The global aircraft market is expected to grow significantly, driven by demand for fuel-efficient aircraft and greater sustainability.

The Asia-Pacific region is expected to be the largest market for single-aisle aircraft due to growing demand for fuel-efficient planes.

Airbus and Boeing compete in the market for fuel-efficient aircraft, investing in next-generation development and facing pressure to meet delivery deadlines.

The demand for fuel-efficient aircraft is driven by the need to reduce greenhouse gas emissions, with sustainable fuels and hybrid-electric aircraft offering solutions.

The aviation industry aims to reach net zero carbon emissions by 2050 through sustainable fuels and alternative propulsion.

The global single-aisle aircraft market is expected to reach $222.20 billion by 2030, growing at a 12.5% CAGR, led by narrow-body aircraft.

North America, Europe, and Asia-Pacific are key regions, while the Middle East and Africa show growth promise.

Turkish Airlines is modernizing its fleet with 220 new Airbus aircraft, including A321s and A350s.

Comac has 1000 firm orders for the C919 aircraft and plans to produce 150 C919s annually within five years to increase capacity and meet demand.

Boeing and Airbus are developing new technologies to improve aircraft efficiency and reduce emissions.

The industry faces significant challenges, including supply chain disruptions and production delays, such as CFM International's six to eight week delays, with Boeing CEO expecting these issues to last until 2024.

New aircraft offer a 10-15% improvement in fuel consumption, making them more attractive to airlines.

Sustainable aviation fuel can cut carbon emissions by up to 70%, but is hindered by high costs, although government incentives can make it comparable to traditional fuels.

Airbus estimates the global cargo fleet will need 1,040 freighters by 2041, and NASA and Boeing, along with partners, are investing $1.15 billion in sustainable aircraft development.

The global aircraft market is expected to grow significantly, driven by demand for fuel-efficient aircraft and greater sustainability.

The Asia-Pacific region is expected to be the largest market for single-aisle aircraft due to growing demand for fuel-efficient planes.

Title:

Content: Friday, 08 September 2023 05:25 GMT

Global Single-Aisle Aircraft Market Is Projected To Reach The Value Of $222.20 Billion By 2030 X Herald

(MENAFN- Ameliorate Digital Consultancy) According to the latest report by Virtue Market Research, in 2022, the Global Single-Aisle Aircraft Market was valued at USD 86.6 billion and is projected to reach a market size of USD 222.20 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 12.5%.

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A prominent long-term driver for the Single-Aisle Aircraft market is the growing global demand for air travel. Even though the COVID-19 pandemic had a severe impact on the aviation industry, the long-term trend remains robust. The demand for single-aisle aircraft is fueled by several factors, including the expansion of low-cost carriers, increasing urbanization, and rising middle-class populations in emerging economies.

The COVID-19 pandemic had an unprecedented impact on the aviation sector, leading to grounded fleets, reduced passenger demand, and financial strain on airlines. This setback prompted airlines to rethink their fleet strategies, with some deferring aircraft orders and retiring older aircraft to cut costs. Additionally, the pandemic accelerated the adoption of safety and hygiene measures in aircraft cabins, leading to increased investments in cabin air filtration and touchless technologies.

A notable short-term driver for the Single-Aisle Aircraft market is the rebound in domestic and regional air travel. As countries reopen their borders and vaccination efforts progress, there is a growing preference for shorter flights, leading to increased demand for single-aisle aircraft. Airlines are reactivating grounded aircraft and placing orders for new, fuel-efficient models to meet this surge in regional travel.

An exciting opportunity in the Single-Aisle Aircraft market is the development of next-generation, fuel-efficient aircraft. With a growing emphasis on sustainability and reducing carbon emissions, aircraft manufacturers are investing in research and development to create more eco-friendly models. This includes the use of advanced materials, aerodynamic improvements, and more efficient engines. Airlines that invest in these next-gen aircraft can not only reduce their environmental footprint but also benefit from lower operating costs in the long run.

One of the prominent trends observed in the Single-Aisle Aircraft industry is the rise of digitalization and connectivity. In-flight Wi-Fi, entertainment systems, and integrated passenger services are becoming standard features in modern single-aisle aircraft. Airlines are leveraging these trends to enhance the passenger experience and gain a competitive edge. Additionally, digitalization plays a crucial role in aircraft maintenance and operations, helping airlines optimize their fleet performance and reduce downtime.

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Segmentation Analysis:

The global Single-Aisle Aircraft Market segmentation includes:

By Type of Aircraft: Narrow-Body, Wide-Body, Regional Aircraft

Among these, the Narrow-Body aircraft category stands out as the largest segment. These aircraft are designed for short to medium-haul flights and are favored by airlines for their versatility and cost-efficiency. Narrow-Body aircraft are well-suited for both domestic and international routes, making them the preferred choice for many carriers.

In terms of growth, the Narrow-Body segment takes the lead yet again. The market for Narrow-Body aircraft is witnessing significant expansion due to the increasing demand for regional and domestic travel. Airlines are looking to replace older aircraft with more fuel-efficient and environmentally friendly Narrow-Body models, driving the growth of this segment.

By Engine Type: Turbofan, Turboprop

Among these categories, Turboprop engines are the largest segment. These engines are commonly found in regional aircraft that operate shorter routes and require a different set of performance characteristics compared to their Turbofan counterparts. Turboprop engines are known for their fuel efficiency and reliability, making them a preferred choice for regional carriers.

However, when it comes to growth, Turbofan engines take the lead. The demand for Turbofan-powered Single-Aisle Aircraft is on the rise, driven by the need for higher efficiency, reduced emissions, and greater operational range. Airlines are increasingly opting for Turbofan engines in their narrow-body aircraft to meet the growing demand for longer-haul regional and international flights.

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Regional Analysis:

The Single-Aisle Aircraft market spans across variregions, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Each of these regions has its unique characteristics and influences on the market.

Asia-Pacific emerges as the largest region in this segment. This region encompasses numerfast-growing economies, a burgeoning middle class, and a robust travel and tourism industry. As a result, airlines in Asia-Pacific have been expanding their fleets to meet the increasing demand for air travel. With a foon domestic and regional routes, narrow-body aircraft have been particularly favored in this region, contributing to its leadership in the Single-Aisle Aircraft market.

In terms of growth, Europe takes the lead. Despite being a mature aviation market, Europe is experiencing a surge in demand for narrow-body aircraft, primarily due to the need for more fuel-efficient and environmentally friendly options. European airlines are increasingly looking to modernize their fleets with state-of-the-art single-aisle aircraft, thereby driving the growth of this segment in the region.

The Middle East & Africa region also shows promise in terms of growth, driven by the emergence of airlines in the Middle East as major global players. These airlines are expanding their networks and investing in modern, fuel-efficient narrow-body aircraft to meet the growing demand for long-haul travel.

North America, with its well-established aviation industry, continues to be a significant market for single-aisle aircraft. While it may not be the fastest-growing region, North America remains a stable and vital market for these aircraft, catering to both domestic and international routes.

South America, although a smaller market compared to the other regions, also contributes to the demand for single-aisle aircraft. Airlines in South America are focusing on modernizing their fleets to enhance operational efficiency and reduce emissions.

