Economic Analysis of Electric Aviation

Sammanfattning: Battery-electric aircrafts have a great potential to reduce greenhouse-gas emissions from air-travels. To make them part of reality, economic sustainability is needed jointly with technological feasibility. In this thesis, an economic cost-based model for electric airplanes is developed and analyzed together with elaborations on economic policies affecting aviation in Sweden. Cost of the battery, airplane, fuel, staff, airport fees and tax are included. The model effectively displays the costs' structure, demonstrating a large battery cost that declines as battery technology improves. Important parameters in the model affecting the cost to a great extent are travelled distance and gravimetric energy density of the battery while amount of seats in a plane has limited impact. Generally, model results demonstrate that electric aviation is economically realistic. In a 2025 scenario, the per-passenger cost is estimated to 1600 SEK for a 350 km travel. In a 2030 scenario, the per-passenger cost is estimated to 1200 SEK for a 400 km travel and 600 SEK for a 300 km travel. Before 2030, travels beyond 400 km are implausible or even impossible, i.e. limited by economics or by technology. With current battery-development rate, travels around 600 km and longer will almost certainly not be available in several decades. Economic policies can work as an effective instrument to reduce the cost of electric aviation if they are used extensively.