KUALA LUMPUR: Capital A Bhd chief executive officer (CEO) Tan Sri Tony Fernandes has called on governments and aviation regulators in the region to improve air traffic management at airports so that airlines can burn less fuel instead of mandating them to use green fuel or sustainable aviation fuel (SAF) that are currently low in production.
He was commenting on Singapore's recent decision to require all airlines departing the country to use at least one per cent of SAF from 2026 with an aim of increasing it to three to five per cent by 2030.
The increase in SAF usage is subject to global developments and the wider availability and adoption of SAF, said Singapore's Transport Minister Chee Hong Tat on Feb 19.
Fernandes said airlines have a responsibility in reducing its environmental footprint and SAF is one of the solutions towards a greener aviation industry but he believed that it is not the only solution. "SAF is not going to change the world any time soon but there are things that we all can do now.…SAF is just too expensive at the moment. There has to be a bigger supply…One per cent (of SAF) is not going to change a lot of things and passengers would have to fund this. Every passenger coming in has to pay a surcharge for SAF."I would urge (the) governments inclusive of the Singapore government to sort out air traffic control. That'll be a great place to start in terms of conserving fuel," he said.
The longer an aircraft takes to take-off, or land, the more fuel it burns.
SAF is said to cost about five times more than conventional jet fuel.
According to the International Air Transport Assosiation (IATA), over 600 million litres of SAF was produced in 2023, accounting for three per cent of all renewable fuels produced.
The target in 2024 is to increase the production to six per cent of all renewablle fuels from last year.
As at Feb 23, the price of jet A1 fuel in Malaysia is about US$86.40 (RM412.71) per barrel.
Fernandes said the aviation industry would burn a lot less fuel if it has a more efficient air traffic management.
"When you think of how much time you spend waiting to take-off and how much fuel that requires… I have studied many airports and some airports like Gatwick (Airport) are incredibly efficient at taking-off and landing.""While we have to do everything, I do implore governments to start looking at air traffic control and getting the right height (for commercial airlines to fly at) so that we burn less fuel," Fernandes added.
He also called on aviation regulators including the International Civil Aviation Organisation (ICAO) to implement more of its Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) offset projects in Southeast Asia.
Fernandes added that aircraft manufacturers have produced airplanes that uses new technologies and modern designs that burn lesser fuel and currently Airbus SE, the European plane maker, is leading the way.
Airbus CEO of commercial aircraft business Christian Scherer agreed with Fernandes on the air traffic management saying that if it is managed efficiently, airlines could save up to 10 per cent of fuel and 10 per cent of carbon dioxide emissions.
He said one of the ways for airlines to reduce emissions is to renew their fleet with new generation airplanes. "70 per cent of the world's fleet is still old generation airplanes.
The lowest hanging fruit when it comes to emission is to replace older airplanes with new fuel-efficient airplanes and that's going to save us (airlines) 25 per cent of fuel right there," Scherer added.
In Malaysia, airlines including AirAsia have suggested the introduction of a carbon tax to offset their carbon emissions. "Malaysia has given the approval where we would add a carbon tax for when you fly but we want to make sure that all region does it as well. We think our biggest role would be to educate the public on how much carbon they burn (when they fly)," Fernandes said.
On Feb 23, Transport Minister Anthony Loke said airlines will be allowed to impose additional fee to cover their carbon emissions although the fee is not mandatory for all airlines.
The minister said some airlines would adopt a fee to purchase SAF while other carriers would pay a carbon credit to offset their carbon emission.
Loke did not specify when exactly the carbon fee would be collected by Malaysian-based airlines.
In Singapore, the Civil Aviation Authority of Singapore (CAAS) plans to introduce a SAF levy for airlines and travellers, for the purchase of the alternative fuel.
The levy would be based on various factors including distance travelled and class of travel.Interestingly, last month Emirates Airline president Tim Clark told Australia's Sky TV that governments have gone "too far" to mandate the usage of SAF by certain date and that it would create issues.
He said governments could possibly fine airlines for failing to utilise the mandated percentage of SAF as well as fine airports for not providing SAF facilities and energy producers for not producing the alternative fuel.
"We need to face the reality of what we can do…This stick approach in my view is not the way to get us across the line with SAF.
Today, the airline community would be using SAF if they could. We're equally concerned about the environment," Clark said in the TV interview.