Latest Industry Developments:

  • One of the key strategies adopted by companies is a strong emphasis on fuel-efficient and environmentally friendly aircraft. With the aviation industry facing increasing pressure to reduce carbon emissions, manufacturers are investing in the development of next-generation single-aisle aircraft with improved fuel efficiency. This includes the use of advanced materials, aerodynamic design enhancements, and the incorporation of more fuel-efficient engines. Furthermore, there is a growing trend towards the electrification of aircraft systems, including electric taxiing systems and more electric aircraft architectures. These innovations aim to reduce the overall carbon footprint of single-aisle aircraft, aligning with global sustainability goals.
  • To enhance their market share, aircraft manufacturers are expanding their global reach and customer base. They are targeting emerging markets with fast-growing air travel demand, such as Asia-Pacific and the Middle East. These regions represent significant opportunities for fleet expansion, especially with narrow-body aircraft designed for short- to medium-haul routes. Another trend is fleet modernization. Airlines, particularly in mature markets like North America and Europe, are retiring older aircraft and replacing them with state-of-the-art single-aisle aircraft. This trend is driven by the need to improve operational efficiency, reduce maintenance costs, and enhance passenger comfort. Manufacturers that offer the latest technology and fuel-efficient options have a competitive advantage in this regard.
  • Connectivity and digital solutions are becoming increasingly important in the aviation industry. Airlines are seeking aircraft equipped with advanced connectivity options to enhance the passenger experience, provide in-flight entertainment, and enable seamless inteaccess. Manufacturers are responding by integrating cutting-edge connectivity solutions into their single-aisle aircraft offerings. Additionally, the use of data analytics and predictive maintenance has gained prominence. Airlines are leveraging data from their aircraft to optimize operations, reduce downtime, and lower maintenance costs. Aircraft manufacturers are incorporating these features into their products to meet the demand for data-driven solutions.

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Airbus and Boeing compete in the market for fuel-efficient aircraft, investing in next-generation development and facing pressure to meet delivery deadlines.

Title:

Content: Dubai: Qatar Airways and Airbus have moved on from their dispute over the A350s and undertaken a repair project to get the planes back in the skies, according to a senior official with the European aircraft maker.

Mikail Houari, President of Airbus’ Africa and Middle East operations, stressed that the settlement was not an admission of liability for either party. He also projected short-term pressures to air traffic because of a bleak global GDP outlook.

IATA, in its December report, said international traffic in 2022 climbed 152.7 per cent vs 2021 and reached 62.2 per cent of 2019 levels. How do you see the trend holding up in 2023?

Also read

Air traffic has been recovering continuously since travel restrictions were lifted, with a few notable exceptions. We expect short-term pressures from limited global GDP outlook, fluctuations in oil price and higher inflation, but these are likely to normalise within a few years. According to our latest forecast, demand for passenger traffic will grow annually by 3.6 per cent over the next 20 years.

According to your new annual report, gross commercial aircraft orders increased to 1,078 compared to 771 in 2021. Any projections for 2023?

Clearly, there is demand for Airbus products as demonstrated by the strong order book. While orders will remain strong, we can't expect every year to be a record one. The Airbus backlog stands at over 7,200 aircraft.

Assuming no additional disruptions to the world economy, air traffic and our ability to deliver products and services, our target is to achieve 720 commercial aircraft deliveries in 2023.

Airbus and Qatar Airways recently settled their dispute over the grounded A350 jets. How was this agreement reached?

Qatar Airways and Airbus are pleased to have reached an amicable and mutually agreeable settlement in relation to their legal dispute over A350 surface degradation and the grounding of A350 aircraft. A repair project is now underway and both parties look forward to getting these aircraft safely back in the air.

The details of the settlement are confidential and the parties will proceed to discontinue their legal claims. The settlement agreement is not an admission of liability for either party. This agreement will enable Qatar Airways and Airbus to move forward and work together as partners.

What kind of delays are you facing because of labour shortages affecting European countries right now?

We have moved from demand to supply pressures. The uncertainties along the supply chain are likely to continue for some time. But we also see that the overall supply chain challenges appear to be stabilising.

We maintain our assessment that the situation on the supply side will remain difficult in 2023. We have taken strong measures to deal with this additional complexity and to protect our ramp-up.

After 18 months of stability, our suppliers have transitioned from a full COVID-19 crisis mode to a ramp-up mode. This happens in a context of high prices, low stocks and re-hiring. We provided more visibility to suppliers than before - and this also gives us better visibility on their side for potential operational difficulties.

What’s next in the partnership with Etihad with respect to the A350?

Airbus’ Sustainability Engagement Program aims to investigate ways of improving aviation’s environmental performance, by providing a holistic view of short and long-term initiatives surrounding the Airbus fleet.

The Airbus A350 lies at the base of the ‘Sustainability50’ program, a partnership with Etihad, formed in 2021 to support the UAE’s road to achieving net zero emissions by 2050. The A350-1000 is setting new standards in air travel, with a 25 per cent reduction in fuel burn and emissions.

As part of our partnership with Etihad, we are working on exploring channels of cooperation in various areas such as sustainable aviation fuel, waste and weight management, and data driven analysis etc.

Are similar alliances in the works with other regional airlines such as Emirates?

Airbus is working towards the decarbonisation of aviation and is fully aligned with other industry actors. The journey to achieve Net Zero requires collaboration and investment and we are always open to opportunities and partnerships that have the potential to advance the decarbonisation of the aviation industry.

How much time do you anticipate it will take global airlines to fully transition to sustainable aviation fuel?

Over 100 million litres of SAF were produced in 2021 and according to IATA, more than 50 airlines around the world have experience with SAF. SAF can reduce emissions by up to 80 per cent on average during its full lifecycle.

The main challenge remains the emergence of a market to generalise the use of SAF. SAFs would have to be massively scaled up, and this could require investment anywhere from $10 billion to as much as $40 billion and upwards.

Currently, all Airbus commercial aircraft are capable of flying with an up to 50 per cent SAF blend mixed with kerosene and are targeted to be capable for 100 per cent SAF use in flight by the end of this decade.

Are all airlines, governments and fuel suppliers prepared for this transition?

This is a journey that all industry stakeholders have to collaborate on to achieve the desired outcome. There is a rising momentum in the aviation sector as governments and airlines align sustainability goals. We are already seeing governments and private sector undertake projects and announce initiatives to enhance sustainability (and) decarbonise the sector.

Which are the key markets that are specifically buying the A350?

We currently have 925 A350s on order from 54 customers. Qatar Airways is the largest operator of the A350, but we expect there to be ongoing demand for the aircraft as regional airlines move towards fleet modernisation and undertake carbon reduction initiatives.

The A350 family is a leader in sustainability fitted with the latest innovations that are redefining the future of flying. The A350 offers 25 per cent less fuel burn and CO2 emissions and 50 per cent less noise footprint compared to previous generation aircraft. Its versatility is evident with its flying range of up to 9,700nm/18,000 km.

What steps has Airbus taken to reduce its carbon footprint? Do you think it’s justified to target the aviation industry alone for carbon dioxide emissions?

We want to take a leadership position and are accelerating our own decarbonisation journey. We aim at reducing our industrial environment footprint at sites worldwide, developing a more circular model to optimise use of materials and reduce use of critical resources, and enhancing our product and services portfolio to positively contribute to climate change mitigation and adaptation.

We have the ambition to develop the world’s first zero-emission commercial aircraft by 2035 to ensure future generations can enjoy flying as much as we do. The aviation industry represents approximately 2.5 per cent of global human-induced CO2 emissions, surpassing the emissions contribution from many other industries.

We believe that aviation is not the problem but emissions are. Aviation will remain an essential mode of travel for the world, while being a crucial sector to many economies of the world in terms of its contribution to the gross domestic production.

Air India will acquire 250 Airbus aircraft. Over what duration will these planes be delivered?

The commitment includes 140 A320neo and 70 A321neo single-aisle aircraft as well as 34 A350-1000 and six A350-900 wide-body jets that will mark a new era for the country as the all-new, long-range aircraft celebrates its debut in the Indian market. Deliveries are set to commence with the first A350-900 arriving by late-2023.

