This chapter will discuss the passenger perceptions in relation to climate change, carbon offset programs and corporate social responsibility practices conducted by the Australian airlines. First an introduction into the survey will be provided; after this the survey sample is explored and then the results of the survey will be analyzed.
5.0.1 Introduction into the survey
It is established by academics that air travelers are becoming less price- sensitive over past decades, which could indicate the increase for air travel demand. It seems not very likely that the demand for air travel will decrease (Becken 2007). An increase in prices in aviation in the form of a new tax or through compulsory carbon offset programs will most likely result in the acceptance of this phenomenon by passengers. It will probably take time for them to adjust to the extra charges, but eventually they will accept and purchase the flight tickets. (Strasdas 2007). Little research has been undertaken to investigate the level of passenger acceptance in relation to the increasing price of flight tickets to reduce their impact on climate change. It is assumed that raising knowledge about the environmental risks associated with taking a flight will ultimately result in the rise of public awareness and therefore stimulate the public to behave more climate friendly (Becken 2007). Shown in the previous chapter it is suggested that airlines are still quite reluctant to promote carbon offset programs in relation to actual usage from the passengers of these programs. The airlines are using these programs mostly to enhance corporate social responsibility practices. The media is here of great importance. It has the role of communicating the carbon offset programs to the public and also to influence the public‟s perception of climate change; most of the public have not themselves
experienced the results of the climate change phenomenon. Climate change reporting in the media often lack accuracy, is biased and tends to mislead the public (Becken 2007). Against the background of the increasing contribution of aviation towards climate change, this survey seeks to analyze the potential market for voluntary or compulsory carbon offsetting
programs.
5.0.2 Survey sample
Fifty surveys were conducted in Australia at Melbourne 20, at Brisbane airport 20 and at Southern Cross Station in Melbourne 10. All surveys were conducted anonymously. Of the 50 people surveyed, 21 were females and 29 were males. The survey already provided the three airlines that are included in this research study which are, Jetstar, Qantas and Virgin Blue. The survey also provided the amounts of Australian Dollars respondents could mark off. In some cases, instructions were provided as a lack of knowledge was indicated by the respondents.
Analyzing Corporate Social Responsibility Policies in Aviation:
A focus on Carbon Offset Programs in Australia 39
5.0.3 Age groups
The survey was categorized in various age groups. These were; under 25, where the surveyor also made sure that the person interviewed was older than 18. 25 to 29; 30 to 39;
40 to 49 and 50 or above. These age groups were chosen as the survey was particularly focused on youth.
Female Male
25 10 11
25 – 29 4 5
30 – 39 3 9
40 – 49 3 4
50 or above 1 0
5.0.4 Nationality
Forty-three of the respondents were Australian, two from New Zealand and one each from Great Britain, Israel, Turkey, India, and Germany.
5.0.5 Reliability
The survey relied on data given by the respondents. What they said depends on the powers of recollection, honesty and on formulation of the questions (Veal 1997). It has also been suggested that respondents were affected by the affinity of being helpful and friendly towards others (Veal 1997). Also the survey was conducted on only 50 respondents. Bearing this in mind these results might not be the “truth” as the survey conducted was limited, and this could hardly represent a whole society. The results from the survey conducted can give only an indication of the situation in Australia. Values and attitudes are very likely to play an important role in this research, but they are not specifically explored.
5.0.6 Practical information
Eleven questions were formulated for respondents to answer on an A4 size paper. This was done because some of the respondents were in a hurry to catch a plane and others were waiting for people to arrive at the airport and had plenty of time. The survey took no longer than five minutes. To provide some simplicity for the respondents who completed the survey, a straightforward technique of ”tick the boxes” was provided. The survey questions were formulated to extract detailed data from the respondents regarding carbon offset programs, green branding, money and climate change. The respondents were encouraged to explain why they had chosen that answer. A more-detailed description of the survey questions is shown in Appendix 2.
