1. 4 th Annual FAA International Aviation Safety Forum Global “Green” Skies: The Environmental Challenge November 30, 2007

2. Panelists Steve Alterman, Cargo Airline Association Steve Alterman, Cargo Airline Association(Moderator) Billy M. Glover, Boeing Billy M. Glover, Boeing Renee Martin-Nagle, Airbus Americas Renee Martin-Nagle, Airbus Americas John Meenan, Air Transport Association John Meenan, Air Transport Association Dr. Robert Porteous, AirServices Australia Dr. Robert Porteous, AirServices Australia Robert Shuter, Transport Canada Robert Shuter, Transport Canada Jessica Steinhilber, ACI-NA Jessica Steinhilber, ACI-NA

3. What Are the Environmental Challenges? Local Issues Local IssuesNoise Local Air Quality (Emissions) Water Quality Global Issues Global Issues Climate Change/Global Warming Interdependencies Among Issues – Arriving at the Right Balance Interdependencies Among Issues – Arriving at the Right Balance

4. Forums Local Communities Local Communities State Governments State Governments National Governments National Governments Regional Alliances Regional Alliances International Organizations (ICAO) International Organizations (ICAO)

5. Noise Historical Perspective Historical Perspective Over 90% decrease in population exposed to 65 dB noise (US) since 1975 Decrease in spite of over doubling in enplanements over the same period BUT...

6. Noise This downward trend has leveled off and it is likely that those affected by aircraft noise will increase slightly in the coming years as operations grow to meet demand This downward trend has leveled off and it is likely that those affected by aircraft noise will increase slightly in the coming years as operations grow to meet demand

7. Local Air Quality (Emissions) Local air quality pollutants (NOx, SOx, CO, HC, PM) have declined significantly since 1980 Local air quality pollutants (NOx, SOx, CO, HC, PM) have declined significantly since 1980 NOx has been the most challenging pollutant to constrain NOx has been the most challenging pollutant to constrain With respect to NOx, transportation accounts for more than 55% of emissions, but aviation accounts for only approximately 0.4% With respect to NOx, transportation accounts for more than 55% of emissions, but aviation accounts for only approximately 0.4%

8. Water Quality An emerging issue for the airport community An emerging issue for the airport community Aircraft de-icing the major source of potential water pollution Aircraft de-icing the major source of potential water pollution

9. Climate Change/Global Warming Aviation’s contribution to the total Greenhouse Gas Emissions is less than 3%, BUT... Aviation’s contribution to the total Greenhouse Gas Emissions is less than 3%, BUT... This contribution is expected to increase over the next few decades This contribution is expected to increase over the next few decades As a political matter, climate change is a major force in the debate over the future of aviation. As a political matter, climate change is a major force in the debate over the future of aviation.

10. Climate Change/Global Warming The European rhetoric: The European rhetoric: Flying kills. We all know it, and we all do it. And we won’t stop doing it until the Government reverses its policy and starts closing the runways. London Guardian, February 28, 2006 We should tax aviation so heavily…that within 10 years there should be virtually no domestic flights. Conservative MP Tim Yeo, Jan. 2007 Every time someone dies as a result of the floods in Bangladesh, an airline executive should be dragged out of his office and drowned. George Monibot, Guardian Newspaper, December 2006

11. Climate Change/Global Warming In the United States In the United States Addressing global warming is a major element of the agenda of the current Congress. S. 2191, a bill to address climate change across the broad spectrum of U.S. industry, is quickly moving through the United States senate. If enacted, this legislation will significantly increase the price of fuel to aviation interests.

12. Climate Change/Global Warming On the other hand... On the other hand... When communism didn’t work out, environmentalism became the anti-capitalist vehicle of choice.... Environmental pressure groups have no use for limiting governmental powers or expanding individual liberties. Instead, environmental claims are without fail invoked to advance the statist agenda. Green lunacy has so run amok that respectable political figures...say that modern energy use poses a “greater threat than terrorism”. Horner, The Politically Incorrect Guide to Global Warming and Environmentalism.

13. What Does All This Mean? There are strongly held beliefs on all sides of this issue, but, as a practical matter... There are strongly held beliefs on all sides of this issue, but, as a practical matter... Environmental issues promise to be a major inhibition on aviation growth. The issues must be seriously addressed by the entire aviation community at both the local and international levels.

14. Attacking the Issues Reducing Fuel Burn Reducing Fuel Burn Short Term – Operational Opportunities Mid Term – Infrastructure Improvements Long Term – New Technologies Aircraft Technologies Alternative Fuels Limiting Aviation Operations Limiting Aviation Operations Market Based Options

15. Fuel Taxes Fuel Taxes Emissions Trading Schemes Emissions Trading Schemes Carbon Taxes or Charges Carbon Taxes or Charges Offsets Offsets