which will provide greater thrust for operators and an additional 1% in fuel and CO2 savings. We are advancing exciting technologies to take this even further, such as with hybrid-electric systems and advanced materials like ceramic matrix composites.

How long will engines be reliant on fossil fuel (at least as a blend) and what can be done to speed up the adoption of SAF? SAF are a critical component in a net-zero future for aviation. Pratt & Whitney was an early supporter of SAF and helped develop the standards that today allow SAF to be used on a “drop-in” basis across all engines at a blend of up to 50% with traditional jet A kerosene. But the challenge is to rapidly scale up supply from the paltry 0.01% of global fuel demand in 2019. The development of aﬀordable, reliable, and ubiquitous SAF will rely on public-private partnership, and we’re delighted to see the momentum from government initiatives like the White House’s SAF Grand Challenge, along with airlines making major SAF purchasing commitments. We think a blenders tax credit, rather than additional taxes on Jet A, is the best path forward to accelerate adoption by airlines, especially as our airline customers are recovering from the pandemic. Scaling up SAF production will take time as well as strong global government support, but

“We will continue to invest in the development of engines that will ﬂy for the next several decades”

our products have long service lives, and we need to make sure they are ready for the future. That’s why we committed to make our next generation GTF Advantage engine compatible with 100% SAF, and we demonstrated its readiness with successful tests earlier this year. The challenge of transitioning away from fossil fuel use cannot be underestimated, but it further reinforces our focus on continually improving engine efficiency across our portfolio. On average, we improve fuel efficiency 1% per year, and we will continue to invest in the development of engines that will fly for the next several decades. What is the best prospect for a new energy source for aircraft? There is no single solution to achieve net-zero emissions by 2050. Hybrid-electric systems hold real potential to drive greater fuel efficiency across a range of applications, from new urban air mobility platforms to larger single-aisle aircraft. We’re already developing a regional aircraft-scale, hybrid-electric flight demonstrator in collaboration with our Raytheon Technologies sister company, Collins Aerospace. Hydrogen is promising as without a carbon molecule there is no carbon footprint, but we have to optimize our propulsion technology to take full advantage of the opportunities of hydrogen, such as adapting design to accommodate it in its super-cooled liquified

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30 25/05/2022 12:06

Pratt & Whitney : Sponsored Feature

45 state. Hydrogen produced from green sources is a powerful energy, with many applications that aviation will compete with, but it is very promising. SAF will bridge us to potentially new energy sources in the coming decades. How has your manufacturing process changed and what new technologies will help the monitoring and maintenance of engines? The biggest change in our advanced manufacturing is the advent of Industry 4.0, the fourth industrial revolution. Industry 4.0 includes digitization, automation, data, and connectivity and is changing the nature of industrial manufacturing while making it cleaner, greener, smarter, and safer. We are also deploying Customer Oriented Results and Excellence (CORE)—the Raytheon Technologies operating system—

across our company, including our manufacturing and aftermarket facilities. Our advanced turbine airfoil coating system capacity was an area of expansion necessary to keep up with the anticipated volume ramp; and our team initially estimated investments of some $200m to keep pace with volume. To maximize our existing capacity, we utilized our CORE Operating System Overall Equipment Eﬀectiveness (OEE) methodology to eliminate lost production time and increase the maximum capacity of our existing equipment install base. This not only reduced the required investment 63% but also deferred the need for that investment by at least two years, enabling reallocation of that capital into strategic investments. EngineWise® Data by ADEM™ (Advanced

Diagnostics and Engine Monitoring) allows us to manage customers’ engine health and maintenance planning requirements, working to maximize each customer’s speciﬁc engine performance and engine time on-wing, while maintaining predictable MRO spend. Our system provides analysis for more than 9,500 in-service engines. Our expert data analysts help to reduce operational disruption through predictive and preventative maintenance. Over the years, as the sophistication of engine controls has improved so has the amount of data generated by the engines. Our GTF series of engines generate about 40% more data than the V2500 family of engines. An average two-hour ﬂight for a GTF engine generates about 4 million data points. We’re bringing the power of digitization into our facilities as well, to reduce energy usage and facility emissions footprint. The

GEARED FOR THE FUTURE THE FUTURE STARTS WITH THE GEAR. LEARN MORE AT PWGTF.COM

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25/05/2022 11:17

Sponsored Feature: Pratt & Whitney

facilities engineering team at Pratt & Whitney’s East Hartford and Middletown, Connecticut sites have been using advanced analytics for the past 18 months to pull HVAC (heating, ventilation and air conditioning) system data and review trends from the building management system. So far, the results are very promising.

