REMARKS FOR ALLAN MCARTOR, CHAIRMAN, AIRBUS AMERICAS INC.

AERO CLUB

WASHINGTON, D.C.

 

“THE WILD GREEN YONDER”

 

As written. Not necessarily as delivered.

 

 

 

 

 

 

                                      APRIL 22, 2008

          Thank you all very, very much. I really appreciate that.

          And I want to thank everyone for coming out to the Aero Club this afternoon. Listen, I know how tough it is to break away from the office in the middle of the day like this. But I’ve always felt that breaking bread together builds strong bonds. It’s with these bonds that true collaboration begins.  And I’m going to explain why I feel that way in just a second.

          First, though.  I turned on the TV this morning. And there were two major headlines on all the news channels. One of them, of course, is the big primary in Pennsylvania.  Everybody’s looking to see who’s going to come out on top there.

          And the other bit of news is that today … April 22, 2008 … is Earth Day. I’m sure you’ve seen all the ads too.  Well, believe it or not, there is a parallel between the two … politics and the environment.

          You see, 38 years ago, Earth Day started out as a celebration … where people from all political parties … just got together to reaffirm their commitment to preserving our natural environment. Imagine that … 38 years ago.  That’s just about the time that Airbus first came into being. We’ve been around that long.

          This Earth Day, however, may be the most important one of all for aviation.  That’s because there’s such a great debate going on now that threatens to break apart our industry.

          It has to do with a teaser for a TV program I saw.

          It showed a jetliner -- not an Airbus -- it showed a jetliner taking off … and in its wake was a long trail of black smoke belching out from the engines. And a network guy says in this deep, booming voice:  “Coming up next … an Earth Day exclusive report … Mother Nature’s Most Wanted Criminals.”

          Can you believe that? I won’t bother sharing with you the words that came out of my mouth when I heard that. This is a family-friendly place, after all.

          What you didn’t hear in that TV spot was that aviation supports more than 29 million jobs. And it’s the only thing I know that literally links world economies in a matter of hours. Try that with another form of transportation.

          When it comes to the environment, aviation is not the enemy.  But there’s a perception out there that we are. And you and I and everyone else need to band together to counter this perception that we’re the bad guys … that we don’t know what we’re doing. In some places, they’re even calling flying for fun a sin!

          Because if we just sit there and do nothing, then we run the risk of having someone tell us what to do. And I don’t have to tell you how undesirable that would be.

          Now whether you followed the numerous legislative proposals in Congress … or saw those protesters climb aboard a tailfin at Heathrow … you know that the debate over climate change is certainly “heating up” quote unquote.

          This has been no less true for aviation.

          Aviation greenhouse gas emissions dominated the discussions last fall at the ICAO Assembly in Montreal.  And … you may remember … just before Christmas, the EU continued down the internationally unpopular path of seeking to impose its emissions trading system on international aviation.

          So, I want to take a few minutes to offer some thoughts on how I believe we need to tackle this challenge … and why sticking together is so important.

          And the reason I preach collaboration is because of a story I once heard. You see, there were two friends who are out hiking in the woods.  Suddenly, they saw something coming toward them over the hill.

          It was a huge grizzly bear. And one of the guys quickly reached into his back pack and pulled out a pair of sneakers.

          And the other guy says, “You don’t really think you can outrun that bear, do you?”  And he says “Oh I don’t have to outrun the bear.  I just have to outrun you.”

          Now that’s worth a chuckle or two.  But in the same vein, we as an industry can’t afford to splinter when it comes to the environment.  We need to stay together.

          That’s especially true over in Europe, where there’s this belief that aviation greenhouse gas emissions are out of control … that we’re “the next tobacco industry” and need to be reigned in with caps and taxes.  Let me tell you.  Forcing a “one size fits all” approach on the international community will only benefit the lawyers, not the environment.

          So, step one of our mission is to educate.

          The fact is, worldwide, aviation represents only 2-3 percent of total greenhouse emissions.

          Here at home … Greenhouse gas emissions generated by the U.S. aviation system have actually dropped by about 4 percent since 2000. That reduced our carbon output by a million tons.

          At the same time, we had a 12 percent jump in passengers … and a 22 percent increase in freight.   

          Here’s another inconvenient truth.  In the last 40 years, aircraft fuel efficiency has improved 70 percent.  Those of you taking notes, write that down, because it’s only going to get better.  And that’s because there is no better motivator for efficiency than the price of fuel.

          That goes for both manufacturers and operators.  And with fuel now going for more than $100 a barrel … and representing 25 to 30 percent of U.S. airline costs … let me tell you -- the motivation has never been stronger. Fuel has now replaced labor as the biggest expenditure.  Now whether that’s good or bad is up to you.

          Of course, it’s not just about engines. It’s about air traffic management … ground congestion … idling fuel trucks. They all have a role to play.