Title:

Content: The global supply chain crisis has spread to the aviation industry, with aircraft manufacturer Airbus revealing that the supply of its best-selling single-aisle narrow-body passenger aircraft is in short supply, so deliveries of narrow-body passenger aircraft will be limited in the next three years due to disruption from the supply chain.
The Wall Street Journal reported that Airbus Chief Financial Officer Dominik Asam said in an interview that during the coronavirus epidemic, many airlines stopped ordering aircraft and even chose to postpone or cancel orders, but the epidemic has slowed down and airlines are beginning to hope to deliver new aircraft as soon as possible.
“The challenge we face is not being able to deliver aircraft in the short term, and the supply chain is not producing parts fast enough, ” said Dominik Asam.“ The challenge is not being able to deliver aircraft in the short term. The supply chain is not producing parts fast enough and we are not able to deliver all orders in real time. ”
In fact, not only is Airbus production limited, Boeing is also under pressure to deliver aircraft orders, and the related supply chain burden of aircraft parts is even heavier after the Boeing 737 Max is re-licensed for production.
During the COVID-19 pandemic, many suppliers were forced to cut production and stop production due to the epidemic, resulting in undigestible demand after the recovery of the epidemic.
# Chip Shortage # Semiconductor Out of Stock # Supply Chain # Aircraft # Large Out of Stock

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

The demand for fuel-efficient aircraft is driven by the need to reduce greenhouse gas emissions, with sustainable fuels and hybrid-electric aircraft offering solutions.

Title:

Content: Global sustainable aviation fuel market size to reach USD 2987.5 million valuation by 2027

The latest business intelligence report on ‘global sustainable aviation fuel market’ presents an unbiased analysis of the industry augmentation history and forecast statistics for 2021-2027.

Pune, INDIA

Pune, India, Oct. 28, 2021 (GLOBE NEWSWIRE) -- According to credible sources, global sustainable aviation fuel market size was remunerated at USD 66 million in 2020 and is estimated to record a strong CAGR of 72.4% over 2021-2027, eventually reaching a valuation of USD 2987.5 million by the end of study period.

Proceeding further, the research literature studies the market from the perspective of fuel type, biofuel blending capacity, biofuel manufacturing technology, platform, and geographies to highlight the key areas for investment during the forecast period. Moreover, it explicates the competitive landscape on the basis of the strategies, financials, and recent developments of the leading players in this business sphere.

With increasing environmental awareness, the aviation sector is looking to reduce carbon footprints and lower GHG emissions, hence adopting alternative solutions like renewable jet fuels, hybrid-electric and all-electric aircraft, enhancing aero-engine efficiency through design adjustments, and many more.

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However, when compared to other solutions, adoption of sustainable aviation fuels like synthetic fuels, e-fuels, bio jet fuels, green jet fuels, and hydrogen fuels is one of the most practical alternative solutions when it comes to socio-economic benefits and contributes notably to mitigating current and future aviation environmental impacts.

Moreover, airlines across the aviation sector are extending their commercial fleets due to increase in air travel. These factors are majorly driving global sustainable aviation fuel market growth.

For instance, Gevo, Inc. and Trafigura Trading LLC, entered into a binding renewable hydrocarbon purchase and sale agreement in August 2020. Trafigura will be capable of providing SAF to both domestic as well as foreign clients, having rising demand for low-carbon jet fuel.

Geographical outlook

Analysts cite that North America is likely to serve as a lucrative growth avenue for the worldwide sustainable aviation fuel industry participants throughout the study period, as countries such as the U.S. and Canada, are focusing on various programs to use renewable aviation fuel to assist in reducing carbon footprints due to increased air traffic and flying passengers.

Commercial Aviation Alternative Fuel Initiative (CAAFI), Canada's Biojet Supply Chain Initiative, and Midwest Aviation Sustainable Biofuels Initiative (MASBI) are some of the sustainable aviation fuel efforts that are undertaken by countries including the U.S. and Canada.

Moreover, North American market is one of the robust demand areas for sustainable aviation fuel owing to supportive regulations and measures to reduce aviation emissions.

To access a sample copy or view this report in detail along with the table of contents, please click the link below:

https://www.marketstudyreport.com/reports/global-sustainable-aviation-fuel-market-size-research

Global Sustainable Aviation Fuel Market, by Fuel Type (Revenue, USD Million, 2018-2027)

  • Biofuel
  • Hydrogen Fuel
  • Power to Liquid Fuel

Global Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology (Revenue, USD Million, 2018-2027)

  • Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)
  • Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
  • Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)
  • Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)
  • Alcohol to Jet SPK (ATJ-SPK)
  • Catalytic Hydrothermolysis Jet (CHJ)

Global Sustainable Aviation Fuel Market, by Biofuel Blending Capacity (Revenue, USD Million, 2018-2027)

  • Below 30%
  • 30% to 50%
  • Above 50%

Global Sustainable Aviation Fuel Market, by Platform (Revenue, USD Million, 2018-2027)

  • Commercial Aviation
  • Military Aviation
  • Business & General Aviation
  • Unmanned Aerial Vehicle

Global Sustainable Aviation Fuel Market, Regional Terrain (Revenue, USD Million, 2018-2027)

Asia Pacific

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia-Pacific

Latin America

  • Mexico
  • Brazil

North America

  • U.S.
  • Canada

Europe

  • U.K.
  • France
  • Germany
  • Italy
  • Spain
  • Rest of Europe

Rest of the World

Global Sustainable Aviation Fuel Market, Competitive Dashboard (Revenue, USD Million, 2018-2027)

  • S.G. Preston Company
  • Red Rock Biofuels LLC
  • Aemetis Inc.
  • Velocys plc
  • Fulcrum BioEnergy Inc.
  • SkyNRG BV
  • World Energy LLC
  • Eni S.p.A.
  • Gevo Inc.
  • Neste Oyj

Table of Content:

Chapter 1. Executive Summary

1.1.         Market Snapshot

1.2.         Global & Segmental Market Estimates & Forecasts, 2019-2027 (USD Million)

1.2.1.     Sustainable Aviation Fuel Market, by Region, 2019-2027 (USD Million)

1.2.2.     Sustainable Aviation Fuel Market, by Fuel Type, 2019-2027 (USD Million)

1.2.3.     Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology, 2019-2027 (USD Million)

1.2.4.     Sustainable Aviation Fuel Market, by Biofuel Blending Capacity, 2019-2027 (USD Million)

1.2.5.     Sustainable Aviation Fuel Market, by Platform, 2019-2027 (USD Million)

1.3.         Key Trends

1.4.         Estimation Methodology

1.5.         Research Assumption

Chapter 2. Global Sustainable Aviation Fuel Market Definition and Scope

2.1.         Objective of the Study

2.2.         Market Definition & Scope

2.2.1.     Scope of the Study

2.2.2.     Industry Evolution

2.3.         Years Considered for the Study

2.4.         Currency Conversion Rates

Chapter 3. Global Sustainable Aviation Fuel Market Dynamics

3.1.         Sustainable Aviation Fuel Market Impact Analysis (2019-2027)

3.1.1.     Market Drivers

3.1.1.1. Rising need for reduction in GHG emissions in aviation industry

3.1.1.2. Growing air passenger traffic

3.1.1.3. High fuel efficiency of SAF

3.1.2.     Market Challenges

3.1.2.1. Price difference between SAF and conventional jet fuel

3.1.3.     Market Opportunities

3.1.3.1. Increasing demand for SAF by airlines over the world

3.1.3.2. Sustainable marine fuel

3.1.3.3. Government initiatives

Chapter 4. Global Sustainable Aviation Fuel Market Industry Analysis

4.1.         Porter's 5 Force Model

4.1.1.     Bargaining Power of Suppliers

4.1.2.     Bargaining Power of Buyers

4.1.3.     Threat of New Entrants

4.1.4.     Threat of Substitutes

4.1.5.     Competitive Rivalry

4.1.6.     Futuristic Approach to Porter's 5 Force Model (2018-2027)

4.2.         PEST Analysis

4.2.1.     Political

4.2.2.     Economical

4.2.3.     Social

4.2.4.     Technological

4.3.         Investment Adoption Model

4.4.         Analyst Recommendation & Conclusion

Chapter 5. Global Sustainable Aviation Fuel Market, by Fuel Type

5.1.         Market Snapshot

5.2.         Global Sustainable Aviation Fuel Market by Fuel Type, Performance - Potential Analysis

5.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Fuel Type 2018-2027 (USD Million)

