Sustainability In Ferrovial Operations

Airport Infrastructure to reduce air pollution and improve waste management

Ferrovial Aeropuertos Internacional S.A.U. possesses four airports across the United Kingdom, serving at least a hundred and fifty airlines and a close to ninety million passengers that travel to over six hundred destinations annually. It offers immediate socio-economic advantages of commercial aviation. The routine aero mobility of tens of thousands of Ferrovial and other aircrafts as well as the combustion of millions of gallons of jet fuel every year produces a range of negative superficiality effects. Possible influences that are currently of concern are air pollution, waste products, land, water and noise pollution, causing health and safety concerns to those working in these four airports or communities living close to airports. Air pollution predominantly carbon emission poses a significant sustainability challenge, where the environment is adversely affected by reducing the air quality and cause acid rain.

Technology has been advancing each day and its application in solving negative environmental impacts has been proposed by several researchers. In this case, since air transport contributes a great deal of environmental pollution, the following are proposed approaches that Ferrovial could adopt to reduce air pollution and improve waste management;

Ferrovial could adopt commercial jets that are applying more fuel-efficient engines. The idea arose from Boeing that was developing single-aisle planes that use cubic feet per minute (CFM) International’s contemporary Leap 1-B engine which possess a light-weight carbon fiber fan and it is up to 15% more fuel efficient than the models Ferrovial is currently using. Similarly, Airbus is developing a single-aisle A32oneo jet possessing either a new Pratt or Whitney of a CFM engine that possesses an extra gear, which can save fuel, just like in automobiles. The jet has already been tested with both engines and is already been put into deliveries. The jet applies 20% less fuel per passenger seat since the engine and other features are modified to reduce carbon emission.

On waste management, Ferrovial could implement a waste management system that can recycle and reuse solid and liquid waste. This means that on solid waste management, it needs collection, sorting, storing and recycling some of the waste by installing infrastructures to enable such management.

Rainwater and water used to clean planes that mostly washes off debris, oil engines and jet fuel into the rivers could be drained into compartments installed underground, which is then purified and stored in tanks to be reused.

Reaction of Ferrovial to a hard Brexit

In case of a Hard (no deal) Brexit, the United Kingdom will no longer be part of the European Union greatly affecting aviation industry and market. These include flights in and out of the UK, as well as to other countries with which the EU has a deal such as Canada and United States. It means that the European Aviation Safety Agency will have no regulations to govern the UK in terms of common standards and maintenance. This depicts the industries in aviation sector particularly foreign companies that include Ferrovial will be significantly affected. Ferrovial is a Spanish multinational company whose traffic will affect flights heading and leaving London, Liverpool and East Midland. The headquarters of Ferrovial is situated in Oxford in the UK, meaning that they will have to shift to another country. Those leaving UK to Spain or other EU members’ states airports will suffer heightened tariffs if the seventh freedom rights happened to be abolished in the process.

Ferrovial will have to strike a new deal with the UK so as to retain the current status quo, which will depend on the UK new Aviation regulatory framework to ensure that the flights Ferrovial airlines are making in and out of UK resume after the Hard Brexit. It suggests that the UK Civil Aviation Authority that specialized on aviation regulations that developed its duties from principles of the EU airline industry will have to provide flying rights to Ferrovial and offer a license to continue its operations. It suggests that Ferrovial will have to align with the new Air Service Agreements (ASAs) with the newly constructed EU laws after Brexit. It will have to partner with other aviation Companies such as US Open Skies to allow unburdened access to each other’s markets.

Ferrovial intends to move its international base to Amsterdam; this is to ensure that the company will maintain its operation under EU communities’ legislation. This anticipated move suggests that the company is capable of making this adjustment to ensure the success of its operations. It recorded revenue of 2.7 billion Euros for the first quarter of 2018, which makes it capable of shifting its head office to another city and maintain its operations in Britain such as in Aberdeen, Glasgow and Southampton airports and it is aiding in the construction of London railway line as well as the Thames tideway tunnel.

Operational Efficiency of Ferrovial

Since 2010, air travel both in economic and tourism sector has developed a stable value development due to increased demand among travelers as well as payoffs from mitigations that several organizations took during the great recession to minimize costs and enhance performance. Ferrovial is likely to be among the airlines that will be flooded with individuals traveling, thus the need to increase the number of flights calling for the airline to invest so as to increase customer expectations. Therefore, Ferrovial will have to do the following to have an enhanced competitive advantage;

Ferrovial need to increase the use of online channels for search and booking. The airline operating in EU, which is a mature market, clients have a tendency of typically researching airlines, metasearch websites and online travel agents (OTAs) before making purchases online. Since the online shop-to-buy ratio in most cases is above 90%, there is limited Internet penetration, low credit card adoption rates, and other issues. So Ferrovial would need to improve its online channel with improved Internet access to search and book via mobile phones to promote efficiency.

Ferrovial needs to grow its popularity in social media, where it can be applied to share experiences during trips specifically through mobile devices. As the airline penetrates into emerging markets such as India and China, where a greater proportion of travelers tend to young and tech-savvy, social media could be a tool that could effectively market the services the airlines offers, thus increasing its traffic.

The airline also needs to heighten the relevance of loyalty programs, due to the recent increase in demand for loyalty programs. Loyalty programs such as lifestyle memberships as well as rewards are platforms that the airline could outsource to offer its customers with preference and interact with customers, thus promoting its operation efficiency, fostering its competitive advantage.

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References

• Anna.aero. (2018). Brexit affect; could British airports lose out in the wake of the UK's EU exit? Retrieved from
• Ferrovial (2017). Integrated Annual Report. Consolidated Management Report and Financial Statement. Ferrovial S.A. And Subsidiaries.
• Gjerstad, K., Wise, A., & Fitzgerald, M. (2015). Travel and Tourism: Capitalizing on Increased Demand and Better Operational Performance. Retrieved from
• Morris, C. (2018). Reality Check: Would a 'no deal' Brexit prevent planes flying?. Retrieved from
• Mutuku, J. K. (2012). Emerging trends in sustainability practices at airports: an analysis of awareness and operational changes at commercial service airports in Northern Ohio (Doctoral dissertation, Kent State University).
• TheGuardian. (2018). Ferrovial to move international HQ out of UK because of Brexit. Retrieved from