Aviation finally began to open up worldwide, at the start of 2022, as Covid herd immunity was finally reached and people started socialising and travelling again. Unfortunately, the invasion of Ukraine has created further challenges economically impacting the world with energy, labour and supply shortages compounded by very high inflationary pressure.
All of this has created additional pressure on the fight against Global Warming which threatens the timeline for reaching our carbon neutral targets and ultimately, the carbon reduction timeline to net zero by 2050. There are many ways to achieve this goal and how to achieve this future economically, safely and within the mandated timeline.
1) Switch to biofuels
Sustainable Alternative Fuels (SAF) have been tested and proven to work well. The cost is competitive and will actually be lower this decade than fossil fuel. Supply is not yet adequate to be 100% self-sufficient for all the demand but is growing. Fuel from algae and forest waste is promising as a growing renewable source.
2) Switch to hydrogen
Clean hydrogen is available in growing supply but remains very expensive. It will need to reach very high usage numbers before the price becomes competitive hopefully in the next 15 to 20 years.
3) Go electric
This alternative is already in place in most baggage and warehouse facilities. While the initial purchase price remains unnecessarily higher than an internal combustion engine, that should ultimately be rectified over the next decade. There is also some promise in recycling batteries for reuse with some cleaner figures being reported over new batteries, which may generate excellent cost efficiencies over the next 10 years. Maintenance costs and unit life are proving superior to the ICE equipment.
4) Invest in carbon credits
This option is growing and depending on location could prove to be economically beneficial as well as socially and through community stewardship. Combine all options: This option will be attractive over the next 15 to 20 years as we transition away from fossil fuel dependency.
5) Invest in carbon neutrality
Investing money on any or all of the above options immediately is going to be a leap of trust for the ground handling community worldwide and going all in on the ESG-DEI cultural shift is also going to create complex decision-making and transitional challenges in improving your social accountability. But I truly believe that those companies who embrace the culturally diversified, equitable and inclusive cultural growth in a sustainable manner will be rewarded with beneficial growth in profitable stable revenue growth and a very productive, well-cared for and loyal workforce.
6) Hire the right people
It all starts with attention to detail when onboarding and retaining team members. Companies need to focus on building a highly skilled, trained and integrated team, driving in the same direction to achieve a common purpose. When all members get rewarded for an achievement and share in the hard and sometimes arduous journey towards each milestone targeted together, they gain total safety for themselves; being physically, mentally and financially secure. Labour turnover and recruiting is never an issue in these types of well-being cultures. These companies drive productivity, leading to on-time performance and drive safety focus, leading to attention to productive detail to prevent accidents and unnecessary cost. All of this leads to consistent profitable revenue growth for the company and the team members.
The current situation of supply chain and labour issues does not lend itself to a stable environment for growing profitable revenue but, these challenges are not insurmountable with the right transition plan and a strong collaborative team culture. Cooperation between each sector of the industry is going to be key in transforming the aviation industry to one totally focused on creating an effective revenue culture where every player thrives.
Companies need to recruit better, train better, work better. Retention is critical to success. Compensating front line colleagues with living wages and benefits in exchange for greater productivity is essential to maintaining a strong qualified workforce who collectively look after each other. Executive and management leadership will require very focused, clear, concise and collaborative communication with subordinate colleagues emphasising the elimination of the chaos that causes waste and increases unnecessary cost and lost productivity from doing so. The company as a whole needs to understand their true north and create an inclusive sustainable culture.
7) Implement cost-effective practices
Understanding revenue science and achieving carbon credits are central to outlining a path to a greener and more prosperous future. Revenue Science is the practice of growing profitable revenue and eliminating chaotic practices that are costing businesses substantial losses that are negatively impacting bottom line by as much as 20% to 30%. This means that if gross revenue is $1,000,000 and the margin is 20%, companies are losing between $40K to $60K off their bottom-line by not applying Revenue Science engineering best practices. The larger the revenue the larger the chaos and the worse the waste cost. These figures are scary. In order to maximise value for your clients and your companies must adopt an infinite mindset. You need an abundance mentality in order to grow and prosper.
For more on culture transformation, SAF and a profitable sustainable future email Anaka at info@avconwow.com