5.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

5.4.1.     Biofuel

5.4.2.     Hydrogen Fuel

5.4.3.     Power to Liquid Fuel

Chapter 6.vGlobal Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology,

6.1.         Market Snapshot

6.2.         Global Sustainable Aviation Fuel Market by Biofuel Manufacturing Technology, Performance-Potential Analysis

6.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Biofuel Manufacturing Technology, 2018-2027 (USD Million)

6.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

6.4.1.     Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)

6.4.2.     Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)

6.4.3.     Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)

6.4.4.     Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)

6.4.5.     Alcohol to Jet SPK (ATJ-SPK)

6.4.6.     Catalytic Hydrothermolysis Jet (CHJ)

Chapter 7. Global Sustainable Aviation Fuel Market, by Biofuel Blending Capacity,

7.1.         Market Snapshot

7.2.         Global Sustainable Aviation Fuel Market by Biofuel Blending Capacity, Performance-Potential Analysis

7.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Biofuel Blending Capacity, 2018-2027 (USD Million)

7.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

7.4.1.     Below 30%

7.4.2.     30% to 50%

7.4.3.     Above 50%

Chapter 8. Global Sustainable Aviation Fuel Market, by Platform,

8.1.         Market Snapshot

8.2.         Global Sustainable Aviation Fuel Market by Platform, Performance-Potential Analysis

8.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Platform, 2018-2027 (USD Million)

8.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

8.4.1.     Commercial Aviation

8.4.2.     Military Aviation

8.4.3.     Business & General Aviation

8.4.4.     Unmanned Aerial Vehicle

Chapter 9.   Global Sustainable Aviation Fuel Market, Regional Analysis

Related Report:

Aviation Fuel Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026

Global Aviation Fuel Market is expected to exceed USD 325 billion by 2026. The rising construction and expansion of airports coupled with rising production and delivery of aircrafts are driving the market share. Latin America and Middle East & Africa will witness healthy growth in the aviation fuel market share owing to increasing tourism. Recovering economy in Latin America with cross border merger of the airliners will further fuel the industry demand. Steady growth in air traffic will positively influence the product penetration. Increasing demand of business jets in the MEA is the prime factor driving the regional growth. Few of the major players operating in the aviation fuel market include Shell, BP, Chevron, Gazprom, Reliance Petroleum, and IOCL among others. Industry players are entering into strategic agreements and partnerships for expanding their business share. For instance, in November 2019, BP signed a strategic technical services agreement with Sonangol for expanding its business in Angola.

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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

What is the main objective of the ReFuelEU Aviation initiative?

To increase demand and supply for sustainable aviation fuel

The aviation industry aims to reach net zero carbon emissions by 2050 through sustainable fuels and alternative propulsion.

Title:

Content: Global aviation industry to move to carbon neutral trench oil by 2050 is the savior? ｜ TECH
Author: Sze Heng
Published: Updated:
Are traditional cars energy-intensive and carbon-intensive?
Switching to electric vehicles can greatly reduce emissions, and major cities and regions such as Seoul and Singapore have begun to gradually electrify.
As one of the key industries facing the task of reducing emissions, how to achieve carbon neutrality in the long term is uncertain.
But with the recent agreement by the International Air Transport Association on carbon neutrality goals, the path to reducing emissions for an industry that accounts for 2% to 3% of the world ’ s carbon emissions seems to be starting to clear, but there are still multiple breakthroughs to be made in aviation fuel.
On Monday (October 4), the International Air Transport Association (IATA), the world ’ s largest aviation industry association, announced an ambitious plan to become carbon neutral by 2050.
More than 50 airlines and energy companies, including Boeing, BP and Shell, have announced that they will replace 10% of aviation fuel with sustainable aviation fuel (SAF) by 2030.
This fuel is mainly made of recycled food oil, various types of animal and plant waste oil (commonly known as gutter oil), in addition, waste wood chips and some common solid waste are also the source of waste oil production.
According to IATA data, this fuel can be 80% lower than the carbon emissions of ordinary aviation kerosene, but still ensure sufficient power during the flight.
This puts the future of SAF in the aviation industry on track, but there is debate in the industry as to whether SAF is the best solution to the aviation industry ’ s emissions reduction.
Aviation industry cut emissions without "golden oil"
According to a report released by the World Economic Forum in November last year, in 2019, the world's SAF production was less than 220,000 tons, and commercial routes used more than 300 million tons of aviation kerosene, SAF probably only supply less than 0.1% of aviation kerosene.
According to the same report, even if all known SAF development projects are implemented, their supply will only reach about 1% of projected global aviation coal demand by 2030.
Meanwhile, hydrogen aircraft start-ups ZeroAvia, Boeing and Airbus, which are pushing for zero-carbon emissions, have included hydrogen or electric aircraft in their emissions reduction plans – both popular alternatives to SAF that could reduce emissions for the aviation industry, but their prospects are even more muted.
In the case of hydrogen energy, because of its high energy density (that is, the energy produced at the same weight is extremely high), it is called "energy for aviation".
However, due to the low density of hydrogen per unit volume, it is only possible to be loaded on aircraft after cooling and liquefaction. Even so, hydrogen storage tanks are still three times larger than fossil fuel tanks that provide the same energy, aircraft passenger load is reduced, and storage conditions as low as minus 253 degrees are required.
Airbus, which is betting on hydrogen-powered aircraft, is also working on a metal hydrogen storage tank and hopes to make its first test flight using the technology in 2025.
At present, the successful test flight of hydrogen or electric aircraft - such as the start-up MagniX, ZeroAvia, etc., are basically small short-range aircraft, the real commercial long-distance flight of the aircraft, but also need to make a revolutionary breakthrough in the above technical difficulties can be achieved.
Gutter oil expansion or can it be expected?
Compared to the technical difficulties that have not been solved for many years, biofuels are a more realistic and feasible solution.
In fact, many airlines have already started using biofuels, but most of them are mixed with standard aviation kerosene.
The main obstacles to the large-scale promotion of bio-aviation fuel are the production and cost issues.
Airbus has established R & D bases in France and Germany to develop metal hydrogen storage tanks. (Airbus)
According to McKinsey ’ s “Sustainable Aviation Fuels as a Pathway to Net-Zero Aviation ” report, SAF is 2.5 times more expensive than conventional aviation coal through current most affordable production methods (HEFA).
However, the UK government ’ s advisory body, the Climate Change Commission, estimates that in the long run, once these fuels are deployed on a large scale, the cost of a round-trip ticket from London to New York will increase by around £80 (about HK $850) – an acceptable price increase.
In addition, in recent years, governments have many supportive policies for SAF, and even forced coal suppliers to set a minimum SAF supply ratio to promote its growth.
In particular, the Norwegian government requires all suppliers to participate in at least 0.5% of SAF in all aviation coal starting in 2020, and aims to achieve an overall share of 30% by 2030.
In addition, the European Union has proposed to achieve the 2% target by 2025 and increase it to 5% by 2030, and the United Kingdom and the United States are also studying related measures or launching them in the near future.
IATA official Chris Goater said that in 2016, only two countries in the world implemented SAF-related policies, but now it has grown to 36 countries.
Although both hydrogen, electric and SAF are facing practical or technical difficulties, which makes aviation one of the most difficult industries to reduce emissions, IATA's carbon neutrality blueprint has to be multi-pronged, but in this, SAF is responsible for nearly 70% of the emission reduction tasks, the industry's confidence in SAF can be seen.
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The global single-aisle aircraft market is expected to reach $222.20 billion by 2030, growing at a 12.5% CAGR, led by narrow-body aircraft.

North America, Europe, and Asia-Pacific are key regions, while the Middle East and Africa show growth promise.

Turkish Airlines is modernizing its fleet with 220 new Airbus aircraft, including A321s and A350s.

Title:

Content: Turkish Airlines Makes Historic Airbus Order to Expand Fleet
Airbus Airlines

Turkish Airlines Makes Historic Airbus Order to Expand Fleet

DALLAS — Turkish Airlines (TK) has announced a massive fleet expansion with the procurement of Airbus aircraft.

