As airlines face mounting pressures to reduce their carbon emissions, researchers from the University of Sydney Business School are helping industry navigate the balance between environmental pressures and social and economic demands.
As the Head of School of International Business, Logistics, and Supply Chains (IBLS) within the University of Sydney Business School and co-lead of the Decarbonisation of Aviation pillar of the Net Zero Institute, Professor Rico Merkert helps aviation and supply chain players such as Sydney Airport, Qantas, Air New Zealand, Virgin Australia, Australia Post and The World Bank remain innovative in the face of mounting environmental concerns and rising costs.
“Aviation is the backbone to global supply chains, global economies, and all of our lives,” says Rico. “Airlines however play a major role in emitting CO2 and depending on how you measure it, aviation contributes between 4% to 6% of global carbon emissions.” This figure is only set to increase in the near future. While other modes of transport are electrifying, the impact of the airline industry is only set to increase. “By the time we want to reduce or get to net zero the demand will likely be double what it is now, and in terms of global emissions, that carbon footprint of the sector could soon be around 10%,” explains Rico.
To combat these rising figures, Rico and his team work alongside government partners, industry players and policymakers, urging them to act quickly and appropriately. “We want aviation to be part of our economy because it gives us prosperity, products and all sorts of things, so we identify strategies to innovate and advance this space,” he adds. “Our research shows that you get most bang for your buck when you invest in aviation, because this flows on to the economy.”
Having worked with industry locally and abroad, Rico has collaborated with partner universities, the European Commission and airports across the UK, Sweden and Norway, in a collective effort to achieve net-zero emission targets of supply chains. “What we’re doing isn’t just ivory tower work – it has meaningful impact,” he says. “We help industry with their problems and with problems that are potentially too large for them to solve on their own.”
Aviation is the backbone to global supply chains, global economies, and all of our lives. Our research shows that you get most bang for your buck when you invest in aviation, because this flows on to the economy.
Head of School of International Business, Logistics, and Supply Chains
Rico and his team have already collaborated with Thales Australia and Air New Zealand to support their efforts in reducing the carbon footprint of the aviation industry. They investigated how aerial drone technology and case strategies that used a lens of door-to-door (D2D) rather than airport-to-airport could be applied to travel and supply chains. “They actually supported two of my PhD students who were looking into aviation D2D emissions, and have worked with us on other projects looking into freight logistics,” explains Rico.
The team have also been busy supporting a range of organisations in an effort to produce a biomass that could potentially be turned into sustainable aviation fuel (SAF). In this instance, conventional jet fuel is blended with sustainable aviation fuel that doesn’t rely on hydrogen or electrification. “It’s also somewhat less exposed to volatilities in jet fuel prices, and can be produced locally,” says Rico.
Rico himself is also part of the iMOVE Corporate Research Centre (CRC) and is currently bidding for Australian Air Mobility CRC projects that are often industry-led, allowing researchers to work with industry to formulate and then fine-tune ideas.
Having worked in a number of countries, Rico and the team remain connected to international airlines and aviation supply chain companies such as Boeing and Airbus, and are across what’s happening in the industry both in Australia and overseas. “A lot of our competitors are really focused on how we can do this in Australia when in fact other jurisdictions may be ahead of the pack, say, North America, or Europe, for that matter, where a lot of the innovation happens,” he says. “We’re across all these developments, also in policymaking, and we’re able to add this global mindset to the Australian context.”
Rico and his team provide an impartial and objective perspective whenever they’re brought into each new project. “We don’t have any agenda, which is important particularly when the client or partner organisations are sharing sensitive data,” says Rico. “We’re able to build long-term, trusting relationships, and sometimes we even bring these collaborators and colleagues into our classroom for a guest lecture – that’s always the icing on the cake.”
As a team, they’re keen to partner with organisations and airlines locally and throughout the world, as well as airports, fuel suppliers, AI company's, businesses and startups across the aviation supply chain. “We want to do our part in bringing the aviation industry one step closer to a more environmentally and financially sustainable future.”
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