Evolving base for the fuel consumption optimization in Indian air transport: application of structural equation modeling

The article aims to evolve the base for fuel consumption optimization (FCO) in Indian air transport industry. The objective of this paper is to design the methodology and to develop five facet model of fuel consumption optimization (FCO). Limited researches have been conducted to explore influencing factors for FCO in air transport industry. To fill this gap, this study proposes the model of FCO, and investigates key factors affecting FCO. Methodology The research steps included exploratory factor analysis, confirmatory factor analysis, and testing of structural model. In the first stage exploratory factor analysis (EFA) was used to provide the grouping of variables underline the complete set of item based upon the strong correlation. In the second stage, a confirmatory factor analysis (CFA) was used to specify and estimate of one or more hypothetical models of factor structure, each of which propose a set of latent variables to account for covariance within a set of observed variables. In the third stage, we used the Structural Equation Modeling (SEM) technique and empirically tested the relationships between fuel consumption optimization and aircraft operations (AO), aircraft technology & design (ATD), social-economic & political (SEP), aviation infrastructural (AI), and alternate fuels & fuel properties (AFP). Results The results and applications of structural equation modeling (SEM) evolve variety of findings. (1) Aircraft operations (AO), aircraft technology & design (ATD), socio-economic & political issues (SEP), aviation infrastructure (AI), and alternative fuels & fuel properties (AFP) are proved to be the five key influence factors with respect to the Indian context and have positive effect on FCO. (2) Among the five influence factors for FCO, aircraft technology & design exhibits the strongest effect on FCO, followed by aircraft operation, alternative fuels & fuel properties, socio-economic & political, and aviation infrastructure. (3) The highest squared correlation was observed between aircraft technology & design and aircraft operations.