5.0.7 Survey results
From the first moment of conducting the survey it became clear that there was a general lack of knowledge by the respondents. They repeatedly asked for more information in relation to the questions regarding carbon offset programs. The introduction of carbon offset programs of the three major airlines included in this survey had taken place one or two months before the survey was conducted. This could indicate a lack of communication towards the public by the airlines. Only a few of the respondents were aware of the existence of carbon offset programs.
Table 3. Survey age groups
Analyzing Corporate Social Responsibility Policies in Aviation:
A focus on Carbon Offset Programs in Australia 40
5.0.8 Affecting your decision to travel by air?
In relation to the question, “Does climate change concerns affect your decision to travel by air?” by far most of the respondents
mentioned that climate change concerns does not affect their decision, shown in figure 7.
These answers were among those given in reply to the question: “price is my only
concern” and “do not think about it”; ”I don‟t care as long as I get there.” This could indicate that
the respondents are not willing to change their travel behavior as a result of climate change.
5.0.9 Total travel
In another survey conducted in Australia by totaltravel.com, it was suggested that climate change concerns could affect Australian air travel decisions. It was established that environmental concerns may affect the air travel decisions of many Australian consumers.
More than a third of the respondents said they were concerned enough about climate change to participate in a voluntary carbon offset program, and 18 % said they are considering avoiding air travel altogether (Canadian Tourism Commission 2007). These results are unfortunately not in line with the survey conducted for this research study. This could have been caused by the research location chosen for this survey, which was mainly at the airport, resulting in the survey being conducted on a segment of society that frequently travels by air.
Although the survey conducted by the Canadian Tourism Commission might also include people that will never fly at all.
5.0.10 The greenest airline?
The most difficult question to answer for the respondents to answer was which airline would you say is the greenest? Therefore most answered “undecided.” Some of the quotes
mentioned in relation to this question were „no idea‟ and „none.‟ The airline marked off the most was Virgin Blue. Some of the quotes relating to this: “Virgin Blue is actively making changes to reduce emissions”; “Virgin Blue as they started carbon offset.” This last quote is correct because Virgin Blue was the first airline to start carbon offset. This could indicate that Virgin Blue‟s corporate social responsibility practices are being well received by the public.
5.0.11 A good way to tackle climate change?
This question, “Do you think that carbon offset programs are a good way to tackle climate change?” resulted in most of the respondents answering yes as shown in figure 8. This could indicate that most of the respondents think that carbon offset programs are a good way to
offset the carbon of their flights.
DOES CLIMATE CHANGE CONCERNS AFFECT YOUR DECISION TO TRAVEL BY AIR?
Yes No
Fig. 7: Does climate change affect air travel
Fig. 8: Is Carbon Offset a solution for climate change
Analyzing Corporate Social Responsibility Policies in Aviation:
A focus on Carbon Offset Programs in Australia 41
Some of the respondents, however, did not know the existence and purpose of the carbon offset programs. They mentioned “anything we can do to help,” “This will awaken the public and thus decrease the cause of global warming” or “No, I do not know about it at all.”
5.0.12 Compulsory carbon offset programs?
Another question raised in the survey was: “Do you think airlines should make carbon offset programs compulsory?” Most respondents answered yes to this question. Twenty-eight said yes and 20 said no; another 2 were undecided. Some of the answers mentioned were “Yes, it is too late to tackle climate change down the track when it gets worse: start now,” “It is our responsibility to save nature,” or “No, not everyone has the money” and “Flying is too
expensive already.”
5.0.13 Have you used a carbon offset program?
It was remarkable that only 3 respondents to this question had used a carbon offset program.
One respondent did use both Virgin Blue‟s and Jetstar‟s Carbon offset programs. None of the respondents had used a carbon offset program with Qantas. But most of the respondents had used none of the carbon offset programs available by the three airlines. One respondent mentioned this: “now, I feel guilty for not using the carbon offset program, as I am following the course environmental studies.”
