Virgin Atlantic has moved a step closer to running the first transatlantic flight powered by 100 per cent sustainable aviation fuel this month.
The Civil Aviation Authority granted the airline permission for the flight, which is due to take place from London Heathrow to New York JFK on November 28.
The permit was awarded following a number of technical reviews by the UK regulator, including the successful ground testing of the Rolls-Royce Trent 1,000 engine that powers Virgin's 787 aircraft using 100 per cent Saf.
Virgin must now seek permission from regulators in the US, Ireland and Canada for the flight.
Saf is produced from sources such as green hydrogen, agricultural waste and used cooking oil.
It can cut carbon emissions by up to 70 per cent compared with traditional jet fuel but is much more expensive to produce.
Saf accounted for only 0.5 per cent of aviation fuel in 2021 but many airlines have a target of using it for 10 per cent of flights by 2030 and the industry's goal of "net-zero" emissions by 2050 relies on Saf accounting for 65 per cent of fuel.
Virgin said it hoped the transatlantic flight would highlight the need to make Saf more readily available.
Saf is currently only made in small volumes and costs between three to five times as much to produce as regular jet fuel.
"We're committed to using 10 per cent Saf by 2030 but to get there we need the government to support the creation of a UK SAF industry," said Virgin Atlantic chief executive Shai Weiss.
Saf can currently be used in jet engines to a maximum blend of 50 per cent with kerosene, without the need for modifications.
CAA chief executive Rob Bishton said: "As the UK's aviation regulator, it's important that we safely enable the industry to embrace more sustainable practices and push the boundaries of what's possible to create a greener aviation industry.
"This permit not only allows Virgin Atlantic and others to showcase their commitment to sustainability but also serves as an example of how the industry is always exploring new technologies.
"Innovation and sustainability are vital areas of work but they must go hand-in-hand with safety.
"This is a reminder that together we can drive change, reduce emissions and make the skies greener for generations to come."
The first Emirates flight to run on Saf took off from Dubai International Airport on October 24 bound for Sydney. It was powered by 40 per cent Saf and 60 per cent conventional jet fuel.
Emirates says the chemical characteristics of this ratio are identical to conventional jet fuel and can be integrated seamlessly with no modifications required.
Last week the World Travel and Tourism Council's (WTTC) chief on Thursday urged governments to provide incentives for companies to produce saf on a wider scale to reduce the sector's carbon footprint.
Transport makes up 40 per cent of the travel and tourism sector's greenhouse gas emissions, out of which 36 per cent comes from international aviation and two thirds from domestic flights and ground transport, according to the WTTC.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
