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What fuel cost crisis? There is optimism in the air

13 August 2008

Airlines around the world have to limit their operations as fuel costs have risen to almost US$148 a barrel.  Industry experts highlighted their concerns about this crisis at the recent Farnborough International Air show.

Many airlines have introduced a fuel surcharge which leads to higher costs of flights and a possible decline of passenger numbers.  The result may be fewer orders for the aircraft manufacturers.
Business class carriers have paid the price and the recent example of the collapse of Silverjet proves the effects of the crisis in the industry.   Established carriers such as British Airways have decided to freeze recruitment.   Low cost airlines in Europe such as EasyJet have reduced the number of flights planned for this coming winter in order to cut costs and maintain the low budget model.

However, there is still optimism in the air.  Some airlines remain confident and insist that modern, more fuel efficient aircraft are the only solution to the problem and there is no reason to panic and cut back on flights.  Singapore Airlines is probably the best example as it is currently operating five A380s and it continues to expand its routes.  Thirty more A380s are on order.  So, is it the bigger the aircraft, the cheapest to operate?  Singapore Airlines is operating this new aircraft with fewer seats than other carriers like Emirates, however it is still the most environmentally friendly plane.
In addition, the 787 Dreamliner will be delivered to its first customers in the beginning of 2009 and its fuel efficiency is considered incomparable.

The aviation sector is responsible for only 2% of all man-made CO2 emissions.   More fuel efficient aircraft no matter their size seems to be the right direction for the carriers that invest in modern technology and innovation and as a result, avoid the consequences of the increased fuel costs in this competitive market.

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