5.0.14 How much are you be willing to pay extra from Sydney to Melbourne?
Fourteen respondents mentioned that they are not willing pay anything extra to offset carbon emissions on a return flight from Sydney to Melbourne. Also, 14 mentioned the amount of “up to AU$ 10.” In reality established with the calculators provided by the airlines, to offset the emissions of a return flight from Sydney to Melbourne would cost on
average between two calculators (Qantas and Jetstar, Virgin Blue not included) of AU $ 2.06.
This could indicate that passengers are willing to spend money to offset carbon, although marking off a box in a survey does not compare to actually paying the extra money.
Therefore the question is, are the respondents in reality also willing to pay extra to offset their carbon emissions?
5.0.15 How about from Sydney to London?
Thirteen of the respondents answered “nothing”
to this question. Ten marked off the “up to AU$
40” box and 11 marked off the “more than AU$
40.” The total purchase amount to offset the emissions generated by a return flight from Sydney to London is established by Qantas at AU$ 46.30.
Fig. 9: Will passengers pay extra to offset carbon emission (national)
Fig. 10: Will passengers pay extra to offset carbon emission (international)
Analyzing Corporate Social Responsibility Policies in Aviation:
A focus on Carbon Offset Programs in Australia 42
The other airlines included in this study do not provide services from Sydney to London.
Remarkably is here that the respondents are willing to pay relatively less compared to the Sydney – Melbourne question in correspondence with the miles travelled.
5.0.16 Young and Old
On average, young people in the first two age groups are willing to pay more to offset a flight compared to older age groups. This limited survey indicates that the higher the age groups, the less people are willing to pay extra to offset emissions from a flight.
5.0.17 Results
The survey conducted in Australia established that there was a general lack of knowledge under the respondents in relation to carbon offset programs. This could indicate that these programs are not communicated properly towards the public. Most of the respondents declared that carbon offset programs are a good way to tackle climate change. The survey established that 56 % of the respondents noted that carbon offset programs should be made compulsory. Only three of the 50 respondents had ever used a carbon offset program, and these were with Jetstar or Virgin Blue. None of the respondents had used a carbon offset program with Qantas. Most were willing to pay extra to offset their emissions on either a short-haul flight or a long–haul flight. On average, the younger the respondent, the more likely he or she is willing to pay extra to offset emissions from flying.
This chapter was mainly focused on answering research question 6 and 7. The method that was used to answer the second research question was a survey. The survey provided qualitative and quantitative data. This method was inadequately, to answer these research questions sufficient. As the survey was very limited in terms of quantity, the data can only give an indication of Australian perceptions regarding carbon offset programs and if they are they are willing to pay extra to offset their emissions generated from flying. To fully answer these research questions, the quantity of the survey needs to be improved.
Analyzing Corporate Social Responsibility Policies in Aviation:
A focus on Carbon Offset Programs in Australia 43
6. Conclusion
This research study analyzes the corporate social responsibility policies of airlines regarding climate change with the help of passengers‟ perceptions. To fulfill this goal 7 research questions were formulated:
1. What is climate change?
2. What are the trends in aviation to minimize aviation‟s contribution to climate change?
3. What is Corporate Social Responsibility?
4. What are the CSR trends in the aviation industry relating to climate change?
5. Which climate change projects or carbon offset programs are currently used by the Australian airlines?
6. What are the perceptions among Australian citizens on carbon offset programs?
7. Are passengers willing to pay extra to offset carbon emissions?
6.0.1 Research Questions 1 and 2
Chapter 2 mainly focus on answering research question 1 and 2 . The method that was used to answer these research question was desk research. This method was satisfactory for this research study as there is sufficient academic literature in relation to climate change. Climate change is a complex concept, for this study it was needed to establish the basics of climate change. This was done with the help of the IPCC assessment reports. Scientifically much more can be said in relation to climate change. The contribution of aviation to climate change is estimated, as many uncertainties relate to non - CO² emissions (IPCC 2007b). Therefore it could have been useful for this research study to correspond with someone or have a
meeting with someone that has extensive knowledge in the aviation industry and discuss new trends in relation to minimizing the effect on climate change. It is established by the IPCC (2007) that more research is needed to determine the effects of non - CO² emissions.
