  {"id":11837,"date":"2016-11-04T15:26:14","date_gmt":"2016-11-04T19:26:14","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/jetblue-clearing-the-air\/"},"modified":"2016-11-04T20:50:45","modified_gmt":"2016-11-05T00:50:45","slug":"jetblue-clearing-the-air","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/jetblue-clearing-the-air\/","title":{"rendered":"JetBlue: Clearing the Air"},"content":{"rendered":"<p>As students here at the 性视界 Business School rush to sign up for treks all over the world, I think it would be apt to think about the carbon footprint of our air travels and consider how airlines are adapting to growing demand for air travel and to increasing concern for climate change while operating businesses whose margins are heavily impacted by the cost of energy. This post will be specifically focused on JetBlue, a favorite among value carriers for today\u2019s globetrotting millennials (though to be exact, JetBlue\u2019s routes currently only span the Americas).<\/p>\n<p><span style=\"font-weight: 400\">Airplanes have long been fueled by fossil fuels, which emit greenhouse gases into the atmosphere. One person\u2019s roundtrip flight from New York to San Francisco creates the equivalent of 2 or 3 tonnes of carbon dioxide <\/span><span style=\"font-weight: 400\">[1]<\/span><span style=\"font-weight: 400\">. In 2015 alone, worldwide flights produced 781 million tonnes of carbon dioxide, accounting for 2% of all human-induced carbon dioxide emissions <\/span><span style=\"font-weight: 400\">[2]<\/span><span style=\"font-weight: 400\">. This share is projected to grow to a quarter of all emissions by 2050 as demand for flights continue to grow <\/span><span style=\"font-weight: 400\">[3]<\/span><span style=\"font-weight: 400\">. <\/span><\/p>\n<p><span style=\"font-weight: 400\">But not only are airlines contributors to climate change, they are also victims of changing wind patterns that have led to longer flight routes and increasing atmospheric turbulences that wear down their fleets <\/span><span style=\"font-weight: 400\">[4]<\/span><span style=\"font-weight: 400\">. Last month, 191 nations in the United Nations reached the world\u2019s first agreement to limit greenhouse gas pollution by the aviation industry via an offsetting scheme<\/span><span style=\"font-weight: 400\"> [3]<\/span><span style=\"font-weight: 400\">. Suffice it to say that airlines are feeling increasing pressure to make changes in their business and operations.<\/span><\/p>\n<p><span style=\"font-weight: 400\">JetBlue has long recognized the need to invest in various sustainability efforts, some of which are highlighted below:<\/span><\/p>\n<ul>\n<li><b>Fuel supply diversification. <span style=\"font-weight: 400\">In September 2016, JetBlue announced a ten-year deal with SG Preston, a biofuel company, to purchase jet fuel made from bio-based feedstocks<\/span><span style=\"font-weight: 400\"> [5]<\/span><span style=\"font-weight: 400\">. This deal, which commits JetBlue to buying over 330 gallons of renewable fuel, is one of the largest agreements of such kind yet <\/span><span style=\"font-weight: 400\">[6]<\/span><span style=\"font-weight: 400\">.<\/span><\/b><\/li>\n<\/ul>\n<ul>\n<li><strong>Fuel efficiency improvement.<\/strong> <span style=\"font-weight: 400\">JetBlue has partnered with Airbus to retrofit its A320 fleet with \u201cSharklets\u201d, curved extensions to airplane wings that improve aerodynamics such that fuel efficiency is improved by 3% on long-hauls. The company also ordered 70 Airbus new engine option (NEO) aircrafts, which are expected to increase fuel efficiency per flight by more than 15 percent. JetBlue has also replaced its navigation technology to use satellite instead of radar information. The new technology, NextGen, enables the communication of more accurate position information, which in turn leads to more direct flight routes as well as more optimized descending patterns and speeds. JetBlue cites a per-flight savings of 18 gallons of fuel and 21 pounds of carbon as a direct result of using NextGen6<\/span><span style=\"font-weight: 400\"> [7]<\/span><span style=\"font-weight: 400\">.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400\"><b>Carbon offsetting.<\/b><span style=\"font-weight: 400\"> Since 2008, JetBlue has partnered with Carbonfun.org on carbon-reduction projects. To date, it has offset more than 350 million pounds of CO2 equivalents by funding projects such as the conversion of methane from the Seneca Meadows Landfills and the Granger South Trans-Jordan Landfill into electricity that can be added to the grid <\/span><span style=\"font-weight: 400\">[7]<\/span><span style=\"font-weight: 400\">.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Below are additional ideas of varying degrees of immediate feasibility which JetBlue could consider implementing.