What are your long-term plans for the company? Pratt & Whitney will celebrate its 100th anniversary in 2025, and it’s stunning to look back on our industry and see how much has changed, and how Pratt & Whitney helped shape today’s landscape. The next 15-20 years will be the most disruptive of the industry’s history, all focused on the goal of net-zero carbon emissions for aviation by 2050. We are talking with airframers and airline customers to determine their needs and designing propulsion solutions for their missions. Customer focus has been central to our DNA as a company since the first air-cooled Wasp engine. Long-term, our mission is to attract and retain the best engineering talent in the industry, to take what we’ve done with the revolutionary GTF architecture and apply the same spirit of innovation throughout our company. Our focus is on attracting and retaining the best talent throughout the company. We implemented one of the industry’s most innovative work-remote policies as our salaried staff found the flexibility of work-anywhere to be a great value. Today, about 80% of our headquarters staff are hybrid or remote, with the ability

to access campus when necessary. This flexibility adds value to their experience as employees. Is diversity an important part of your strategy? Diversity, equity, and inclusion are fundamental to our strategy. We believe that inclusion is the engine of innovation, and we work hard at fostering an inclusive culture for our global employee population. We do this through our Diversity, Equity and Inclusion Taskforce, Employee Resource Groups and educational opportunities. It is important to foster a culture where employees can bring their whole and best selves to work. In 2017, we signed on to the Paradigm for Parity initiative, a goal to have gender parity in leadership roles at Pratt & Whitney by 2030. We will achieve this by minimizing or eliminating unconscious bias, broadening the talent pool, and providing mentorship and sponsorship to women of potential. Today, 35% of our executives are women. What are the biggest challenges ahead for aviation? Pratt & Whitney will always put safety first. Every second of every day, aircraft powered by our engines take off. Air travel connects people, helps grow economies, and helps defend freedom around the world. Since our earliest days, our motto has been “Dependable Engines” for a reason, and we never stray from that. A big challenge is ensuring that airlines can continue to fly their current fleets well into the

GTF engines Since entering service in early 2016, GTF engines have saved more than 700 million gallons of fuel avoided more than seven million metric tonnes of carbon emissions reduced the noise footprint 75% powered more than 1,200 aircraft, 62 airlines and three aircraft families

future while simultaneously reducing their carbon footprint. But what’s good for the environment is also good for business—our business, our airline customers’ business, and the aviation ecosystem. That’s why we are advocating for public-private partnerships to significantly expand the availability of affordable drop-in SAF solutions, alongside our continual work to develop technologies that will make current and next generation propulsion systems more efficient. And finally, the efficiencies that come with Industry 4.0 will require investments for us as well as our supply chain, and we have to be mindful in managing that change. We are fortunate that we can build our new Asheville facility from the ground-up but importing Industry 4.0 principles into our existing facilities and supply chain will take time and attention. It will be well worth the effort. I’m excited about the possibilities. Not many people get the opportunity to drive this level of fundamental change in our industry. Every airline CEO and every OEM are facing the same direction on the core challenges, from sustainability to efficiency, to workplace culture. But from a personal perspective, I have the utmost confidence in the people of Pratt & Whitney to create the future we need.

SMART. RESPONSIVE. GLOBAL. LEARN MORE AT PRATTWHITNEY.COM/ENGINEWISE

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5/13/22 9:41 AM 25/05/2022 11:18

GEARED FOR SUSTAINABILITY Delivering the most sustainable power for single-aisle aircraft with up to 20% less fuel and CO2. Compatible with 50% SAF today and 100% tomorrow. A proven platform for cleaner, greener LQQRYDWLRQ 3RZHUHG E\ DQ LQGXVWU\ ¿UVW JHDUHG DUFKLWHFWXUH Sustainability starts with the gear.

LEARN MORE AT PWGTF.COM

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25/05/2022 11:19

Sponsored Feature: Pratt & Whitney

POWERING A SUSTAINABLE FUTURE Sean Bradshaw, Engineering Fellow, Pratt & Whitney

Sean Bradshaw, Engineering Fellow, Sustainable Propulsion, on net-zero carbon emissions aims.

