Airbus and the Cathay Group have announced a joint investment of up to US$70 million to accelerate the production of Sustainable Aviation Fuel (SAF) in Asia and globally. The partnership, revealed at a ceremony in Hong Kong during the IATA World Sustainability Symposium, underscores both companies’ commitment to reducing aviation’s carbon footprint. The announcement was made by Cathay’s Chief Operations and Service Delivery Officer, Alex McGowan, and Airbus President for Asia-Pacific, Anand Stanley.
Strategic Collaboration for SAF Development
Under the terms of the agreement, Airbus and Cathay will work together to identify, evaluate, and invest in projects that promote the scaling of SAF production leading up to 2030 and beyond. The projects will be selected based on their commercial viability, technological maturity, and long-term sustainability.
SAF production requires significant collaboration across the entire aviation value chain, from policymakers to investors, SAF producers, and end-users. This partnership highlights the need for a concerted effort to boost production capacity and create a meaningful impact on the industry’s decarbonisation efforts.
Commitment to Decarbonisation Goals
“SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our decarbonisation goals,” said Alex McGowan. He emphasized that the joint investment partnership with Airbus is key to building a more scalable SAF industry, complementing Cathay’s broader strategy. This includes their recent investment in the oneworld BEV SAF Fund and partnerships aimed at increasing SAF usage in the short term.
McGowan added, “It is critical that we invest in the technologies and production capacity necessary for the future.”
A Concrete Example of Cross-Sector Collaboration
Anand Stanley, President of Airbus Asia-Pacific, highlighted the significance of this partnership in catalysing large-scale SAF production. “The production and distribution of affordable SAF at scale requires an unprecedented cross-sector approach,” he said. “Our collaboration with Cathay demonstrates how we can accelerate production in the right locations to serve our customers effectively.”
Advocating for Supportive SAF Policies
In addition to investment in production, the agreement also includes joint efforts to advocate for supportive SAF policies. Airbus and Cathay will work together to shape regulations and incentives that support SAF supply and demand across Asia. Given the region’s potential in feedstock supply, production capacity, and the growing aviation market, both companies aim to leverage their expertise to make SAF more accessible and affordable.
A Long-Standing Partnership
The Cathay Group and Airbus have had a strong partnership since 1989 when Cathay first ordered Airbus aircraft. Today, Cathay operates 86 Airbus aircraft, with over 70 additional units on order for future delivery. This long-standing relationship continues to strengthen their collaborative efforts towards a more sustainable aviation industry.
The Airbus-Cathay investment marks a significant step forward in addressing the aviation industry’s sustainability challenges. By combining their resources, expertise, and commitment, the two companies are well-positioned to lead the charge in scaling SAF production, which will play a critical role in the sector’s decarbonisation efforts moving toward 2030.
