The Times, Apr 2009
One upshot of the downturn is a new appreciation of the most basic responsibility of businesses: to remain in business. To continue to provide goods and services, provide gainful employment, engage a supply chain and hopefully create profit, thereby contributing to the health of the economy. The auto industry is a case in point. Many of the big motor makers have come perilously close to failing in this basic responsibility. Leading to government bail outs in one form or other in many European countries and, of course, the US. These are begrudgingly accepted because of the universal acknowledgement that no-one wins if the sector fails. But they make for a sorry tale.
One of the major drivers of the auto industry’s decline, particularly in America, was its failure to take the impact climate change would have on its business seriously. It continued to churn out the same gas guzzling, over-sized vehicles that had driven its success in times gone by and failed to invest in models more suited to the changing times.
The airline industry might want to take note. Climate change is definitely on the agenda of all the big airlines – it would be mighty strange if it wasn’t. But so far most of them have failed to take any really big, radical steps to address the issue (in this month’s survey 61% of concerned consumers do not think the airline industry is taking its environmental impact seriously). And the danger is that the recession will push it further down the agenda.
This would be dangerous - for the industry - and therefore for everyone. All airlines should be taking aggressive action against climate change. Both in terms of investing in the new technologies and innovation that could transform it - the electric cars and hybrids of the aviation world. And in taking the sometimes small, visible steps which can make a real difference in perceptions amongst travelers – recycling on-board waste for example. People still want to fly. They also want to be able to feel better about it.
And as the auto example shows, this is certainly not a distraction. It's fundamental to the future success of the industry.
