Navigating sustainability

: exploring the strategic shift towards environmental friendliness in the European passenger airline industry

Abstract

The European passenger airline industry has been under scrutiny for its environmental impact and is under increasing pressure to adopt sustainable practices. This thesis investigates the industry's strategic transformation by focusing on how airlines are incorporating sustainability into their strategies to enhance environmental friendliness. The research objective is to understand this integration, uncover its driving forces, and identify the challenges airlines face, assessing the dynamics and feasibility of their efforts. A research approach that combines the analysis of airline sustainability publications with expert interviews with seven airline representatives and six key stakeholders is adopted. The findings suggest that airlines are gradually integrating sustainability into their strategies by refining governance, adjusting strategic frameworks, engaging in collaborative efforts, and employing a combination of decarbonization measures, including Sustainable Aviation Fuel (SAF), fleet renewal, operational efficiency measures, and carbon offsetting. External factors, such as regulatory and competitive pressure, economic incentives, and stakeholder expectations, as well as internal expectations from leadership and employees, are driving forces behind this transformation. However, efforts face significant barriers; challenges include knowledge management, legal compliance, technology accessibility, financial constraints, communication, and managerial capacity. Continuous innovation, collaboration, and commitment to sustainability are essential for the industry's decarbonization and future, which seems uncertain at this point. This thesis underscores the importance of holistic integration of sustainability and the complexity of driving forces and barriers faced in the context of the European passenger airline industry.

Date of Award	23 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Espen Andersen (Supervisor)