Ready for takeoff? Financing new high-tech ventures in the aviation industry. The case of the Mainport Innovation Fund

“In the rapidly evolving airline industry, emerging technologies could play an increasingly critical role in the delivery of real and perceived customer value” (Taneja, 2010). Taneja, the author of highly interesting books on the aviation business like “Airline survival kit” (2003), “Simpli-Flying” (2004) and “Flying ahead the airplane” (2008) pointed out that innovation is of major relevance for the aviation industry worldwide. Innovation means that new products, services, processes and business models will be introduced successfully to the market. In the field of aviation innovation can be related to the aircraft (e.g. new materials used, avionics and engine technologies) but not necessarily. Innovation is also the introduction of check-in kiosks at airports, new revenue models of the low-cost carriers, the use of social media by airlines and techniques for the decrease of perceived ground noise.

In this short article we discuss why it is not easy to bring an innovative product or service to the market related to the aviation business. But we describe also a venture capital fund initiated in The Netherlands that will support emerging technologies in this domain and speed up innovation: the Mainport Innovation Fund.

[article to be published in Issue 50]

Competitive Distortions in the Air Transport Markets as a Result of the Upcoming Worldwide Emissions Trading Systems?

by Janina Scheelhaase

Within the next 5 to 10 years, different national and supranational emissions trading schemes will be introduced globally to reduce aviation’s CO2 emissions: The European Union’s emissions trading scheme will directly limit the CO2 emissions of virtually all flights starting from or landing at any European airport from 2012 onwards. The upcoming US cap-and-trade-system for greenhouse gases as well as the New Zealand system will very likely choose the fuel sup-pliers as accountable entities of their systems (upstream approach): Aviation will be covered indirectly by the price impact on the fuel purchased. Detailed plans for mandatory national emissions trading systems have also been worked out by Australia, Canada, Norway, Iceland, Liechtenstein and Switzerland. This foreseeable heterogeneous global framework will have impacts on competition within the aviation sector. This paper analyses the economic and competitive impacts of the introduction of differently designed emissions trading systems on the international aviation sector.

Airlines and Global Warming: All Passenger Flights to be Covered by the EU Emissions Trading Scheme

by: Conor Linehan

Conor_LinehamUnder a recent European Directive, greenhouse gas emissions from passenger flights are being brought within the EU Emissions Trading Scheme – the EU’s ‘flagship’ climate change measure. It is a wide-ranging proposal covering all flights arriving at or departing from an aerodrome situated in the territory of a Member State. This article will examine the scope of the Directive. Before doing so it will provide a broad overview of the wider EU Emissions Trading Scheme, since it is this structure into which control of aviation sector emissions is being incorporated. The article will then look at those aspects of the new Directive that are of practical import to airlines (including what aviation activities will be covered and the timelines applying to the various lead-in steps). The article will also examine some of the important technical aspects of the regime, such as the methodology for calculating and allocating airline emission allowances to individual airlines. How the measure attempts to address the concerns of the aviation sector will also be looked at. There will then be some concluding analysis and assessment.

Land Use at Privatized Australian Airports – Classification and Analyses

by Nicholas Stevens and Arron Walker

stevensIn recent years, the air transport industry has experienced unprecedented growth, driven by strong local and global economies. Whether this growth can continue in the face of anticipated oil crises, international economic forecasts, and, recently, influenza outbreaks is yet to be seen. One thing is certain: airport owners and operators will continue to be faced with challenging environments in which to do business. In response, many airports recognize the value in diversifying their revenue streams through a variety of landside property developments within the airport boundary. In Australia, it is the type and intended market of this development that is a point of contention between private airport corporations and their surrounding municipalities.