Aviation is committed to net-zero carbon emissions by 2050. Propulsion systems will clearly play the major part in achieving that aim and Pratt & Whitney is at the forefront of industry innovation. The core of the company’s work is its GTF engine family. GTF engines are 16-20% more efficient than the engines that they replace, a considerable step forward in sustainability as more efficient engines mean lower emissions. The GTF Advantage engine for the A320neo family will build on this leadership while also delivering greater thrust. Nevertheless, other factors must come in to play if air transport is to be carbon neutral. In the short term, the goal is flying on 100% sustainable aviation fuels (SAF). There are seven SAF blends certified for use on aircraft,

some up to a 50% blend with normal jet fuel, with more SAF technical pathways on the cards. For Pratt & Whitney, readiness is the key. To this end, they have already tested the GTF Advantage engine on 100% SAF. “There was no change to thrust or operability and no issues with any of the hardware in the engine,” says Sean Bradshaw, Engineering Fellow, Sustainable Propulsion, Pratt & Whitney. “All results were as expected, which indicates that GTF engines will be fully compatible with all 100% SAF approved by ASTM International.” Over 16 years of testing SAF, Bradshaw reports, Pratt & Whitney has not identified any impact on hardware or changed engine maintenance requirements, even at levels beyond the approved blends. One hundred percent SAF also contains about 2% more energy per kg compared with conventional kerosene, equating to a 2% reduction in fuel burn and associated emissions. But SAF represent just 0.1% of global aviation fuel use. The expectation is to reach 2% by 2025 and 5% by 2030. The goal in the United States is to double this 2030 figure. “The technology works,” says Bradshaw. “SAF are now an economic decision.” Synthetic fuels—most notably electrofuel or power-to-liquid (PtL) fuel—will complement SAF efforts to scale the production of SAF produced from biological feedstocks. PtL is a mixture of captured CO2 and hydrogen. A hydrogen molecule is produced using green technologies and

combined with CO2 through a carbon capture process. This generates drop-in liquid hydrocarbon fuel. The Air Transport Action Group’s Waypoint 2050 says such fuels will be critical to the industry achieving its net zero target by 2050. Hybrid-electric engines Beyond SAF, the next step in sustainability is likely to be hybrid-electric engines, which could be operating on single-aisle aircraft like the Airbus A320 family by the mid-2030s. Pratt & Whitney is working with De Havilland Canada to demonstrate the technology on a Dash 8. The project includes an advanced electric motor and controller from Collins Aerospace. The expectation is a significant improvement in aircraft efficiency across all phases of flight. Reductions of up to 30% in fuel burn and CO2 emissions compared with a modern regional turboprop are anticipated. Pratt & Whitney is targeting ground testing in 2022, with a flight test scheduled for 2024. One of the most interesting aspects of the project is increased hybridization to a 50/50 mix. Combined with a number of electric initiatives in general aviation, it means the industry is constantly developing the potential of the technology. Bradshaw doesn’t see this progressing to fully electric single-aisle aircraft any time soon, however. “I don’t think we should expect to see a fully electrified A320 flying across the

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Pratt & Whitney : Sponsored Feature

Atlantic,” he says. “The energy density of a battery relative to jet fuel is far too low. There simply isn’t enough power for an aircraft to travel any signiﬁcant distance.” Hydrogen The big hope, therefore, is hydrogen. “The more we look at it, the more potential we see,” says Bradshaw. “There is no CO2 in the tailpipe, no particulates to aﬀect air quality, and it may even mitigate the impact of contrails, although more research will be needed.” With an engine designed to run on the

appropriate thermodynamic cycle, hydrogen oﬀers a 30-35% eﬃciency improvement. Pratt & Whitney has been selected by the US Department of Energy (DoE) to develop hydrogen-fueled propulsion technology for commercial aviation, as part of its Advanced Research Projects Agency-Energy (ARPA-E). The work is known as the HySIITE (Hydrogen Steam Injected, Inter-Cooled Turbine Engine) project. Cryogenically stored liquid hydrogen is heated by an exhaust recovery system before it enters the combustion chamber. This creates water

