Kuala Lumpur – Tan Sri Tony Fernandes, CEO of Capital A Bhd, has urged regional governments and aviation regulators to focus on enhancing air traffic management at airports as a more practical solution for reducing fuel consumption, rather than mandating the use of sustainable aviation fuel (SAF). Fernandes made his comments following Singapore’s announcement to require all departing airlines to use at least one percent of SAF by 2026, with an aim to increase this to three to five percent by 2030.
Singapore’s Transport Minister, Chee Hong Tat, announced on February 19 that the increase in SAF usage would depend on global developments and the broader availability and adoption of SAF. While acknowledging the importance of SAF in the journey towards a greener aviation industry, Fernandes pointed out that the current high cost and low production levels of SAF make it an impractical sole solution.
“SAF is not going to change the world any time soon, but there are things that we all can do now,” Fernandes stated. “SAF is just too expensive at the moment. There has to be a bigger supply. One percent 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.”
“SAF is not going to change the world any time soon, but there are things that we all can do now,” said Tony Fernandes. “There has to be a bigger supply.”
Fernandes emphasized that airlines should indeed play a role in reducing their environmental impact, but he stressed the need for more immediate and cost-effective measures. “I would urge the governments, including the Singapore government, to sort out air traffic control. That’ll be a great place to start in terms of conserving fuel,” he said.
Fernandes’ call to action highlights the rational skepticism many business leaders hold towards the potential of implementing SAF uptake at the volumes mandated by authorities.