Jet Fuel Efficiency in Brazilian Regular Air Transport

Abstract

Since World War I, the commercial aviation industry has seen many improvements that now allow people and goods to reach the other side of the world in few hours, consuming much less fuel than in recent decades. Improvements in cargo capacity and energy efficiency were significant and, in this scenario, commercial airlines were able to thrive and bring great benefits to world economy. However, this sector is facing environmental challenges due to the intensive use of aviation fuel. Brazil is one of the largest domestic air passenger markets in the world and still has great growth potential, considering its economic potential and territorial dimensions: roughly the same size as the US and twice the size of the European Union. This paper discusses partial productivity of jet fuel in Brazilian domestic aviation and proposes an econometric method to support public regulators and airlines decisions. The proposed model uses variables such as aircraft size, route characteristics and idle flight capacity in a panel data analysis. The results show that reducing idle capacity is one of the best ways to achieve better short-term fuel efficiency and therefore will reduce environmental impacts and have positive economic effects on commercial air transport activities.