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Vinson Kurian

Emissions from aviation are increasing with air travel becoming cheaper, without its environmental costs being addressed.

Thiruvananthapuram , Jan. 8

Kerala-based IBS Software Services — a leading player in travel, transportation and logistics (TTL) space — will develop enabling technology for airlines to deal in carbon credits as well as comply with the emerging emission trading regime.

Carbon credits and emission trading scheme (ETS) are going to become a reality in the airline space, said Mr V. K. Mathews, Chairman and Managing Director of IBS Group.

EU PRECEDENT

The European Commission has already set a precedent by revealing a plan, which will make flights within the Union subject to compulsory CO2 emissions trading from 2011. The proposed directive will cover emissions from flights within the EU from 2011 and all flights to and from EU airports from 2012.

Both EU and foreign aircraft operators would be covered. Given this, airlines would progressively have to forecast their CO2 emission needs and monitor the compliance, Mr Mathews said. They would also need to look at opportunities of trading credit balances for positive cash-flow results.

"IT systems to forecast credits, monitor actual utilisation and the ability to trade surplus credits between IATA (International Air Transport Association) member airlines will be an opportunity and IBS will certainly be able to provide this service to the industry."

EMISSIONS GROWING

Emissions from aviation are increasing fast with air travel becoming cheaper without its environmental costs being addressed. As in the case of industrial companies, airlines will be able to sell surplus allowances if they reduce their emissions and will need to buy additional allowances if their emissions grow.

"Since IBS has already flight scheduling systems (`aiRes' and `iCargo', which can help forecasting the emission demand) and also systems for managing "day of operations" (`Velocity' and `TopAir', which help measure the actual emission causing utilisation), we should be able to help the industry."

IBS can also create a portal for facilitating ETS, which can be used for online trading and also hedging. This is an area of opportunity that will certainly be pursued. "In fact, this will come as an automatic functional extension of our already existing product suite."

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