Governments Must Implement SAF Production Policies, Says Menon

Association of Asia Pacific Airlines (AAPA) director general Subhas Menon has called for governments to implement the necessary support initiatives for sustainable aviation fuel (SAF) supply to help meet the needs of the aviation industry.

Speaking at Routes Asia 2024, he stressed that policies must be introduced to encourage the production of SAF if the sector is to meet its net zero emissions goal by 2050. He added that jet fuel is probably the most profitable fossil fuel for oil suppliers and SAF “promises to be even more lucrative.”

“We don't understand what the holdup is,” Menon said. “Inasmuch as we want to work with the suppliers, we do not hold the levers to make the equipment and fuel available in the quantities and time the market demands.

“By one estimate, the global investment required to build sufficient sustainable aviation fuel capacity for net zero is just 7.5% of the annual investment expenditure of the largest oil and gas companies in the world.”

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Menon said that a harmonized global framework that enables the cost-effective supply of SAF is crucial for aviation to achieve its net zero emissions goal by 2050.

In November, AAPA’s member airlines agreed on an aspirational target to use a blend of 5% of SAF by 2030. The organization’s members include Air India, All Nippon Airways, Cathay Pacific, Malaysia Airlines and Singapore Airlines.

“Forward bookings indicate that people’s travel appetite is still very much alive and kicking and recovery in Asia is very much apace, even if we haven't reached 2019 levels,” Menon said. “The burning question as we ponder the next 30 years is: Will the industries sustainable aviation fuel needs be met? Will governments and fuel suppliers warm up to the airline industry?

“At the moment, 97% of the resources that go into the making of renewable energy is allocated to other sectors. Only 3% is coming to air transport. We need governments to allocate the necessary resources to air transport and we need fuel suppliers to get off their hands and join the party.”