Beyond Carbon: Multi-Dimensional Sustainability Performance Metrics for India’s Aviation Industry

Zakir Hossen Shaikh, K. S. Shibani Shankar Ray (), Bijaya Laxmi Rout and Durga Madhab Mahapatra
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Zakir Hossen Shaikh: College of Business Administration, Kingdom University, Riffa 3903, Bahrain
K. S. Shibani Shankar Ray: School of Management Studies, Rajiv Gandhi National Aviation University, Fursatganj 229302, India
Bijaya Laxmi Rout: Department of Commerce and Management, Fakir Mohan Autonomous College, Balasore 756001, India
Durga Madhab Mahapatra: Department of Commerce, North Eastern Hill University, Shillong 793022, India

Sustainability, 2025, vol. 17, issue 21, 1-27

Abstract: India’s aviation sector, crucial for connectivity, economic growth, and national integration, faces sustainability measurement challenges focused solely on carbon emissions. This study proposes the Aviation Sustainability Performance Index (ASPI-India), spanning four pillars: Environmental Stewardship, Social Responsibility, Governance Maturity, and Economic Resilience. Measurable indicators are derived from regulatory filings, commercial flight databases, geospatial tracking, and targeted surveys. Data sources include DGCA safety audits, AAI operational statistics, ADS-B flight path data, and passenger satisfaction surveys from 2010 to 2024. Fixed-effects panel models link ASPI-India to operational and financial outcomes like load factor stability, CASK, and credit rating resilience. Quasi-experimental designs exploit policy shocks through difference-in-differences estimation. Factor analysis validates the four-pillar structure, and robustness checks compare entropy, PCA, and equal weighting. Results show that a one-standard-deviation increase in ASPI-India improves load factor stability, ancillary revenue share, and credit terms, especially for carriers with diversified route networks. The framework provides actionable insights for airlines, regulators, and investors to embed sustainability in aviation management.

Keywords: aviation; sustainability measurement; ESG; DGCA; airline performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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