The aim of this preliminary research is to identify and categorize on-airport development occurring at the twenty-two privatized Australian airports which are administered under the Airports Act [1996]. This new knowledge will assist airport and municipal planners in understanding the current extent and category of on-airport land use, allowing them to make better decisions when proposing development both within airport master plans and beyond the airport boundary in local town and municipal plans.

vrom_logoIn collaboration with the Dutch Ministry for Housing, Spatial Planning and Environment(VROM) Aerlines Magazine is proud to present the publication ofonearticle about spatial planning and/or the environment, in the next four issue of this magazine. The objective of this partnership is to raise awareness and to facilitate the sharing knowledge by facilitating the publication of independent scientific research by prominent members of the scientific community.

 

Peace and quiet at San Diego International Airport: Soundproofing in practice


Aircraft abovehouses in SANEver since the Wright brothers took off from Kitty Hawk, North Carolina more than a century ago, in a contraption built of bailing wire and bicycle parts, airplanes have been turning heads, and making noise. Modern aircraft contribute to this more than ever before. As anyone who lives under the a departure pattern can tell you, take offs have a way of blotting out large chucks of telephone conversations and TV programs, especially during warmer weather, when windows are open.

That’s where at San Diego County’s Airport Authority’s the Quieter Home Program (QHP) steps in. Begun in 2001, the program uses grant funding provided through the Federal Aviation Authority’s Part 150 Noise Compatibility Study. These moneys are generated from user fees paid by airlines and the traveling public.

Since the program began, 1,600 homes have been upgraded to mitigate aircraft noise. But about 9,000 homes are still on the waiting list. My own residence at the Point Loma Tennis Club falls into this still “to do” category. At projected current upgrade progress, the program could continue for another 20 years, or even longer.

In 2008 the QHP availed itself of $25 million in such grants, some of which were encumbered and carried over from previous years. Normally it’s $10 to $12 million a year which pays for the soundproofing of 300 to 600 homes, depending on their size and complexity. Historic homes from the turn of the last century to the 1920’s and 30’s, are much more complex and challenging to update, than modern homes.

Organization
Ms Knack (in blue)Heading these efforts, is Sjohnna M. Knack (in photo in blue). A soft spoken, sincere and engaging program director with a degree in aviation management. Prior to this project she worked as Systems Manager at San Francisco International Airport (SFO) and before that, she was the noise-abatement coordinator for the Washoe County Airport Authority in Reno. She has been with the QHP for 3,5 years, and heads a staff of 20 friendly administrative employees. In addition some 50-60 technical consulting staff are available as private contractors.

Knack enjoys positively impacting those who benefit from the QHP, improving the quality of their lives by facilitating things most of us take for granted – a more restful sleep, and telephone conversations uninterrupted by jet noise.

Noise abatement measures
There are basically four ways in which aircraft noise can be controlled and mitigated. These include (1) land acquisition and land use zoning around airports, (2) improving aircraft frame and engine designs, (3) limiting airport hours of operations, and controlling flight patterns and engine power settings during takeoffs, and (4) modifying and soundproofing existing structures.

This last approach is where the QHP excels. Knack is mandate by the FAA to soundproof residence, schools which were given first priority, places of worship, and noise sensitive businesses, such as day care centers , that are situated within the airport’s noise contour of 65 decibels (dB(A)) or higher. Currently Knack’s team is working on reducing interior noise levels in the 67 and 66 dB(A) contour range.

Typical soundproofing measures include, among others, sliding acoustic windows, solid core doors, attic insulation, exterior heat pumps, air conditioning and ventilation.

Legislation
The FAA measurement standard for a successful noise abatement retrofit, is to reduce interior noise levels by 5 dB, which mathematically equals over 60% decrease in outside environmental noise. That is significant and noticeable. It also results in a much quieter living space.

Aircraft produce the greatest amount of engine noise on departure, when they are climbing and need higher power settings for operational safety. Noise coming from an aircraft depends on type of equipment and distance or altitude. For example, a DC-9 at one mile high produces 90 dB of sound. In comparison, car alarms cab reach levels up to 102 dB. In this respect the Occupational Safety and Health Administration cautions against unprotected noise of 85 decibels, slightly less than a gasoline powered lawn mower, for longer than eight hours a day.

