Coopetition: A Paradoxical Relationship That Can Work in Tackling Sustainability in the Air Transport Industry

Strategic Insights -

The air transport industry, despite contributing a small proportion to global greenhouse gas emissions (approximately 3.5%), is under pressure to minimize its environmental footprint as the expected growth in traffic compels it to adopt more sustainable practices. The European Commission's goal of achieving carbon neutrality by 2050 is a significant challenge for the industry, which needs to change its practices. One of the ways to achieve this goal is through innovation, particularly in the development of greener aircraft. However, making a greener aircraft is no small feat, and it requires collaboration among companies that possess the necessary resources and expertise. A concept that has been gaining attention is coopetition, or cooperating with competitors to achieve a common goal.

Key Takeaways:

  • Coopetition, or cooperating with competitors, can bring greater benefits than pure cooperation or competition in the context of sustainability in the air transport industry.
  • Competitors hold complementary and compatible resources that facilitate knowledge sharing and cooperation, making coopetition a valuable approach in tackling sustainability.
  • Coopetition introduces greater risks, especially when multiple competitors are involved, as firms may be tempted to behave opportunistically and pursue their self-interest.
  • Successful collaboration with rivals requires specific management approaches, including balancing benefits and risks, shared governance, and the use of contractual and relational governance mechanisms.
  • Large-scale projects with several competitors can help fight climate change by promoting innovation and knowledge sharing.
  • The aircraft industry is not the only sector that can benefit from coopetition; it has applications in other industries, particularly in tackling significant challenges like climate change.
  • The European Commission's goal of achieving carbon neutrality by 2050 requires the air transport industry to adopt more sustainable practices, making innovation and collaboration among companies crucial.

Statistics:

  • The air transport industry contributes approximately 3.5% to global greenhouse gas emissions.
  • The expected growth in air transport traffic compels the industry to minimize its environmental footprint.
  • CleanAviation, an initiative consisting of 11 competitors, has developed over 100 key technologies and 30 prototypes aimed at reducing environmental impacts.
  • The Open Rotor programme, created by Safran in partnership with Airbus and other companies, has developed a new aircraft engine that reduces fuel consumption and CO2 emissions by 20%.
  • The European Commission aims to achieve carbon neutrality in 2050.

Sources:

  • Bengtsson, M., & Kock, S. (2000). Cooperation and Competition in Business Networks—Implications for Competence Building. Scandinavian Journal of Management, 16(2), 179-198.
  • Rouyre, A., & Bruyaka, O. (2023). Is air travel about to get greener? Our study shows how 'coopetition' is helping aircraft companies tackle sustainability. The Conversation.
  • European Commission. (2020). A European Green Deal.
  • CleanAviation. (n.d.). About Us.
  • EURAM. (n.d.). About EURAM.