AirAsia partners with Airbus to push aviation sustainability

CEBU, Philippines — Budget airline AirAsia announced its partnership with European aircraft maker Airbus to advance research into aviation sustainability initiatives that lower carbon emissions in the ASEAN region.

In a Memorandum of Understanding (MOU) between their sustainability divisions, AirAsia and Airbus established a collaboration to explore the decentralized production of Sustainable Aviation Fuel (SAF) using alternative feedstock and technologies in Southeast Asia.

The long-term research-based partnership aims to identify opportunities to support the onward commercial development of promising projects to expand SAF supply in the region.

The MoU also set forth conditions to jointly investigate advanced measures to improve air traffic management (ATM) to reduce CO2 emissions, leveraging AirAsia’s industry-leading fuel efficiency program and Airbus’ pioneering role as a global leader in aeronautics, space, and related services. The organizations will be identifying applicable solutions developed as part of the Single European Sky ATM Research (SESAR) Project and assessing their suitability for adaptation to ASEAN skies.

SESAR is the technological pillar of the EU’s (European Union) Single European Skies initiative aimed at modernizing Europe’s air and ground ATM infrastructure and procedures to enhance safety, cost-efficiency, and environmental performance

“AirAsia will be a key partner of Airbus in ASEAN to test the feasibility of SAF output developed using alternative feedstock and technologies, as well as ground-breaking ATM initiatives supported by Airbus’ innovation teams. As a regional carrier based in five ASEAN countries, we bring unparalleled operational experience in the region to complement Airbus’ technological expertise. The partnership establishes a foundation upon which to build joint projects at multiple levels that address the broad needs of improving the environmental performance of the sector,” said Capital A chief sustainability officer, Yap Mun Ching.

Yap said the partnership directly addresses the prerogative for the aviation sector to invest in and scale up in-sector solutions that are critical to decarbonizing the industry.

Other than improvements in efficiency and adoption of SAF, she said a key pathway for AirAsia to achieve net zero by 2050 is by upgrading the airline’s fleet to the most fuel-efficient models.

In June, AirAsia took delivery of its first brand new A321neo aircraft since the Covid-19 pandemic. The airline will receive five more aircraft in the fourth quarter of the year for entry into service in Malaysia and Thailand. All Airbus aircraft deliveries to AirAsia starting 2024 will be fulfilled using a fuel blend inclusive of five percent SAF.

According to Airbus chief sustainability officer, Julie Kitcher, Airbus is contributing to the decarbonization of aviation around the world. “That means working with our customers in every region, looking at all solutions available today, and collaborating on research for future technologies.”

“AirAsia is a key partner in the ASEAN region and we are excited to work with the airline to explore operational efficiency levers, including air traffic management and scaling up the production and distribution of SAF,” Kitcher added.

AirAsia currently holds an order for 361 units of the A321 model to meet the airline group’s fleet growth and replacement needs.

By 2035, aircraft upgrades are expected to account for up to 10 percent reduction in AirAsia’s CO2 emissions compared to its 2019 baseline. Operational efficiencies and SAF are expected to deliver another 15 percent in reduction as the airline group charts its pathway towards net zero by 2050.

In 2023, AirAsia avoided emitting 130,000 tons of CO2 from its narrowbody regional network through the implementation of over 20 operational efficiency measures, equivalent to the impact of more than 2 million trees planted. These measures contributed to a reduction in fuel costs amounting to US$40 million and over US$388,000 in shadow carbon costs.