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Aerospace and Defense Sector Unleashes Strategies to Reinforce Commitment to Shrink Carbon Footprint Finds Frost & Sullivan - The aerospace and defense industry has undertaken a slew of green initiatives to create a blueprint for sustainable development
Aerospace and Defense Sector Unleashes Strategies to Reinforce Commitment to Shrink Carbon Footprint Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2009/12/16 - The aerospace and defense industry has undertaken a slew of green initiatives to create a blueprint for sustainable development.

   
 
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Regulations from the International Air Transportation Association (IATA) and other agencies have provided a boost to emission abatement efforts. The IATA has rolled out the four-pillar strategy that lays down the guidelines for the implementation of green measures to ratchet down fuel consumption and emissions.

New analysis from Frost & Sullivan (financialservices.frost.com), Greener Flight to Future - Investment Opportunities, reveals that although 2009 witnessed a drastic reduction in CO2 emission of the aviation by an estimated 8.5 percent, only 2 percent is attributed to enhanced efficiency, and the rest is largely due to the recession-induced decline in air traffic.

If you are interested in more information on this study, send an email to Sarah Saatzer, Corporate Communications, at sarah.saatzer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"While air traffic is anticipated to grow at the rate of 5.2 percent, IATA has reiterated its commitment to carbon-neutral growth," says Frost & Sullivan Financial Analyst R. Madusudanan. "This objective can be achieved by utilizing enhanced technology, streamlining operational efficiency, beefing up infrastructure, and potent economic measures."

Green aviation endorses a multi-pronged approach encompassing reduction in aircraft weight, upgradation of the engine, and better aircraft design. Proper use of economic instruments would be a strong driver for green aviation. Inclusion of aviation in the European Union's Emission Trading Scheme (ETS) would be a significant driver for reduction of emission levels.

Green aviation entails pro-active measures such as replacing the conventional crude oil-based aviation fuel with an alternate fuel, using fuel-efficient aircraft engines, and replacing the pneumatic and mechanical power systems with electrical power systems. Fuel cell systems are in the spotlight, offering a viable option for powering the APU in an aircraft, and advanced composites ensure aircraft weight reduction.

The deployment of fuel cell technology is expected to drastically reduce environmental hazards. However, compatibility with the existing aviation infrastructure, supply guarantee, technical feasibility, and economic considerations must be at optimum levels before the technology becomes operational. For now, the application of fuel cells in aircraft is still in the nascent stages.

"High levels of investment are required to replace the existing mechanical and pneumatic power systems with the electrical power system," says Madusudanan. Considering the current market scenario, high investment is an important factor restraining the shift from the existing system. Technological adaptability of the electrical power system is another restraint faced by market participants.

Taking the wide angle view, these initiatives are capital intensive and require huge investment in R&D. Industry participants have found this to be a major hindrance. The development of new technology needs years of R&D before commercialization. This extends the gestation period of R&D investment and the time taken to break even, thereby deterring the entry of new participants into this space.

In such a scenario, active support from governments and regulatory authorities is vital for expediting the adaptation process in an effective manner. Considering that the short-term benefits of these measures are few, adequate incentives must be provided to raise funds to deliver a much-needed shot of adrenalin for the market.

Greener Flight to Future - Investment Opportunities is part of the Financial Benchmarking in the Aerospace and Defense subscription, which also includes research services in the following markets: Growth Monitor - Aerospace and Defense, Middle East Aviation Market, Impact of Recession on Aerospace and Defense, Indian Commercial Aviation Suppliers Market - Investment Analysis, Investor Insights: Aerospace, World In-flight Entertainment and Connectivity Market - Investment Analysis, Asia Pacific Air Traffic Control Equipment Market - Investment Analysis, and World Business Jets Market - Investment Analysis. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan's Business and Financial Services group serves clients around the world in all aspects of financial analysis, market research and monitoring, due diligence, idea generation, opportunity analysis, investment valuation, and other proprietary research.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Greener Flight to Future - Investment Opportunities / N6C1

 
 
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Aerospace and Defense Sector Unleashes Strategies to Reinforce Commitment to Shrink Carbon Footprint Finds Frost & Sullivan

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