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Business Model for Sustainable Aviation Fuel
Business Model for Sustainable Aviation Fuel
Monika Mainwal
Under the Guidance of Prof. Twinkle Arora
Master of Business Administration
School of Business, Galgotias University
Executive Summary
The aviation sector is in a critical position where it must switch to environmentally friendly alternatives in order to lessen its impact on the environment. The implementation of Sustainable Aviation Fuel (SAF) in airline business models is thoroughly examined in this thesis, which uses the Business Model Canvas (BMC) and the Triple Layered Business Model Canvas (TLBMC) as its primary conceptual frameworks. A thorough examination of the airlines' SAF pricing tactics and business models has been conducted, considering the sustainability of the environment, the economy, and society. This has made it possible to identify strategies that will effectively encourage the use of sustainable jet fuel. Through the examination and evaluation of aviation industry dynamics, legislation, and technical advancements, this research provides useful information to help direct strategic planning and decision-making within the aviation industry. The findings indicate that innovation, sustainability, and cooperation are essential for industry players to embrace in order to steer the aviation sector toward a more resilient and environmentally friendly future.
The integration of sustainable aviation fuel within the airlines' business models represents a decisive step towards sustainability in the aviation industry. In this thesis, the Triple Layered Business Model Canvas TLBMC has been used to complement the traditional Business Model Canvas BMC. Using these frameworks together offers a holistic analysis of the environmental, economic and social impacts of SAF implementation on airlines such as Scandinavian Airlines SAS and BRA Braathens Regional Airlines. Sustainable jet fuel is used as a temporary solution to reduce the aviation industry's environmental impact. However, analysis and review of the sustainable fuel's life cycle from production to consumption is needed to be able to evaluate its environmental and social benefits. From an economic perspective, sustainable jet fuel production and availability is a major challenge for airlines. In order to overcome this challenge, innovative pricing strategies and cost-sharing initiatives are required in which various stakeholders from the aviation industry are involved.
In summary, this thesis contributes to increased knowledge in changing business models in the aviation industry as well as an analysis of current price strategies for sustainable aviation fuel. Leveraging the insights from the TLBMC analysis of business models and pricing strategies for SAF integration, this research aims to inform strategic decision-making in the aviation sector and accelerate the industry's transition towards a more sustainable and environmentally conscious future.
Key words: Sustainable Aviation Fuel, SAF, Business Model Canvas, Triple Layered
Business Model Canvas, Aviation Industry, Carbon Footprint, Airline Pricing Strategies,
Renewable Biofuel, Sustainability, Government Policies, Greenhouse Gas Emission
