Scandinavian Airlines: The Green Engine Decision Harvard Case Solution & Analysis

Scandinavian Airlines (SAS) is the innovator of strategic environmental management in the aviation industry. Being a pioneer can have both advantages and disadvantages. This case is airline's decision whether they should invest in the best available environmental technologies for the fleet of new aircraft, which will serve them for the next 25 years. While the technology for these low-emission engines have been around since 1970, it has never been commercialized. SAS felt pressure from regulators on the potential of new fees and taxes that may affect the future operating costs of the fleet. Despite these expected future costs at the time of the decision, the director of aircraft and engine to analyze SAS can not make the business case for more expensive cars. The challenge was for the team of the fleet to try to convince the team management to spend additional SAS kr5 million (SEK) per aircraft for dual engine combustion chamber. Given that corporations are facing increasing pressure with regard to greenhouse gas emissions and climate change, this example provides an opportunity for discussion and analysis of various environmental concepts, including strategic environmental management, adoption of best available environmental technologies, the role of domestic environmental leadership and influence of large corporations market mechanisms to improve the environmental performance of the sector. The case illustrates the complexity of environmental decisions in balancing between meeting ambitious commitments and deal with the real possibilities of the company and the external pressure. "Hide
by Jennifer Lines Source: Richard Ivey School of Business Foundation 11 pages. Publication Date: June 11, 2009. Prod. #: 909M28-PDF-ENG

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