vapor, which is converted to steam and reinjected back into the chamber. The approach not only boosts power but also reduces NOx emissions up to 80%. Also, because the hydrogen is stored at cold temperatures, less cooling of the engine is necessary, making it more eﬃcient. There are challenges. Most obvious is the need for global, green hydrogen infrastructure. Most hydrogen is derived from fossil fuel, but it needs to originate from hydro, solar, or wind power. Its distribution is also troublesome as hydrogen requires more power to transport due to its low density. This low density also means its storage on aircraft requires three or four times more volume than normal jet fuel. And as the lightest gas in the universe, hydrogen also has a tendency to leak. “There is a lot of work to be done but we can overcome these challenges,” says Bradshaw. “[We] will continue to work with the industry to advocate for the necessary infrastructure changes and to ensure hydrogen propulsion is a safe, eﬃcient alternative to liquid hydrocarbons by the mid-2030s.”

Conclusion There is no silver bullet to solve aviation’s sustainability challenges. “Rather, it will be a plethora of solutions, representing everything from small steps to giant leaps,” he concludes. “That makes it a very exciting space to work in. “Whatever the future of sustainability holds, Pratt & Whitney will be leading the way.”

GEARED FOR SUSTAINABILITY SUSTAINABILITY STARTS WITH THE GEAR. LEARN MORE AT PWGTF.COM

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Sponsored Feature: Pratt & Whitney

CUSTOMERS FIRST AND FOREMOST Rick Deurloo, President, Commercial Engines

Rick Deurloo on how Pratt & Whitney is helping airlines fly more sustainably

If aviation is to fly in clear skies by 2050, powered by carbon-neutral propulsion systems while delivering social and economic benefits worldwide, it must get there from a standing start. In early 2020, the industry was effectively grounded, slamming shut revenue sources. Two years later, the green shoots of recovery are only just becoming apparent. That gives aviation less than three decades to finance sustainability in every aspect of operations.

The GTF engine Pratt & Whitney is determined to help airlines recover and achieve their goal of net-zero carbon emissions. Of course, Pratt & Whitney has had to weather a formidable storm too. “But one of the biggest lessons we learned from the pandemic is the resilience of our people,” says Rick Deurloo, Pratt & Whitney’s President, Commercial Engines. “They had to be creative and resourceful, and they were. The focus on our customers had to be exemplary.” Customer service ranged from daily webinars on best practice for storing engines to flexible maintenance plans to revised payment schedules. The biggest decision, however, was to double down on upgrades to its GTF engine, continuing to improve it even as the horizon darkened. This commitment to the GTF fleet is already paying dividends as the utilization

rate of the engine is the highest in industry. “Investing in the GTF was the right move, even though it was a big commitment at the time,” says Deurloo. “Everybody had to make tough choices. At Pratt & Whitney, we did not cut as deep as others because we had confidence in the GTF. We knew that it would come back quickly.” That confidence has been vindicated, with a strong recovery in the single-aisle sector. And as Pratt & Whitney largely maintained its skilled workforce, both the short and long-term future looks secure. The continuing development of the GTF engine during the pandemic led to the

December 2021 announcement of the GTF Advantage, which offers a further 1% efficiency gain compared with today’s GTF and up to 34,000lb of take-off thrust. This will be especially beneficial for A321XLR operators, as well as those who fly out of hot and high airports. The engine will also be compatible with 100% sustainable aviation fuels. “Essentially, modifications in the compressor give us improved efficiency,” says Deurloo. “But the engine is so much more than that. We have enhanced ability for real-time monitoring, for example. Everything has been optimized to give our customers what they need.” The GTF Advantage is planned to enter service in 2024 as the new production standard and will serve the Airbus A320neo family. Market dynamics Pratt & Whitney needed to get its strategy right to help its customers as the markets rebounded. “The bounce back has been stronger than we thought,” explains Deurloo. “US domestic travel is almost reaching pre-pandemic levels and traffic is building in Europe too. Once we get through the short-term disruptions in Asia-Pacific that will be the biggest region for growth again. Both China and India have enormous potential. Pure demographics will tell you that these are going to be big markets.”