According to Airbus, the TK order includes 150 of Airbus’ best-selling A321s and 70 A350 widebody aircraft (50 A350-900s, 15 A350-1000s, and five A350F freighters), totaling 220 aircraft. This follows two orders from the airline for 10 A350-900s in September and four A350-900s in July 2023.

While Airbus did not include option orders in its press release, TK certainly did. The Turkish flag carrier says the acquisition is for 355 Airbus aircraft: 250 A321s and 105 A350 widebody aircraft, including 60 firm orders, 20 purchase right A350-900s, 15 firm order A350-1000s, five firm orders, and five purchase right A350-Freighters.

We caught wind of this purchase back at DAS2023, but with today’s tandem announcement by Airbus and the airline, TK’s total orderbook for Airbus aircraft will reach 504, with 212 already delivered.

The A321neo is the largest aircraft in its category and offers exceptional range and performance. It incorporates new-generation engines and Sharklets, resulting in a 50% noise reduction, more than 20% fuel savings, and reduced CO2 emissions compared to previous-generation single-aisle aircraft. The A321neo has received over 5,600 orders from more than 100 customers worldwide.

Comments from Turkish Airlines, Airbus Officials

According to Prof. Dr. Ahmet Bolat, the Chairman of the Board and the Executive Committee of Turkish Airlines, this order is not just an expansion but also a testament to the airline’s commitment to innovation, operational excellence, and a sustainable future. The addition of these advanced Airbus aircraft to TK’s fleet will enhance its operational capabilities and contribute significantly to its environmental goals.

Christian Scherer, the Airbus Chief Commercial Officer and Head of International commends TK for their bold vision in ordering the latest generation of aircraft. He highlights that the A350-900, A350-1000, A350F, and A321 will be flagship aircraft in their respective categories and will drive efficiency to shape the airline’s future and sustainable expansion.

These aircraft offer more range, less fuel consumption, reduced noise and emissions, and the best cabin experience in their class. This order also strengthens the long-lasting partnership between Airbus and the airline with the most international destinations in the world, as well as Türkiye’s aviation sector.

Featured image: Airbus

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Digital Editor at Airways, AVSEC interpreter, and visual artist. I am a grammar and sci-fi literature geek who loves editing text and film.

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What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

Comac has 1000 firm orders for the C919 aircraft and plans to produce 150 C919s annually within five years to increase capacity and meet demand.

Title:

Content: While China’s Comac may already be looking to the long-term future with its proposed ’C939’ widebody programme, the state-owned airframer appears to be focused on the more pressing need to ramp up output of its C919 single-aisle.

To date, just four examples of the CFM International Leap-1C-powered narrowbody have entered service – all with China Eastern Airlines – since the twinjet gained certification in September 2022.

Source: BillyPix

China Eastern is the only operator of the C919 currently

It has been a sluggish start for the Chinese narrowbody, particularly when compared to the soaring production rates of its Western rivals. Airbus, for example, is currently churning out more than 50 A320neo-family aircraft each month.

That the process has been slower than expected is not surprising, says Richard Aboulafia, managing director of AeroDynamic Advisory.

“It is probably due to the difficulties associated with building conforming aircraft; a very different challenge than just flying a jet and getting it certified.

“That’s a much longer road, along with the enormous challenge of establishing a product-support apparatus,” adds Aboulafia.

Equally, with economic and geopolitical considerations always part of Comac’s calculus, the slow ramp-up may be by design, argues Shukor Yusof, founder of aviation consultancy Endau Analytics.

He thinks Comac is “in no hurry… not because it can’t”, but because it is “not in its, or China’s, interest to do”.

A botched ramp-up would be worse than a slow ramp-up, he says. Comac – and by extension, Beijing – “will be watching” the state of the global supply chain, as well as geopolitical developments, “very closely”, before moving to increase output.

“Its next steps will depend on what happens to Boeing near-term, over the next six to 12 months, as well as how [Chinese leader] Xi Jinping’s recent state visit to France could push Airbus into a wider role vis-a-vis aircraft production in China,” says Shukor.

However, Comac’s growing backlog for the C919 still needs to be addressed. That total was bolstered in late April, with the other members of the country’s ‘Big Three’ – Air China and China Southern Airlines – each ordering 100 C919s. Although Aboulafia doubts the carriers need those aircraft, deliveries are set to run from 2024 to 2031.

In fact, Cirium fleets data records Comac as holding almost 1,000 firm orders for the C919, with another 700 aircraft covered by more tentative agreements – a quietly impressive backlog for the programme.

To address that total, local media reports suggest Comac is looking to achieve an annual production rate of up to 150 aircraft within five years.

The figure is “a bit over-ambitious”, says Shukor, pointing out the ongoing supply-chain constraints all manufacturers face, but “not impossible beyond 2030”.

But there are indications Comac is working to enhance its production system. In a now-deleted social media post widely reported by local media, China Aviation Planning and Design Institute Group, an entity linked to state-owned enterprise AVIC, said it had clinched the contract for the “second phase” of the C919 “production capacity construction project”.

Located in the Pudong area of Shanghai, where Comac is also based, the project would see the facility expand to cover 330,000sq m (3.55 million sq ft), with an unspecified number of production lines and parts warehouses, reports suggest.

Comac did not publicly confirm these reports and the airframer declines to comment on FlightGlobal’s query on production rates, except to say it is working to increase C919 output.

Source: Weibo

Against this backdrop, the news that the airframer may be contemplating the development of a second widebody programme is sure to raise eyebrows.

Comac is already working on the C929 – broadly speaking a rival to the A330neo and Boeing 787 – but the next project appears set to compete with the A350 and 777.

A report from Hong Kong’s South China Morning Post on 13 May, citing an unnamed source, says the airframer has developed design concepts for the new jet, but notes that it will take several years before any prototype is constructed.

The report gives no technical specifications for the new programme, such as the number of engines or capacity.

Comac declines to comment directly, saying obliquely that media should wait for official confirmation of its plans.

Boeing and Airbus are developing new technologies to improve aircraft efficiency and reduce emissions.

Title:

Content: Private.
Boeing chief: Saudi Arabia orders 121 aircraft
The total value of the aircraft was $35 billion.
Posted in: Last Updated:
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Dr. Brendan Nelson, CEO of Boeing International, said that Saudi Arabia is an important customer for us and a partner of Boeing International, and we are fully committed to supporting it in achieving its ambitious Vision 2030 in the aviation field.
Dr. Brendan Nelson said in an exclusive interview with Al Arabiya.
The Kingdom ’ s main focus for the aircraft it orders is wide-body aircraft, i.e. larger, twin-aisle aircraft such as the 777 and 787.
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"The new Riyadh Air has ordered 72 different 787 aircraft, while Saudi Airlines has also ordered 39 787 aircraft, in addition to other options of up to 10 additional aircraft, bringing the total number of aircraft from Saudi Arabia to 121, with a total value of about $35 billion, and we will work to deliver these aircraft on time, overcoming our supply challenges," he said.
"We are now competing with another company to win the Saudi contract to provide 737 slim hull aircraft to Saudi airlines," he said, noting that negotiations on that contract are ongoing so far and are confidential, and we are confident of achieving this because of the reliability of our exceptional aircraft and the appropriate prices we offer to the Kingdom.
“Delivering and delivering the aircraft ordered by Saudi companies on time is very important to us, but we do not seek rapid production at the expense of quality or safety, we are keen to ensure that supply chains match the requirements of delivering the aircraft to Saudi companies, ” he said.
Boeing ’ s outlook for the Middle East
“Our forecast for the Middle East for the next 20 years is that the region will need 3,000 new aircraft, and if we think about it, 8 hours of air travel from any of the major airports in the Middle East will cover 80% of the world ’ s population and 70% of the future economic growth areas in the next 20 years, ” he said.
“With economic growth estimated at 2.7 per cent per annum for the next decade in the Gulf region, air travel will increase by 4 per cent per annum, making the Middle East a very important global customer for Boeing. ”
Chinese Aircraft Manufacturing Company
As for the Chinese aircraft manufacturer, he said, "China is a great power and has re-emerged with a very strong economy, with a population of 1.4 billion people.
We support China ’ s development and construction of its own aircraft, the Comac C919 is a good and safe aircraft in our opinion, and perhaps by 2050 they control 10% of the market.
"But when we think about how big the aviation market is, it means there's extra business for everyone, whether it's Boeing or Comac, and certainly our main competitor."
“Boeing has experienced significant challenges in recent years in terms of accidents as well as the global pandemic, but our current situation is very strong as demand for commercial aviation in particular has risen to record levels as airlines revamp their fleets and the geopolitical environment has significantly increased global investment in defence, ” he said.
US $100 billion
“We expect our profits for 2025 and 2026 to be close to $100 billion, we expect 10% operating profit, and a free cash flow in 2025 and 2026 of about $10 billion, of which we will invest $3 billion in research and development. ”
“We are doing everything we can to decarbonise our industry and industry to achieve sustainable aviation, with aviation accounting for 2.6% of global heating emissions and nearly 12% of transport. ”
We are introducing sustainable aviation fuel as well as electricity, hydrogen and new technologies that improve the efficiency of aircraft performance and the way airlines operate their aircraft, and introducing new technology that helps to completely eliminate carbon emissions.
One of the key technologies is Weske, the urban self-driving vehicle, and we are in the advanced stages of developing the aircraft that will feature the same safety standards as commercial aircraft, and are working with regulators around the world to obtain certification.
We are also working with the US Space Agency to develop aircraft wings that enable them to fly at near the speed of sound along with engine technology from engine manufacturers, which we are confident will result in high air travel efficiency, significant reduction in carbon emissions, and lower fuel consumption, and will launch this aircraft in mid-2030.
And besides, we have a lot of covert military capability work with the Pentagon.
The overall challenges are decarbonising the aviation industry, which is a top priority for Boeing, and there are supply chain challenges that we expect to continue through 2023 and 2024.
To reduce supply chain challenges, we invest our resources to work with our suppliers, replicate supply chains in some regions in response to the geopolitical consequences of Russia ’ s invasion of Ukraine, and introduce new technology to improve supply chain efficiency.
The other challenge we face in general is the labor market. After we emerged from the pandemic, we started to see very tight labor markets in many parts of the world. Recruiting the people we need to meet our customers ’ requirements is a challenge. We are undoubtedly operating in a very complex environment with a major energy transition. In some parts of the world, we face a significant increase in energy prices. A truly global company.
In order to achieve this, we are developing engineering capabilities outside the United States, investing in engineering centers, 17 of which we have around the world now, as well as research and technology centers, as well as contributing to investment in countries with large markets and localizing our business in those countries.
These are some of the challenges we face.
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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

The industry faces significant challenges, including supply chain disruptions and production delays, such as CFM International's six to eight week delays, with Boeing CEO expecting these issues to last until 2024.

Title:

Content: Supply chain, labour snags delay CFM jet engines -sources

May 23 (Reuters) - Jet engine maker CFM International is facing industrial delays of six to eight weeks in the wake of supply chain and some French labour problems, but expects to claw most of this back by early in the fourth quarter, three people familiar with the matter said.

Co-owned by General Electric and France's Safran , CFM is the largest jet engine maker by units, and powers three out of four recently developed narrowbody jetliners including all Boeing 737 MAX and about half of Airbus' A320neo. (Reporting by Tim Hepher, David Shepardson, Eric M. Johnson; Editing by Chris Reese)

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Supply chain, labour snags delay CFM jet engines -sources

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Content: BA

Boeing CEO says supply chain pressure could continue through 2024

Credit: REUTERS/DAVID RYDER

Recasts with supply chain comments, adds quotes

DOHA, May 23 (Reuters) - Boeing BA.N Chief Executive Dave Calhoun on Tuesday said it could take until the end of next year to cure sector-wide supply chain problems that have disrupted jetliner production.

"Priority one for the two airplane manufacturers is stability," Calhoun told the Qatar Economic Forum, referring to Boeing and European rival Airbus AIR.PA.

"We have to resolve the supply chain issues and the surprise associated with it; and we have to resolve it sort of once and for all," Calhoun told the Bloomberg-organised event.

"That is not a short-term job. It sounds like it might be, but I think it could take all of this year and probably all of next year."

In April Calhoun had reported progress in tackling the supply chain and repeated November guidance that "significant supply chain improvement" was unlikely "until well into 2024".

On Tuesday Calhoun said he did not think recent problems with production of the best-selling 737 narrow-body jet would delay manufacturing for more than a month or one and a half months.

Calhoun also said the industry was unlikely to introduce all-new jet designs before the mid-2030s, citing the pace of emerging propulsion and wing technology.

Qatar Airways Chief Executive Akbar Al Baker, however, told the same event he would advise Boeing, Airbus and Brazil's Embraer EMBR3.SA to "start looking now" at sustainable new platforms.

(Reporting by Andrew Mills and Tim Hepher Additional reporting by Valerie Insinna Editing by David Goodman)

((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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New aircraft offer a 10-15% improvement in fuel consumption, making them more attractive to airlines.

