Is demand management in aviation a myth or reality?

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Mar 6, 2025

Join Patrick Edmond, Managing Director of Altair Advisory and expert in sustainable aviation fuel, along with moderator Dirk Singer of SimpliFlying in a lively debate on aviation demand management. They explore the tension between airline growth and climate goals, dissect the 'guilt premium' in sustainable fuel adoption, and discuss the frequent flyer problem as a key contributor to emissions. Their insights also touch on the relationship between ticket pricing and travel behavior, emphasizing the urgent need for systemic changes to balance profitability with sustainability in air travel.

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INSIGHT

Growth Over Sustainability

Airline CEOs prioritize growth over sustainability, focusing on expansion and consolidation.
Sustainability efforts are often limited to CSRD reporting and figuring out necessary actions.

ANECDOTE

Demand Management Examples

Airports manage demand through slot availability, like Heathrow's strict allocation.
Tourist destinations use fees, like Venice or Bhutan, as demand management examples.

INSIGHT

Limited Decarbonization Impact

Demand management has limited impact in decarbonization roadmaps, only 2-16% by 2050.
Demand is expected to double by 2050, with most planes using current technology.

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In this special episode, we bring together Patrick Edmond, Managing Director of Altair Advisory, and Shashank Nigam, CEO of SimpliFlying, to discuss whether aviation demand management is a myth or a necessary component of climate action.

Moderated by Dirk Singer, SimpliFlying’s Head of Sustainability, the discussion stems from a heated LinkedIn exchange between Patrick and Shashank, sparked by Shashank’s reflections after speaking at the World Economic Forum in Davos earlier this year. As the debate gained momentum online, many called for a live conversation – so we decided to host the debate on Sustainability in the Air.

The debate covers:

The fundamental tension between airline growth ambitions and climate goals, with Shashank sharing insights from his Davos roundtable where aviation CEOs emphasised unfettered growth instead of sustainable growth.
The concept of the “guilt premium” versus the “good global citizen premium” in sustainable aviation fuel (SAF) adoption to achieve price parity, with Patrick arguing that systemic policy changes are needed rather than relying on individual airline actions.
The relationship between ticket pricing and travel behaviour, and whether raising ticket prices can curb aviation demand.
The frequent flyer problem, with a small percentage of travellers accounting for a disproportionate share of emissions, and why a frequent flyer levy is an effective solution.
Unexpected silver linings, such as how loyalty program changes might inadvertently encourage more sustainable corporate travel practices.

In the end, despite their differing perspectives, Shashank and Patrick found common ground, agreeing that while technological innovation is crucial, broader systemic approaches are needed to address aviation’s growing climate impact.

If you LOVED this episode, you’ll also love the conversation we had with Lee Beck and Thomas Walker of the Clean Air Task Force who discuss the complex challenges and innovative solutions for decarbonising the aviation industry. Check it out here.

Learn more about the innovators who are navigating the industry’s challenges to make sustainable aviation a reality, in our new book ‘Sustainability in the Air’. Click here to learn more.

Feel free to reach out via email to podcast@simpliflying.com. For more content on sustainable aviation, visit our website green.simpliflying.com and join the movement. It’s about time.

Links & More:

Why “flying less” offers the best path to sustainable aviation - T&E

Aviation likely to be the UK’s leading emitter by 2040, forecasts Climate Change Committee - GreenAir News

Aviation demand management’s role in deep decarbonisation pathways - Possible