The heads of two of the UK's largest airlines have said the UK government needs to do more to take the risk out of the increasing use of sustainable aviation fuel (SAF) as part of the efforts towards decarbonising the aviation sector.
Sean Doyle, the chief executive of British Airways and Shai Weiss, the chief executive of Virgin Atlantic told the World Sustainable Skies Summit that price and revenue stability are essential in the quest for 'Jet Zero' by 2050.
“If you're an investor and you're putting a long-term business case together and you're putting a lot of capital in, you need to make sure there is some certainty around the top line,” Mr Doyle said.
“What investors will be concerned about is the volatility of prices.”
The government recently introduced a mandate for the use of SAFs, which means that from the beginning of 2025, SAF will make up an increasing percentage of aviation fuel, as it slowly takes over from the traditional kerosene-based fuel.
Beginning next January, SAF will have to make up at least 2 per cent of total UK jet fuel demand, increasing to 10 per cent in 2030 and then to 22 per cent in 2040. From 2040, the obligation will remain at 22 per cent until there is greater certainty regarding the supply of SAF.
The problem is, for the immediate future SAF is six times more expensive than traditional jet fuels, so the airline industry wants the government to take some of the price and revenue risk.
For its part, the government has said the mandated plan does include a review mechanism to help manage prices and minimise the effect on ticket fares for passengers, but that “any mechanism will be industry-funded”.
The government also has the power to change vital limits within the mandate to block higher price rises in the case of SAF shortages.
However, the airlines feel a government-funded mechanism similar to what has operated in the renewable energy sector would be fairer.
“It just gives the people who are taking the risk and putting the capital in a bit more confidence that if the revenue line is volatile, then they would be able to navigate through that,” Mr Doyle said.
He added that because travel demand should remain robust and banks are lined up to invest in SAF, it wouldn't represent a “massive government subsidy, but rather the government standing behind this industry”.
'Slightly disingenuous'
Mr Weiss agreed and added that the “government is slightly disingenuous on this point”.
“They tax aviation, they tax consumers on aviation. Our money goes into the coffers of the Treasury but is never used to support one of the most important industries this country has.
“Aviation in this country supports £46 billion and 180,000 jobs.
“At the end of the day, the people who are going to pay the price [for the use of SAF] are consumers in this country.”
Julie Kitcher, the chief sustainability officer at Airbus said when it comes to funding the transition to greener fuels, every player in the industry and government needs to play their part.
“Airbus invests more than two billion euros per annum into research and development into technology to improve the performance of our aircraft and for those sustainability objectives,” she said.
“Of course, the airlines are heavily taxed and involved. The passengers ultimately will need to be to a certain extent too, but we need governments on board to take their role.
“That comes through carrots, like the mandate, and sticks. We need both. Every country, every region needs a combination of carrots and sticks.”
She added that what was required was more economic effort to enable the production of SAF to be scaled up because the science and technology were already in place.
“We've got the production pathways, we've got the capabilities, we've got the equipment.
“What we need is to break the economic conundrum that we're all facing to really stimulate SAF at scale.”
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Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
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Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