          But, like those guys running from the bear, we have to band together … and trump perception with honest-to-goodness performance.  That’s step two.  That’s where Airbus’s leadership comes in. We get what the environment is all about.

          Consider this. We’re the only aerospace company in the world whose eco-program is backed by ISO14001. It’s the international community’s seal of approval for the environment.

          How’d we do it?  Maybe it was our pioneering use of a greener, chemical-free milling process for fuselage panels.

Maybe it was our environmentally friendly painting procedures.  Or, perhaps it was the stringent energy and water consumption limits we impose during the production cycle.

From the time our planes start out as a design on a drawing board to the end of their lives when they’re shredded apart for recycling, our planet is first and foremost in our minds.

This isn’t just for our executives.  It’s for all of our employees.  They must be part of the challenge. The environment isn’t the business for some specialist in our company.  It’s everyone’s business.

It’s that mindset that helped us produce the A380 … the environmental benchmark in air travel. Now there are a lot of superlatives you can use for that aircraft. Biggest … boldest.  Now add another one – the first. As in, the 380 is the world’s first commercial aircraft to successfully complete a test flight using an alternative fuel.

It happened earlier this year.  It went from the UK to France … about three hours long … using a liquid fuel processed from natural gas.  The experts call it G-T-L … gas to liquids.  And the beauty of it is that it’s virtually free of sulphur, which creates pollution.

The 380 was chosen for its design. It’s got four engines with separate fuel tanks.  That makes it ideal for engine shut-down and re-light tests.

So during the flight, engine number one was fed with a blend of G-T-L and jet fuel. The three others were fed with just jet fuel.  And the result was nothing short of remarkable. History was made right there that very day.

And you know, it just goes to prove -- our alternative fuels roadmap requires this very kind of innovation and diversity of ideas.  It’s part and parcel of Airbus’s commitment to providing leadership as an eco-efficient enterprise.

This groundbreaking test flight was the first step in a long-term plan to study alternative fuels.  I stress long … because it takes many years of trial and error to get it just right. And we are.

Even still, no one company has all the green answers. It’s got to be a collaborative effort. And that goes back to the point I was making earlier.

Now to prove that Airbus isn’t just talking the talk, I’ve got a noteworthy announcement I’d like to share.

Airbus and Boeing have put away the swords and forged an unprecedented agreement on the environment. The announcement was made today at the Air Transport Action Group environmental summit in Geneva.

It may seem a bit strange seeing two rivals burying the hatchet and coming together like this.  Competition among industry titans is a good thing, don’t get me wrong. But when it comes to the environment, there is no competition.

I mean, what would be the point of “beating Boeing” or “beating Airbus” on the environmental scoreboard if we as an industry are still perceived as massive polluters?

Let me tell you, our companies are committed to setting the record straight about where aviation stands.  And at the risk of repeating myself, I’ll tell you yet again where that is -- Aviation is not the enemy.

          With each passing day, flying is becoming more environmental friendly than it was the day before. And Airbus is leading the way. 

          Here’s one more example how.  In February, we successfully tested a fuel cell system in-flight on an A320.

          What this means is … that for the first time on a civil aircraft, fuel cells powered the back-up hydraulic and electric power systems.  It doesn’t get anymore exciting than this.

          As you know, fuel cells offer up a tremendous amount of environmental benefits. First of all, they’re emission-free. On top of that, their only by-product is water, which could be put right back into the plane’s water and waste systems.

          That, in turn, makes the aircraft lighter and more fuel efficient.  The big picture here is that we have a starting point. This will allow Airbus and our partners to further develop ways to use fuel cells to replace other aircraft systems, like emergency power.  A major benefit of all this is that it’ll significantly reduce noise and emission levels in and around airports.

          In the years to come, expect to see Airbus continue to push the envelope.

          When you’re the world’s largest airframe maker, you have certain rights, responsibilities and obligations. And we’re living up to them.

          As you can see, Airbus doesn’t have time to jump on the environmental bandwagon. We’re too busy driving it.

          As the Aero Club knows better than anyone else, aviation has succeeded in its first century because it has constantly met the challenge of innovation and record setting -- flying faster, higher, and safer.

          Any fair reading of history will show that aviation has done an exceptional job when it comes to the environment too.  But to be blunt, the issue here isn’t past performance, but what records we’re going to set going forward.

On that score, one thing you’ll never hear me say is “Gee, I wish Airbus had done more on the environment.”  It’s my intention to leave a legacy where everything was left on the field.  Sure, a green aviation is good for business.  But beyond all that, a green aviation helps a planet stay green.  There’s no equivocating on that.

As inhabitants of this majestic blue and green marble, we all must stand up for the environment.

That was the message of the first Earth Day … the second … the third … and now the 38th.

          Thank you.  And now I’d be happy to take your questions.

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