Contours SAN airportWhile the FAA is concerned with aircraft noise complaints, Sjohnna Knack highlights that the QHP objective is to comply with Title 21 of California’s State Noise Ordinance, by proving to the State that businesses and residences within flight traffic patterns meet 65 dB contour compatibility. This is a legal way of saying that people inside these structures are able to carry on normal conversations, without substantial hindrance of aircraft noise. This proof of compliance comes in the form of Avigation Easements, documents that property owners sign relinquishing their rights to sue over noise issues. These are filed with the County Clerk’s office after soundproofing has been completed.

If an airport cannot meet the State noise ordinance requirements, it can apply for a Noise Variance from the State, or it can acquire land under the airport’s flight patterns, and remove such property from residential or commercial zoning. Even in the depressed Southern California real estate market, buying such properties are not feasible. Getting a Noise Variance is cumbersome, and requires a formal application and public hearing before an administrative law judge. So the best approach is what the QHP is already doing, making homes quieter.

Rate of success?
Is Sjohnna Knack successful at her task? Yes, she is. According to Ms. Knack the program reached a rate of 98% satisfaction. This was validated by a post construction questionnaire, which was given to every homeowner, along with their warranty package. She further states that the goal is to build on this reputation, by doing excellent work, being open and transparent, answering all homeowners questions, using the latest new technologies, high quality materials and the most competent contractors.

However, not everyone goes along with the program. In fact, the opt-out rate is between 5-10%. Some homeowners just don’t want to be bothered with having a parade of workers disrupt their lives. For many, the deal breaker is that the new high-tech materials used in the program, like vinyl framed windows, do not fit the character of high value, up market older homes.

San Diego AirportSome homeowners have expressed concerns that signing the required Avigation Easement will give the San Diego Regional Airport Authority a blank check to operate flights at all hours of the day or night, and permit noisier equipment. But this is rebutted by the airport. According to an airport spokesperson, San Diego International Airport plans on keeping its 11:30 pm to 6:30 am curfew intact for departing traffic. Arriving flights have always been allowed to land 24 hours a day, because engine power is reduced when an aircraft lands, and there is much less noise generated.

As for me, after many hours of research by the QHP and interviews, I still had my own affairs to complete. Reviewing and signing off on the design elements for retrofitting my house. People from the Program met with me and patiently went over all the details and notes that were contained in a stack of documents, and demonstrated my new sliding acoustic windows. One of the programs engineers answered all my questions about replacing filters for my home’s climate control system, including costs, frequency and the availability of these filters. He even looked up the decibel ratings of the new equipment that will be installed. So, I now can get more peace and quiet from San Diego International Airport than ever before.

Joel Siegfried from San Diego, USAAbout the Author
Joel Siegfried is freelance journalist and is currently in the design phase of having his condominium upgraded by the QHP. He holds a Masters degree from St. John’s University (New York) in Information Sciences. To contact Joel Siegfried, please mail to ecto@cox.net.

Substitution Opportunities of High Speed Train for Air Transport

By: Peter Jorritsma

air-rail-substitutionThis paper describes the opportunities for substitution between air travel from Amsterdam Airport and the high-speed train to main destinations in Europe. First, the relevant factors influencing the substitution from airplane to high-speed train are discussed. Second, the present situation and future trends in supply and demand in the railway and air markets are described. Finally, an estimate of the potential substitution in 2020, based on available sources, is presented on the routes Amsterdam-Brussels, Amsterdam-Paris and Amsterdam-London.

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Limited Possibilities to Reduce CO2 Emissions from Aviation due to the Growth in Aviation Demand

1-aviation co2Aviation today is deeply embedded in society. Already for a long period of time, demand for aviation has been increasing. This is good news for travellers, who can fly for a relative small amount of money to many destinations all around the world. The growth of the aviation industry is also good news for airport operators, airlines and aircraft manufacturers, as they see their yearly turnover increasing.

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