corporate

Asia Pacific should require airlines to use SAF, region to see full recovery in 2024

KUALA LUMPUR: Asia Pacific countries should implement similar move as Singapore in terms of requiring airlines departing the country to use at least one per cent of sustainable aviation fuel (SAF) from 2026.

Director general of Airports Council International (ACI) for Asia Pacific and Middle East Stefano Baronci said Singapore's announcement in February had shown that the country has taken leadership in setting up a framework for airlines to use SAF and for airports to stimulate the uptake of the alternative jet fuel.

"It's important that other countries follow the level of commitment demonstrated by Singapore (that is) in compliance with what was agreed internationally by the International Civil Aviation Organisation (ICAO) community."

"Singapore is very cautious to say that until we generate enough supply (of SAF) that is economically sustainable at a price that is competitive, we cannot commit farther because we're taking too high risk."

"But it's important that other countries follow suit. There are countries like Japan for example that is already engaged in making sure that the industry commits to it (the usage of SAF)," Baronci told Business Times in an interview recently.

In February, Singapore announced that all airlines departing the country must use at least one per cent of SAF by 2026 in its bid to reduce carbon emissions.

Civil Aviation Authority of Singapore (CAAS) said it would introduce a levy to airlines and travellers for the purchase of the alternative jet fuel.

The levy rate would be based on various factors including distance travelled and class of travel.

Transport Minister Anthony Loke recently announced that airlines flying out of Malaysia could collect carbon fee as early as April this year should they choose to do so.

Baronci said airports have an important role to play in supporting SAF operations for airlines and achieving net carbon emissions themselves.

"Airports need to do what is needed in their capacity. There are airports that have reached a new level in Airport Carbon Accreditation (ACA) such as Christchurch Airport in New Zealand and soon Delhi Airport in New Delhi, India," he added.

Currently, airports that are active in reducing their decarbonisation level are in Australia, New Zealand, Japan and India.

The ACA programme, which was extended to ACI's members in 2011, independently assesses and recognises airports' efforts to manage and reduce their carbon dioxide emissions.

Speaking on the outlook of Asia Pacific airports in 2024, Baronci said the airports would see full recovery in passenger traffic this year while the focus for airport operators would be on building a timely and adequate infrastructure to welcome higher passenger growth in the next few years.

He added that Asia Pacific will be the region that sees the most growth compared to other regions due to strong domestic passenger traffic and increasing international traffic.

"In the longer term, Asia Pacific is the region that will grow the most. This is because they have a very strong domestic traffic and also because in terms of international traffic, the airports are identifying, engineering ways to access to more international passengers," he said.

According to ACI Asia Pacific and Middle East latest Airport Industry Outlook report, the overall traffic in Asia Pacific has rebounded to almost 90 per cent of the pre-pandemic levels.

However, geopolitical tensions in Eastern Europe and in the Middle East remains a concern for the industry while the Red Sea crisis might push more shippers to switch to air cargo from sea shipment.

In the report, ACI said the move to air freight could prompt airlines to raise their air cargo rates although the higher demand for air freight could be an advantage to airports in Asia, Middle East and Europe.

Baronci said the expression of 'pre-Covid recovery in Asia would become obsolete from 2024 onwards.

"While still navigating macroeconomic and geopolitical risks, we remain optimistic about growth prospects in the region, with our estimates suggesting Asia-Pacific to record three per cent growth and the Middle East to consolidate its upward trajectory with a growth of 14 per cent over 2019 levels," he said.

Most Popular
Related Article
Says Stories