GEARED FOR BUSINESS

EFFICIENCY STARTS WITH THE GEAR. LEARN MORE AT PWGTF.COM

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Pratt & Whitney : Sponsored Feature

“Everything has been optimized to give our customers what they need” Rick

GTF Advantage flight testing

To maintain its core customer focus, Pratt & Whitney is examining how to deploy more teams into the field in those regions. They have already invested in production and MRO facilities and run training centers in Beijing and India. There is a short-term challenge though. Because of the pick-up in demand in 2022, Pratt & Whitney must manage its supply chain carefully. Most materials for the engine hardware are outsourced. So, though the technicians are available to build the engines, the parts they need have been harder to secure. The company is working closely with suppliers to mitigate the impacts. “We have to keep up with demand,” says Deurloo. “Of course, you can’t escape a crisis of such magnitude without some fundamental shifts in the markets and new

business models. But Pratt & Whitney is a growth company, and 2022 and 2023 will be huge years because of our strength in the narrowbody segment. “GTF engines are very well positioned, and the Embraer E2, Airbus A220 and GTFpowered A320neo families have become industry benchmarks in fuel efficiency and sustainability,” he adds. “These platforms deliver an incredible range of options. Whether you’re a regional operator or fly transatlantic routes, we can deliver worldclass economics across multiple fleets.” The right stuff In fact, the GTF has already clocked up over 13 million flight hours. And the benefits of the engine will only be heightened when the GTF Advantage takes to the skies.

Deurloo, Pratt & Whitney, President, Commercial Engines

The engines will be complemented by sustainable aviation fuels (SAF). These are the least disruptive of all sustainable solutions available immediately. Aircraft are certified to fly on 50-50 blends but 100% SAF is on the horizon. Hybrid-electric propulsion is a little further on and the big hope will be hydrogen-powered propulsion systems, probably in the mid-2030s. “Every conversation with our customers is about sustainability,” says Deurloo. “And the agenda is accelerating. But Pratt & Whitney is in a great position. We have the right balance sheet, the right structure, and the right people. But most of all we have the right engines. They are the best predictor of how the company will perform. Our products are leading the field in efficiency and sustainability and will continue to do so.”

GEARED FOR THE FUTURE THE FUTURE STARTS WITH THE GEAR. LEARN MORE AT PWGTF.COM

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Climate change

Sebastian Mikosz, SVP for Environment and Sustainability at IATA, says more thought is needed to make the EU’s Fit for 55 proposals effective. 53

Making Fit for 55 fit for purpose

IMAGES: GETTY/ISTOCK/SHUTTERSTOCK

limate change represents an existential challenge to our way of life, and the airline industry is committed to a sustainable future. At the IATA AGM in October 2021, airlines agreed to achieve net zero CO2 emissions by 2050. To reach this ambitious goal, the aviation industry has unveiled a raft of initiatives, from major purchases of sustainable aviation fuels (SAF) and investments in the SAF supply chain, to prototype electric and hydrogen aircraft. But bringing suﬃcient SAF to market, and making radical new technology a reality, will need a massive eﬀort from industry and governments working together.

airlines.iata.org

With its aim to cut emissions across the EU 55% by 2030, the European Commission’s Fit for 55 environmental proposals are a vital opportunity to deliver a significant boost to sustainable aviation, unleashing investment in green technologies and operational efficiencies. Unfortunately, if the Fit for 55 proposals are adopted in their current form, it will likely represent a missed opportunity. Instead of promoting green technologies and operational efficiency improvements, making flying sustainable for all, the package aims to reduce flying by raising economic barriers and making it significantly less affordable. For aviation, Fit for 55 has three distinct proposals: a mandate for the use of SAF; a

2022 – 02 Airlines

reform of the EU Emissions Trading Scheme (EU ETS); and a proposed fuel tax. Taken together, our estimates are that by 2035 Fit for 55 could add €38 per ticket on an average flight in Europe, and €205 on the average transatlantic flight. This would mark the end of low-cost air travel in Europe as we know it and reverse decades of democratization of flying. Flexible fueling with SAF