At the moment the share that aviation contributes to climate change is estimated at less than 2 % (IATA 2007a) in comparison with other modes of transportation. but through the
expected growth in demand in the near future, this could change and might challenge the Kyoto Protocol target set by some countries. Emissions trading schemes do not include non - CO² emissions and therefore do not offset the total greenhouse gases in aviation.
6.0.2 Research questions 3 and 4
Chapter 3 focused on research questions 3 and 4. The method used to answer the third and fourth research question was desk research. This method was adequate to answer the third research question as extensive literature was found in relation to this topic. However it proved inadequate to answer research question 4. Not much information was available regarding CSR and aviation. In the case of Australia the airlines do not publish a corporate social responsibility report, and this could indicate a lack of transparency into the CSR policies. Through the establishment around the growing controversial contribution of aviation towards climate change, society questions the contribution of the aviation industry (Graham 2003). Airlines have therefore implemented corporate social responsibility policies that
“prevent” any further climate change. These policies are based on the underlying value that corporations have not only an economic responsibility, but also a social and ecological responsibility (Crane and Matten 2007).
Analyzing Corporate Social Responsibility Policies in Aviation:
A focus on Carbon Offset Programs in Australia 44
It is hard to see past the corporate social responsibilities from aviation operators, such as carbon offset programs, Virgin Earth Challenge and investments in a new aircraft fuel as much more than a public relations stunt. Of course a lot of money is involved in these
investments, and credits should be given to the innovative airlines that are actually making a difference in relation to climate change. The problem is that most of these initiatives will eventually result in more profits for the airlines and less gain for society.
6.0.3 Research question 5
Chapter 4 focused mainly on answering research question 5. The method that was used to answer this question was desk research. This method was adequate to answer the question as extensive literature was found in relation to this topic. However little information was found regarding the Australian airlines and their relation with these programs. Carbon offset
programs is one of the corporate social responsibility policies that the aviation industry is using, to present society with the opportunity to offset the carbon emissions generated through flying. The airlines in Australia used for this research study have all implemented a carbon offset program under Greenhouse Friendly certification. This certification does include avoided-forestry which could induce a growing concern with passengers and might damage the accreditation of the certification (Downie 2007). The air travel calculators that the airlines are using established differences in the total amount of emissions generated by a flight and the contribution that passengers need to make to offset their carbon emissions. It is established that non - CO² emissions are not included in the calculation of emissions
generated by aviation (Kollmuss and Bowell 2007). Therefore passengers do not completely offset their carbon emissions from flights. Carbon offset programs are a sensitive issue at the moment, and the popularity of the programs are hard to determine. But early experiences by the airlines suggests that while announcing the carbon offset programs strategy generates favorable publicity and interest by passengers at first, their popularity soon fades (Perrett 2007). Although for the airlines it is a sensitive issue, not much is known by the public about the popularity of the carbon offset program. The only airline that did publishe their results and is actively promoting the scheme (not only on the Web site), in the form of commercials on television is Jetstar. Jetstar published a result of 10 % of their passengers using the carbon offset program. These results were published only one week after the launch of Jetstar‟s carbon offset program (Jetstar 2007). Another constraint to make these programs
compulsory is the lack of control and accreditation of carbon offset programs (Diesendorf 2007).
6.0.4 Research questions 6 and 7
This chapter focused mainly on answering research question 6 and 7. The method that was used to answer the second research question was a survey. The survey provided qualitative and quantitative data. This method was inadequate to answer these questions sufficiently. As the survey was very limited in terms of quantity, the data can give only an indication of
Australian perceptions regarding carbon offset programs and if they are they are willing to
Australian perceptions regarding carbon offset programs and if they are they are willing to