Environmental fears call for drastic change in the UK aviation industry -TravelMole Guest Comment

TravelMole Guest Comment by Parita Chitakasem, travel and tourism account manager at Euromonitor International

The UK aviation industry has been suddenly brought under the microscope following the heightened media interest in global warming.

The recent media frenzy has boosted public awareness of carbon emissions and proposals for “green” taxes, and pinpointed airlines, amongst others, as the major culprits in damaging the environment and inducing global warming.

As a result, UK airlines may need to brace themselves for a shift in attitudes regarding air travel, along with increased competition from rail companies. Subsequent growth in passenger numbers over the next five years may also be slower than previously predicted.

Airlines need to prepare for green taxes

The main threat to the UK airline industry will be the introduction of green taxes or carbon emission charges predicts Euromonitor International. These could be implemented as early as 2008 if the UK government successfully persuades Germany to impose these charges while it holds the EU presidency.

Such industry-wide taxes will be passed onto consumers and make travellers think twice about purchasing a weekend trip abroad, such as city-break flights to Paris or Barcelona.

Short breaks have been the major driving force for short-haul air travel over the past two years and their possible decline if taxes are imposed will affect both budget and scheduled carriers alike.

Budget carriers, already accounting for over 45 million airline seats sold in the UK alone in 2005, may need to diversify their low cost offering to compensate for higher prices. National flag carriers will also be vulnerable to slower demand, exacerbated by the continued competitive threat of low cost carriers offering cheaper prices.

Other industries will benefit from airlines’ struggle

Airlines are also likely to face the threat of a shift in consumer travel preferences to other modes of transport, most notably rail travel.

The rail industry will benefit greatly from the expanding number of environmentally-conscious travellers and the potential success of promotional campaigns. 

For example, Eurostar’s advertisements are already responding to this new opportunity, claiming that its journeys only produce one-tenth of the carbon dioxide emissions of an equivalent flight.

The airline industry will weather the storm

Whilst demand in the airline industry may slow, the targeted blame on airlines and negative publicity is not expected to inflict as much damage as industry players may fear, according to Euromonitor International.  

Shock advertising campaigns featuring slogans such as, “keep flying to keep frying” or the prominent “Spurt” advert by Greenpeace and AirportWatch, are not likely to have any long-term negative impact on the airline industry with other environmental bodies having already criticised such “guilt” advertising as being too “over-the-top”.

British consumers’ love of holidays and their desire to travel abroad, along with business travel, will continue to drive demand for air travel in future years. Euromonitor International predicts that there will be 73 million outbound air passengers by 2010, accounting for 85% of all departures from the UK.

Euromonitor International believes the key to sustained, long term profitability lies in the airline industry submitting to the pressures arising from global warming concerns and taking steps to lower carbon emissions. In light of the growing number of environmentally-aware consumers, airlines with initiatives to reduce carbon emissions are expected to enjoy the most lucrative growth.

Climate change is an issue that will not go away, therefore airlines should take further pre-emptive measures to raise their green profile. British Airways has already imposed a voluntary green tax and Virgin Atlantic Airways has motioned to bring the industry together to discuss the climate change issue, hopefully paving the way for more green things to come.