The key to sustainable air travel is to increase the amount of sustainable aviation fuel (SAF). Airlines used every drop of the 100 million liters of SAF that was delivered in 2021. Thanks to billions of dollars in forward purchase agreements from airlines, more SAF producers are entering the market and we expect SAF production to expand over the coming years. Nevertheless, the European Commission proposal envisages a challenging mandate for airlines to use 20% SAF on all flights departing EU airports from 2035. The problem with this approach is that forcing all airports to source SAF will lead to logistical issues, localized monopolies, and excessive costs. It would be far better to provide greater flexibility by allowing airlines to purchase SAF from wherever it is cheapest. It is also environmentally inefficient to insist on transporting SAF to almost every airport in Europe. This problem could be addressed through a flexibility mechanism that separates the physical use of SAF from the sustainability gain claimed by the airline. This will drive greater efficiency, reduce costs, and encourage more production. There is also the problem of the geographic scope of such a mandate. If applied to all international flights leaving the EU, this could simply benefit non-EU airlines that can refuel at non-EU airports with no SAF mandate. The difference could amount to around €42 per passenger on a typical Europe-Asia flight. In short, we believe that incentives on fuel producers to deliver more SAF would be a simpler and better solution than a complicated Airlines 2022 – 02

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100 million

Climate change

mandate on use. This is the approach that has been taken in the United States, which has delivered considerably higher SAF production and use than the EU. A global solution

Airlines used every drop of the 100 million liters of SAF that was delivered in 2021

Reducing CO2 is a global challenge, and aviation is a global industry. Therefore, coordinated global action to reduce aviation emissions should be the goal of the industry and regulators alike. In 2016, ICAO agreed to introduce the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). CORSIA obliges airlines to purchase verified carbon offsets to cover emissions increases above a baseline level and applies to all international flights between countries participating in the scheme. At present, EU airlines do not comply with CORSIA for international flights between European States because the EU applies its own Emissions Trading Scheme rather than CORSIA. The failure to apply CORSIA gravely undermines multilateralism in ICAO on climate change. CORSIA’s scope and environmental effectiveness is considerably wider than that of the EU ETS. For example, the EU has no airlines.iata.org

24/05/2022 21:05

Climate change

someone needs to fly then an increase in the flight cost may cause them to economize on the trip elsewhere, rather than choose not to travel at all. It would also take a significant reduction in passengers to render a flight uneconomical for the airline, so even if a few passengers can no longer afford to fly, the flights and associated emissions would likely still occur. “Greenwash” is when someone claims something is environmentally effective when in fact it makes little difference. An aviation fuel tax fits that description very well. A fuel tax reduces investment in green technologies and hurts the travel and hospitality sectors. Fit for purpose

jurisdiction to apply its ETS to a flight between Japan and the United States, whereas that flight would fall under CORSIA. Unfortunately, by insisting on its own solution, the EU is risking the international consensus for CORSIA and potentially causing the collapse of the world’s first and only sector specific market-based measure. The Commission should propose to implement CORSIA in the EU. This would put the EU in a position to lead the debate on a long-term governmental goal for international aviation emissions that will match the industry’s own target of net-zero emissions by 2050. Government greenwash

The bluntest tool for reducing emissions is a jet fuel tax. Based on the average price of oil in 2021, the Fit for 55 jet tax proposal would lead to an almost 90% increase in the cost of jet fuel. By increasing the costs to the industry such a tax diverts resources that could otherwise be dedicated to investments in green technologies. Most importantly, increasing the cost of ﬂying does not lead to a proportionate reduction in fuel burn and emissions. If airlines.iata.org

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By 2035 Fit for 55 could add €38 per ticket on an average ﬂight in Europe, and €205 on the average transatlantic ﬂight

Overall, if adopted in their current form, the Fit for 55 proposals will succeed only in damaging the competitiveness of the EU’s own airlines for a marginal reduction in CO2. They could slow down the overall progress toward net zero, and, on some routes, even lead to increases in emissions. The proposals undermine the international consensus for aviation climate action that has been delicately forged at ICAO. They fail to create appropriate regulatory incentives for the increase in SAF production that we desperately need. And they throw into reverse the process of connecting the peoples of Europe with each other and with the rest of the world that has been a driving force of European integration, employment, prosperity, and social development for generations. With some amendments, however, Fit for 55 can be made fit for purpose. In short, we have three key requests: one, implement a more flexible SAF quota allocation system; two, apply CORSIA to intra-EU flights; and three, drop the impractical fuel tax proposal. European air transport would then have a package of measures that would play a practical, effective role in helping aviation achieve its ambitious emissions targets. And consumers and Europe’s connectivity and competitiveness are protected, and air travel does not return to being a preserve of the rich.

2022 – 02 Airlines

24/05/2022 21:06