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Sunday, May 24, 2009

God Bless Boeing's Altruism ...

Yesterday's WSJ included a letter from Boeing CEO, Scott Carson. In the letter Mr. Carson mentions that the market has already done a fine job of pushing airlines and engine manufacturers to increase efficiency. (pic via Wiki)

"There's plenty of incentive to develop more efficient airplanes. Historically, fuel
has been the airlines' second-biggest operating expense next to labor. Last year,
with oil reaching $140 a barrel, fuel costs even outstripped labor costs, rising
to 40% of total airline operating expenses. So airlines have demanded increased
efficiency from airplane and engine manufacturers. And manufacturers have
responded big time. Over the past 50 years, the efficiency of commercial jets
has risen an astounding 70%. This means that carbon emissions per mile flown
have dropped 70% -- all without a regulatory requirement for greenhouse gas emissions."
Then, apparently inexplicably, Mr. Carson calls for increased government regulation?!
"That said, we believe properly structured regulations could be useful.
It's not often that an industry asks for additional regulation, but
Boeing, GE and other airplane and engine manufacturers are convinced
that a fuel-efficiency standard for new airplanes is an effective way
to drive the development of fuel-saving technologies. Specifically,
we're advocating for an efficiency standard for new airplane designs."
I wonder if Boeing's Mr. Carson could be calling for increased regulation for reasons other than pure altruism? I wonder if these proposed regulations would make business tougher on competitors, current or potential?

Related links:
How Boeing Fights Climate Change - WSJ.com

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