<\/span><\/p>\n<ul>\n<li><b>Invest in alternative modes of transportation. <span style=\"font-weight: 400\">JetBlue can avoid being disrupted by investing in alternative modes of transportation to replace short-haul flights, such as the Hyperloop. However, because the transportation by magnetic levitation is yet an unproven technology, an alternative is to buy and privatize Amtrak. Amtrak is not only proven to be a more fuel-efficient method of transportation than both domestic air and car travel <\/span><span style=\"font-weight: 400\">[9]<\/span><span style=\"font-weight: 400\">, it will also allow JetBlue to focus on long-hauls which have higher stage length (and therefore lower cost per mile).<\/span><\/b><\/li>\n<\/ul>\n<ul>\n<li><strong>Diversify fuel types and suppliers.<\/strong> <span style=\"font-weight: 400\">As renewable fuel producers are still relatively new entrants to the market and continue to compete with cheap oil, JetBlue should keep in mind that these suppliers may not be in business for the duration of its contracts with them. For example, British Airways had signed a five-year agreement with Solena Fuels, a company that promised to convert municipal waste to jet fuel. However, that was dissolved when Solena was unable to raise the necessary capital <\/span><span style=\"font-weight: 400\">[6]<\/span><span style=\"font-weight: 400\">.<\/span><\/li>\n<\/ul>\n<ul>\n<li><strong>Improve upon operational metrics.<\/strong> <span style=\"font-weight: 400\">JetBlue may consider setting internal KPIs which align employee incentives to improving fuel efficiency. For example, an improved load factor can be impactful in saving fuel wasted on unfilled seats. In 2015, JetBlue\u2019s load factor trailed behind the load factors of domestic American, United, and Delta flights <\/span><span style=\"font-weight: 400\">[10]<\/span><span style=\"font-weight: 400\">. Another operational metric which may be effective if implemented as an internal KPI is miles flown per route. By monitoring this metric, cross-functional teams (ground crew, pilots, operations) can work together to ensure that they are achieving the most efficient routes.<\/span><\/li>\n<\/ul>\n<p>What are your thoughts about how airlines can continue to satisfy our growing appetite for air travel in a sustainable way?<\/p>\n<p><strong>Sources:<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The New York Times. 2016. Your Biggest Carbon Sin May Be Air Travel. [ONLINE] Available at: http:\/\/www.nytimes.com\/2013\/01\/27\/sunday-review\/the-biggest-carbon-sin-air-travel.html. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Air Transport Action Group. 2016. Facts &amp; Figures. [ONLINE] Available at: http:\/\/www.atag.org\/facts-and-figures.html. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Guardian. 2016. First deal to curb aviation emissions agreed in landmark UN accord. [ONLINE] Available at: https:\/\/www.theguardian.com\/environment\/2016\/oct\/06\/aviation-emissions-agreement-united-nations. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Guardian. 2015. Climate change costing airlines millions of dollars in extra fuel and flying time. [ONLINE] Available at: https:\/\/www.theguardian.com\/environment\/2015\/jul\/15\/climate-change-costing-airlines-millions-of-dollars-in-extra-fuel-and-flying-time. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">SG Preston: News &amp; Events. 2016. JetBlue Announces One of the Largest Renewable Jet Fuel Purchase Agreements in Aviation History. [ONLINE] Available at: https:\/\/sgpreston.com\/news-detail\/25. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The New York Times. 2016. JetBlue Makes Biofuels Deal to Curtail Greenhouse Gases. [ONLINE] Available at: http:\/\/www.nytimes.com\/2016\/09\/20\/business\/energy-environment\/jetblue-makes-biofuels-deal-to-curtail-greenhouse-gases.html. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">JetBlue. 2016. The Blue Review. [ONLINE] Available at: http:\/\/www.jetblue.com\/p\/JetBlueResponsibilityReport2014.pdf. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">JetBlue. 2016. Sustainability. [ONLINE] Available at: http:\/\/www.jetblue.com\/green\/offsetting\/. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Amtrak. 2016. Travel Green with Amtrak. [ONLINE] Available at: https:\/\/www.amtrak.com\/travel-green-with-amtrak. [Accessed 3 November 2016].<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">MIT Global Airline Industry Program. 2015. Airline Data Project. [ONLINE] Available at: http:\/\/web.mit.edu\/airlinedata\/www\/2015%2012%20Month%20Documents\/Traffic%20and%20Capacity\/Domestic\/Domestic%20Load%20Factor%20.htm. [Accessed 3 November 2016].<\/span><\/li>\n<\/ol>\n<p>Word Count: 800<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As climate change regulations for the aviation industry take form and consumer demand for air travel continue to increase, can airlines find a way to grow in a sustainable way? <\/p>\n","protected":false},"author":1853,"featured_media":11842,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-11837","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>JetBlue: Clearing the Air - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/jetblue-clearing-the-air\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"JetBlue: Clearing the Air - 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