Eco-efficiency Assessment of Airlines in Eastern Asia

Abstract

The aviation industry has played a dynamic character in the global development process. Significant growth can be seen in the air transport sector in the past couple of decades. The industry experts have fully recognized the need for sustainability assessment within this industry in a more incorporated manner. Sustainable aviation practices have significantly reduced Greenhouse Gas (GHG) emissions over the years. However, these practices have not shaped the aviation industry in achieving the United Nations Sustainable Development Goals (U.N. SDGs) to its full potential. This research presents the eco-efficiency performance analysis for selected seven airlines in Eastern Asia using Principal Component Analysis (PCA) technique. The study is carried out with five environmental indicators as inputs (Electricity Consumption, Jet fuel Consumption, GHG emissions, water consumption, and waste generated) and four value-added indicators as outputs (revenue, passengers, employees, and cargo carried) to compare sustainability performance levels of airlines. All the data required for the assessment have been obtained by reviewing the sustainability reports from several database resources (GRI, annual reports, ICAO, IATA). The presented study has shown that ANA (All Nippon Airlines) is the most efficient airline in Eastern Asia regarding sustainability performance, considering the selected indicators and the collected data. Finally, it was observed that there is a discrepancy in the data of indicators or units used in the published sustainability reports between airlines; thus, collecting complete, governance, and consistent data is needed and recommended to evaluate each airline's sustainability performance.