I. INTRODUCTION Carbon footprint reduction and energy source substitution are very critical for a proactive approach to sustainable economic development. Despite its relatively small contribution to worldwide greenhouse gas emissions, the aviation sector acknowledges its responsibility to limit and reduce emissions in the entire well to wake emission value chain if it may be referred to as that. Looking at a future with lesser economic dependence on energy import at volatile prices, it makes sense to firstly reduce dependence on imports and secondly substitute current sources with bio derived energy sources as drop-in. The drop in option is particularly important given the projected growth of the military aviation industry in the coming decades and its limited currently viable options as compared with other transport sectors, to divert from the use of fossil fuels. A variety of emissionreduction approaches, including the deployment of alternative fuels, are being seriously considered and rigorously being researched in industry and academia. However there are key requirements in terms of synergetic partnership alliances between airport, airline and aircraft manufacturer that is brought out in this paper. Also the legislative angle to a carbon strategy implementation with trading permits in regional markets and its potential impact on the Competitiveness of the industry is investigated. The summary of this paper identifies common threads and messages emerging from the wide range of research and development in bio-fuels integration within the aviation ATF supply chain and shape them into framework for multidimensional stakeholder SWOT analysis for a carbon strategic partnership is presented. 2012-01-1509 Published 02/29/2012 Copyright © 2012 SAE International doi:10.4271/2012-01-1509 saeaero.saejournals.org Carbon Remediation for the Airline Industry via ATF Drop-in Substitution: Strategic and Operational Perspective Venugopal Varadarajan Naftva Integrals Maitrayee Pathak Bangalore University -Dept. of Law Ashish Gupta BMS College of Engineering ABSTRACT The need to address environmental challenges by aviation industry is apparently obvious. As evidenced within the industry, it takes a three pronged strategy - more efficient aircraft, improving operational efficiencies and development of sustainable biofuels. In terms of actual growth of airline business, the two major drivers are domestic air service expansion within BRIC economies and rapid spread of Low Cost Carrier (LLC) models. Focusing not only on environmental challenges, even sustainable business development and growth of LCC depends critically on ATF substitution by alternative fuels. The inherent need for carbon subsidy and airline-airport partnership towards sustainable substitution with bio-alternatives is discussed in first part of the paper. A framework for such an airline airport win-win partnership is delineated. In the second half of the paper, focus shifts to complexity of operationalisation of blended ATF strategy for airlines as well as manufacturer from a sophisticated operational safety and liability perspective. The need for aircraft manufacturer and airline cum airport partnerships for globally acceptable and operational safety for partial drop-in substitution on the lines of biofuel certification standardisation and usability is examined. The authors highlight that carbon neutral strategy by aviation industry is not just critical in terms of environmental dimension but as would be evidenced in the coming decades critical in terms of capitalistic interests as well. CITATION: Varadarajan, V., Pathak, M. and Gupta, A., "Carbon Remediation for the Airline Industry via ATF Drop-in Substitution: Strategic and Operational Perspective," SAE Int. J. Aerosp. 5(1):2012, doi:10.4271/2012-01-1509. ____________________________________ 1Downloaded from SAE International by Univ of California, Sunday, August 05, 2018II. NEED FOR SWITCH OVER: ENVIRONMENTAL IMPLICATIONS F