Circular Business Models in the Aerospace Sector

Abstract

This thesis looks at the role that Circular Business Models (CBM) play in the development of a Circular Economy (CE) strategy in the aerospace sector. Currently, a transition from a traditional, linear economy to a CE is promoted by the EU and national governments. This thesis contributes to solving the many managerial issues or barriers when making that transition. Using literature review and semi-structured interviews, this case study on Airbus Netherlands discovered that the term CE is badly defined. This causes confusion and misunderstandings when discussing the concept of a CE. Therefore, properly defining a CE should be the foundation of developing a CE strategy. When analyzing the current CBM frameworks, the most well-known are the ReSOLVE and loops framework. The results further indicate that important barriers regarding the implementation of CBMs are technological and monetary challenges. On the other hand, implementing CBMs can have a positive effect on the reputation of the company and increase the chance of sustaining a supply chain. The best CBM strategies involve both a short- and long-term plan that focuses on where the aerospace sector, and Airbus Netherlands specifically can make the most changes like changing designs, swapping materials for less environmentally damaging ones and increase the recyclability of components. The interviews confirm issues found in the literature regarding the definitions and the barriers to implementing CBMs. In conclusion, it is evident that only by the combination of factors like regulations, proper definitions, internal motivation, financial feasibilities and technological developments, CBMs will be able to play a successful role in the developing of a CE strategy for the aerospace sector.