{ "docId": "019dd923-622b-71dc-a6dc-8129984d7be6", "docSlug": "c4ed24b02383", "documentTitle": "Airbus SE (AIR)", "authorId": "20_TCI_Fund", "authorName": "Sir Christopher Hohn", "documentKindSlug": "shareholder-letter", "documentKindLabel": "Shareholder letter", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2019-11-30 00:00:00", "orientation": "portrait", "aspectRatio": 0.7078385, "pageNumber": 5, "pageCount": 6, "prevPage": 4, "nextPage": 6, "slideType": "closing_ask", "function": "state_demand", "density": "overcrowded", "nDataPoints": 4, "notes": "This is a formal shareholder letter signed by Chris Hohn, Philip Green, and Ben Walker.", "elementsJson": [ "headline_text", "paragraph", "bullet_list" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dc-8129984d7be6/5", "deckHref": "/decks/019dd923-622b-71dc-a6dc-8129984d7be6", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-8129984d7be6.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-8129984d7be6#slide-5", "components": [ { "bbox": null, "kind": "callout", "text": "Airbus has an essential role to play in the long-term solution to de-carbonise aviation and must adopt a strong leadership position in advocating for the mandatory phase-in of low carbon synthetic fuels, even if this increases the cost of air transport.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b64-7193-87fd-47cfffab233b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.8, "x": 0.1, "y": 0.35 }, "kind": "list", "text": "A carbon tax on aviation fuel which grows progressively and predictably; A “green fuel” mandate that specifies a gradually increasing percentage (to 100% by 2050) of aviation fuel that must be sourced from zero carbon sustainable sources; Strict standards and regulatory safeguards to ensure low carbon fuels are truly sustainable; Specific aviation sector incentives to ensure greater use of low carbon fuels, in preference to other sectors of the economy where de-carbonisation can be achieved by other means (e.g. autos moving directly to electric vehicles).", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "191df2e5-3305-4b5b-a278-4a70ace85327", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.8, "x": 0.1, "y": 0.73 }, "kind": "paragraph", "text": "Airbus has an essential role to play in the long-term solution to de-carbonise aviation and must adopt a strong leadership position in advocating for the mandatory phase-in of low carbon synthetic fuels, even if this increases the cost of air transport. Any R&D necessary for Airbus to be able to use these fuels efficiently should be undertaken.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "162214d7-792f-420d-a355-ebfdc5eaeef8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.1, "y": 0.81 }, "kind": "paragraph", "text": "We appreciate the time and effort Airbus is making to de-carbonise its business, although there is much more work to be done. We found the discussion with your team very helpful and we look forward to continuing the dialogue.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "27b371cf-2e54-4af5-b576-a35a300b19ce", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.8, "x": 0.1, "y": 0.17 }, "kind": "paragraph", "text": "De-carbonising aviation is a massive challenge given the current “cost penalty” of low carbon fuels. Based on T&E and the Energy Transitions Commission - ETC (www.energy-transitions.org) estimates, a carbon tax of between $115-230 per tonne of CO2 would be needed to bridge the cost gap. ETC also estimates that this would translate into adding between $40-$80 in fuel costs per economy passenger on a long-haul flight (say 10% of end ticket prices), which is unlikely to affect demand given the low price-elasticity of air travel.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2b7dc5b2-6bbf-4bac-9362-e888fa7878df", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.8, "x": 0.1, "y": 0.56 }, "kind": "paragraph", "text": "Currently, the penalties, taxes and mandates are insufficient to encourage airlines and fuel companies to seriously invest in the production of, and purchase of, alternative fuels. However, it is only a matter of time before tougher regulation is imposed to force the use of alternative fuels.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "50a5379d-d5b9-44c9-af50-8158fafd7f8e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.1, "y": 0.64 }, "kind": "paragraph", "text": "It will require all aviation stakeholders to work together and coordinate such initiatives. We recognise that this may create conflicts of interest, however, the alternative is for regulation to be imposed on the industry, including potential bans on old aircraft in certain regions. Currently, nine EU countries are lobbying the European Commission to introduce a carbon tax on air travel.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dc423b66-c719-442f-900f-484e66db9f27", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.1, "y": 0.13 }, "kind": "title", "text": "Necessary regulatory and/or taxation changes for the deployment of alternative aviation fuels", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "49af2c30-8454-46f1-a3de-e7ef48b28b79", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Storytelling: the closing ask", "slug": "closing-ask", "agent": "storyteller", "layer": "slide", "matchId": "c940df9f-fb19-45b5-ab07-6af93af9093a", "evidence": "This slide outlines necessary regulatory changes and encourages Airbus to adopt a strong leadership position, making it a closing ask.", "confidence": 0.8 } ], "frameworks": [], "arcBeats": [ { "to": 5, "from": 4, "beatId": "c4afec9c-11f2-42d8-a588-35207f75df5e", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution (Provide relief)", "beatSlug": "problem-agitate-solution-solution-provide-relief", "evidence": "Slides 4-5 outline Airbus's de-carbonisation plans and necessary regulatory changes", "position": 2, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 6, "from": 5, "name": "Why Now", "slug": "15-why-now", "bestFor": "Sales pitches, fundraising, requesting immediate budget approval", "matchId": "1e5a82d1-dffc-48bd-8c55-70c402eb6fb6", "evidence": "Slides 5-6 discuss necessary changes and methodology", "position": 1, "objective": "Emphasize the urgency of regulatory and taxation changes", "structure": "The Context (Trends) -> The Trigger Event -> The Window of Opportunity", "confidence": 0.6, "description": "Create temporal urgency by proving that the window of opportunity is opening or closing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }