Implementing SAF mandates ‘does not create a functioning market’

European airline CEOs have stated that the EU’s decision to implement sustainable aviation fuel (SAF) mandates, as outlined in the Sustainable Transport Investment Plan (STIP), will not necessarily create a functioning SAF market.

According to Airlines for Europe (A4E), which represents chief executives operating in the European aviation sector, airlines currently face high surcharges and limited price transparency, building large-scale SAF adoption impractical.

‘Derisk investment’

‘The Sustainable Transport Investment Plan (STIP) must derisk investment in SAF production and bring down the cost of SAF,’ the group stated in a statement.

‘Europe requireds a market intermediary for SAF, more multi-year SAF allowances, a simple book-and-claim system, EU ETS revenues reinvested, and a Carbon Border Adjustment Mechanism (CBAM)-like mechanism, to reduce carbon leakage, fairly distributing SAF costs between EU and non-EU airlines – real tools to quick-track aviation’s decarbonisation.’

A4E added that the Fit for 55 package and SAF mandates in their current form ‘disproportionately increase’ the cost of flying through EU hubs and to EU destinations, as well as driving traffic, jobs, and, notably, emissions, to other global markets.

The group added that while European airlines are ‘committed’ to decarbonisation, this should not come at the cost of competitiveness, or accessible air travel.

‘Sober up’

Elsewhere, airline CEOs stated that both the EU and national governments required to ‘sober up’ to the current geopolitical reality, given the importance of the sector to Europe’s economy – contributing over 4% of GDP and supporting more than 12 million jobs.

As they noted, industrial action in one member state – such as the recent air traffic controller strikes in France – can impact flights right across the bloc.

To prevent future disruptions, A4E called on EU leaders to ‘rewrite the script – require mandatory arbitration before a strike is even called, set a 21-day advance notice for any industrial action, protect overflights while ensuring local departures and arrivals are not impacted, and guarantee a right of redress for airlines.’

The CEOs also criticised what they called ‘unrealistic’ rules on delay compensation and cabin baggage, that ‘fail to serve passenger priorities or operational realities’. Read more here.