Will e-flight take off? Building a business case for Latin America and the Caribbean
Home to vast sources of renewable energy that will power a greener future, Latin America and the Caribbean are renowned for their sustainability efforts - and they are in prime position to play a crucial role in the transition towards a more sustainable economy.
Combined with the anticipated growth in regional and domestic passenger traffic in the region, it's clear that there could be huge potential for e-flight to take off in this part of the world.
E-flight, the burgeoning field of electric aviation, promises to revolutionise the aviation industry by offering a more sustainable alternative to traditional fossil fuel-powered aircraft. Not only would this reduce emissions and appeal to sustainability-minded travellers, but also several OEMs have promised that it can reduce operating costs by as much as 30%-50%.
For countries such as Costa Rica or Colombia, where there is strong demand for domestic travel, given that the country's terrain makes ground transportation a challenge, e-flight has huge potential to deliver.
But just how feasible is it?
Mick Werson, Chief Economist & Financial Advisory Lead at NACO explores the areas which must be examined in order to build a business case for e-flight - and how this can be done.
- Electric aviation promises to revolutionise the aviation industry by offering a more sustainable alternative to traditional fossil fuel-powered aircraft.
- E-flight has huge potential to deliver sustainable air solutions across many markets in Latin America and the Caribbean.
- Mick Werson at NACO explores the areas which must be examined in order to build a business case for e-flight.
Assessing the technical and operational requirements
The first step to determining the feasibility of e-flight has to be a technical and operational feasibility assessment.
Not only does this provide an overview of e-flight technology, and the necessary requirements for its implementation, but it also assesses the current air traffic network alongside the existing airfield and electrical infrastructure available.
In any assessment we look at key elements such as runway length, the availability of renewable energy, energy storage, and different types of chargers. It's also important to take into consideration air traffic network requirements.
The electric aircraft which we expect to come onto the market will all have specific flying range requirements that necessitate careful consideration of the distance between airports to ensure feasible, safe, and efficient operations.
The promise of e-flight presents a vital step towards enhancing regional connectivity due to the more frequent and, initially, cost-effective short haul flights, particularly in regions that are underserved by traditional aviation.
Electric aircraft can operate from smaller airports, making it easier to establish new routes and improve access to remote and rural areas. This enhanced connectivity could open up new markets, stimulate economic growth, and foster social integration.
From the data we collect on technical and operational requirements, we can assess the gap between the requirements for e-flight and the current state of technology to determine a strategy and phased implementation roadmap.
Examining market and economic feasibility
The next step in building the business case is to shift our focus from the present state towards the predicted evolution of e-flight in the years to come.
We examine how factors such as technology, air traffic demand, regulations, and infrastructure investments are expected to evolve, and what impact they may have on the feasibility of e-flight.
Take battery technology as one example - we anticipate huge advances in technology in the coming years that will result in longer flying range, greater passenger capacity, and decreased operating costs.
This, in turn, could translate into lower airfares, stimulating greater domestic passenger demand and ultimately significantly enhancing the economic viability and operational efficiency of e-flight.
It's also important to look at the regulatory context - both globally and locally - to assess how e-flight will be regulated and how it could impact the e-flight route economics.
Not only do regulations play a crucial role in ensuring safety, but they also have the potential to facilitate and stimulate the transition - both on a government level and at an airport level.
The main role of government for the transition to e-flight will be to develop policies, collaborate on an international level to ensure standardisation, support financially through subsidies, and support research and education.
Airports play a major role in identifying the required changes in airspace and operations and implementing policies that support the transition, such as reducing airport charges for sustainable flight, or implementing noise reduction policies that favour electric aircraft, for example.
Changes to regulation around maintenance, subsidies and penalties for fossil fuel use, for instance, could have significant impact in making e-flight more economically viable.
The final step in this phase is to analyse the impact e-flight would have on sustainability, identifying the potential reduction in carbon emissions.
Collaboration is key
The aviation industry has a huge opportunity to realise the benefits of e-flight. The technology is developing rapidly, and will play a key role in enhancing regional connectivity and making aviation more sustainable; and some countries are already working on making it a tangible reality.
But there is undeniably still work to do when it comes to economic feasibility if we are to see greater levels of uptake across the globe. Key to driving this forward is assessing the areas outlined above, as well as setting a tangible vision for e-flight.
As an industry we must have realistic objectives and ambitions - alongside a clear roadmap to implementation.
At the same time, robust collaboration among various stakeholders - manufacturers, airlines, financiers, airport operators, regulatory bodies, and energy companies alike - is essential.
Not only in terms of policy and regulation, but also the financing of aircraft and infrastructure.
If we are to secure a sustainable future for our industry, we must navigate the transition to e-flight together as part of wider sustainability strategies - it cannot be tackled in isolation.