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Content: There were 115 press releases posted in the last 24 hours and 471,331 in the last 365 days.
Gediminas Ziemelis, Chairman of Avia Solutions Group: Challenges for new freighters compared to P2F passenger freighters
DUBLIN, Ireland, July 31, 2023 (GLOBE NEWSWIRE) -- Air cargo revenue hit a record high during the pandemic.
Shipping prices per kilogram of cargo soared as passenger aircraft grounded down capacity and booming e-commerce led to increased demand.
According to TAC Yields data from Trade and Transport Group, in 2019, the air freight price from Hong Kong to North America was $3.80 / kg, while the price from Europe to North America was $2.10 / kg.
By 2022, the above service charges are $9.00 / kg and $4.50 / kg, respectively.
Naturally, this changed the status of air cargo suppliers.
According to IATA, freight revenue more than doubled: from $100 billion in 2019 to $210 billion in 2021, while passenger revenue plummeted from $607 billion a year to $239 billion.
During the pandemic, Cargolux ’ s annual revenue grew from $2.2 billion to $5.1 billion, while Silkway ’ s revenue more than doubled and its profit margin changed from -10% to + 30%.
These huge gains, combined with the long-term potential of e-commerce (which is why Airbus and Boeing are optimistic about the growth prospects of air cargo), have led many airlines to focus more on cargo.
However, the increase in passenger capacity led to another sharp drop in freight prices.
IATA forecasts that freight yields will fall 28.6% this year.
This means that air freight, the notoriously cyclical industry, is once again entering turbulent times.
Based on this background, the airline is considering whether to purchase a new freighter.
Comparison of new freighter and passenger freighter
Airlines and air cargo providers adopt different strategies when building their freighter fleets.
According to KPMG ’ s latest report, last year, 35 new orders for the 777-200F, 33 new orders for the 777-8F, and 20 suppliers purchased the A350F.
Purchasers of these orders include specialized air cargo suppliers (Cargolux, Silkway West, DHL, FedEx) and airlines (Lufthansa Cargo, Qatar, Air Canada, China Airlines, EVA, Air France, Etihad, SIA and Western Global).
At the same time, annual passenger to freighter (P-to-F) refitting has reached an all-time high, and is expected to reach a peak of 180 aircraft per year by 2025, and then maintain a stable level of around 160 aircraft per year.
By comparison, before the COVID-19 pandemic, production of such aircraft was only 70 per year.
The decision to purchase a new freighter or a P-F refitted freighter is influenced by many factors.
Of course, cost is a major factor, but variables such as total order number, fuel consumption, maintenance costs and prepaid production costs are also taken into account.
In addition, production lead time, load capacity and flexibility are key factors.
Factor 1: Rental costs
There is a huge difference between the benchmark cost of a new freighter and a modified freighter.
The upfront purchase cost of the new 777-200F or A350F is approximately $170-185 million, while the monthly rent is between $1.2 and $1.3 million.
Judging from last year's purchase orders, most airlines have a large number of these models in their fleets, especially hybrid airlines.
In this case, the actual purchase cost is likely to be well below the $170-185 million range.
Economies of scale are also a factor that helps these airlines reduce costs.
Still, even with those savings, airlines would still be cautious about $1 million in monthly rentals.
By comparison, a P-to-F modification of the 777-300 model costs $600,000 a month and the purchase cost is about $65 million.
Compared with the new aircraft of the same manufacturer, the performance of this modified aircraft is likely to be comparable, but the cost is significantly reduced.
Factor 2: MRO and operating costs
In terms of MRO, airlines can save money by choosing P-to-F passenger freighters.
Through the second-hand parts market, it is much cheaper to maintain these aircraft than to keep new ones running.
Of course, for airlines, in addition to cost savings, the use of second-hand parts can also speed up and simplify the aircraft maintenance process.
Fuel consumption is another consideration.
Historically, when new aircraft come into service, we ’ ve always seen significant improvements in fuel consumption metrics.
When the 777F was introduced as a new generation of the 747-400F, the energy consumption was significantly reduced: the fuel consumption of the latter was 10,230 kg / h, while the former was only 6,800 kg / h.
Fuel consumption has been reduced by 30% from the 747-400F to the 777F, but the new 777X and A350 aircraft are unlikely to achieve the same level of improvement.
The maximum range of changes we can actually expect is 10% to 15%.
All in all, while the new aircraft ’ s fuel consumption performance has improved and (in some cases) economies of scale may help reduce the cost of purchasing new freighters, the P-F passenger freighter is clearly more attractive in terms of cost.
Factor 3: Capacity and flexibility
New freighters may have the upper hand in terms of cargo volume and flexibility.
The nose load function in particular has a huge advantage.
Aircraft are able to carry very large cargo, such as large generators, engines, trucks and specialized technical items.
On top of that, this oversized cargo is lucrative, bringing more profit than ordinary pallet transportation.
However, new freighters such as the 777X and A350F currently in production do not have a nose load function.
Therefore, this advantage of a dedicated freighter over a modified freighter does not play a role in reality - both are now limited to transporting goods that can be loaded through the side door and can be "fair competition".
What is the performance of the modified freighter in terms of volume, storage density and total payload?
Let ’ s take a look at Aircraft Commerce ’ s comparison data for 2022, comparing the 777-300ERCF to the 777F, which currently accounts for half of the world ’ s large freighter fleet.
While the 777F has a total payload of up to 106.6 metric tons, the 777-300ERCF is significantly superior to the 777F in terms of volume.
The total volume of the 777-300ERCF is nearly 6,000 cubic feet more than the 777F (28,739 cubic feet for the former and 22,971 cubic feet for the latter).
Revenue per unit payload is also quite high.
At a storage density of 6.5 pounds, it corresponds to 186,804 cubic feet; at a storage density of 7.5 pounds, it corresponds to 190,900 cubic feet; and the corresponding figures for the 777F are 149,312 cubic feet and 172,283 cubic feet, respectively.
The point about this comparison is that the most important thing in the e-commerce express business is quantity, not total payload, and e-commerce may be an important growth driver in the future.
In this area, the 777-300ERCF has clear advantages.
Avoid the risk of buying new freighters
Airbus estimates that the global cargo fleet will need an additional 1,040 freighters by 2041, with Boeing forecasting more.
If this demand is met by the purchase of new freighters, airlines are at great risk.
Due to the sharp drop in freight prices, capital expenditure investments on the new A350 or 777F have meant huge financial costs.
In 2021, when air cargo prices hit record levels, it may make sense to invest heavily in new freighters worth $185 million.
However, by 2023, this is certainly not a prudent strategy.
In addition, the purchase of new freighters offers little benefit in terms of performance and capacity.
The P-F passenger freighter can match the volume of the newly produced freighter and has significant advantages in maintenance and production.
By contrast, airlines choosing to retrofit their freighters can help reduce financial risk and thereby sustainably improve their air cargo capabilities.
As a result, the P-to-F passenger freighter business grew significantly, while the delivery of new cargo aircraft stalled.
This is arguably the right choice: With freight prices plummeting, many airlines are reluctant to take on the financial risks posed by new aircraft, and there is little room for added value compared to retrofitting airliners.
About Gediminas Ziemelis
Gediminas Ziemelis (born 4 April 1977) is an accomplished Lithuanian entrepreneur, business consultant, founder and current Chairman of the Board of Directors of Avia Solutions Group, one of the largest ACMI (Aircraft, Crew, Maintenance and Insurance) suppliers in the world, operating a fleet of 180 aircraft.
He has twice been named in Aviation Week & Space Technology ’ s Top 40 Most Talented Young Industry Leaders.
Gediminas is known for his international thinking and exceptional management skills, which have contributed to his success in various areas of business.
In his 26-year career, Gediminas has founded more than 100 startups, 50% of which are still in operation.
He also led the company through four successful IPO / SPO processes and raised more than €800 million in the global public capital and bond markets.
In December 2022, Gediminas Ziemelis was named the richest person in Lithuania by TOP Magazine, with an estimated asset value of 1.68 billion euros.
Gediminas is the largest donor to Rimantas Kaukenas Support Group, a charitable aid foundation that helps children with oncology and their families.
He is also the largest shareholder of Wolves, a top-ranked basketball club.
Media Contact:
Silvija Jakiene
Chief Communications Officer
Avia Solutions Group
silvija.jakiene @ aviasg.com
+ 370 671 22697

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

Sustainable aviation fuel can cut carbon emissions by up to 70%, but is hindered by high costs, although government incentives can make it comparable to traditional fuels.

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Sustainable Air Travel Could Happen, Although the Options are Challenging

Could we ever fly sustainably? Learn why that answer is yes and what types of fuel could help the environment.

By Miranda Lipton
May 23, 2024 1:00 PM
(Credit: Ivan Marc/Shutterstock)

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The airline industry spews about 800 megatons of CO2 into the atmosphere each year, roughly 2 percent of total greenhouse gas emissions. There is an increasingly need to decarbonize air travel, but that doesn’t mean that we’ll be cutting the cord on it anytime soon.

Air travel is imperative for global connectivity, with roughly 100,000 flights in transit every day carrying people and goods around the world. Aircrafts come with a lengthy list of qualifications, like the need to be lightweight, fuel efficient, reliable, cost effective, quickly refuelable, and able to fly long distances – it’s not so easy to change them.

The looming question that emerges is: Can flying ever truly be sustainable? Maybe it can, though biofuels are likely a near-term bridge to a future in which aircrafts are powered by hydrogen or even electricity. But none of these options come without their set of challenges.

Sustainable Aviation Fuel

November 2024 marked a milestone in the field of aviation. Virgin Atlantic's Flight100, a Boeing 787, embarked on the world's first transatlantic flight from London to New York powered entirely by biofuel – fuel derived from organic matter rather than fossil fuels.

The fuel, known in the industry as Sustainable Aviation fuel (SAF), is derived from renewable or recycled waste such as corn grain, oil seeds, algae, other fats, oils, and greases, agricultural residues and more. It boasts substantially fewer carbon emissions — up to 70 percent less than traditional jet fuel.

Parallel to the advancements in SAF, H2Fly’s hydrogen-powered four-seater aircraft took to the skies in Slovenia late last year.

“Alternatives for liquid fuels in aviation are largely hydrogen or electrical, but those technologies are nowhere near where we are with SAF,” says Andrew Chen, principal of aviation decarbonization at RMI. “The beauty of SAF is it’s a drop-in fuel,” so it can go into existing aircrafts, says Chen.

Read More: Airlines Prepare for Greener Future

What Does SAF Come From?

