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Strategic airline operation considering the carbon constrained air transport industry

Author

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  • Ko, Young Dae
  • Jang, Young Jae
  • Kim, Dae Young

Abstract

The EU emissions trading system (EU-ETS) is the EU's policy to combat climate change by reducing greenhouse gas emissions cost-effectively. CO2 emissions from aviation have been included in the EU-ETS since 2012, and all airlines operating in Europe are required to report and submit allowances against those emissions. The EU-ETS is only applied to flights that begin or end in EU territory, therefore one of the options non-EU based airlines use to deal with the EU-ETS requirements is aircraft reassignment or flight route adjustment. We investigate strategic airline operations that address the carbon constraints on the air transport industry. A mathematical model and algorithm are developed to derive efficient strategies for airline operations in terms of aircraft reassignment and route adjustment. The proposed mathematical model and heuristic algorithm are verified with a numerical example. The results of this study provide practitioners with insights when dealing with environmental restrictions on airlines.

Suggested Citation

  • Ko, Young Dae & Jang, Young Jae & Kim, Dae Young, 2017. "Strategic airline operation considering the carbon constrained air transport industry," Journal of Air Transport Management, Elsevier, vol. 62(C), pages 1-9.
    • Handle: RePEc:eee:jaitra:v:62:y:2017:i:c:p:1-9
    DOI: 10.1016/j.jairtraman.2017.02.004
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    Citations

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    Cited by:

    1. Scheelhaase, Janina & Maertens, Sven & Grimme, Wolfgang & Jung, Martin, 2018. "EU ETS versus CORSIA – A critical assessment of two approaches to limit air transport's CO2 emissions by market-based measures," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 55-62.
    2. Aneta Wlodarczyk, 2017. "Regime-dependent Assessment of Risk Concerning the International Aviation Inclusion Into the EU ETS," Dynamic Econometric Models, Uniwersytet Mikolaja Kopernika, vol. 17, pages 129-145.
    3. Suresh Chandran & Murugan Anandarajan, 2020. "Decision Support System for Selecting Sustainable Alternatives to Conventional Jet Fuel: Impact of Emissions, Production Costs and Carbon Pricing," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 10(1), pages 1-83, July.
    4. Chen, Zhongfei & Wanke, Peter & Antunes, Jorge Junio Moreira & Zhang, Ning, 2017. "Chinese airline efficiency under CO2 emissions and flight delays: A stochastic network DEA model," Energy Economics, Elsevier, vol. 68(C), pages 89-108.
    5. Liao, Weijun & Wang, Chunan, 2021. "Airline emissions charges and airline networks," Journal of Air Transport Management, Elsevier, vol. 92(C).
    6. Scheelhaase, Janina D., 2019. "How to regulate aviation's full climate impact as intended by the EU council from 2020 onwards," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 68-74.

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