Sharing Revenue between airports and airlines can boost the aviation sectors growth and performance

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A recent joint study conducted by the Indian Institute of Management (IIM) Lucknow and the University of Liverpool has discovered that the practice of airports and airlines sharing their revenues can contribute to greater environmental sustainability and provide the aviation industry with a more sustainable pathway for growth.

Led by IIM Lucknow, the study sheds light on how airlines and airports can collaboratively achieve sustainable growth through various agreements.

Moreover, the government can also step in, acting as an overall leader — enabling a further greening of this sector by imposing taxes, the study has suggested.The study has been published in the European Journal of Operational Research and Transportation Research.

According to Suresh K. Jakhar, an Associate Professor at IIM Lucknow, Indian airlines have been actively engaged in enhancing fuel efficiency as part of their efforts to decrease greenhouse gas emissions. These initiatives encompass the adoption of aircraft with better fuel efficiency, the optimization of flight paths, the implementation of operational strategies to reduce fuel usage, such as minimizing taxi times, and the introduction of procedures to limit unnecessary fuel consumption during delays related to landing permissions

”With the urgency to decarbonise the aviation sector gaining momentum, the study addresses the crucial role that collaboration between airlines and airports plays in advancing sustainability. The team used data collected from publicly available secondary sources which include airline and airport schedules and financial and other documents available with airlines,” Jakhar said.

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