Flight100 set a record as the longest flight to use 100 percent SAF, challenging the current 50 percent SAF blending limit for commercial flights. Flight100's liquid blend consists predominantly of material from waste fats, and a small portion of synthetic kerosene, a type of jet fuel made from plant sugars.

Although some SAF can be created through the utilization of already-available waste materials, a much larger portion will have to be manufactured. This can be done through growing feedstocks, the organic materials used to produce biodiesel – which can be environmentally taxing in itself.

“You need a lot of land to grow all those crops, there’s only so much waste material that you can make liquid fuels from. You don’t even have enough waste oils from all the world’s restaurants to power one airport,” says Lewis Fulton, director of the Energy Futures Program at the University of California Davis.

Aamir Shams, senior associate of climate aligned industries/aviation at RMI called out the steep competition for feedstocks among industries, and the necessity to explore new feedstocks that do not require land usage – such as algae and camelina.

SAF can also be created using electricity and carbon waste, which Fulton points to as the most feasible long-term option – as they don’t require nearly the land that biofuels do. That is, if they can be accessed at a reasonable price point.

“Then it becomes a question of whether you can get enough CO2 to support the volume that you need. CO2 is expensive,” says Fulton.

Read More: The Other Solar Power: How Scientists Are Making Fuel From Sunlight and Air

Shifting to Sustainable Travel

Biofuels are cheaper to produce, and the manufacturing infrastructure is already in place to do so, making them the near-term alternative that airlines are looking to. As of 2022, over 30 airlines have announced their plans to shift to SAF.

To use hydrogen in an aircraft, it needs to be stored as either a liquid or a gas.

Storing liquid hydrogen requires extremely low temperatures, which complicates its use, but by opting for liquid over pressurized gaseous hydrogen, H2Fly could double its fuel capacity and flying range.

Electric air travel struggles with the same limitations as it relates to flying range. Electric aircrafts already exist and are flying short-distance commercial routes, but Chen says the battery technology won’t be able to sustain medium to long haul flights until at least 2030.

Yet the energy efficiency of battery-powered aircrafts is distinctly advantageous – about 70 percent of the energy used to charge the battery can actually be utilized by the aircraft, whereas hydrogen and synthetic fuel hover at an efficiency of around 20 to 30 percent.

Read More: How the U.S. Could Have an All-Renewable Energy Grid

The Costs of Sustainable Flights

With SAF as the leading short-term prospect for an alternative jet fuel, governments, corporations, and airlines are scrambling to create an economic outcome that makes it feasible for the typical consumer.

Traditional kerosene jet fuel in the U.S. retails around $2.85 a gallon, while SAF hovers around $6.69 per gallon. The premium price stems from the scant availability of SAF, paired with the high costs of producing and blending the sustainable fuel.

Even with a prioritization on the cheaper fuels, projections indicate that by 2030, the shift to SAF could translate into an increase in ticket prices ranging from $3 to $14.

However, unlike the technological hurdles that come with hydrogen, “the challenge with SAF is not the technology, it’s the mandates,” says Orlando O. Spencer from OOS Group.

Government policies and shifts in carbon pricing and subsidies could play pivotal roles in narrowing this cost disparity. President Biden created tax credits for farmers using land to create biodiesel, and a target through the U.S. SAF Grand Challenge for the U.S. to produce 35 billion tons of SAF per year by 2050, with a near-term goal of 3 billion by 2030.

And while governments can stimulate production, corporations will need to contribute the bulk of the initial capital to support it. Governments worldwide have begun to recognize the importance of SAF, with mandates in the U.S., U.K., and EU aiming for a 10 percent SAF usage by 2030.

Read More: How to Save Planet Earth

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Title:

Content: Efficient and sustainable aviation fuel from oily plants
According to a new study published in the journal GCB Bioenergy, emissions from the aviation sector could be reduced by up to 68% by switching to plant-derived sustainable aviation fuel (SAF), particularly from non-edible oilseed crops.
These crops represent a variety of mustard plants called brassica carinata, and the study showed that this fuel could be more cost-effective than petroleum fuels.
Carbon footprint
According to a press release published on the official website of the University of Georgia on October 14, sustainability research specialist Dr. Bonnet Doividi believes that “if we can secure the supply of raw materials and provide appropriate economic incentives for supply operations, it is likely that we will produce sustainable aviation fuel from the mustard plant grown in the southern United States. ”
“This sustainable fuel can contribute to reducing the aviation sector ’ s carbon footprint while creating economic opportunities and improving ecosystem services across the southern region. ”
According to a 2019 report by the Environmental and Energy Study Institute in Washington, D.C., the aviation industry has produced nearly 2.4% of all global carbon dioxide emissions.
These emissions have increased to 3.5% of total global emissions, according to a study published in January this year in the journal Atmospheric Environment.
Competitive price supported by political trends
Developed and tested a few years ago, the first jet flight based on pure biofuel derived from Brasica Carinata was successfully launched in 2012, but the cost was much higher than traditional jet fuel.
In their new study, researchers did not aim to demonstrate that sustainable fuels are viable, but to estimate the cost-effectiveness of sustainable fuels and reduce emissions.
A litre of conventional jet fuel currently costs around $0.50, while a litre of sustainable mustard fuel costs between $0.85 and $1.28.
But governments are offering incentives to reduce emissions that didn ’ t exist in 2012, such as President Joe Biden ’ s Sustainable Aviation Fuel Initiative, which offers tax credits for 50% lower emissions than conventional jet fuel.
The study showed that if all available U.S. credits were taken into account, the cost of sustainable aviation fuel made from mustard would range from $0.12 to $0.66 per litre, a competitive price compared to conventional fuels.
In the press release, the researchers stressed the importance of government support for sustainable fuels, with Duvide stating that “current policy orientations in support of the manufacture and distribution of sustainable aviation fuels must continue.
“The initiative announced by President Biden could also be a game-changer in favor of supporting sustainable mustard fuel production. ”
Challenges and Solutions
Like other new approaches, sustainable aviation fuels face many challenges, including the ability to replace important food crops, questions about whether it is possible to grow enough crops to make enough fuel, where and how to grow, what kind of crop and how effectively to reduce emissions.
In turn, the researchers believe that canoe rapeseed can be grown in the southeastern states, where temperatures tend to be warmer in the winter months and it is out of the food production season, meaning it will not directly compete with other crops.
Secondary residues from the sustainable fuel industry can also be used to produce animal feed.
The study highlighted an important problem: the lack of infrastructure in the United States to convert the crop into sustainable fuel.
Researchers are studying the feasibility of building such facilities, hoping to guide farmers, investors and policymakers to make supportive decisions.
According to a report by Science Alret, Duvide explained that the results of their study will be directed to the state of Georgia in particular "as it is the sixth largest consumer of traditional aviation fuel in the country, as well as home to the world's busiest airport, the headquarters of the leading global airline" Delta "(Delta).
Source: Science Alert + Websites
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Airbus estimates the global cargo fleet will need 1,040 freighters by 2041, and NASA and Boeing, along with partners, are investing $1.15 billion in sustainable aircraft development.

Title:

Content: Friday 20 January 2023 Abu Dhabi UAE
Prayer times
News Highlights
Today 's Issue
Today 's Issue
Dunya
NASA and Boeing are developing a sustainable aircraft.
NASA and Boeing are developing a sustainable aircraft.
January 20, 2023 01: 54
Washington (dpa)
NASA and Boeing are planning to collaborate on a new passenger jet that is less fuel-efficient and emissions-producing.
NASA Administrator Bill Nelson said: “From the very beginning, NASA is with you when you fly.
NASA has the courage to fly farther, faster and higher.
In doing so, NASA is making aviation more sustainable and dependable.
It ’ s part of our core. ”
Over a seven-year period, NASA will invest $425 million to produce and test a complete prototype of the new aircraft, with Boeing and its partners contributing the remaining $725 million in project funding.
All rights reserved to Al Ittihad Newspaper 2023 ©